TBO Tek announced strong financial results for the second quarter of fiscal year 2027, ending September 30, 2026. The company reported a 31% year-on-year growth in Gross Transaction Value (GTV) to ₹11,695 crore and a 47% year-on-year increase in Adjusted EBITDA to ₹152 crore. This performance was driven by broad-based strength across its global operations, demonstrating the platform’s resilience in a challenging macro environment.
TBO Tek Delivers Strong Q2 FY2027 Performance
TBO Tek has announced its financial results for the second quarter and first half of the fiscal year 2027, ending September 30, 2026. The company showcased robust growth across key performance indicators, underscoring its inherent resilience and continued execution on fundamentals amidst uncertain macroeconomic conditions.
Key Financial Highlights
The reported metrics for the quarter demonstrate significant year-on-year expansion:
- Gross Transaction Value (GTV): Increased by 31% to ₹11,695 crore.
- Revenue: Grew by 53% to ₹866 crore.
- Gross Profit: Saw a substantial increase of 54% to ₹561 crore.
- Adjusted EBITDA: Climbed by 47% to ₹152 crore.
On a constant currency basis, the reported GTV grew by 25%, Revenue by 45%, Gross Profit by 47%, and Adjusted EBITDA by 37%.
TBO Organic Performance
The TBO Organic business also contributed significantly to the overall growth:
- GTV increased by 22% YoY to ₹10,890 crore.
- Revenue grew by 14% YoY to ₹650 crore.
- Gross Profit rose by 21% YoY to ₹441 crore.
- Adjusted EBITDA saw a 36% YoY increase to ₹141 crore.
On a constant currency basis, TBO Organic GTV grew by 16%, Gross Profit by 14%, and Adjusted EBITDA by 27%.
Executive Summary of Key Trends
TBO’s performance highlights include:
- Robust growth driven by the platform’s structural operating leverage.
- The India business displayed healthy growth across its Airlines and Hotels + Ancillary segments.
- Monthly transacting buyers in the organic international business reached a record 14,449, up 17.4% YoY, attributed to investments in Key Account Management (KAM).
- A recovery in the Middle East Hotels + Ancillary business, with regional GTV growing 10% YoY on a constant currency basis, suggesting market share gains.
- Gross profit margin in the Hotels and Ancillary segment improved to 5.5% of GTV.
- Cash and Cash Equivalents stood at ₹2,060 crore as of September 30, 2026. The company also prepaid $10 million of its term loan, reducing outstanding debt to $60 million.
Founders’ Message Highlights
The founders, Gaurav Bhatnagar and Ankush Nijhawan, emphasized continuity, execution, and delivery during the quarter. Key points from their message include:
- Monthly transacting buyers hit an all-time high, reflecting benefits from past investments.
- GTV for the organic business grew by 22% YoY, with Adj. EBITDA growth outpacing Gross Profit growth due to operating leverage.
- Integration of Classic Vacations is on track, enhancing capabilities in luxury complex trips.
- Investments in commercial presence and agent relationships are yielding results.
- Strategic priorities include expanding distribution, strengthening supply, and enhancing partner value.
- Technology, AI, and simplified workflows are central to improving productivity and reducing costs.
Geographical Performance Insights
The report details performance across key geographies:
- Europe: Led growth with 36% YoY GTV growth.
- Middle East & Africa (MEA): Saw a robust recovery with regional GTV growing 10% YoY on a constant currency basis.
- North America: Continued focus on both Classic Vacations and organic TBO business, with healthy growth in Q2’FY27.
- Latin America: GTV grew 9% YoY in Q2’FY27, despite regional volatility.
- Asia Pacific (APAC): Demonstrated high growth with 33% YoY GTV growth for Q2’FY27.
Specific Q&A on Financials and Operations
The document also addresses several investor queries:
- Monthly Active Agents: Continued to grow, with no flattening observed despite no new investments in KAM expansion.
- Classic Vacations Performance: Completed its first year with TBO Tek. Adjusted EBITDA as a % of GTV was 1.3% for Q2’FY27.
- Gross Profit Margins: Organic Hotels + Ancillary business margins recovered to 5.5% of GTV, showing a positive direction.
- SG&A Expenses: The organic business saw higher growth in SG&A, partly due to annual merit increases and business support services.
- Exceptional Expense: An expense of ₹8.1Cr was reported due to irregularities identified at a subsidiary, with an investigation underway.
- Enforcement Directorate Order: A penalty of ₹222.16 Mn was imposed on the company related to a FEMA matter, with an appeal planned.
- Foreign Exchange Fluctuations: The quarter reported a total foreign exchange loss of ₹8.9Cr.
Key Financials Overview
The provided financial tables detail key metrics including Profit/loss, Tax Expense, Finance Costs, Depreciation, Net Loss on Foreign Exchange, Other Income, Exceptional Items, EBITDA, Adjusted EBITDA, and Revenue from Operations across different periods. Adjusted EBITDA margin for the quarter stood at 17.6%.
Source: BSE
