TBO Tek

TBO Tek has successfully shifted its business mix toward the higher-margin hotel and ancillary segment, which now accounts for 84% of total Gross Profit. While the air business remains a key customer acquisition tool, management is focusing on cross-selling, with 37% of air buyers now transacting in non-air products. This shift drove an improvement in the enterprise take rate to 5.73% in Q4 FY25.

The company is aggressively expanding its global footprint, with international GTV growing 43% in FY25. Europe has surpassed the Middle East to become the company's largest market, contributing 36% of hotel GTV. To sustain this, TBO plans to add 100 salespeople and enter 20 new countries in FY26, targeting high-value markets like the US, France, and Germany.

In the domestic Indian market, the air business faced headwinds due to commoditization and geopolitical disruptions, including the Pahalgam incident which impacted summer bookings. However, hotel GTV in India grew 8% YoY. Management is leveraging its massive distribution network of 23,000 transacting agents in India to drive 'non-air saliency,' which rose from 14% to 16% of India GTV.

The newly launched TBO Platinum program, which offers preferred placement to luxury hotels in exchange for exclusive value-adds, showed early success with a 22-30% improvement in share-of-wallet. Management views their role as 'demand aggregators' for fragmented travel agents, allowing them to grow even in mature markets where they currently hold a very small market share.

Despite heavy investments in growth, TBO Tek maintained its Adjusted EBITDA margins at approximately 19% for the full year. The company ended FY25 with a robust cash position of ₹1,455 crore. While management is actively exploring M&A opportunities globally, they emphasized a cautious approach, prioritizing 'good assets' over opportunistic cheap buys.