ixigo Jumps 9% on Record Profit, But EBITDA Falls 17%

Le Travenues Technology, which runs the travel platform ixigo, closed 8.74% higher at Rs 157.08 on Monday, after touching Rs 165.99 intraday, as it reported a record quarterly profit of Rs 63.42 crore, though the headline number hides weaker operating earnings. Profit after tax came in at Rs 63.42 crore against a loss of Rs 3.46 crore a year earlier, helped by a partial sale of its FreshBus stake. Revenue from operations rose 13% to Rs 320.96 crore, and gross transaction value grew 22% to Rs 5,304.47 crore. Hotel GTV, including Brevistay, surged 159% to Rs 111.34 crore, with over 86% of bookings from existing users, while flights GTV rose 37% and buses 32%. Contribution margin rose 14% to Rs 124.86 crore, but adjusted EBITDA fell 17% to Rs 23.58 crore from Rs 28.48 crore. The record profit leans on a one-time stake sale, so adjusted EBITDA is the cleaner gauge of the core business, and that moved the wrong way. Growth in bookings is healthy, with hotels now a fast-growing line and repeat usage high, but operating earnings did not keep pace. Investors will watch whether higher transaction value converts into EBITDA growth in coming quarters. The stock has ranged between Rs 136.35 and Rs 335.20 over the past 52 weeks, with a market cap of around Rs 6,931 crore, and is down about 35% so far this year despite Monday’s jump. The next question is whether the rebound holds or fades as the focus shifts to operating profit. Disclosure: Palash Kag, Proprietor, Sarathi Research (SEBI Reg. No. INH000012740). No position held in ixigo. This article is for educational and informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or hold any security. Please consult a registered advisor before making investment decisions.