Thomas Cook India to top FY26 industry growth: MD & CEO Mahesh Iyer

Firm sees itself outperforming sector's 12-15 per cent growth forecast for FY26 after a strong Q4, with gains in Middle East DMS, MICE, and B2C travel segments

Thomas Cook expects to outperform the country’s overall travel industry growth (including both inbound and outbound travel segments), which is estimated to grow in the range of 12–15 per cent in financial year 2026 (FY26).

 

“My belief is that the (travel) industry should see a 12-15 per cent growth overall,” said Mahesh Iyer, managing director and chief executive officer (MD&CEO), Thomas Cook India. “Most likely that will be the trend (in the travel industry), and we will top the industry growth,” he added.

 

This comes after the company reported a 14 per cent rise in its consolidated net profit to Rs 64.6 crore in the January–March quarter compared with the same quarter last year, led by growth in the company’s travel segment, specifically its Destination Management Services (DMS) in the Middle East region (for desert adventures) due to a large group movement.

 

 

Iyer also anticipates the April–June quarter to be decent, with minimal impact from the ongoing tensions between India and Pakistan.

 

“Post the Pahalgam attack, we did see some softness in our domestic bookings — and understandably so, due to the overall sentiment. We did get some cancellation requests, some were rescheduled to other locations. Despite that, we had some cancellations, but that is less than one per cent of our business for this quarter,” he explained.

 

Iyer noted that, following the ceasefire announcement on Saturday, the company has seen people begin inquiring about bookings from Sunday onwards. He added that for the summer season (April–June quarter), bookings are expected to be better than they were two weeks ago.

 

It was not just the DMS business unit but also the MICE segment (meetings, incentives, conferences and exhibitions), which grew by 33 per cent on a year-on-year (YoY) basis in the January–March quarter for the company.

 

“The B2C (business-to-consumer) side of travel — both domestic and international — grew by a healthy 20 per cent. From an inbound perspective, TCI (Travel Corporation India) and Sita Travels (inbound travel brands) saw their volume and profitability grow by 20 per cent and 25 per cent, respectively,” he added.

 

Iyer also said that these were among the primary factors that helped increase the company’s margins. Thomas Cook India’s PBIDT (profit before interest, depreciation and tax) rose by 23.6 per cent to Rs 148.3 crore for the quarter ended 31 March, on a YoY basis.

 

The travel company’s net sales jumped by 18.3 per cent to Rs 1,968.9 crore in Q4FY25 on a YoY basis, while its other income surged by 84.6 per cent to Rs 53.1 crore in the January–March quarter compared with the same quarter last year.

 

Overall, airfares on the domestic side were relatively lower in the January–April period — down 4 per cent compared with the same period last year. On the international side, airfares remained flat or in line with 2024 levels, Iyer added.