The traveltech company's profit jumps 81% YoY and 7% QoQ to ₹34.2 Cr
Operating revenue increased 13% YoY and 16% QoQ to ₹356.8 Cr
While total income for the quarter stood at ₹385.9 Cr, total expenses increased 15% YoY to ₹337.8 Cr
Traveltech company ixigo
reported an 81% jump in its consolidated net profit for the June quarter (Q1 FY27) to ₹34.2 Cr from ₹18.9 Cr in the previous year’s quarter. Sequentially, profit increased 7% from ₹32.1 Cr.
Operating revenue jumped 13% YoY and 16% QoQ to ₹356.8 Cr. Including other income of ₹29.2 Cr, total income for the quarter stood at ₹385.9 Cr.
Meanwhile, expenses for the quarter increased 15% YoY to ₹337.8 Cr. The company incurred an additional loss of about ₹4 Cr from an associate.
ixigo’s quarterly EBITDA amounted to ₹53.5 Cr, a 65% YoY jump. Its contribution margin also rose 13% YoY to ₹144.9 Cr.
“In Q1 FY27, despite the challenging macro environment, we continued taking market share and delivered resilient growth, crossing ₹5,524 Cr Quarterly GTV with an all-time high revenue and PAT,” said co-CEOs Aloke Bajpai and Rajnish Kumar.
Besides clearing its financials for the June quarter, ixigo’s board also approved the following:
With that, let’s take a look at ixigo’s operational performance in the quarter.
In its investor communication for the quarter, ixigo said that its bus vertical outgrew the broader market, growing 39% YoY in terms of GTV and 34% YoY in revenue terms.
While the vertical benefited from government-backed infrastructure development and capacity addition fuelling the industry, it also gained from erstwhile investment in customer experience, deepening supply, and strong local execution.
However, flights were the largest contributor to ixigo’s GTV, growing at 27% YoY. This vertical was impacted by fare inflation arising from the West Asian conflict. The company noted that the vertical could potentially remain impacted if a resolution isn’t met and oil prices aren’t normalised.
While ixigo had focused on leisure travel flights thus far, Bajpai hinted that the company could consider entering the SME and corporate travel segment to diversify its demand base and offset weak growth in overall air passenger volumes.
Meanwhile, the relatively newer hotels business emerged as ixigo’s fastest-growing vertical. Notably, during the quarter, it had acquired traveltech startup Brevistay in a ₹65.7 Cr deal during the quarter, which brought a large network of hotel partners and business development capabilities.
The management also stated that ixigo has established direct partnerships with more than 10,000 hotels across nearly 700 towns and is adding thousands of properties every quarter, with the company aiming to become the largest player in the budget hotels segment over the next four to five years.
During the earnings call, management noted that Q1 had seen hefty investment in hotels, tech and AI, and brand and marketing in order to reinvest the company’s operating leverage to unlock future growth.
In terms of AI, ixigo said it has been training its own small language models (SLMs) to build its AI-native ixigo NEXT platform. The platform will help improve long-term productivity, automate operations, accelerate product launches, and reduce third-party dependencies, per the company.
ixigo shares ended today’s trading session 1.32% lower at ₹201.70 on the BSE.
Source: Inc42 - Startups
