Ixigo, the online travel platform, reported a net profit of Rs 63 crore for the September quarter, driven largely by a one-time gain from a stake sale. While revenue rose 13% to Rs 321 crore, the flight ticketing segment showed signs of pressure with declining take rates. Investors may watch how the company balances its new hotel business expansion against competitive pricing in its core flight segment.
Le Travenues Technology, the operator of the travel platform Ixigo, has reported its financial results for the quarter ending September. The company posted a net profit of Rs 63 crore, a significant improvement compared to the loss of Rs 3.5 crore recorded in the same quarter last year. However, this profit figure includes a one-time gain of Rs 41 crore from the partial sale of its stake in the bus operator FreshBus. Excluding this non-recurring income, the company's core operating performance is the key area for long-term investors to analyze.
Revenue for the quarter grew 13% year-on-year, reaching Rs 321 crore. The growth was led by the train ticketing business, which remains the backbone of the company’s revenue, contributing Rs 149 crore with a 16% increase. The bus ticketing segment also performed well, recording a 25% revenue jump to Rs 81 crore.
In contrast, the flight ticketing segment faced challenges. While the total value of flight transactions (Gross Transaction Value) increased by 37% to Rs 2,184 crore, the revenue from this segment actually contracted to Rs 83 crore from Rs 89 crore. This occurred because the company's 'take rate'—the commission earned from each booking—fell from 9.38% to 7%. This decline often reflects intense competitive pricing in the travel booking market, where companies may reduce commissions or offer deeper discounts to attract travelers.
The company is now placing a strategic focus on its hotel booking business, aiming to diversify beyond transit ticketing. It reported a 2.6-fold increase in the Gross Transaction Value for hotels, which reached Rs 111 crore. Management has indicated that capital allocation will prioritize the hospitality segment and investments in artificial intelligence technology to drive efficiency and user experience.
Investors may monitor several key areas in the coming quarters. First, the ability of the flight segment to stabilize its take rates will be important for assessing profitability, as persistent pricing pressure could impact margins. Second, the success of the new hotel business line in becoming a meaningful revenue contributor is a critical growth metric. Finally, as the boost from the one-time asset sale fades, the company’s ability to maintain positive operating earnings through its core business remains the primary measure of its financial health.