TBO Tek Q1: Profit Surges 3% YoY To INR 63 Cr

B2B travel tech company TBO Tek’s net profit for the first quarter of the fiscal year 2025-26 (Q1 FY26) surged over 3% year-on-year (YoY) to INR 63 Cr from INR 60.9 Cr in the same quarter previous year. 

On a sequential basis, the company’s profit surged 7% to INR 58.9 Cr. 

The company’s top line surged heftily on both a quarter-on-quarter (QoQ) and a YoY basis. In Q1 FY26, TBO Tek’s operating revenue stood at INR 511.3 Cr, marking a 22% uptick from INR 418.5 Cr in Q1 FY25 and a 15% jump from INR 446.1 Cr top line reported in the previous quarter.

Including other income of INR 12.7 Cr, the company’s total income for the period stood at INR 524 Cr. Meanwhile, its expenditure surged 14% QoQ and 27% YoY to INR 456.4 Cr. 

Meanwhile, adjusted EBITDA remained flat at INR 85 Cr. 

Important to mention that the company incurred a loss of INR 7.7 Cr due to exceptional items in the quarter, a cost which was absent in the previous quarter. The company said that this came from a $1 Mn recovery of bad debts, which had been written off in the past, from one of its Kuwaiti collection agents. 

In the shareholder letter for the quarter, TBO Tek’s founders Gaurav Bhatnagar and Ankush Nijhawan said that TBO Tek’s business remained resilient despite Q1 being one of “the more challenging quarters for our business”. 

Over the three months ended June 31, unfortunate incidents, including geopolitical conflicts (India-Pakistan conflict), The Air India Plane Crash, and economic pressures threatened to “derail the travel industry”. Important to note that online travel aggregator MakeMyTrip also attributed muted growth in Q1 to the incidents that occurred in the quarter. 

In line with this, TBO Tek managed to see only a 2% YoY uptick in its gross transaction value (GTV) grow by a modest to 8,119 Cr. A similar picture was seen for TBO Tek’s monthly transacting buyers (MTBs), which only grew by about 5% YoY to reach 29,570 in the quarter. 

TBO Tek’s hotel business’s contribution to its top line increased on a QoQ basis, contributing 83% from Q1 FY25’s 77%. The hotel business’s revenue surged 32% YoY to INR 422.6 Cr in Q4 FY25. The business clocked 62.3% or INR 5,060 Cr of the GTV for the quarter, compared to 60.3% in the previous quarter, while contributing 84.4% of the gross profit for the quarter. 

In this, the European hotel booking business of the company registered the highest GTV of INR 1,773 Cr, despite Israel, which is one of our larger source markets in the region, being temporarily impacted by the escalations with Iran. 

While the hotel business managed to register reasonable growth, the real impact of the incidents in the quarter was evident in the company’s air ticketing business. In Q1, TBO Tek’s air ticketing business’s revenue dipped 14% YoY to INR 78.2 Cr while profits from this segment dipped 8% YoY to INR 42.5 Cr. 

“Remarkably, even amid these severely challenged market conditions for India and the Aviation space, the India business began to show early signs of trend reversal and stabilisation. While GTV degrowth on a YoY basis, for the India business, in Q4 FY25 was 11.3%, Q1 FY26 saw India business GTV YoY degrowth moderate to 9.2%, despite the challenging quarter,” the company said. 

Shares of TBO Tek ended today’s trading session down 2.11% from INR 1,384.65.