Thomas Cook India FY26: Income up 3%, Q4 revenue falls 10%

FY26 in context: stable nine months, tougher Q4

Thomas Cook (India) said FY26 played out in an “abnormal” operating environment, with geopolitical and macroeconomic disruptions weighing on travel demand. Management described FY26 through two lenses: the first nine months, when conditions were relatively stable, and Q4, when the impact became “significantly more visible” across the industry. The company highlighted that peak travel seasons were either lost or shortened, affecting demand and pricing across multiple routes and destinations. It also pointed to cost headwinds and a travel market that was “recalibrating” in real time. Against this backdrop, the group said its India operations showed resilience while certain overseas businesses faced direct pressure from Middle East developments.

Consolidated FY26 headline numbers

For FY26, Thomas Cook (India) reported total consolidated income of ₹85,578 million, up 3% year-on-year, with revenue from operations at ₹83,982 million compared with ₹81,396 million a year ago. Consolidated expenses rose to ₹82,249 million from ₹78,994 million. FY26 EBITDA was ₹5,871 million versus ₹6,217 million in FY25, while EBIT was ₹4,276 million compared with ₹4,798 million. Profit before tax (before exceptional items) stood at ₹3,328 million, down from ₹3,852 million in FY25, and reported PAT was ₹2,205 million versus ₹2,584 million.

Q4 FY26: revenue drops, profitability softens

In Q4 FY26, total income came in at ₹18,055 million, down 11% year-on-year. Consolidated revenue from operations for the quarter was ₹17,707 million, a 10% fall from ₹19,689 million in Q4 FY25. EBITDA declined to ₹1,131 million from ₹1,514 million, and EBIT fell to ₹707 million from ₹1,151 million. Profit before tax (before exceptional items) for the quarter was ₹477 million versus ₹916 million in the year-ago period, while reported PAT stood at ₹307 million compared with ₹660 million.

India resilience versus overseas pressure

Management said India operations “maintained EBIT” for FY26 and grew by 16% in Q4 FY26, supported by financial services, short-haul outbound corporate travel, India inbound business, and MICE. It added that Sterling’s results supported group performance, with Sterling delivering a 19% topline increase in the quarter and 7% growth for the full year, linked to a growing resort network. On the overseas side, the company flagged pressure in businesses directly affected by the war environment, specifically Desert Adventures, its destination management unit in the Middle East, and DEI, its digital imaging business, which has around 50% of revenue attributed to UAE markets.

Segment view: Travel and related business

Within travel and related operations, the company reported FY26 total revenue of ₹67,025 million, up 4% year-on-year. Segment EBIT declined 11% to ₹2,218 million, translating to an EBIT margin of 3.3%. Management attributed the margin pressure largely to geopolitical impacts in overseas subsidiaries. It also described domestic portfolio challenges early in the year, citing disruptions and uncertainty that affected demand.

B2B travel: Desert Adventures slump offsets other markets

The company said Desert Adventures recorded the most visible impact, with revenue down 50% in the quarter, along with a volume shortfall due to the absence of large MICE events. Management also highlighted that Q4 FY25 had a higher base due to non-recurring business: about ₹1,000 million of government-related India MICE business and about ₹1,000 million of destination wedding sales in Dubai that did not repeat in Q4 FY26. In contrast, some international units partially offset pressure. Asian Trails (Asia Pacific) reported revenue growth of 18% for the full year and 6% in the quarter. Li3Pro (US operations) grew revenue 9% for the year and 12% in Q4 FY26, supported by higher volumes despite continued challenges in US inbound travel. Private Safaris in Southern Africa recorded revenue growth of 23% for the quarter and 34% for the full year, while East Africa saw an 87% increase for the quarter and 18% for the full year.

Corporate travel: net reporting, higher scale

Thomas Cook (India) said corporate travel is reported on a net basis and delivered a turnover of ₹26,000 million. Reported revenue for the full year was ₹1,541 million, up 19% year-on-year, and revenue grew 28% during the quarter. The company said it has about 8,000 corporate clients with digital adoption of over 30%. It added that it acquired eight new accounts in Q4 FY26 across financial services, automobile, telecom, and energy, with four new large corporate accounts in the pipeline.

Sterling Holiday: record Q4 and debt-free balance sheet

Sterling reported Q4 FY26 revenue of ₹1,408 million, up 14% year-on-year. Q4 EBITDA grew 10% to ₹348 million, and profit before tax increased 18% to ₹207 million. Sterling said it completed its 25th consecutive profitable quarter and ended the period with cash reserves close to ₹3,400 million, while maintaining a completely debt-free balance sheet. For FY26, Sterling reported total revenue of ₹5,487 million, EBITDA of ₹1,701 million with a margin of 31%, and profit before tax of ₹1,142 million with a PBT margin of 21%.

Demerger plan and other corporate actions

Management said that in March 2026 the board granted in-principle approval for the demerger of the resort business. It also outlined a Composite Scheme of Arrangement involving subsidiaries, positioned as a way to simplify the corporate structure and improve earnings per share. Separately, the company said it sold an immovable property in Udyog Vihar Phase III, Gurugram, resulting in a profit of ₹256.5 million (reported as ₹177.4 million net of tax) under exceptional items. It also recognised an exceptional item related to past service costs arising from the New Labour Codes effective November 21, 2025, of ₹301 million on a consolidated basis.

Key numbers at a glance

What investors will track next

The company indicated a “wait and watch” approach from customers in parts of the market, with demand expected to return later in the year, according to management commentary. Near-term monitoring will likely focus on how quickly international destination management demand normalises, especially in the Middle East-linked businesses. Investors will also watch execution on the proposed resort business demerger and the broader simplification under the Composite Scheme of Arrangement, both of which remain subject to approvals. Sterling’s continued profitability and cash position, alongside corporate travel growth, remain important offsets in a volatile travel environment.

Conclusion

Thomas Cook (India) ended FY26 with a 3% rise in consolidated income to ₹85,578 million, but Q4 profitability and revenue were meaningfully weaker as geopolitical disruptions intensified. Management outlined a restructuring path, including the resort business demerger initiated in March 2026, while highlighting resilience in India operations and Sterling’s record quarter. The next set of updates is expected to centre on regulatory and shareholder approvals for the scheme and the pace of recovery across overseas travel corridors.