TBO Tek Q2 Profit Rises 12.5% to Rs 76 Cr, Revenue Jumps 52.6% To Rs 865.6 Cr

Travel distribution platform TBO Tek reported a 52.6% YoY increase in operating revenue to ₹865.6 crore in Q2 FY27, while consolidated net profit grew 12.5% to ₹76 crore. The September-quarter performance was largely driven by strong growth in hotel and package bookings, which continued to account for the bulk of the company's business.

The Gurugram-based company, founded by entrepreneurs Ankush Nijhawan and Gaurav Bhatnagar, reported operating revenue of ₹567.5 crore in Q2 FY26, according to its unaudited financial results filed with the stock exchanges.

However, growth was less pronounced on a sequential basis. Revenue declined 6.5% from ₹925.8 crore in Q1 FY27, while net profit fell 8.8% from ₹83.4 crore in the previous quarter.

TBO Tek's total income stood at ₹880.4 crore during the September quarter, including ₹14.8 crore in other income.

Hotel and Package Bookings Drive Revenue Growth

Hotels and packages remained TBO Tek's biggest business segment, contributing approximately 86% of its operating revenue during Q2 FY27.

Revenue from this segment increased 55% YoY to Rs 745 crore, compared with Rs 479.4 crore in the corresponding quarter last year.

Air ticketing and other allied services contributed the remaining ₹120 crore.

The performance reflects the growing importance of hotel distribution within TBO's business model. Its technology platform connects travel agents, tour operators and other travel buyers with suppliers, including hotels, airlines and other travel service providers.

Expenses Increase 55% as Business Scales

TBO Tek's expenditure also increased alongside its revenue growth.

Total expenses rose approximately 55% YoY to ₹780.7 crore in Q2 FY27 from ₹504.4 crore in Q2 FY26.

Service fees associated with hotel and package bookings were the largest expense, amounting to ₹304.5 crore. Employee benefit expenses stood at ₹190.7 crore during the quarter.

Consequently, net profit growth remained considerably lower than revenue growth.

The company's net profit margin, calculated against operating revenue, also moderated to approximately 8.8% from 11.9% in the year-ago quarter.

Ankush Nijhawan and Gaurav Bhatnagar's TBO Journey

Founded in 2006, TBO Tek was established by co-founders Ankush Nijhawan and Gaurav Bhatnagar. The company initially started as an air ticketing business before expanding into a broader global travel distribution platform.

Today, TBO provides technology-enabled access to travel products, including hotel bookings, air tickets, holiday packages, transfers and other travel services.

The company has built a global distribution network connecting travel suppliers with buyers across multiple markets.

For TBO, the latest results underline the continued strength of its hotel distribution business. However, the sequential decline in revenue and profit, alongside rising operating expenses, will remain important indicators to watch in the coming quarters.

The challenge for the founders will be to sustain growth across international markets while improving profitability as the business scales.

Financial highlights

Disclaimer: This article is for information purposes only and is not investment advice. Investments in securities are subject to market risks. Please read the official offer documents before investing.