TBO Tek (TBOTEK) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 was a strong quarter, benefiting from the peak travel season in the Northern Hemisphere, with historical trends repeating as Q2 remains the strongest quarter of the year.

• The business rebounded from Q1's macroeconomic and geopolitical headwinds, achieving stable growth in Q2.

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

• The company completed its IPO in June 2024, raising INR 4,000 Mn via fresh issue and INR 11,508.09 Mn via offer for sale; shares are now listed on NSE and BSE.

• The acquisition of Classic Vacations was completed, with integration underway and consolidation of its numbers starting Q3.

Financial highlights

• Gross Transaction Value (GTV) grew by 12% year-over-year, driven by nearly 20% growth in the hotels segment.

• Gross Profit (GP) increased by 19% year-over-year, outpacing GTV due to a favorable mix shift toward hotels and improved retention.

• Consolidated revenue from operations for Q2 FY26 was INR 5,675.10 Mn, up from INR 4,506.92 Mn in Q2 FY25; six-month revenue was INR 10,787.88 Mn, up from INR 8,691.56 Mn year-over-year.

• Consolidated net profit for Q2 FY26 was INR 675.47 Mn, up from INR 600.88 Mn in Q2 FY25; six-month net profit was INR 1,305.15 Mn, up from INR 1,210.07 Mn year-over-year.

• Adjusted EBITDA before M&A costs reached INR 104 crore, up 16% compared to the same quarter last year.

Outlook and guidance

• Management expects operating leverage to continue, with EBITDA growth anticipated to outpace GP growth in coming quarters.

• IPO proceeds are being deployed for technology, platform growth, and international expansion, with significant funds allocated for future inorganic acquisitions.

• Integration of Classic Vacations is expected to bring margin expansion and potential for profitable growth, with a focus on synergy realization in the short term.

• India business is stabilizing, with growth expected to continue in both hotel and air segments.

• Management is contesting ongoing regulatory proceedings and expects to pursue growth through recent acquisitions.