TBO Tek Q3 FY26 results: revenue up 86%, and what Q1 FY27 showed

Startup NewsIshaan VardhanOct 24, 20269 min read

TBO Tek, the New Delhi-based platform that sells hotel rooms and flights to travel agents worldwide, reported an 86% jump in revenue to ₹784 crore for the October to December 2025 quarter (Q3 FY26), largely because it began consolidating its US acquisition Classic Vacations. Net profit grew far more slowly, by 7.4% to ₹53.7 crore, according to the company’s exchange filing.

Two more quarters have been reported since. The latest, April to June 2026 (Q1 FY27), was TBO’s strongest yet: revenue up 81% to ₹926 crore and profit up 32% to ₹83 crore, according to its 29 July 2026 press release. This article covers all three quarters and what changed between them.

Key takeaways

• Q3 FY26 gross transaction value (GTV, the total value of bookings on the platform) rose 35% to ₹9,709 crore; revenue rose 86%, but profit after tax rose only 7.4% as acquisition, staff and financing costs climbed.
• For the full year to March 2026, revenue grew 54% to ₹2,677 crore and profit 6.3% to ₹244 crore, according to Inc42.
• Q1 FY27 showed the margin story the company had promised: gross profit up 66%, adjusted EBITDA up 77% to ₹150 crore.
• March 2026’s Middle East war hit about 40% of TBO’s relevant travel corridors, the company said, yet the business kept growing.
• An unresolved foreign-exchange (FEMA) case with the Enforcement Directorate remains a disclosed risk in every filing.

Who TBO Tek is

TBO, short for Travel Boutique Online, was set up in 2006 as an air-ticketing business and has grown into a global B2B travel distribution platform, according to its website. It connects “buyers” (travel agents, tour operators and travel management companies) with “suppliers” (hotels, airlines, car rental and transfer firms). Co-founders Gaurav Bhatnagar and Ankush Nijhawan are joint managing directors.

The company listed on India’s NSE and BSE in 2024 after an IPO priced at ₹920 a share. The IPO included a ₹400 crore fresh issue and an offer for sale of about ₹1,151 crore by existing shareholders, according to the notes to its Q3 FY26 results.

A note on terms: Indian companies report in crore (1 crore = 10 million rupees). The Indian financial year runs April to March, so FY26 ended on 31 March 2026.

Q3 FY26 in numbers

The figures below come from TBO’s consolidated results for the quarter ended 31 December 2025, approved by the board on 11 February 2026, and its results announcement as reported by Travel Trade Journal.

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Hotels and packages drove almost all of the revenue growth. That segment’s revenue rose to ₹661.4 crore from ₹337.4 crore a year earlier, while air ticketing revenue rose only to ₹82.5 crore from ₹73.6 crore, according to the filing. On a GTV basis, hotels and ancillaries grew 46% and airlines 19.7%, Travel Trade Journal reported.

Why profit lagged revenue

The filing shows where the money went. Service fees, the largest cost line, more than doubled to ₹301.1 crore from ₹125.5 crore. Employee costs rose 64% to ₹164.7 crore. Depreciation and amortisation doubled to ₹26.4 crore, and finance costs rose to ₹14.9 crore from ₹5.7 crore, reflecting the acquisition. TBO also booked a net exceptional charge of ₹5.3 crore, which included severance pay at a subsidiary and a provision linked to India’s new labour codes, which took effect on 21 November 2025.

The Classic Vacations effect

Q3 FY26 was the first quarter to include Classic Vacations, a US luxury travel company that sells through a network of high-end travel advisors. TBO completed the purchase of 100% of the company on 1 October 2025 for $125 million, according to the Q3 filing. It was funded partly with ₹110 crore of IPO money that had been set aside for acquisitions and general corporate purposes, lent to TBO’s Dubai subsidiary.

Classic Vacations changes TBO’s economics. It converted 2.46% of its GTV into adjusted EBITDA in Q3, against TBO’s enterprise-wide figure of 1.18%, according to Travel Trade Journal. It also keeps a much larger share of each booking as revenue. In Q4 FY26, Classic Vacations’ implied take rate (revenue as a share of GTV) was 25.4%, against 6.0% for TBO’s organic business, according to the Q4 shareholder letter. That is why consolidated revenue grew more than twice as fast as GTV. Readers should compare TBO’s revenue growth with caution for the next few quarters, because the year-earlier periods do not include Classic Vacations.

Cash fell to ₹1,492 crore at the end of December after ₹979 crore of acquisition-related outflows, the company said.

Q4 FY26: a war in the busiest month

TBO’s January to March 2026 quarter was a tale of two halves. In its Q4 shareholder letter, management described “historic” performance in January and February, followed by a March in which the Middle East war disrupted about 40% of the travel corridors relevant to TBO, during the seasonally strongest month of the quarter.

The impact showed up in the agent count. Monthly active agents fell to 11,091 in March from 12,295 in December, the letter said, mainly because Middle East agents dropped from more than 3,000 to under 2,000. Even so, the quarter’s headline numbers held up, according to the company’s 28 May 2026 press release:

• GTV of ₹10,079 crore, up 29%. Organic GTV, excluding Classic Vacations, grew 16%.
• Revenue of ₹814 crore, up 83%.
• Gross profit of ₹494 crore, up 59%.
• Adjusted EBITDA of ₹111 crore, up 40%.

Profit after tax was ₹60.1 crore, up just 2% from ₹58.9 crore, according to Inc42.

The full year

For FY26 as a whole, GTV reached ₹36,809 crore (up 19%) and adjusted EBITDA ₹414 crore (up 26%), the press release said. Revenue rose 54% to ₹2,677 crore and profit after tax rose 6.3% to ₹244.3 crore, Inc42 reported. In the shareholder letter, the founders called FY26 an investment year in sales teams and servicing, and said cost growth had begun to slow from Q3.

Q1 FY27: the latest reported quarter

The April to June 2026 quarter, reported on 29 July, is the first where TBO’s “operating leverage” argument shows clearly in the numbers. Gross profit grew 66%, and adjusted EBITDA grew faster, by 77%. According to the press release:

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Hotels and ancillaries GTV rose 50% to ₹7,578 crore, and airline GTV rose 17% to ₹3,577 crore. By region, hotel GTV grew 56% in Asia-Pacific, 37% in Europe and 20% in Latin America. India’s airline business grew 14.7%. Organic GTV, excluding Classic Vacations, was ₹9,918 crore, up 22%, according to ScanX.

Cash and equivalents rose by ₹392 crore in the quarter to ₹1,984 crore at 30 June 2026, helped by a release of working capital. Bhatnagar said in the release that the platform can handle “progressively greater volumes” without a matching rise in costs.

TBO’s shares stood at ₹1,522.60 on the results day, giving it a market value of about ₹16,385 crore, according to Entrackr. On the Q4 results day in May, they had closed at ₹1,225.15, Inc42 reported.

The FEMA case investors keep watching

Every recent TBO filing carries an “emphasis of matter” from its auditor, S.R. Batliboi & Co., about a foreign-exchange case. According to Note 4 of the Q3 FY26 results:

• The Enforcement Directorate (ED) issued a show-cause notice in September 2023 alleging that TBO let foreign travel agents book airline tickets and pay in rupees from third parties, in breach of the Foreign Exchange Management Act, involving ₹49.37 crore.
• TBO itself identified ₹71.23 crore of such transactions, including those with other customers. FEMA allows a penalty of up to three times the amount involved.
• The Reserve Bank of India declined TBO’s requests for post-facto approval in April and September 2025, and the matter moved to ED adjudication, where TBO made written submissions in November 2025 and is contesting the case.

The filing also notes that TBO, its directors and employees were not charged in a separate money-laundering complaint linked to a 2022 ED search. No provision has been made for the FEMA case, and it remained sub-judice at the Q1 FY27 results, according to ScanX.

Bottom line

The old version of this story credited a travel demand rebound for TBO’s Q3 FY26 growth. The filings tell a more specific story. Most of the jump in Q3 revenue came from consolidating Classic Vacations, and profit barely moved because TBO was spending heavily on sales teams and paying for the deal. By Q1 FY27, those investments had started to pay back, with organic GTV up 22% and adjusted EBITDA growing faster than gross profit, despite the Middle East disruption.

For founders, TBO is a useful model of a B2B marketplace that grew by diversifying across regions, so that a shock in one corridor did not sink the quarter. The next tests are completing the Classic Vacations integration, which management expects to finish by the end of Q3 FY27, and the outcome of the FEMA case. We will update this article after the July to September 2026 results. For other company results and startup news, see our news section.

This article reports company results and is not investment advice. Check the filings and consult a registered financial adviser before making investment decisions.

FAQ

What were TBO Tek’s Q3 FY26 results?

For October to December 2025, revenue rose 86% to ₹784.3 crore, GTV rose 35% to ₹9,709 crore and profit after tax rose 7.4% to ₹53.7 crore.

What is TBO Tek’s latest quarterly result?

Q1 FY27 (April to June 2026), announced on 29 July 2026: revenue of ₹926 crore (up 81%), adjusted EBITDA of ₹150 crore (up 77%) and profit of ₹83 crore (up 32%).

Why did TBO’s revenue grow faster than its bookings?

Because of Classic Vacations, the US company acquired on 1 October 2025. Its implied take rate was 25.4% of GTV in Q4 FY26, against 6.0% for TBO’s organic business.

How much did TBO pay for Classic Vacations?

$125 million for 100% of the company, including closing adjustments, according to TBO’s Q3 FY26 filing.

What was TBO Tek’s FY26 profit?

₹244.3 crore, up 6.3% from ₹229.9 crore in FY25, on revenue of ₹2,677 crore.

What is the FEMA case against TBO Tek?

An Enforcement Directorate case alleging rupee payments from third parties for foreign agents’ bookings. TBO is contesting it, and the outcome cannot yet be estimated, according to its filings.

Sources

1. TBO Tek, “Statement of Unaudited Consolidated Financial Results for the quarter and nine months ended December 31, 2025”, 11 February 2026
2. Travel Trade Journal, “TBO Tek posts solid Q3 FY26 performance; revenue up 86 per cent YoY”, 11 February 2026
3. TBO Tek, “Press Release: FY2026 and Q4 FY2026 results”, 28 May 2026
4. TBO Tek, “Shareholders’ Letter, Q4 FY2026 and Full Year FY2026”, 28 May 2026
5. Inc42, “TBO Tek Q4: Profit Almost Flat At ₹60.1 Cr, Revenue Up 82.6% YoY”, 28 May 2026
6. TBO Tek, “Q1 FY27 Earnings Press Release”, 29 July 2026
7. Entrackr, “TBO Tek’s Q1 FY27 revenue jumps 81% to Rs 926 Cr; profit grows 32%”, 29 July 2026
8. ScanX, “TBO Tek posts 81% revenue surge in Q1FY27, highlights operating leverage”, July 2026
9. TBO, “About Us”, accessed 4 October 2026

Featured image: Terminal 3 at Delhi's airport. TBO Tek is headquartered in New Delhi. · Photo: Biswarup Ganguly / Wikimedia Commons, CC BY 3.0

How this article was made: researched and drafted with AI assistance by the 100xFounder editorial desk, using only the sources listed in it; every figure links to its source. Read our editorial policy, or report an error through our corrections policy.

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