After a turbulent Q1 filled with geopolitical turbulence and economic jet lag, TBO Tek’s Q2 feels like the flight finally took off. The travel-tech duo Ankush and Gaurav were all smiles — and why not? With a 12% jump in GTV and 19% rise in gross profit, TBO seems to be cruising at altitude again. The Classic Vacations acquisition adds a luxury twist — because apparently, when you’ve conquered B2B travel, you start selling five-star sunsets too.
And no, they’re not worried about “macro headwinds.” As Gaurav put it, “we’ll find growth levers.” Translation: turbulence is for economy class. 🛫
At a Glance
- GTV up 12%– The global travel wallet just got heavier.
- Hotels up 20%– Tourists might be broke, but still sleep in style.
- Gross Profit up 19%– Margins and optimism both widened.
- Adjusted EBITDA ₹104 Cr (+16%)– “Operating leverage” a.k.a. making Excel proud.
- Classic Vacations acquired– A 500M GTV bet on luxury jet-setters.
- EBITDA margin 18.3% (pre M&A)– Stronger than your rupee post-holiday.
- APAC up 40%– Australians and Indonesians are back outside.
- LatAm up only 10%– Blame currencies and Brazil’s installment plans.
Management’s Key Commentary
“Classic Vacations adds $500 million GTV to our $3.5 billion base.”(Translation: We just bought a luxury toy without breaking the wallet.)
“EBITDA growth catching up with GP — operating leverage at work.”(Translation: We’ve finally stopped overspending on PowerPoints.💼)
“Hotels business grew 20%, air de-growth arrested.”(Translation: Planes may fly less, but beds still sell.)
“India business stabilizing; Middle East and Europe on fire.”(Translation: Desi agents are steady; Dubai’s still printing visas.)
“LatAm facing structural issues — forex, taxes, and vibes.”(Translation: Brazil is complicated, even in Excel.🇧🇷)
“Classic’s 22% take rate, 11% GP — accretive from day one.”(Translation: Luxury hotels actually pay better than budget airlines.)
“New agents now 6.9% of GTV vs 4.3% last year.”(Translation: Our customer funnel isn’t clogged anymore.😏)
Numbers Decoded
| Metric | Q2 FY26 | YoY Growth | Commentary |
|---|---|---|---|
| GTV (Gross Transaction Value) | +12% | ↑ | Driven by hotels & Europe/Middle East boom. |
| Gross Profit (GP) | +19% | ↑ | Higher mix of hotel bookings = richer margins. |
| Adjusted EBITDA | ₹104 Cr | +16% | Excluding M&A costs, strong leverage kicking in. |
| EBITDA Margin (Pre M&A) | 18.3% | — | Classic adds glamour; not yet in numbers. |
| Hotel Take Rate (GP/GTV) | 5.6% | — | Stable; commission model at 35% of mix. |
| Active Agents Growth | +Secular | — | Europe & Middle East lead; APAC maturing. |
| Classic GTV Add-on | $500 Mn | — | Will consolidate from Q3 FY26. |
| Cash Conversion Dip | — | — | Blame Brazil’s “installment vacation plan.” |
Comment:TBO Tek is now less of a travel agency, more of a travel engine. Classic Vacations may not lift growth overnight, but it’s clearly adding polish to the portfolio.
Analyst Questions
Manish (Morgan Stanley):“Will Classic slow growth?”Gaurav:“No drag, just luxury lag.” (Translation: Bigger denominator, same excitement.)
Karan (Phillip Capital):“Which regions firing?”Gaurav:“Europe & Middle East booming, APAC maturing.” (Translation: Still waiting for Japan to discover us.)
Swapnil (Kotak):“Margins sustainable?”CFO:“Operating leverage coming, SG&A slowing.” (Translation: We’ve stopped hiring armies.)
Sucrit (Eyesight Fintrade):“What’s TBO’s moat?”Gaurav:“Network effects.” (Translation: Try building this scale, we dare you.💪)
