CRISIL upgrades Thomas Cook India Group’s ratings to CRISIL AA/Stable/CRISIL A1+

Highest rating for a travel & tourism company in India

·        Strong business risk profile with leadership position in travel and foreign exchange segments and healthy presence in hospitality and Digi-photo Imaging (DEI) segments

·        Structural reduction in cost - resulting in better operating margin and ROCE

·        Improved  financial risk profile following sustained healthy operating performance, and reflected in its adequate capital structure and strong liquid surpluses

·        Upgraded rating of parent, Fairfax Financial Holdings Ltd and continued support - adds to stability

Mumbai, June 24, 2025: CRISIL has upgraded the long-term rating and corporate credit rating (CCR) of Thomas Cook (India) Limited (TCIL) to ‘CRISIL AA/Stable’ from ‘CRISIL AA-/Positive’. The short-term rating has been reaffirmed at ‘CRISIL A1+’.

The Thomas Cook India Group reported a healthy 11% revenue growth y-o-y to ₹8,251 crore in FY25 (from ₹7,405 crore in FY24), driven by strong demand across business lines. The travel segment—accounting for over 75% of total revenues—led the surge with 15% growth to ₹6,469 crore, Forex and Hospitality grew by 8% and 10% respectively.

Structural cost reduction initiatives, including automation and branch optimisation have contributed to improved operating margins and enhanced return on capital employed (ROCE), thereby strengthening the Group’s financial risk profile. The financial risk profile has also improved following sustained healthy operating performance, as reflected in its adequate capital structure and strong liquid surpluses.

Improved liquidity of the Thomas Cook India Group: with estimated cash and bank balance of Rs 2,070 crore as on March 31, 2025 (unencumbered balance is ~Rs.700 crore), along with annual cash accrual estimated above Rs. 300 crore. Cash and cash equivalents continue to be strong, supporting both investment and operational requirements. CRISIL expects the financial metrics to remain healthy with consistent cash accruals and disciplined capital management.

The upgrade in rating follows the rating upgrade on the debt facilities of the parent, Fairfax Financial Holdings Ltd (Fairfax) by S&P Global Ratings to ‘A-/Stable’ from ‘BBB+/Positive’.

CRISIL Ratings has combined the business and financial risk profiles of TCIL and its subsidiaries, including Sterling Holiday Resorts Ltd (Sterling), TC Tours Ltd (CRISIL AA-/Stable/CRISIL A1+), Travel Corporation India Ltd (CRISIL AA/Stable), SOTC Travel Ltd (CRISIL AA/Stable/CRISIL A1+), Travel Circle International Ltd, Horizon Travel Services LLC, Travel Circle International (Mauritius) Ltd, and Digi-photo Entertainment Imaging group (DEI). This is because all these entities, collectively referred to as the Thomas Cook India group (or “Group”), are strategically important to, and have considerable operational integration with TCIL.

Mr. Mahesh Iyer, Managing Director & CEO, Thomas Cook (India) Limited said, “This upgrade in CRISIL’s long term rating to ‘AA/Stable’  represents the highest credit rating in Thomas Cook India's history. Also, this is the highest credit rating for any travel and tourism company in India. As leaders in India’s travel & tourism industry, it also reflects the Company's growth in earnings, strong balance sheet, long-term resilience and sustainability measures - coupled with the upgrade in our parent company’s credit rating to ‘A-/Stable’.

The upgraded rating for TCIL also recognises the continued trust and commitment of Fairfax Financial Holdings to the Thomas Cook India Group. As we look ahead, this recognition enhances our ability to scale with confidence and deliver greater value to our customers and stakeholders.”