Le Travenues Technology (ixigo) reported a PAT of Rs 63.42 crore, boosted by a Rs 40.66 crore gain from a stake sale in Freshbus. While GTV grew 22% YoY to Rs 5,304 crore, adjusted EBITDA fell 17% as the company ramps up investments in its hotels segment. Investors should note the ongoing pressure in the flights business and the strategic shift toward hotel market expansion.
Le Travenues Technology Reports Q2 Performance
Le Travenues Technology reported a Profit After Tax of INR 63.42 crore and a GTV of INR 5,304.47 crore.
Reader Takeaway: Strong growth in bus and rail segments is currently being weighed down by flight pricing headwinds and hotel investments.
What just happened
Le Travenues Technology released its quarterly results, showing a 22% year-on-year growth in Gross Transaction Value (GTV) to INR 5,304.47 crore. Revenue from operations rose 13% to INR 320.96 crore. However, adjusted EBITDA declined 17% to INR 23.58 crore. The bottom line was significantly impacted by an exceptional gain of INR 40.66 crore arising from the partial sale of its stake in Freshbus.
Why this matters
The company is aggressively scaling its hotel business, which now has its own reporting segment. While this offers long-term potential, it is currently a loss-making venture that is impacting overall EBITDA. Simultaneously, the flight business continues to struggle with high airfares and limited seat capacity, leading to a revenue decline in that specific segment despite an increase in GTV.
Segment Performance
- Trains: Remains the backbone, contributing 64% of the OTA rail market. Revenue grew 16% to INR 149.14 crore.
- Buses: Revenue jumped 24% to INR 81.04 crore, showing strong traction.
- Flights: Revenue fell 8% to INR 82.66 crore, with management citing industry-wide capacity constraints.
- Hotels: GTV grew 2.6x to INR 111.34 crore, though segment losses widened slightly to INR 1.21 crore.
Risks to watch
Management provided a cautious outlook for Q3, noting that October demand started softer than anticipated. The hotel segment is expected to remain in an investment phase for the next two to three years, which will likely keep pressure on the company's consolidated margins. Furthermore, the flight segment's ability to recover depends heavily on external airline capacity and pricing dynamics, which remain outside the company’s control.
What to track next
Watch for recovery signs in the flight booking segment as festive demand evolves. Additionally, track the unit economics of the hotel business as the company shifts from a simple aggregator model to direct supply integration.