Thomas Cook (India) Ltd has received a significant boost in market credibility with CRISIL upgrading its long-term and corporate credit ratings to ‘AA/Stable’—the highest in the company’s history. This milestone comes on the back of robust financial performance in FY25, marked by an 11% year-on-year revenue increase to ₹8,251 crore, fueled largely by travel segment momentum. With strong cash reserves, prudent capital management, and solid contributions from its foreign exchange and hospitality divisions, Thomas Cook India appears to be charting a sustainable trajectory in the post-pandemic travel economy.
Financial Fortitude: A Snapshot of Thomas Cook India’s FY25 Performance
The recent credit rating upgrade by CRISIL reflects a broader transformation underway at Thomas Cook (India) Ltd. The company reported a consolidated revenue of ₹8,251 crore in FY25, an 11% increase from the previous year’s ₹7,405 crore. The travel vertical, which forms the core of its business and contributes over 75% of the total revenue, witnessed a 15% year-on-year growth, reaching ₹6,469 crore.
Complementing the travel division’s performance, the foreign exchange and hospitality segments posted respectable growth of 8% and 10%, respectively. These figures underscore the company’s ability to diversify income streams while capitalizing on a broad-based recovery in consumer demand across its service lines.
CRISIL’s Upgrade: More Than Just a Metric
CRISIL’s decision to elevate Thomas Cook India’s long-term and corporate credit ratings to 'Stable', while reaffirming its short-term rating at A1+, is indicative of the company’s robust financial architecture. This is not merely a statistical upgrade; it is a tangible vote of confidence from one of India’s foremost rating agencies, grounded in a year of disciplined growth and strategic agility.
CRISIL cited healthy financial metrics, strong liquidity, and consistent cash accruals as key drivers behind the decision. As of March 31, 2025, the company held an estimated ₹2,070 crore in cash and bank balances. Its annual cash accruals are projected to exceed ₹300 crore—a strong foundation to support both operational resilience and future investment plans.
Parent Company Influence and Sectoral Significance
The ratings improvement also mirrors a broader trend in the group’s stability, following S&P Global Ratings’ upgrade of debt facilities for Thomas Cook India’s parent company, Fairfax Financial Holdings Ltd, to 'Stable' from 'Positive'. This parent-level confidence trickles down to its Indian subsidiary, bolstering its overall creditworthiness in the market.
Mahesh Iyer, Managing Director and CEO of Thomas Cook (India) Ltd, emphasized the significance of the development, stating that the upgrade to AA/Stable represents not only a milestone for the company but also sets a new benchmark for India’s travel and tourism sector. “This is the highest credit rating for any travel and tourism company in the country,” Iyer remarked, positioning the company as a bellwether for the industry's financial health.
Strategic Implications for the Travel Sector
In a post-pandemic landscape where travel businesses have struggled to regain footing, Thomas Cook India’s fiscal prudence and diversified growth present a case study in resilience. The company’s omnichannel strategy—blending digital innovation with traditional services—has allowed it to remain agile in shifting market conditions, meeting the needs of both individual travelers and corporate clients.
The rating upgrade is likely to have a cascading effect, enhancing access to lower-cost capital, reinforcing stakeholder trust, and opening up new avenues for investment. It also signals a level of institutional maturity that may prove pivotal as the travel industry navigates global macroeconomic uncertainties and evolving consumer preferences.
Conclusion: A Vote of Confidence with Future Implications
Thomas Cook India’s recent rating uplift serves as more than a corporate accolade—it is a signal of the travel industry’s resilience and the company’s preparedness for long-term, sustainable growth. With a well-diversified business model, strong liquidity profile, and backing from a stable global parent, the company is well-positioned to maintain its trajectory as one of India’s most trusted travel service providers.
As investors and stakeholders take note, Thomas Cook India’s achievement could inspire broader confidence in the sector’s rebound—and perhaps set a financial standard for others to emulate.
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