Why FIIs Are Betting Big on Ixigo Despite Losses

Le Travenues Technology Ltd., the parent company of Ixigo, is a tech-focused travel platform offering complete tourism services like trip planning, hotel, flight, and train bookings. Ixigo stands as one of India’s biggest travel portals, with over 8 crore monthly active users and extensive reach across Tier II and III cities and more than 2,400 towns. It enjoys a loyal user base of 34 crore, with over 85% repeat transactions. While foreign institutional investors (FIIs) have been selling broadly in Indian markets, they have increased their stake in Ixigo by 3.16% in Q2 FY26, taking their holding over 63%. This signals confidence in Ixigo’s growth potential and technology-driven model. Ixigo’s diverse business mix helps offset fluctuations; flight bookings dipped in the quarter, but bus ticket sales grew, balancing revenue streams. The company is heavily investing in AI to improve user experience and efficiency, using fresh funds raised for this purpose. The company’s sales jumped nearly 37% year-on-year to ₹282.7 crore in Q2 FY26 but still showed a loss of ₹3.5 crore. Management remains upbeat about all business segments growing and expects the AI push and recent fundraising to fuel long-term growth. The stock commands a high PE ratio of 251.5x, reflecting premium valuation and high expectations. For shareholders, this situation suggests cautious optimism. Strong sales growth and user expansion are promising but current losses and expensive valuation require faith in management’s AI strategy and execution to convert growth into profits and shareholder value.