CRISIL has upgraded the long-term and corporate credit rating (CCR) of Thomas Cook (India) Limited (TCIL) to ‘CRISIL AA/Stable’ from ‘CRISIL AA-/Positive’, while reaffirming its short-term rating at ‘CRISIL A1+’. This upgrade marks the highest-ever credit rating received by a travel and tourism company in India.

The rating upgrade reflects the company’s strong financial performance in FY25, with revenue rising 11% year-on-year to ?8,251 crore from ?7,405 crore in FY24. The travel segment, contributing over 75% of total revenues, recorded a robust 15% growth to ?6,469 crore, while the Forex and Hospitality businesses grew by 8% and 10%, respectively.

Strategic cost optimization initiatives—such as automation and branch rationalization—have improved operating margins and return on capital employed (ROCE), reinforcing the group’s financial risk profile. The company has maintained a healthy capital structure and strong liquidity, with estimated cash and bank balances of ?2,070 crore as of March 31, 2025, including approximately ?700 crore in unencumbered funds. Annual cash accruals are projected to exceed ?300 crore, enabling sustained investments and operational efficiency.

CRISIL’s upgrade also follows the improved credit rating of TCIL’s parent company, Fairfax Financial Holdings Ltd, whose debt rating was raised to ‘A-/Stable’ from ‘BBB+/Positive’ by S&P Global Ratings.

CRISIL evaluated the consolidated business and financial risk profiles of TCIL and its key subsidiaries, including Sterling Holiday Resorts Ltd, SOTC Travel Ltd, Travel Corporation India Ltd, TC Tours Ltd, Travel Circle International entities, and DEI (Digi-photo Entertainment Imaging group). These entities are seen as strategically important to the group, with significant operational integration.

Commenting on the development, Mahesh Iyer, Managing Director & CEO of Thomas Cook (India) Limited, said:

“This upgrade to ‘CRISIL AA/Stable’ represents a historic milestone for Thomas Cook India and is a reflection of our strong earnings growth, solid balance sheet, and long-term resilience. It also marks the highest credit rating for any travel and tourism company in India. The upgrade in our parent Fairfax’s rating further affirms the trust and commitment we enjoy. This recognition strengthens our foundation to scale further and deliver even greater value to our customers and stakeholders.”