💰 Financial Performance

Revenue Growth by Segment

Revenue from operations grew 24.75% YoY to INR 1,737.47 Cr in FY25. Hotel and Packages revenue surged 35.5% to INR 1,286.14 Cr (74.02% of total), while Air Ticketing revenue declined 3.3% to INR 289.55 Cr (16.67% of total). Technical services contributed INR 2.54 Cr (0.15%) and other services INR 35.81 Cr (2.06%).

Geographic Revenue Split

International operations accounted for 55.80% of Gross Transaction Value (GTV) in Q1FY26, up from 54.10% in FY25. The company categorizes markets into Tier 1 (Mature: US, UK, Germany), Tier 2 (High-Growth: Saudi Arabia, UAE, Brazil), and Tier 3 (Emerging: SE Asia, Africa).

Profitability Margins

PBILDT margin was 18.10% in FY25, a decrease from 19.52% in FY24. In Q1FY26, the margin further compressed to 16.50% compared to 21.68% in Q1FY25. The take rate (revenue/GTV) improved to 5.64% in FY25 from 5.25% in FY24 due to higher hotel saliency.

EBITDA Margin

Adjusted EBITDA increased by over 22% YoY in FY25. The core profitability is driven by the shift toward higher-margin hotel bookings (7-8% markup) compared to lower-margin air ticketing (2-3% commission).

Capital Expenditure

The company announced a major inorganic expansion via the acquisition of 100% of Classic Vacations LLC for USD 125 million (~INR 1,100 Cr) in September 2025. Previous strategic acquisitions like Jumbonline totaled approximately INR 315 Cr over the last two years.

Credit Rating & Borrowing

CARE A-; Stable / CARE A2+ (Reaffirmed April 2025), later placed on 'Rating Watch with Developing Implications' in September 2025 due to the Classic Vacations acquisition. Borrowing includes a new USD 70 million (INR 616 Cr) term loan for the acquisition.

⚙️ Operational Drivers

Raw Materials

As a service-based travel platform, 'raw materials' consist of travel inventory: Airline seats (25.98% of GTV), Hotel rooms and ancillary services (74.02% of GTV).

Import Sources

Global supply sourced from airlines and hotels across Tier 1 (US, Europe), Tier 2 (Middle East, SE Asia), and Tier 3 (Africa, Latin America) markets.

Key Suppliers

Global airlines, hotel chains, car rental providers, and sightseeing providers. Specific subsidiary suppliers include Jumbonline and Classic Vacations.

Capacity Expansion

Not applicable in manufacturing terms; however, the platform's GTV capacity reached INR 30,831.70 Cr in FY25, with a target to capture a share of the US $2.6 trillion global travel market by 2027.

Raw Material Costs

Cost of services is primarily the net rates paid to suppliers. Hotel markups are 7-8% while air commissions are 2-3%. The shift to a 59% hotel GTV saliency in FY25 (up from 50%) is the primary margin driver.

Manufacturing Efficiency

Platform efficiency is measured by 'Take Rate', which improved to 5.64% in FY25. Automation-led margin expansion and Key Account Manager (KAM) productivity are central to efficiency.

Logistics & Distribution

Distribution is digital via the TBO.com platform. Sales and marketing efforts are focused on onboarding travel advisors and automating engagement.

📈 Strategic Growth

Expected Growth Rate

8.20%

Growth Strategy

Growth will be achieved through the 'TBO Growth Machine': deepening existing markets, expanding to high-value Tier 1 markets (US/UK), and strategic acquisitions like Classic Vacations (INR 1,100 Cr). The strategy focuses on increasing 'Hotel-heavy' booking behavior and cross-selling ancillary services like transfers and insurance.

Products & Services

Airline reservations, hotel bookings, holiday packages, rail travel, and travel insurance sold to travel agents and OTAs.

Brand Portfolio

TBO.com, Travelboutiqueonline.com, Jumbonline, Classic Vacations.

New Products/Services

Expansion into luxury travel via Classic Vacations and enhanced B2A (Business to Advisory) platform features are expected to drive higher yield per transaction.

Market Expansion

Aggressive expansion into Tier 1 markets (US, UK, Germany) and Tier 2 markets (Saudi Arabia, UAE) to capture high-yield international travel demand.

Market Share & Ranking

Leading global B2B travel distribution platform; specific market share percentage not disclosed but identified as a dominant player in the fragmented Indian and Middle Eastern markets.

Strategic Alliances

Partnerships with global travel suppliers and a USD 70 million financing arrangement with Standard Chartered Bank for acquisitions.

🌍 External Factors

Industry Trends

The industry is shifting toward mobile and social media-based bookings. TBO is positioning itself by moving from 'Air-heavy' to 'Hotel-heavy' GTV (now 62.3% in Q1FY26) to capture higher margins.

Competitive Landscape

Highly fragmented with intense competition from large players like MakeMyTrip and Expedia, as well as numerous small unorganized operators.

Competitive Moat

Moat is built on a two-sided network effect: a massive global supplier base and a vast network of travel buyers. This is sustained by high switching costs for agents integrated into the TBO API and proprietary 'Growth Machine' automation.

Macro Economic Sensitivity

Highly sensitive to global GDP growth and discretionary spending; the industry is expected to reach US $2.6 trillion by 2027.

Consumer Behavior

Shift toward leisure travel and 'hotel-heavy' booking patterns; repeat potential in hotel segments is higher than in one-off air ticketing.

Geopolitical Risks

Regional conflicts and travel advisories can disrupt route viability; mitigated by agile market monitoring and a diversified global footprint.

⚖️ Regulatory & Governance

Industry Regulations

IATA registration requirements for ticketing; stringent compliance with Foreign Exchange Management Act (FEMA) for international transactions.

Environmental Compliance

Not a primary cost driver for the digital platform; focus is on social and governance (ESG) well-being of employees.

Taxation Policy Impact

Effective tax rate not specified, but the company manages tax collected at source (TCS) from airlines in India.

Legal Contingencies

Pending show cause notice for non-compliances under the Foreign Exchange Management Act (FEMA). Adverse final outcome could result in material contingent liabilities.

⚠️ Risk Analysis

Key Uncertainties

Integration risk of the INR 1,100 Cr Classic Vacations acquisition; potential squeeze in take rates below 3.5% due to competition.

Geographic Concentration Risk

55.80% of GTV is international; significant exposure to Middle East and Indian domestic markets.

Third Party Dependencies

High dependency on airline and hotel suppliers to maintain competitive net rates and inventory access.

Technology Obsolescence Risk

Risk of newer booking forms (smartphones/social media) bypassing traditional B2B platforms; mitigated by ongoing investment in API and tech readiness.

Credit & Counterparty Risk

Trade receivables of INR 4,061.30 Cr; credit risk is managed through moderate utilization of non-fund-based bank limits (77% average utilization).