Anand Rathi's research report on TBO Tek
Amid broader macro headwinds (incl. Indo-Pak border tension, the Air India crash and Israel-Iran conflict) affecting travel sentiment, TBO Tek’s Q1 GTV grew ~2.3% y/y to ~Rs81.2bn and its blended take-rate expanded ~100bps y/y to ~6.3% due to the increasing tilt toward highmargin hotels & ancillaries. This resulted in revenue growing ~22.2% y/y to Rs5.1bn (~2.7% above ARe). With continued SG&A investments, EBITDA was Rs779m (largely flat y/y) with margins down ~356bps y/y to ~15.2% (in line with ARe). Ahead, as the company nears the end of a relentless hiring spree (to be completed by Q3 FY26), it is on track for a 22-23% revenue CAGR over 2-3 years with a steady margin expansion from FY27.
Outlook
We cut our FY27e earnings ~1.5%, introduce FY28e and retain a Buy rating with a higher TP of Rs1,725, ~46x Sep’27 EPS.
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