Online travel firm ixigo reported a net profit of ₹34.24 crore for the first quarter of FY27, an 81% jump year-on-year. Driven by strong hotel bookings and the recent Brevistay acquisition, the company is now focusing on dominating India’s mid-market hotel segment. Investors are watching whether this strategy can sustain margins amidst intense competition in the online travel agency space.
Le Travenues Technology, the company behind the travel platform ixigo, reported strong financial growth for the first quarter of fiscal year 2027. The company’s net profit increased by 81% compared to the same period last year, reaching ₹34.24 crore. This growth in earnings was supported by a 13% rise in operational revenue, which totaled ₹356.75 crore, and a 19% increase in gross transaction value to ₹5,524.33 crore.
The company is now aggressively pushing into the hotel booking segment. CEO Aloke Bajpai has stated that the firm aims to become the leader in the mid-market hotel category within the next four to five years. To support this ambition, ixigo recently acquired a 54.66% majority stake in Brevistay, a platform specializing in flexible and short-stay accommodations. This acquisition is a strategic move to capture a larger share of the unorganized portion of India’s hotel industry.
ixigo’s strategy focuses on a capital-light model, leveraging its existing customer base to drive bookings rather than spending heavily on acquiring new users. According to the company, nearly 90% of its hotel bookings currently come from users already present on the platform. The firm now reports a direct hotel inventory of over 10,000 properties across 700 towns in India, with plans to expand this network further.
While the expansion presents a clear growth path, the company faces distinct operational challenges. The mid-market hotel segment in India is highly fragmented, with approximately 70% of inventory remaining unbranded. For ixigo, maintaining consistent service quality and managing customer expectations across this vast, informal network is a major execution risk. Failure to uphold standards could impact brand reputation and customer retention.
Furthermore, the online travel agency sector in India is fiercely competitive. Larger rivals and new entrants often use aggressive discounting to capture market share, which can put downward pressure on profit margins. If the company is forced to increase spending on marketing or incentives to maintain its growth trajectory in the hotel segment, it could test the sustainability of its current profitability. Investors will be monitoring how effectively ixigo integrates its recent acquisitions and whether it can maintain its improved profit margins while scaling this new vertical.