TBO Tek Limited demonstrated resilience in its financial performance for the first quarter of fiscal year 2026, despite facing significant challenges in the travel industry. The company reported growth across key metrics while navigating through geopolitical conflicts and aviation incidents that impacted the peak summer travel season.

Financial Highlights

• Gross Transaction Value (GTV) increased by 2.00% year-over-year
• Revenue grew by 22.00% compared to the same quarter last year
• Gross profit rose by 19.00% year-on-year
• Monthly transacting buyers expanded by 5.00% to over 29,500

Operational Performance

The company's performance was particularly strong in its hotels and ancillary business, which drove faster growth in revenue and gross profit compared to GTV. Despite the challenges, TBO Tek's EBITDA remained flat on a like-to-like basis, with marginal growth in Profit After Tax (PAT).

Market Challenges

TBO Tek faced several headwinds during the quarter, including:

• India-Pakistan conflict
• Iran-Israel conflict
• An Air India crash during the peak summer travel season

These events led to significant disruptions in the travel industry, particularly affecting the crucial summer travel period.

International Expansion and Investment

TBO Tek continued its aggressive investment in international markets, focusing on hiring key account managers (KAMs). This strategy has shown early positive results:

• Monthly active agents grew from the 8,600-9,000 range to nearly 11,000 in June
• New customer addition rate increased by 69.00% year-over-year
• 4.20% of international GTV was contributed by travel agents added in the same quarter

Regional Performance

Future Outlook

Management expects the investment phase to complete by Q4 FY26, anticipating improved operating leverage in the latter half of the year. July has shown quick recovery in Europe and Middle East markets, with demand normalizing to expected levels.

Gaurav Bhatnagar, Co-Founder and Joint Managing Director, commented on the results during the earnings call: "In spite of these headwinds, the business has shown resilience, and we have continued to grow. Our hope is that we continue to believe in the previous hypothesis that by Q4 we should start to see a lot more operating leverage flow through in this part of the business."

TBO Tek remains focused on its growth strategy, particularly in the hotels and ancillary business, while continuing to optimize its operations and expand its international presence. The company's ability to navigate through industry challenges while maintaining growth underscores its strong market position and adaptive business model in the dynamic travel industry landscape.

TBO Tek , a leading travel technology company, has announced its financial results for the first quarter, showcasing a mixed performance with strong revenue growth but compressed margins.

Revenue Surge

The company reported a significant increase in revenue, which rose to ₹5.11 billion from ₹4.18 billion in the same period last year, marking a robust year-over-year growth of approximately 22%. This substantial revenue expansion underscores TBO TEK's ability to capitalize on the recovering travel market and expand its market presence.

Profit Growth

TBO TEK's net profit for the quarter stood at ₹630 million, up from ₹609 million in the corresponding quarter of the previous year, representing a modest increase of about 3.4%. This growth in profitability, albeit at a slower pace than revenue growth, demonstrates the company's ability to maintain positive bottom-line results in a challenging operational environment.

Margin Pressure

Despite the strong top-line performance, the company faced pressure on its margins. The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) declined to ₹740 million from ₹786 million year-over-year. Consequently, the EBITDA margin compressed to 14.5% from 18.8% in the previous year, indicating increased operational costs or competitive pressures in the market.

Segment Performance

The company's financial results reveal strong performance across its key business segments:

The hotels and packages segment emerged as the primary revenue driver, contributing significantly to both the top line and segment results.

Looking Ahead

As TBO TEK continues to operate in the evolving travel technology sector, investors and stakeholders will likely be watching how the company balances its growth strategy with profitability in the coming quarters. The company's ability to improve its EBITDA margins while sustaining revenue growth will be crucial for long-term value creation.

TBO TEK's Q1 results reflect a company in growth mode, successfully increasing its market share but facing the challenges of maintaining profitability margins in a competitive landscape. The travel technology sector's ongoing recovery and digital transformation trends may continue to provide opportunities for TBO TEK's expansion in the future.