Are Thomas Cook (India) Ltd latest results good or bad?

The latest financial results for Thomas Cook (India) Ltd reveal a complex operational landscape. In Q2 FY26, the company reported a consolidated net profit of ₹66.44 crores, reflecting a year-on-year increase of 2.39%, yet this figure represents a sequential decline of 7.79% from the previous quarter. Revenue for the same quarter stood at ₹2,073.84 crores, showing a modest year-on-year growth of 3.50%, but this is a significant slowdown compared to the 14.34% growth seen in Q1 FY26. The sequential revenue decline of 13.88% raises concerns regarding market share and competitive positioning. Operating margins, excluding other income, compressed to 5.22%, down from 6.46% in the same quarter last year, indicating potential challenges in cost management and competitive pressures. The profit before tax, excluding other income, also showed a decline, highlighting difficulties in maintaining profitability despite a structurally favorable environment for travel services. The company’s reliance on other income remains high, constituting a significant portion of profit before tax, which raises questions about the sustainability of its core operating profitability. Additionally, the return on equity (ROE) remains low at 4.91%, suggesting challenges in generating shareholder value. In the subsequent quarter ending December 2025, the company experienced a net sales growth of 3.46% compared to the previous quarter, which is an improvement from the previous decline. However, the consolidated net profit saw a decline of 37.24%, indicating ongoing challenges in profitability despite the slight recovery in sales. Overall, Thomas Cook (India) Ltd is navigating a challenging operational environment, with signs of both revenue growth and profitability pressures. The company has seen an adjustment in its evaluation, reflecting the mixed signals from its financial performance.