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Domestic travel stocks are in the limelight amid uncertainty around international travel routes and fuel supply disruptions. Strong summer travel demand, rising disposable incomes, and robust tourism activity are enhancing growth prospects for Indian hotels and online travel companies.
Here are three travel stocks to watch:
Thomas Cook (India) is a leading omnichannel travel company offering foreign exchange, leisure and corporate travel, and visa services.
Founded in 1881, it operates across 28 countries and manages brands like SOTC and Sterling Holidays, providing end-to-end travel solutions with a strong global presence.
The company reported revenues of ₹2145 crore vs ₹2061 crore YoY. Net profit stood at ₹44 crore vs ₹46 crore.
Recently, Crisil Ratings has reaffirmed the long-term rating and corporate credit rating (CCR) of Thomas Cook (India) (TCIL) at ‘AA/Stable’, along with its short-term rating at ‘A1+’.
The reaffirmation underscores the group’s resilient business model, strong financial profile and consistent operational performance, even amidst a dynamic and evolving global environment.
IRCTC is a public sector undertaking under the ministry of railways. It serves as the professional hospitality, ticketing, and travel arm of Indian Railways.
Indian Railway Catering and Tourism Corp. manages catering services on trains and at stations, provides online railway ticketing, and promotes domestic and international tourism through tour packages and budget hotels. It is responsible for rail-bound tourism in India.
The company reported Q3 FY26 revenues of ₹1449 crore, against ₹1224 crore YoY. IRCTC net profit were at ₹394 crore vs ₹341 crore.
IRCTC is aiming to grow beyond ticketing. The first initiative it’s taking in this regard is through its payment aggregator business.
The other big plan for the company is unified travel portal. The company aspires to cross-sell travel related products to its existing customers and to other additional customers. IRCTC intends to improve its UI/UX, which will use AI/ML and agentic AI and facilitate the same for travel passengers.
Yatra Online is one of India’s leading online travel companies, offering a wide range of travel booking and management services for both individual and corporate customers.
It operates as an online travel agency (OTA), allowing users to search, compare, and book flights, hotels, holiday packages, trains, buses, and other travel services through its website, mobile app, and offline channels.
The company reported Q3 FY26 revenues of ₹256 crore against ₹235 crore YoY. Profit was at ₹8.3 crore vs ₹10 crore.
In the hotels and packages segment, the overall performance during the quarter remained healthy. However, the company did see some temporary impact in the meetings, incentives, conferences, and exhibitions/events (MICE) and corporate events subsegment, with a few bookings getting deferred due to flight disruptions.
The management in a recent investor conference call said that consumer-focused line of business has returned to growth path while improving margins.
On corporate value proposition, the management believes the same has a huge headroom for growth as the online penetration in the corporate travel market is just about 23%.
Yatra Online prospects remain good, driven by strong corporate travel growth, expanding hotel and package segments, and rising digital bookings.
However, intense competition and pricing pressure in air ticketing remain key challenges despite steady revenue growth.
Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com