TBO Tek (TBOTEK) Q4 25/26 earnings summary

Executive summary

• Q4 and FY 2026 performance was resilient despite severe geopolitical disruptions, especially in the Middle East and Israel, which are key source markets.

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, were approved, with unmodified opinions from auditors.

• Year-on-year growth was achieved in both top line and bottom line, with rapid business recovery in unaffected markets and sharp upticks following positive geopolitical developments.

• Strategic focus areas included increased market development investments, expansion in luxury travel, and the integration of Classic Vacations.

• Appointment of Grant Thornton Bharat LLP as internal auditors for FY 2026-27.

Financial highlights

• Consolidated revenue from operations for FY26 was INR 26,774.80 Mn, up from INR 17,374.73 Mn in FY25.

• Consolidated net profit for FY26 was INR 2,443.06 Mn, compared to INR 2,298.91 Mn in FY25.

• Strong year-on-year growth in GTV and gross profit, with March impacted by the war but still delivering positive results.

• EBITDA to GTV ratio has remained stable at 1% over the last three years, with expectations for improvement as SG&A growth tapers.

• Negative cash flow from operations and free cash flow this year, mainly due to timing issues in Brazil and delayed receivables from the war-affected regions.

Outlook and guidance

• Q1 is expected to outperform both Q4 and the same period last year, with moderate SG&A growth and signs of operating leverage.

• The aspiration is to maintain early to mid-20% growth, contingent on normalization in key markets like the Middle East and Israel.

• IPO proceeds have been fully utilized as per stated objectives, supporting platform growth, technology, and inorganic acquisitions.

• LATAM is expected to see moderate growth due to structural and currency headwinds.

• Expected effective tax rate for FY 2027 is around 18%-18.5%.