Le Travenues Technology Ltd (aka ixigo) is India’s second-largest online travel agency (OTA), but the stock trades like a budget airline seat – cramped valuation, zero legroom, and no free peanuts. With 480 million annual active users, three travel brands (ixigo, ConfirmTkt, and AbhiBus), and a ₹10,545 Cr market cap, this company claims to be the AI-powered savior of Indian travel. Yet, P/E sits at 165, and return ratios barely beat your local FD.
2. Introduction
Started in 2007, ixigo was the scrappy challenger to MakeMyTrip and Yatra. While MMT was doing fancy New York listings, ixigo was busy winning middle India with trains, buses, and budget flights. Today, it handles 57% of revenue from trains, 23% from flights, and 20% from buses. Basically, it is the IRCTC + RedBus + Kayak combo pack, but desi-style.
The company boasts 620 Mn lifetime app downloads and 260 Mn registered users – numbers that sound like a Netflix show pitch. But look deeper: only 38 Mn are transacted users. Translation: 6 out of 7 people download the app and vanish after checking one train PNR.
Despite that, revenue is growing at 53% YoY, PAT at 30%, and the stock has doubled in 6 months. But with zero promoter holding (FIIs at ~60% own the bus), investors should ask: who’s really driving this? FIIs or the algorithm that predicts train ticket confirmation?
3. Business Model – WTF Do They Even Do?
Ixigo’s model is a hybrid of commission cuts + ads + upselling. Every train, bus, or flight ticket booked via ixigo earns them a service charge. Sprinkle in advertising (4% of revenue), plus upsells like travel insurance, car rentals, and visa processing, and you’ve got the full “travel thali.”
ConfirmTkt: Uses ML to predict seat confirmation – basically Tinder for Tatkal.
AbhiBus: Aggregates 100,000+ bus routes; still waiting for private bus operators to stop cancelling.
ixigo Flights: Fare predictions, auto web check-ins, real-time flight status.
PLAN by ixigo: AI-powered travel itineraries (finally, AI used for something more useful than writing LinkedIn posts).
Revenue split (FY24): Ticketing 92%, Ads 4%, Other 4%. Heavy dependence on ticketing = cyclical risk. But hey, Indians love traveling, and IRCTC’s website crashing daily ensures ixigo stays relevant.
4. Financials Overview
Quarterly Snapshot (₹ Cr)
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
314
182
284
72.9%
10.6%
EBITDA
23
15
21
53%
9.5%
PAT
19.1
11.7
17.1
62.5%
11.7%
EPS (₹)
0.49
0.30
0.43
63%
14%
👉 Solid growth, but margins capped at ~7–8%. With a P/E of 165, this is priced like IRCTC but without the monopoly.
5. Valuation – Fair Value Range Only
P/E Method Industry average P/E ~41. Ixigo EPS (TTM) = ₹1.65. Fair Value = ₹67 – ₹90.
EV/EBITDA Method EV = ₹10,306 Cr. EBITDA (TTM) ~₹103 Cr. EV/EBITDA = ~100x vs industry 25x. Fair Value = ₹150 – ₹200.
DCF (optimistic) Assume 25% CAGR revenue growth, margins at 12% long-term. Fair Value = ₹180 – ₹220.
👉 Overall Fair Value Range: ₹67 – ₹220. Current Price = ₹270. Disclaimer: This fair value range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
PhonePe Partnership (Jun 2024): Exclusive tie-up for train, bus, and flight bookings. This is ixigo hitching a ride on India’s biggest UPI highway.
FlixBus Partnership (Sep 2024): AbhiBus becomes Europe’s FlixBus India partner. Now your Manali trip has the same branding as Berlin–Munich buses.
