Ixigo shares soar 13% after reporting all-time high quarterly profit
What's the story
Ixigo, a leading travel booking platform, has witnessed a massive spike in its stock value after reporting an all-time high quarterly profit for Q2. The company's shares surged by as much as 13% to ₹163.38 on the National Stock Exchange (NSE). The growth was mainly driven by strong performance across hotels, flights, and busses segments.
Financial performance
Record profit after tax for Ixigo
Ixigo reported a record profit after tax of ₹63.42 crore for the quarter ending September 30.
The company attributed this achievement to a partial stake sale in Freshbus, making the record profit partly non-operational in nature.
The gross transaction value also witnessed a significant increase of 22% year-on-year (YoY) to ₹5,304.47 crore, while operational revenue grew by 13% to ₹320.96 crore during the same period.
Growth indicators
Joint statement from Group CEO, Group Co-CEO, and Group CFO
The contribution margin for Ixigo also increased by 14% to ₹124.86 crore.
In a joint statement, Group CEO Aloke Bajpai, Group Co-CEO Rajnish Kumar, and Group CFO Saurabh Devendra Singh said, "In Q2 FY27, we delivered resilient growth with Quarterly GTV of ₹5,304 Crores."
They added that their profit after tax (PAT) was an all-time high aided by the partial sale of stake in Freshbus.
Business expansion
Hotel business fastest-growing segment for Ixigo
Ixigo's hotel business emerged as its fastest-growing segment, with gross transaction value more than doubling to ₹111.34 crore, a whopping 159% increase from a year ago.
Revenue from this segment also skyrocketed by 528% to ₹8.1 crore, while room nights booked surged by 295% to over 4.7 lakh during the quarter under review.
Service growth
Distribution network expanded with train bookings on Uber
Ixigo's distribution network expanded with train bookings on Uber, while food delivery through Zoop and Swiggy now covers over 290 railway stations.
Despite revenue and transaction value growth, adjusted EBITDA fell by 17% year-on-year to ₹23.58 crore from ₹28.48 crore.
Profit before share of loss of an associate, exceptional items, and tax stood at ₹33.53 crore during this period.