Le Travenues Technology Q1 FY27 earnings call

Le Travenues Technology Limited reported a Gross Transaction Value (GTV) of INR 5,524.33 crores for Q1 FY27, an increase of 19% year-on-year. Revenue from operations grew 13% year-on-year to INR 356.75 crores, with a contribution margin of INR 144.94 crores, also up 13%. Despite this, Adjusted EBITDA declined 7% to INR 29.24 crores, while Profit After Tax (PAT) saw a significant 81% increase to INR 34.24 crores, reflecting strategic investments and operational efficiency.

The company's Adjusted EBITDA was lower due to intentional reinvestment in two key areas: hotels and AI, which are seen as significant long-term opportunities. Management emphasized that they are not optimizing for short-term margins but for maximizing long-term platform value within financial guardrails. These investments are visible in the current cost base, particularly in tech and AI development, and are expected to yield future productivity and growth benefits.

The bus business emerged as the strongest part of the portfolio, becoming the largest vertical by contribution margin (37% of group CM). Passenger segments grew 33% to 0.89 crores, and GTV increased 39% to Rs. 947.43 crores. The company expanded its government bus inventory and introduced product innovations like a roadside assistance program, now available across 20 states and covering 95% of bookings. The BusBiz platform was also launched to enable offline and smaller travel agents to access bus inventory.

The aviation market faced a difficult operating environment due to the Iran conflict, its impact on oil prices, and subsequent capacity reductions by airlines. Domestic average transaction values on the platform increased 22% year-on-year, and international values rose 38%. Despite these headwinds, ixigo's flight segments grew 4%, and the company continued to gain market share, positioning itself as the fastest-growing flight OTA in India.

The train ticketing ecosystem continued to operate under policy constraints, including changes to Tatkal access and additional authentication requirements, leading to an 8% decline in train segments. Despite this, ixigo increased its share of the OTA train market from 60% to 63%. The company also launched Bharat Darshan Rail Packages and saw food on trains cross 17 lakh meals during the quarter, with metro bookings growing month-on-month.

Hotels are identified as the next growth engine, with increased investment intensity. The company put half a million heads on beds across its network and established direct partnerships with over 10,000 hotels across nearly 700 towns. The acquisition of a 54.66% stake in Brevistay is expected to accelerate this journey by adding direct hotel relationships, supply capabilities, and expertise in flexible stay inventory. The ambition is to become the number one discovery and booking platform for India's mid-market and budget hotels within the next four to five years.

The company is making significant investments in AI, with ixigo NEXT being the consumer-facing expression of this strategy. AI is being used to transform customer experience, improve operations, and build sustainable capabilities. The TARA system allows customers to express needs naturally, moving beyond rigid search forms. These AI investments are expected to lead to deeper customer understanding, personalized travel experiences, higher productivity, and new sources of long-term growth.

ixigo's flight business, historically leisure-led, is seeing increasing usage from merchants, traders, small business owners, and unmanaged corporate travelers using GST numbers. This trend, also observed in the bus and train businesses, provides a credible path for the company to enter the SME and corporate travel segment through a dedicated business product. This diversification is planned for subsequent quarters to broaden the demand base.