ixigo Shares Drop Over 5% After Reporting Q2 Net Loss Amid Travel Slowdown

ixigo, a major travel technology company, experienced a significant drop in its stock price, falling up to 5.4% during intraday trading on the BSE to INR 255.65. This decline follows the company's announcement of a net loss of INR 3.5 crore for the second quarter of fiscal year 2026 (Q2 FY26). This contrasts sharply with the net profit of INR 13.1 crore reported in the corresponding quarter of the previous fiscal year. The loss was primarily attributed to one-time expenses related to Employee Stock Option Plans (ESOPs), amounting to INR 26.9 crore. However, the company did see a positive trend in its operating revenue, which increased by 36% year-over-year (YoY) and 10% quarter-over-quarter (QoQ) to reach INR 282.7 crore.

At 13:15 IST, ixigo shares were trading 4.4% lower on the BSE, with the company's market capitalisation standing at approximately INR 10,086.08 crore (about $1.2 billion). The stock had already seen a substantial fall of over 16% on the previous Thursday after the Q2 results were released. In total, ixigo's shares have fallen over 20% in the past three sessions from their closing price of INR 324.70.

ixigo cofounder and CEO Aloke Bajpai commented on the challenging market conditions, stating that a "tough environment" and "de-growth across the entire travel ecosystem" negatively impacted the company's performance. This industry-wide slowdown is also reflected in the results of ixigo's larger rival, MakeMyTrip, which also reported a loss of $5.7 million (INR 50 crore) in its Q2, largely due to finance costs associated with its recent capital raise.

Despite the recent downturn, ixigo's stock performance has been strong year-to-date, with shares up nearly 43%. This uptrend was previously driven by the company's solid financial results in prior quarters and strategic new partnerships. Investor activity has been mixed, with Schroders increasing its stake to 7.18% last month, while Elevation Capital offloaded a 2.59% stake in July.

Looking ahead, ixigo is preparing to strengthen its financial position by raising approximately INR 1,295.6 crore through a share subscription agreement with Prosus. This fresh capital is earmarked for driving organic growth in the hotels segment, developing an AI-first travel experience, and pursuing strategic merger and acquisition (M&A) opportunities.

Impact: This news directly impacts ixigo's stock price, potentially causing short-term volatility. Investors will closely monitor the company's ability to navigate the travel slowdown and effectively utilize the new capital for growth, especially in its AI initiatives and hotel segment. The performance of the broader travel ecosystem will also remain a key factor. Rating: 7/10

Difficult terms: * **ESOP (Employee Stock Option Plan)**: These are grants given to employees that give them the right to purchase company shares at a predetermined price, often below the market price, after a certain vesting period. The expenses related to these plans are recognized by the company. * **Q2 FY26**: This refers to the second quarter of the financial year 2026, typically covering the months of July, August, and September 2025. * **YoY (Year-over-Year)**: A method of comparing financial data for a period with the data for the same period in the previous year. It helps to understand the growth trend. * **QoQ (Quarter-over-Quarter)**: A method of comparing financial data for a quarter with the data for the immediately preceding quarter. It shows short-term performance trends. * **Market Capitalisation**: The total market value of a company's outstanding shares. It's calculated by multiplying the current share price by the number of shares in circulation. * **Capital raise**: The process where a company obtains funds by issuing new equity (shares) or debt (bonds). * **M&A (Mergers and Acquisitions)**: The process of combining companies or buying out other companies to achieve strategic growth and market consolidation.