TBO Tek announced its financial results for the third quarter of FY2026, demonstrating a 35.5% YoY growth in consolidated GTV to ₹9,709 Cr. Reported revenue surged 86% YoY to ₹784 Cr, driven significantly by the first-time consolidation of Classic Vacations (CV). While the organic business showed consistent growth, management emphasized using Gross Profit as the more robust metric for measuring monetization, with enterprise Gross Profit growing 63% YoY.
TBO Tek Q3 FY2026 Performance Highlights
TBO Tek reported a strong third quarter for FY2026, marked by the consolidation of Classic Vacations (CV) into its operational and financial metrics. The company achieved a solid quarter with 86% YoY revenue growth and 53% YoY growth in Adjusted EBITDA (before M&A costs).
Key Consolidated Metrics (Reported)
- Gross Transaction Value (GTV): Stood at ₹9,709 Cr, marking a 35% YoY increase.
- Revenue from Operations: Reached ₹784 Cr, an 86% YoY surge.
- Gross Profit (GP): Increased by 63% YoY to ₹483 Cr.
- Adjusted EBITDA (Before M&A Costs): Rose 53% YoY to ₹115 Cr.
- Monthly Transacting Buyers (MTBs): Totaled 33,324, up 16% YoY.
Organic Growth and Business Nuances
Excluding the impact of Classic Vacations, the organic business demonstrated consistent underlying trajectory:
- Organic GTV grew 20.9% YoY, led by the Hotels and Ancillary business (24% YoY growth).
- Organic Revenue grew 24% YoY to ₹524 Cr.
- Organic Gross Profit increased by 19% YoY to ₹352 Cr.
- Organic Adjusted EBITDA (before M&A costs) grew 19% YoY, matching organic Gross Profit growth.
Monetization and Take Rates Analysis
Management noted the complexity introduced by CV’s consolidation, urging shareholders to focus on Gross Profit as the most reliable measure of value capture, given structural differences in revenue recognition and commission structures between the two entities.
- The consolidated Enterprise Take Rate jumped to 8.08% (from 5.89% in Q3’FY25). This was heavily influenced by CV’s high headline take rate of 24.94%, which includes a commission component passed through to travel advisors.
- The organic business maintained a steady take rate of 6.04%.
- GP/GTV Conversion improved to 5.0% enterprise-wide, driven by CV’s 12.6% GP/GTV conversion rate.
- GTV to Adjusted EBITDA conversion improved to 1.18% (from 1.05% in Q3’FY25).
Geographic Performance Insights
Performance across geographies showed varied growth profiles, particularly within the Hotels + Ancillaries GTV segment, where CV’s check-in basis data is reflected:
- North America saw a massive 279% YoY GTV increase, largely due to the first-time consolidation of CV.
- Europe, APAC, and MEA delivered strong, broad-based growth of 34%, 34%, and 33% YoY, respectively.
- Latin America grew at a steadier pace of 10% YoY.
- In India, Total GTV grew 14.7% YoY despite headwinds in the domestic Air market.
Investment Traction and Efficiency
Growth investments continue to show traction, particularly in the International Business segment (excluding CV and Jumbo Online):
- Monthly Active Agents (MAA) reached an all-time high of 12.5K in October’25, representing 31.4% YoY growth. December MAA stood at 12.2K (up 33.7% YoY).
- Engagement metrics like T5 and T10 volumes grew by 82.7% and 88.5% YoY, indicating robust agent activation.
- The contribution of newly onboarded agents to international business sales increased to 9.4% for the first 9 months of FY26.
- Organic SG&A expense growth (before M&A costs) continued to moderate, falling to 17.4% YoY in Q3’FY26, crossing the threshold where organic Gross Profit growth (19% YoY) began to outpace SG&A growth.
Balance Sheet Strength
Despite significant acquisition-related cash outflows of approximately ₹979 Cr during the quarter, the company closed the period with ₹1,492 Cr in cash and cash equivalents, bolstered by the negative working capital contribution from Classic Vacations.
Source: BSE
