TBO Tek delivered impressive financial results for the quarter ended June 2026, with consolidated net profit rising 32% to ₹83.4 crore compared to ₹63 crore in the corresponding quarter of the previous year. According to reports from Business Standard, this significant profit growth demonstrates the company's strong operational performance during the quarter. The company also reported sequential growth of 39% from ₹60 crore in the preceding March quarter, showing consistent momentum across quarters. Motilal Oswal has now set a buy rating on the stock with a target price of ₹1,850, citing the company's strong performance despite challenging operating conditions. ICICI Securities has maintained a hold rating on the stock with a target price of ₹1,550, citing the company's strong performance despite macro uncertainties affecting some key markets.
The company's operating revenue zoomed 81% YoY and 14% QoQ to ₹925.8 crore in Q1 FY27, as reported by Business Standard. Including other income of ₹12.9 crore, total income for the quarter stood at ₹938.7 crore. This substantial revenue increase from ₹511.28 crore in the same quarter of the previous year reflects the company's robust business expansion and market demand for its products and services. Motilal Oswal's estimates were spot on, with revenue rising 81% YoY to ₹9,258 million, aided by the consolidation of Classic Vacations. Organic revenue grew 16% YoY to ₹5,950 million, demonstrating strong underlying business fundamentals. ICICI Securities noted that organic revenue growth stood at 16%, while total expenses also grew 83% YoY to ₹835.4 crore, largely in line with the top line growth, with tax expenses for the quarter at ₹19.9 crore.
Operating profit margin (OPM) stood at 14.91% in the quarter ended June 2026, compared to 14.49% in the corresponding quarter of the previous year. The company's PBDT (Profit Before Depreciation and Tax) increased 67% to ₹136.33 crore from ₹81.54 crore year-on-year. Additionally, PBT (Profit Before Tax) grew 53% to ₹103.29 crore from ₹67.57 crore in the same period last year. Adjusted EBITDA rose 77% YoY to ₹149.9 crore, while adjusted EBITDA margin (excluding Classic Vacations) expanded to 17.8% on the back of stronger operating leverage. Motilal Oswal's estimates were accurate, with EBITDA at ₹1,435 million against estimates of ₹1,112 million, and margin came in at 15.5% versus estimated 13.5%. ICICI Securities highlighted that organic gross profit grew 16% YoY, outpacing SG&A growth, and driving a 25% increase in adjusted EBITDA.
The company's gross transaction value (GTV) increased 37% YoY to ₹11,154 crore in Q1 FY27, with organic GTV growing 22% YoY to ₹9,918 crore excluding Classic Vacations. Monthly transacting buyers rose 14% YoY to 33,736, driven by a 39% increase in international buyers. India remained the company's largest market by transacting buyer base. At the segment level, consolidated hotels and ancillary GTV grew 49.8% YoY, while organic Hotels and Ancillary GTV expanded 27.3% YoY. The consolidated Airlines business recorded 16.9% YoY growth in GTV, with India airlines business growing 14.7% YoY despite disruptions to Middle East travel routes.
Overall take rates expanded to 8.3% in Q1FY27 from 6.3% in Q1FY26, largely due to Classic Vacations, which commands a higher take rate with the strongest quarterly performance. However, organic business take rate reduced to 6% from 6.3%, as airline take rates decline by 40bps YoY to 2.2% and Hotel & Ancillary down 50bps YoY to 7.9%, largely led by Middle East conflicts. EBITDA grew by 84.23% YoY to ₹1.4 billion, with EBITDA margin improving by 27bps YoY to 15.5% versus 15.2% in Q1FY26. Organic margins improved to 16.8% in Q1FY27 from 15.2% in Q1FY26, with operating leverage expected to expand further as SG&A growth continues to moderate and gross profit scales.
Motilal Oswal has upgraded TBO Tek to a buy rating with an upwardly revised target price of ₹1,850 from ₹1,850 earlier, valuing the stock at 35x FY28E EPS. The brokerage expects strong recovery from 2HFY27 onwards, aided by pent-up demand in the Middle East region and the platform's diversified architecture. Over FY26-28, Motilal Oswal expects TBO Tek to deliver a CAGR of 35%/46%/52% in revenue/EBITDA/PAT, mainly on the back of increased contribution from high-take-rate hotels and ancillary segments in the GTV mix. ICICI Securities expects TBO to deliver revenue/EBITDA/PAT CAGR of 30%/39%/47% over FY26-28E, led by an improving GTV mix with Hotels & Ancillary contribution to rise to 69% in FY28E.
