TBO Tek Limited , a leading global travel distribution platform, has reported robust growth for the second quarter of fiscal year 2026, with significant improvements across key financial metrics. The company also announced the completion of its acquisition of Classic Vacations, marking a strategic expansion in the luxury travel segment.

Financial Highlights

TBO Tek demonstrated strong performance in Q2 FY26:

The company's adjusted EBITDA reached Rs. 104.00 crores, showcasing a 16% year-over-year growth. This growth was primarily driven by a nearly 20% increase in the hotels business, which continues to be a key focus area for TBO Tek.

Hotels Business Performance

The hotels segment remained a strong contributor to TBO Tek's growth:

• Nearly 20% growth in GTV
• Maintained gross margins in the mid-60s range
• Approximately 35% of GTV coming from commission-based models

International Market Expansion

TBO Tek reported strong performance in international markets:

• Active agent growth across regions, particularly in Europe and Middle East
• APAC markets showed growth of over 40%, albeit from a smaller base
• Expansion into new markets, with Australia showing promising traction

Classic Vacations Acquisition

The company completed the acquisition of Classic Vacations on October 1st, 2025, which is expected to enhance TBO Tek's presence in the luxury travel market:

• Classic Vacations operates at a 22% take rate and 11% gross profit margin
• Contributes approximately $500.00 million in GTV to TBO's total base of $3.50 billion
• Consolidation of Classic Vacations' financials will begin from Q3 FY26

Operational Improvements

TBO Tek highlighted several operational improvements:

• Expects operating leverage to improve as SG&A growth slows down year-over-year
• India business showed signs of stabilization after previous challenges
• Increased contribution from newly added travel agents, growing from 4.3% to 6.9% of GTV in the first six months of the fiscal year

Future Outlook

While the company did not provide specific guidance, management expressed confidence in continued growth:

• Focus on expanding the supply of luxury and ultra-luxury hotels through the Classic Vacations integration
• Continued investment in technology and AI to improve conversion rates and pricing optimization
• Emphasis on developing complex itineraries and package solutions to enhance the platform's comprehensiveness

TBO Tek's Q2 performance and strategic acquisition position the company well for continued growth in the global travel distribution market. The focus on expanding its hotel business, international market presence, and technological capabilities suggests a promising outlook for the company in the coming quarters.

TBO Tek Limited , a leading global travel distribution platform, has reported robust financial results for the second quarter of fiscal year 2026, marked by broad-based growth and improved profitability. The company also announced the completion of its acquisition of Classic Vacations, a U.S.-based luxury travel company.

Financial Highlights

For Q2 FY26, TBO Tek reported:

*Before acquisition-related costs

The company's performance reflects a strong recovery from Q1's macro headwinds, with key markets like Europe, APAC, and India showing positive momentum.

Operational Performance

• Monthly Transacting Buyers reached 30,662, up 8% YoY, driven by a 23.6% YoY increase in International MTBs.
• Hotels + Ancillaries GTV grew by 20.4% YoY, expanding its saliency in the business mix to 64% of GTV and 87% of Gross Profit.
• The India business arrested the degrowth trend, marking early signs of stability and recovery.

Classic Vacations Acquisition

TBO Tek completed the acquisition of Classic Vacations, a premier B2B2C luxury travel company, for $125 million on October 1, 2025. The acquisition is expected to strengthen TBO's position in the high-value U.S. luxury travel market and expand its global footprint.

IPO Proceeds Utilization

As of September 30, 2025, TBO Tek has utilized ₹1,968.94 crore out of the total ₹3,810.64 crore raised from its IPO. The funds have been allocated as follows:

The company has transferred ₹1,100 crore to its wholly-owned subsidiary, Tek Travels DMCC, for the Classic Vacations acquisition.

Management Commentary

Ankush Nijhawan, Co-founder and Joint MD, stated, "Our growth this quarter was broad-based across regions, led by strong momentum in international markets and early signs of stabilization in India. We are confident of sustaining profitable growth and strengthening the foundation for long-term value creation."

Gaurav Bhatnagar, Co-founder and Joint MD, added, "This quarter's performance reflects both the strength of our model and the discipline of execution. With the KAM expansion nearing completion and Classic Vacations now part of the platform, we enter the next phase with sharper focus, stronger fundamentals, and a wider global footprint."

Outlook

With the completion of the Classic Vacations acquisition and strong Q2 performance, TBO Tek is well-positioned for continued growth. The company's focus on expanding its global presence, particularly in the luxury travel segment, and its improving profitability metrics suggest a positive outlook for the coming quarters.

Investors should note that the company is currently facing ongoing adjudication proceedings with the RBI regarding alleged FEMA violations worth ₹71.23 crore, with the next hearing scheduled for November 3, 2025. The outcome of this matter may impact future financial results.

TBO Tek's strategic investments in technology, expansion of its agent network, and focus on high-value markets demonstrate its commitment to long-term growth in the global travel distribution space.