TBO Tek (TBOTEK) Q3 25/26 earnings summary

Executive summary

• Q3 FY2026 marked the first quarter of Classic Vacations' integration, expanding platform scale and complexity, and driving strong year-over-year growth in GTV, revenue, gross profit, and adjusted EBITDA.

• Expanded global presence with significant growth across North America, Europe, MEA, APAC, and Latin America, leveraging acquisitions and new market entries.

• Focused on the premium outbound travel segment, capitalizing on demographic shifts and increasing demand for assisted travel.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were approved and reviewed by the Board and Audit Committee, with statutory auditors issuing an unmodified review conclusion.

• Financials reflect the impact of the Classic Vacations LLC acquisition in the USA, completed on October 1, 2025.

Financial highlights

• Q3 GTV reached ₹9,709 Cr, up 35% YoY; revenue was ₹784 Cr, up 86% YoY; gross profit was ₹483 Cr, up 63% YoY; adjusted EBITDA was ₹115 Cr, up 53% YoY.

• Consolidated revenue from operations for Q3 FY26 was INR 7,843.32 Mn, up from INR 4,221.88 Mn in Q3 FY25; nine-month revenue was INR 18,631.20 Mn, up from INR 12,913.44 Mn year-over-year.

• Enterprise take rate was 8.08%; organic business at 6.04%, Classic at 24.94% (includes 12.4% pass-through commission).

• Gross profit to adjusted EBITDA conversion at enterprise level was 23.7%, down from 25.3% YoY.

• Adjusted EBITDA margin for Q3 was 14.4%, with a margin before acquisition costs at 14.6%.

Outlook and guidance

• Management expects Q4 to show continued momentum in air business and significant top-line growth.

• SG&A growth is expected to taper, with operating leverage driving margin expansion in Q4, especially in organic business.

• Continued investments in technology, sales expansion, and new agent acquisition are expected to drive further growth and operating leverage.

• IPO proceeds are being deployed for technology, platform growth, and international expansion, with unutilized funds temporarily invested in fixed deposits.

• Classic's platform migration and deeper integration are multi-quarter projects, with broader synergies expected over time.