TBO Tek Limited has delivered a strong set of numbers for the third quarter of FY26, signalling accelerating momentum in its global B2B travel distribution platform. The company’s performance reflects both organic growth across key geographies and the successful integration of Classic Vacations, acquired earlier.
For Q3 FY26, Gross Transaction Value (GTV) rose 35% year-on-year to Rs 9,709 crore, compared with Rs 7,166 crore in the same quarter last year. The sharper rise in revenue — up 86% YoY to Rs 784 crore — indicates improved monetisation and product mix, rather than pure volume growth alone.
Margin Expansion Visible
Gross profit increased 63% YoY to Rs 483 crore, suggesting better yield management and higher contribution from value-added segments. Adjusted EBITDA (before M&A costs) came in at Rs 115 crore, up 53% YoY.
Importantly, Enterprise GTV-to-Adjusted EBITDA conversion improved to 1.18% from 1.05% a year ago. While the absolute improvement may appear modest, in a high-volume, low-margin distribution business, even incremental efficiency gains translate into meaningful profitability expansion.
Classic Vacations, the recently integrated acquisition, delivered a significantly higher 2.46% GTV-to-Adjusted EBITDA conversion during the quarter, enhancing blended margins and strengthening the company’s premium leisure portfolio presence, particularly in long-haul markets.
Profitability and Cost Dynamics
Profit before tax (excluding exceptional items) rose 34% YoY to Rs 71.4 crore. However, profit after tax increased by a relatively moderate 7.4% to Rs 54 crore, indicating the impact of integration costs, acquisition-related expenses and possible higher tax incidence.
Management commentary suggests that organic cost growth is tapering, which could unlock operating leverage beginning Q4 FY26. If revenue momentum sustains while fixed costs stabilise, margin expansion may accelerate in the coming quarters.
Broad-Based Geographic Growth
Growth during the quarter was geographically diversified. Europe, APAC and MEA all reported over 30% YoY growth in the Hotels and Ancillaries segment, which itself expanded 46% YoY. Airlines grew 19.7% YoY, reflecting steady demand recovery and platform penetration.
Monthly Transacting Buyers (MTBs) increased 16% YoY to 33,324, signalling sustained agent engagement. International business expanded 49.1% YoY, though India continues to contribute the largest absolute share of transactions.
Balance Sheet and Liquidity Position
Despite acquisition-related cash outflows of approximately Rs 979 crore, the company ended the quarter with Rs 1,492 crore in cash and cash equivalents, including liquid investments. The negative working capital profile of Classic Vacations further strengthens liquidity dynamics, as advance customer collections help fund operations.
This balance sheet strength provides flexibility for further inorganic expansion, technology investments and geographic scaling.
Strategic Implications
The quarter’s performance underlines three structural themes:
Improved monetisation efficiency.
Higher contribution from premium and ancillary products.
Strengthening global footprint beyond India.
With travel demand stabilising globally and distribution platforms gaining share from fragmented offline networks, TBO Tek appears positioned to benefit from scale economics.
If operating leverage materialises from Q4 onward, as indicated, FY26 could mark a transition year where the platform begins translating transaction scale into sustained margin expansion — a key metric that institutional investors will closely monitor.
