TBO Tek Shares Tank 5% Post Q1 Results

Shares of TBO Tek slipped as much as 5.2% to INR 1,322 in today’s trading session after the B2B travel tech company reported its Q1 results.

TBO Tek’s net profit rose 3% year-on-year (YoY) and 7% quarter-on-quarter (QoQ) to INR 63 Cr in the first quarter of the fiscal year 2025-26 (Q1 FY26). Meanwhile, operating revenue grew 22% YoY to INR 511.3 Cr from INR 418.5 Cr.

The stock later trimmed some losses, trading 2.34% lower at INR 1,362.25 on the BSE at 12:50 PM, taking the company’s market capitalisation to INR 14,792.37 Cr, with around 2.2 lakh shares changing hands by that time.

The stock remains down nearly 30% from its 52-week high of INR 2,000 in September last year. It had also touched a 52-week low of INR 985 on April 7 2025. 

The stock has given a negative return of 21.80% to its investors on a YTD basis, against the 31.09% positive return offered by the Sensex during the same time. 

For Q1 FY26, TBO Tek witnessed a 2% YoY uptick in its gross transaction value (GTV) 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 performance for the quarter remained muted on the back of the impact on travel demand due to global and domestic challenges, including Indo-Pakistan border tension, the Air India crash and the Israel-Iran conflict. 

The hotel business managed to register reasonable growth, but the real impact of the incidents in the quarter was evident in the company’s air ticketing business.

Airline business accounted for ~38% of GTV this quarter, but only about 11-12% of gross profit, hotel business (and ancillaries) formed ~62% of GTV and contributed over 85% of gross profit, the company said in its earnings call. 

The company also saw expansion in the take rate due to shifts towards higher-margin products like hotels and ancillary services. It has also undergone major hiring in this quarter, which is expected to finish by Q3 FY26. After that, the extra hiring costs are expected to subside. 

The company’s management also remained optimistic about margin stabilisation and significant growth acceleration by Q4.

Shares of TBO Tek ended today’s trading session down 1.2% at INR 1378 on the BSE.