Thomas Cook (India) Limited (TCIL) and its subsidiaries have received a significant boost to their credit standing, with CRISIL upgrading their long-term rating and corporate credit rating (CCR) to ‘CRISIL AA/Stable’ from ‘CRISIL AA-/Positive’. The short-term rating remains reaffirmed at ‘CRISIL A1+’. This marks a historic achievement for the Thomas Cook India Group, representing the highest credit rating ever attained by a travel and tourism company in India.
The upgrade underscores the Group’s formidable business risk profile, characterized by its dominant position in India’s travel and foreign exchange markets, complemented by a healthy presence in the hospitality and Digi-photo Imaging (DEI) segments. CRISIL’s assessment highlights a structural reduction in operating costs, which has translated into improved operating margins and a stronger return on capital employed (ROCE).
Financially, the Group has demonstrated sustained healthy operating performance, leading to an enhanced financial risk profile. This is evident in its well-structured capital base and substantial liquid surpluses. As of March 31, 2025, the Thomas Cook India Group boasted an estimated cash and bank balance of ₹2,070 crore, with approximately ₹700 crore unencumbered. Annual cash accruals are projected to exceed ₹300 crore, ensuring robust liquidity for both operational and investment needs. CRISIL anticipates these healthy financial metrics, combined with consistent cash accruals and disciplined capital management, to persist.
A contributing factor to the rating upgrade is the improved credit rating of its parent company, Fairfax Financial Holdings Ltd, whose debt facilities were recently upgraded by S&P Global Ratings to ‘A-/Stable’ from ‘BBB+/Positive’. This continued support from Fairfax further solidifies the Group’s stability.
CRISIL’s comprehensive analysis combined the business and financial risk profiles of TCIL with its key subsidiaries, including Sterling Holiday Resorts Ltd, TC Tours Ltd, Travel Corporation India Ltd, SOTC Travel Ltd, Travel Circle International Ltd, Horizon Travel Services LLC, Travel Circle International (Mauritius) Ltd, and the Digi-photo Entertainment Imaging (DEI) group. This integrated approach acknowledges the strategic importance and significant operational synergy among these entities, collectively referred to as the Thomas Cook India Group.
The Group reported impressive financial results for FY25, with revenue growing 11% year-on-year to ₹8,251 crore, up from ₹7,405 crore in FY24. This growth was primarily fueled by strong demand across all business lines. The travel segment, which accounts for over 75% of total revenues, spearheaded this surge with a remarkable 15% growth, reaching ₹6,469 crore. The Forex and Hospitality segments also demonstrated healthy growth of 8% and 10% respectively.
Mr. Mahesh Iyer, Managing Director & CEO, Thomas Cook (India) Limited, expressed his satisfaction with the upgrade, stating, “This upgrade in CRISIL’s long-term rating to ‘AA/Stable’ represents the highest credit rating in Thomas Cook India’s history. It also stands as the highest credit rating for any travel and tourism company in India.” He further added that the upgrade reflects the company’s robust earnings growth, strong balance sheet, long-term resilience, and sustainability initiatives, all complemented by the parent company’s improved rating.
“The upgraded rating for TCIL also recognizes the continued trust and commitment of Fairfax Financial Holdings to the Thomas Cook India Group,” Mr. Iyer concluded. “As we look ahead, this recognition enhances our ability to scale with confidence and deliver greater value to our customers and stakeholders.”
