Le Travenues Technology Limited (operating as ixigo) reported a consolidated net profit of ₹63.42 crore for the quarter ended September 30, 2026, marking an all-time high compared to a loss of ₹3.2 crore in the corresponding period last year.

The turnaround was driven by an exceptional gain of ₹40.66 crore from the partial sale of its stake in Freshbus Private Limited. Excluding this non-recurring item and ESOP expenses, profit before tax stood at ₹33.53 crore, up 37% YoY. Revenue from operations grew to ₹320.96 crore, while Contribution Margin rose 14% YoY to ₹124.86 crore.

Segment Performance and Revenue Mix

The company operates across Flight, Train, Bus, and Hotel segments. The Train segment remained the largest contributor to revenue, followed closely by Flight and Bus segments. The Hotels segment saw significant revenue growth but continued to post operational losses.

Key Operational Metrics and GTV Growth

The investor presentation highlights robust top-line expansion driven by Gross Transaction Value (GTV). Quarterly GTV reached ₹5,304.47 crore, marking a 22% YoY increase. This growth was supported by strong performance in the Flight and Bus segments, which recorded GTV growth of 37% and 32% YoY respectively.

The newly disclosed Hotels segment emerged as a significant growth driver, with GTV growing 159% YoY (or 2.6x) to ₹111.34 crore. The segment achieved a gross take rate exceeding 12%, the highest among all lines of business. Management noted that the Hotels business crossed 4.7 lakh room nights in Q2FY27, growing 295% YoY, with over 86% of bookings coming from captive users. Hotel inventory stood at 70,000+ properties in India.

What the Numbers Show

A closer look at the financials reveals a divergence between operational profitability and reported bottom-line performance. While the headline net profit of ₹63.42 crore suggests robust earnings, ₹40.66 crore of this figure stems from the exceptional gain on the divestment of Freshbus shares.

Furthermore, other income contributed significantly to the quarter's results, standing at ₹22.08 crore, which is more than four times the ₹5.17 crore recorded in Q2FY26. This surge in other income, largely from interest on deposits and investments, alongside the exceptional item, indicates that the reported profit was heavily influenced by non-operational factors rather than core business expansion alone. Adjusted EBITDA declined 17% YoY to ₹23.58 crore, reflecting continued investment in technology and brand building despite the GTV growth.

Balance Sheet and Cash Flow Highlights

The company's cash position strengthened considerably during the half-year period. Cash and cash equivalents rose to ₹640.53 crore as of September 30, 2026, up from ₹344.49 crore in March 2026. This increase was supported by strong operating cash flows and proceeds from investing activities.

• Net cash flow from operating activities: ₹76.44 crore for H1FY27.
• Total assets: Increased to ₹2,726.21 crore from ₹2,541.31 crore in March 2026.
• Goodwill: Rose to ₹498.69 crore, reflecting recent acquisitions including Brevistay Hospitality.

Corporate Actions and ESOP Allotment

The Board also approved the allotment of 173,780 fully paid-up equity shares upon the exercise of stock options under various Employee Stock Option Schemes (ESOS). Consequently, the paid-up share capital increased marginally to ₹441,258,930. Additionally, PricewaterhouseCoopers Services LLP was re-appointed as Internal Auditors for the financial year ending March 31, 2027.

Le Travenues Technology Limited received a show cause notice from the Karnataka GST authority on September 29, 2026, alleging contravention of the CGST and IGST Acts for FY23.

The notice, issued by the Assistant Commissioner of Commercial Taxes (Audit) in Bengaluru, proposes an aggregate demand of ₹23,79,50,666. This amount comprises a base tax of ₹13,75,43,738, interest of ₹86,65,2554, and a penalty of ₹13,75,4374. The company operates under the brand ixigo.

Nature of Alleged Contravention

The tax authorities contend that ixigo is liable to discharge GST at 18% on passenger transportation services through buses, rather than the 5% rate it currently applies. The company provides reservation and booking services via its online platform as an e-commerce operator.

Under Section 9(5) of the CGST Act, e-commerce operators collect taxes from customers. Passenger transport services are classified under HSN 996422, attracting a 5% GST rate. However, ixigo is also registered under HSN codes for IT-related services and online advertisements, which attract an 18% rate. The authority argues that this registration status mandates the higher tax rate for bus bookings as well.

Company Response and Precedent

The company stated it has a strong case on merits and plans to contest the notice after consulting tax advisors. It highlighted a precedent involving a similar show cause notice for FY22, which involved a demand of approximately ₹3.05 crore. That issue was dropped by the authority following submissions and a personal hearing.

What the Numbers Show

The proposed demand for FY23 is nearly eight times larger than the ₹3.05 crore demand raised for FY22. While the earlier notice was dropped, the significantly higher quantum for the subsequent year suggests intensified scrutiny or a broader interpretation of the taxable base by the authorities. The penalty component alone constitutes roughly 10% of the base tax demand.