Thomas Cook (India) Ltd.THOMASCOOK₹169.30 -0.29%

CRISIL has reaffirmed its long-term rating of CRISIL AA-/Positive and short-term rating of CRISIL A1+ for Thomas Cook (India) Ltd., citing strong parent support from Fairfax Financial

Holdings, a stable financial profile, and improved operating performance across core business segments in FY25. The reaffirmation reflects confidence in Thomas Cook’s continued recovery, diversified revenue base, and strong liquidity cushion, despite geopolitical uncertainties and sector-wide competition.

Strong Business Recovery in FY25

Thomas Cook India reported an 11% YoY rise in consolidated revenue to ₹8,197 crore in FY25, led by a 15% growth in its core travel segment, which accounted for over 75% of overall revenue. The company also saw steady performance in foreign exchange (up 8%) and hospitality services (up 10%). However, revenue from the digital imaging business (DEi) declined 9%. Overall operating margins remained healthy at 6.52%, despite a slight moderation from 6.99% in FY24, aided by structural cost-saving measures such as branch rationalization and digitization.

Backed by Fairfax and Conservative Capital Structure

A key factor underpinning Thomas Cook’s rating is its strategic importance to parent Fairfax, which holds a 72% stake and has a proven track record of capital infusion and managerial oversight. The group’s liquidity remains robust with cash and bank balances of ₹2,070 crore (₹700 crore unencumbered).

Operational Synergies and Brand Strength

Thomas Cook India continues to benefit from its leadership in the travel and forex markets, aided by its strong brand equity, vast global footprint across 25 countries, and customer-focused innovations like multi-currency cards, TCPay, and video KYC. Its forex business commands nearly one-third of the prepaid card market, while its ‘Study Buddy’ program has strengthened its position in education-related forex.

Risks and Outlook

CRISIL has maintained a ‘Positive’ outlook, reflecting expectations of continued improvement in operating metrics, stable liquidity, and sustained parent support. However, the company remains exposed to geopolitical risks, competitive pressures, and potential execution risks from its inorganic growth strategy. That said, structural cost discipline and diversification across verticals are expected to support earnings resilience.

Over the last three years, this stock has given multibagger returns of more than 170%.

Let’s take a look at its Factor Analysis scores:


Note: The stock price mentioned is as of 11:25 AM.

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