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Q2FY26 Result Highlights Le Travenues Technology Ltd (Ixigo), India’s leading AI-based travel platform, reported a strong Q2FY26 performance with robust growth across all travel verticals and solid cash generation. The company’s Gross Transaction Value (GTV) rose 23% YoY to Rs 4,347.5 cr, led by a 51% surge in the bus segment, 29% growth in flights, and 12% in trains. Revenue from operations grew 37% YoY to Rs 282.7 cr, with flight revenue up 60% to Rs 89.4 cr and bus revenue up 64% to Rs 65.4 cr, reflecting continued market share gains. Contribution margin improved 20% YoY to Rs109.6 cr, while adjusted EBITDA increased 36% YoY to Rs 28.5 cr, demonstrating strong operational efficiency. Cash flow from operations for H1FY26 stood at Rs91.5 cr, up 30% YoY. Profit before tax, share of loss of associates, and exceptional items stood at Rs (2.5) cr, which included a one-off non-cash ESOP expense of Rs 26.9 cr; excluding this, PBT grew 26% YoY to Rs24.4 cr. During the quarter, Ixigo partnered with DMRC and ONDC to launch QR-based Delhi Metro ticketing, integrated Aadhaar-based IRCTC authentication with over 10,000 daily verifications, and introduced AI Smart Filters and enhanced Train Alternates features for improved user experience. AbhiBus expanded its network by onboarding seven new state transport corporations, taking the total to 17, while ConfirmTkt partnered with HDFC Bank for exclusive train ticket bookings on SmartBuy.

Key conference call takeaways

Fundraise and Strategic Rationale

• Ixigo announced a preferential issuance of Rs 1,296 cr to strengthen its balance sheet, accelerate AI-led growth, fund hotel OTA expansion, and create headroom for inorganic opportunities.
• The investor, MIH Investments (Prosus/Trosus), is a long-term global technology investor with over $8.6 billion deployed across companies such as Tencent, OLX, iFood, and Just Eat Takeaway.
• The company remains cash-flow positive but aims to capitalize on this period to scale AI-first travel products for the next billion users.
• It maintained its disciplined approach toward capital efficiency and ruled out aggressive discount-led strategies.
• The fundraise also supports selective acquisitions in line with Ixigo’s successful playbook of acquiring small, profitable, and strategically aligned firms such as ConfirmTkt, AbhiBus, and Zoop.

Operating and Financial Performance

• Q2FY26 reported strong performance with Gross Transaction Value (GTV) of Rs 4,347.5 cr, up 23% YoY, and Revenue from Operations at Rs282.7 cr, up 37% YoY.
• Contribution margin stood at Rs109.6 cr (39% margin, up 20% YoY), while Adjusted EBITDA was Rs28.5 cr (10% margin, up 36% YoY).
• Profit before tax (PBT) was a loss of Rs 3.5 cr versus Rs 13.1 cr last year, impacted by a one-time ESOP/milestone charge of Rs 26.9 cr and other minor items.
• Excluding one-offs, PBT rose 26% YoY to Rs 19.4 cr.
• H1FY26 cash flow stood at Rs 91.5 cr, reflecting healthy operating efficiency and steady cash generation.

Segment-Wise Performance

• Flights: 2.41 million flight segments (+19% YoY) with GTV of Rs 1,592.4 cr (+29% YoY); flight revenue grew ~60% with margin expansion and strong traction in international bookings. Over 50% of new flyers were first-time travelers through Ixigo’s NBU app.
• Buses: 6.04 million passenger segments (+46% YoY), GTV Rs 571.9 cr (+51% YoY), and a contribution margin of Rs 34.1 cr (~52%). Buses formed 31% of total contribution, supported by partnerships with 17 state transport corporations to expand route coverage.
• Trains: 27.2 million segments (+10% YoY), GTV Rs 2,125.9 cr (+12% YoY), and revenue Rs 122.9 cr (+11% YoY). Temporary disruption due to regulatory changes affected margins, but normalization by quarter-end saw a record 3.5 lakh train bookings in a single day during Diwali.
• Hotels: The hotel OTA business continues steady growth with improving room nights and a large untapped market—OTAs currently account for only 10–20% of budget hotel bookings. Ixigo is focusing on assurance, transparency, and flexible booking experiences.

Product Innovation, AI Integration, and Partnerships

• The company reinforced its AI-first vision, developing multimodal, personalized travel assistants. Nearly half of all customer calls are resolved via AI, 90% of chats are automated, and 97.4% of calls are answered within 2 minutes.
• Average refund times improved to under 3 hours, with many processed in minutes.
• Product innovations include ONDC integration for Delhi Metro ticketing, partnerships with FDSc, Smartbuy, and Rapido, and UX upgrades that improved food-on-train engagement.
• The MTO-to-MEU ratio reached 4.9%, signaling stronger engagement and monetization.
• The company continues to pursue selective acquisitions and tech-led product development while maintaining capital discipline.

Guidance, One-Offs, and Outlook

• Of the Rs 1,296 cr fundraise, about Rs 320 cr will go toward activation and another Rs 320 cr toward working capital, primarily to support short-term funding cycles in flights and trains.
• Key one-offs in Q2FY26 included a Rs 26.9 cr ESOP accounting charge and a Rs 1.47 cr loss from a JV/associate (FreshBus/FreshBurst).
• Ixigo reaffirmed its focus on sustainable profitability over short-term revenue spikes. Brand spending will remain tactical, adjusting for festive or marketing opportunities.
• The quarter was characterized as a test of resilience and agility, with Ixigo emphasizing continued profitable growth, expansion in the hotel OTA space, and leadership in AI-driven travel products.
• Management is confident in scalable, technology-led growth across all travel segments.

Outlook & valuation

Ixigo is expected to continue delivering above-market growth near term through effective cross-sell across its apps, a strong focus on superior customer experience, and traction for differentiated value-added services. Bus GTV growth was driven by products such as travel guarantee, geographic expansion, onboarding of new bus operators, expansion of services by existing operators, and premiumisation. The company has an AI-first vision and has developed multimodal, personalized travel assistants. Nearly half of customer calls are resolved via AI, 90% of chats are automated, and 97.4% of calls are answered within two minutes, while average refund times improved to under three hours.

Product innovation, integrations and partnerships underpin ixigo’s monetization and engagement roadmap. Recent initiatives include ONDC integration for Delhi Metro ticketing, partnerships with FDSc, Smartbuy and Rapido, AI Smart Filters and UX upgrades that improved food-on-train uptake. The MTO-to-MEU ratio reached 4.9%, indicating stronger engagement and monetization. The company will pursue selective, capital-efficient acquisitions and tech-led product development while maintaining capital discipline. Brand spend will remain tactical and profitability is prioritized over short-term top-line spikes. The quarter is positioned as a test of resilience, with continued focus on hotel OTA expansion and AI-driven products.

The broader travel and tourism rebound supports Ixigo’s opportunity set. Global demand recovery, Asia-Pacific leadership, and increased tourist activity in regions such as the Middle East and Europe create tailwinds. India’s travel industry is recovering with rising domestic and outbound travel, driven by young demographics, rising incomes, digital connectivity and government measures like expanded e-visas and infrastructure investment. Spiritual and domestic tourism, smartphone penetration in smaller cities, and schemes such as UDAN and airport expansions are enlarging the addressable market. The OTA market’s growth and higher mobile adoption reinforce a large, structurally expanding opportunity for Ixigo across trains, buses, flights and hotels. At the current market price, the stock is trading at 87x FY27E. We recommend a Hold rating on the stock.