Gurugram/Mumbai | August 4, 2025 — TBO Tek, a global B2B travel distribution platform, reported operating revenue of ₹511 crore in Q1 FY26, up 22% year‑on‑year from ₹418 crore in Q1 FY25. However, net profit remained flat rising only 3.4% to ₹63 crore.
What the Numbers Reveal
- Gross transaction value (GTV) was ₹8,119 crore, a modest 2% YoY increase.
- Gross profit jumped 19% to ₹333 crore, signaling steady margin improvement.
- The Hotels & Ancillaries segment accounted for 83% of revenue, partly shielding it from air travel’s turbulence.
- Operating costs grew 27% YoY, led by higher service fees (39% of expenses) and employee costs (₹103 crore).
Why Growth Didn’t Translate to Profit
While scale is healthy, rising customer acquisition and service costs diluted bottom-line acceleration. Investors reacted as expected: flat profits after strong topline-triggered a minor sell-off on the stock exchange.
Founder-Focused Insights
- Diversify your GTV mix early. TBO’s pivot toward hotel-based revenues now brings higher margins than ticketing.
- Cost control matters even when growth looks strong. This quarter shows that scaling without operational discipline strains profitability.
- Platform-led international expansion can drive topline, but margin resilience depends on backend ratio shifts.
Takeaway
TBO Tek’s Q1 performance illustrates a common founder paradox: top-line growth without bottom-line leverage. Travel platforms and tech-first B2B startups must balance growth velocity with cost rigor to stay sustainable.
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