Le Travenues Technology Q4 FY26 earnings call

Le Travenues Technology (ixigo) reported a resilient Q4 FY26 and strong FY26, navigating a noisy macro environment. For the full year FY26, revenue from operations grew 34% Y-o-Y to INR1,228 crores, and adjusted EBITDA increased 28% Y-o-Y to INR120.9 crores. Gross Transaction Value (GTV) for FY26 crossed INR18,693 crores (USD2 billion), with PAT reaching INR71.5 crores. Q4 FY26 saw GTV of INR4,798 crores, revenue of INR308.1 crores (up 8% Y-o-Y), adjusted EBITDA of INR30.3 crores (up 4% Y-o-Y), and PAT of INR32.1 crores (up 91% Y-o-Y).

The company's business model is increasingly diversified and resilient. In Q4 FY26, flights became the largest vertical by GTV, reaching INR2,018.6 crores (up 18% Y-o-Y), while buses became the largest by contribution margin at INR42.8 crores (up 7% Y-o-Y, 53% margin). The bus segment demonstrated robust growth, with passenger segments increasing 32% Y-o-Y to 7.22 million. The train segment, despite facing headwinds from policy changes and a high base, maintained its OTA market share at 62%, though GTV declined 5% Y-o-Y to INR2,002.4 crores.

ixigo is undergoing an AI-native reinvention, believing AI will profoundly transform the travel industry. They launched 'ixigo NEXT,' a new operating layer for travel, integrating a proprietary small language model (TARA), deep traveler context, real-time supply intelligence, and their existing intelligence stack. This initiative aims to create a more intuitive, personalized, and adaptive user experience, with AI agents autonomously handling various workflows. A portion of the core AI investment for foundational infrastructure is being capitalized and amortized over 5 years.

The company is excited about the hotel segment and is pursuing a disciplined approach. They have launched their Extranet HELLO to directly onboard hotels and are building an on-the-ground team. The focus is on solving the 'peace-of-mind' problem for customers in this category. ixigo plans to disclose hotel financials separately once the business achieves the right level of product-market fit, operational maturity, and meaningful scale, anticipating AI will fundamentally change hotel discovery and booking.

ixigo continued to strengthen its ecosystem through strategic partnerships and product launches. AbhiBus partnered with KSRTC to expand digital access to government bus services and enabled intercity bus bookings directly on the Uber app. ConfirmTkt launched an AI-powered seat finder feature and scaled its food-on-trains delivery business with Swiggy to over 40,000 restaurants and 160+ railway stations. Additionally, ixigo, ConfirmTkt, and AbhiBus are now live as native apps on ChatGPT, reflecting a focus on AI-led distribution.

The company operated amidst a challenging macro environment, including uncertainty from the Middle East situation and the new air corridor, which impacted international travel sentiment. High flight fares and limited train availability led to some demand shifting towards buses. Indian Railways' policy changes, such as restrictive Tatkal access and reduced waitlist inventory, created headwinds for the train business. Despite these challenges, ixigo demonstrated resilient growth and continued to gain market share, particularly in the bus segment.