Thomas Cook India Group’s Ratings Reaffirmed by CRISIL
Filing Summary
CRISIL has reaffirmed the ratings for Thomas Cook (India) Limited at CRISIL AA/Stable for long-term and CRISIL A1+ for short-term, marking the highest rating for a travel and tourism company in India. The reaffirmation highlights the company’s strong financial profile, supported by its parent, Fairfax Financial Holdings. Thomas Cook India reported a revenue growth of 7.4% year-over-year to ₹6,628 crore for the first nine months of FY26. The company maintains a robust capital structure with low leverage and significant cash reserves, despite potential geopolitical risks.
CRISIL Ratings has reaffirmed the long-term and short-term ratings for Thomas Cook (India) Limited (TCIL) at CRISIL AA/Stable and CRISIL A1+, respectively. This rating is the highest for a travel and tourism company in India. The reaffirmation underscores the company’s resilient business model and strong financial profile, even in a dynamic global environment. The ratings reflect the strong backing from its parent company, Fairfax Financial Holdings, and TCIL’s leadership position in India’s travel and foreign exchange sectors.
Financially, TCIL reported a revenue growth of 7.4% year-over-year, reaching ₹6,628 crore in the first nine months of FY26. The travel segment remains the primary growth driver, contributing over 75% of total revenues. The company’s ongoing structural cost optimization initiatives have enhanced operating efficiencies, resulting in healthy margins and improved return on capital employed (ROCE). Despite marginal moderation in margins due to macroeconomic and geopolitical disruptions, overall profitability remains stable, supported by disciplined cost management.
Operationally, TCIL benefits from a diversified presence across hospitality and attraction imaging segments, strengthening its overall business risk profile. The company’s robust capital structure is characterized by low leverage, with a gearing ratio of 0.34x, and significant cash reserves, amounting to approximately ₹2,346 crore as of February 2026. The low utilization of bank limits provides an additional liquidity cushion, reinforcing its credit strength.
The company is undergoing a proposed restructuring, including the demerger of its resorts and resort management business into Sterling Holiday Resorts Ltd. While this may moderate consolidated revenues and EBIT post-completion, the overall credit risk profile is expected to remain robust. CRISIL has acknowledged potential headwinds from ongoing geopolitical developments, but TCIL’s strong liquidity and flexible cost structure are expected to mitigate these risks.
Entities involved in the Thomas Cook India Group include subsidiaries such as Sterling Holiday Resorts Ltd, TC Tours Ltd, Travel Corporation India Ltd, and SOTC Travel Ltd. These subsidiaries are strategically important and operationally integrated within the group, contributing to its overall business and financial profiles.
In the context of market relevance, TCIL’s strong market position, brand equity, and diversified business model are partially offset by exposure to geopolitical risks and competitive intensity. The company’s strategic importance is further enhanced by the ongoing support from Fairfax Financial Holdings, which remains a key rating strength.
About Thomas Cook (India) Limited: Established in 1881, Thomas Cook (India) Limited is a leading omnichannel travel company in India, offering services including foreign exchange, corporate travel, MICE, leisure travel, and value-added services. The company operates a network spanning 28 countries across five continents, with a diversified portfolio of brands and subsidiaries.