💰 Financial Performance

Revenue Growth by Segment

Total operating income grew by 8.4% YoY, reaching INR 235.6 Cr in FY2025 compared to INR 217.3 Cr in FY2024. While specific segment percentages are not disclosed, the growth is driven by a recovery in business travel and service volumes in air ticketing, car rentals, and MICE (Meetings, Incentives, Conferences, and Exhibitions).

Geographic Revenue Split

Not disclosed in available documents, though the company operates primarily within the Indian business travel market with a focus on corporate hubs.

Profitability Margins

Net Profit Margin (NPM) improved to 11.5% in FY2025 from 10.4% in FY2024. This improvement is attributed to better operational efficiencies and a focus on high-margin services like MICE and visa assistance.

EBITDA Margin

Operating Profit Margin (OPBDIT/OI) stood at 16.2% in FY2025, a slight increase from 15.9% in FY2024. Core profitability remains stable due to the company's asset-light model and ability to cross-sell services to a diversified corporate client base.

Capital Expenditure

Property, Plant and Equipment (PPE) increased by 24.6% to INR 24.59 Cr in FY2025 from INR 19.73 Cr in FY2024, reflecting investments in fleet and technology. Intangible assets under development stood at INR 0.28 Cr.

Credit Rating & Borrowing

The company maintains a credit rating of [ICRA]AA (Stable) and [ICRA]A1+. It is essentially debt-free (0.0 debt/OPBDIT) with an interest coverage ratio of 50.5x in FY2025 and 303.4x in H1 FY2026, indicating negligible borrowing costs.

⚙️ Operational Drivers

Raw Materials

Human capital (employee benefits) represents 20.7% of total revenue (INR 48.72 Cr). Other major operational costs include 'Other Expenses' (likely vehicle hire and travel costs) at 63.4% of revenue (INR 149.40 Cr).

Import Sources

Not applicable as a service-oriented travel company; however, the company sources vehicles and fuel locally within India for its car rental operations.

Key Suppliers

Not specifically named, but the company utilizes a Billing and Settlement Plan (BSP) for 265 member airlines and maintains a network of managed car providers.

Capacity Expansion

The company is transitioning its fleet by adding electric and hybrid cars starting from FY2024 to meet tightening emission standards and client ESG preferences.

Raw Material Costs

Employee benefit expenses rose 8.2% YoY to INR 48.72 Cr in FY2025. Procurement strategies focus on an asset-light model with a mix of owned and managed cars to minimize fixed cost burdens.

Manufacturing Efficiency

Not applicable; however, the company maintains an asset-light model to ensure flexibility in scaling operations based on travel demand.

Logistics & Distribution

Distribution is managed through a nationwide network of offices and digital platforms to serve MNCs and large consultancy firms.

📈 Strategic Growth

Expected Growth Rate

8%

Growth Strategy

Growth will be achieved by leveraging the strong parentage of the ITC Group (61.69% stake) to capture a larger share of business travel. The strategy includes cross-selling end-to-end solutions (air, car, hotel, MICE), expanding the electric vehicle fleet to attract ESG-conscious corporates, and improving service volumes as business travel returns to pre-pandemic levels.

Products & Services

Air ticketing, car rentals, MICE management, visa assistance, hotel bookings, domestic and overseas holiday packages, and foreign exchange services.

Brand Portfolio

International Travel House (ITHL).

New Products/Services

Gradual addition of electric and hybrid cars to the rental fleet, expected to support revenue growth by meeting corporate sustainability mandates.

Market Expansion

Focus on increasing service volumes within the Indian business travel segment, which is currently on a gradual recovery path.

Market Share & Ranking

Not specifically ranked, but identified as a large, organized player in the highly competitive B2B travel and car rental industry.

Strategic Alliances

Associate company of the ITC Group, receiving managerial support and deriving over 10% of revenue from ITC Group companies.

🌍 External Factors

Industry Trends

The industry is evolving toward sustainable travel (EVs) and digital integration. While business travel is increasing, it has not yet fully reached pre-COVID levels, providing a 'catch-up' growth opportunity.

Competitive Landscape

Faces intense competition from B2B cab aggregators (like Ola/Uber for Business) and online travel portals (like MakeMyTrip/Yatra), which exert constant pricing pressure.

Competitive Moat

The primary moat is the 'ITC' brand and parentage, providing strong financial flexibility and a captive customer base. This is sustainable due to the 61.69% equity stake held by the ITC Group and deep operational linkages.

Macro Economic Sensitivity

Highly sensitive to corporate travel budgets and GDP growth, as business travel is a discretionary corporate expense.

Consumer Behavior

Shift toward 'green' travel and higher expectations for safety and hygiene protocols post-pandemic.

Geopolitical Risks

International travel services (visa, ticketing) are sensitive to global geopolitical stability and cross-border travel regulations.

⚖️ Regulatory & Governance

Industry Regulations

Subject to IATA regulations for air ticketing and Ministry of Tourism norms for travel agencies. Compliance with tightening vehicle emission standards is a critical operational requirement.

Environmental Compliance

Exposed to climate transition risks; tightening emission standards may require material investment to replace the fossil-fuel fleet with environment-friendly vehicles.

Taxation Policy Impact

Effective tax rate for FY2025 was approximately 26.2% (INR 9.64 Cr tax on INR 36.79 Cr PBT).

Legal Contingencies

The company has complied with all conditions of Corporate Governance as per SEBI Listing Regulations (17 to 27). No major pending court cases with material INR values were disclosed in the provided summaries.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the pace of recovery in business travel volumes to pre-pandemic levels and the potential for technological disruption by B2B aggregators.

Geographic Concentration Risk

High concentration in the Indian domestic market, specifically serving corporate hubs.

Third Party Dependencies

Significant dependence on airline carriers and third-party vehicle owners for the managed fleet portion of the asset-light model.

Technology Obsolescence Risk

Risk of being bypassed by direct-to-corporate digital platforms if the company does not continuously upgrade its own booking and management technology.

Credit & Counterparty Risk

Low risk due to a reputed and diversified customer base including MNCs and the ITC Group; receivables management has improved working capital intensity to 8%.