TBO Tek (TBOTEK) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 faced significant industry headwinds, including geopolitical conflicts and an airline crash, impacting travel demand during the peak season.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, were approved by the Board and reviewed by auditors with an unmodified conclusion.

• Despite disruptions, monthly transacting buyers grew 5% to over 29,500, GTV rose 2%, revenue increased 22%, and gross profit grew 19% year-over-year.

• Investments in international expansion and sales teams drove a sharp uptick in active agents, with international monthly active agents rising from 8,600–9,000 last year to nearly 11,000 in June.

• The group includes TBO Tek Limited, two subsidiaries, and 19 step-down subsidiaries, with one subsidiary wound up in April 2024.

Financial highlights

• Consolidated revenue from operations for Q1 FY26 was INR 5,112.78 Mn, up from INR 4,184.64 Mn in Q1 FY25.

• Revenue grew 22% and gross profit increased 19% year-over-year, outpacing GTV growth of 2%.

• Consolidated net profit for the quarter was INR 629.68 Mn, compared to INR 609.19 Mn in Q1 FY25.

• EBITDA was flat year-over-year, with marginal PAT growth; heavy investments in international markets limited EBITDA expansion.

• Hotel and ancillary business saliency increased, driving faster revenue and gross profit growth compared to GTV.

Outlook and guidance

• July saw a quick recovery in Europe and Middle East, with demand normalizing and Q2 expected to be significantly better than Q1.

• Management expects SG&A growth to slow by Q4 as investments conclude, with margin stabilization and operating leverage anticipated.

• IPO proceeds remain partially unutilized and are temporarily invested in fixed deposits; further deployment is planned for technology, marketing, and inorganic acquisitions.

• No specific revenue or GTV guidance provided, but Q2 is trending in line with expectations for the Northern Hemisphere summer.

• Full-year EBITDA and GTV growth targets are uncertain due to Q1 headwinds; management will balance investment pace with profitability.