Travel platform Ixigo reported a record quarterly profit of ₹34.24 crore, an 81% increase compared to last year. Revenue rose 13% as the company grew its hotel and bus business. Investors will likely monitor how heavy spending on AI and hotel expansion affects profit margins, especially as the train ticketing segment faces policy-related challenges.
Le Travenues Technology, the company behind travel platform Ixigo, posted its highest-ever quarterly profit in the first quarter of the 2027 fiscal year. The company recorded a net profit of ₹34.24 crore, marking an 81% jump compared to the same period a year ago. Revenue from operations also saw a healthy increase of 13%, reaching ₹356.75 crore. The total value of bookings processed by the company, known as Gross Transaction Value (GTV), rose 19% to ₹5,524.33 crore.
Strong Growth in Bus and Flight Segments
The company’s performance was supported by strong results in its bus and flight booking categories. The bus segment, operated through Abhibus, continues to be a key driver, with GTV in this vertical growing by 39% compared to the previous year. While the aviation sector dealt with external factors like volatile global conditions and capacity adjustments by airlines, Ixigo still managed to achieve 27% growth in the GTV of its flight business.
Strategic Expansion into Hotels
Ixigo is shifting focus toward the hotel segment to build its market share. To accelerate this, the company recently acquired a majority 54.66% stake in the hotel technology firm Brevistay. This move is part of a larger plan to strengthen its presence in the budget hotel market, with the company aiming to become a leading player in this space over the next few years. The management has stated that they are deliberately reinvesting their operating profits into this vertical and into building AI capabilities through their 'ixigo NEXT' platform.
Facing Industry Headwinds
While the company is growing in many areas, it faces challenges in the train ticketing segment. This part of the business has been impacted by policy changes, such as new rules regarding Tatkal booking access and user authentication requirements. Although Ixigo has maintained a strong market share of 63% in this category, these policy changes have limited the speed of growth in ticket volumes.
What Investors Should Monitor
Investors will likely track whether the company's aggressive spending on hotel expansion and AI development starts to put pressure on profit margins in the coming quarters. The integration of Brevistay and its impact on the bottom line will be a key area to watch. Additionally, how the company navigates the ongoing policy and volume constraints in the train segment remains an important factor for its overall financial health.