TBO Tek Ltd reported a robust Q3 FY26 performance, with consolidated revenue up 86% year-on-year to ₹784 crore, driven by strong recovery in both domestic and international travel demand and rising booking volumes across hotels and travel packages.
Hotel and packages lead the recovery
The Gurugram-based travel-tech firm saw its hotels and packages vertical contribute roughly 84% of operating income, with revenue from this segment rising about 96% YoY to ₹661 crore. The surge reflects stronger global travel demand, an expanded partner network and increased cross-border transactions, underscoring the importance of hotel inventory and packaged products to TBO Tek’s B2B distribution model.
Air ticketing and ancillary services added ₹82 crore to the top line, while other income contributed close to ₹41 crore, highlighting a diversified revenue mix beyond the core hotel and packages business.
Rising costs temper margin expansion
Operating expenses rose sharply in Q3 FY26, increasing 88% YoY to ₹725 crore from ₹385 crore a year earlier. Service fees linked to hotel and package bookings made up about 42% of total costs, while employee benefit expenses climbed to ₹165 crore as the company invested in talent and platform capabilities to support growth.
Despite higher costs, TBO Tek posted a net profit of ₹54 crore, up 8% YoY from ₹50 crore in Q3 FY25. The modest profit growth signals that while scale is expanding rapidly, margin improvement remains constrained by elevated operating spend.
Market position and outlook
Investor response to the quarterly results was broadly positive, with market valuation remaining steady as shareholders focused on sustained topline momentum. TBO Tek’s progress through FY26 has been consistent, driven by international expansion, strategic partnerships and iterative product enhancements aimed at improving agent access to global inventory.
Looking ahead, management’s ability to extract cost efficiencies and grow higher-margin services will be critical for stronger earnings growth. Given resilient travel demand and accelerating digital adoption among travel agents, TBO Tek is positioned to capitalise on opportunities in the evolving travel distribution market.
