Thomas Cook (India) gets CRISIL AA/Stable reaffirmed, CP at A1+

The rating action in numbers

What the rating action covers

CRISIL reaffirmed the long-term rating at CRISIL AA/Stable and the short-term rating at CRISIL A1+ on the bank facilities and the commercial paper programme. The rated bank facilities total ₹433 crore, and the ₹50 crore commercial paper is rated CRISIL A1+.

CRISIL also withdrew the corporate credit rating following a request from the company. The rating rationale says the withdrawal is in line with CRISIL's policy on withdrawal of ratings.

Fiscal 2026 earnings and the outlook CRISIL gives

In fiscal 2026 consolidated operating income grew 3.4% to ₹8,517 crore, while the Ebitda margin moderated to 6.4% from 7.1% in fiscal 2025. Consolidated revenue from operations fell around 13% year on year in the first quarter of fiscal 2027.

CRISIL expects consolidated operating income to decline by 2% to 5% in fiscal 2027 and the Ebitda margin to stay above 5%. It also says the proposed demerger of the hospitality segment from fiscal 2028 is expected to reduce consolidated scale, earnings and Ebitda margin, with the margin remaining more than 4% after the demerger.

Cash and short-term investments were around ₹2,650 crore as on 30 Jun 2026. After the approximately ₹1,750 crore forex card float, unencumbered cash is estimated at around ₹900 crore, according to the rating rationale.

Parent support and what could change the rating

CRISIL's ratings rest on expectations of continued strong support from the parent, Fairfax Financial Holdings Limited, which it calls a key rating sensitivity factor. Fairfax acquired a 77% stake in the company in May 2012 through Fairbridge Capital (Mauritius) Limited, and its holding stood at 72% as on 30 Sep 2022.

The rationale lists downward factors including a downgrade of Fairfax's credit profile and any adverse change in Fairfax's shareholding or its stance on extending support.

What the rating action means for Thomas Cook (India)'s shareholders

The filing reports affirmed ratings and a withdrawn corporate credit rating. It does not give the reason for the withdrawal beyond the company's request, and it does not say what the withdrawal means for the company's outstanding debt. Whether the parent's support will be formally extended beyond the rating rationale is also not stated.

The next dated step in the filing is the proposed demerger of the hospitality segment from fiscal 2028.

Reference: Original filing (PDF)