TBO Tek Q1 FY27 Results (NSE: TBOTEK)
Signal: Margin pressure
The read
Q1FY27 consolidated revenue surged 81% YoY to ₹9,258 Mn, largely reflecting the Classic Vacations acquisition, but operating margin compressed 500bps YoY to 11.2% as service fees (COGS) outpaced revenue growth (110% vs 81%) and depreciation jumped 137% on acquired intangibles. PAT grew a more modest 32% to ₹834 Mn, benefiting from a lower tax rate. Standalone business grew only 6% YoY, showing limited organic momentum. The margin trajectory remains the key watch item — the 4th consecutive quarter of YoY OPM contraction (since Q4FY25) signals integration costs and mix shift toward lower-margin revenue.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹925.78 Cr | 81.1% | 13.7% |
| EBIT | ₹103.29 Cr | 53.0% | |
| Net profit | ₹83.36 Cr | 32.4% | |
| EPS | ₹7.77 | 31.7% | |
| EBIT margin | 11.2% |
P&L walk
Revenue surged 81% YoY to ₹9,258 Mn, driven by the Classic Vacations acquisition (Q3FY26 onwards) and organic growth, but OPM contracted 500bps YoY to 11.2% as service fees grew faster than revenue (110% vs 81%) and depreciation jumped 137%; PAT grew 32% YoY to ₹834 Mn, aided by lower tax rate and other income.
Key positives
- Consolidated revenue grew 81% YoY to ₹9,258 Mn, driven by Classic Vacations consolidation and organic growth.
- PAT up 32% YoY to ₹834 Mn, with basic EPS at ₹7.77 (+32% YoY).
- Standalone PAT grew 23% YoY to ₹199 Mn, aided by higher other income.
- Hotels & packages segment revenue up 83% QoQ to ₹355 Mn, indicating seasonal strength.
Key concerns
- Operating margin contracted 500bps YoY to 11.2% — 4th consecutive quarter of YoY OPM decline (Q4FY25: -300bps, Q1FY26: -500bps, Q2FY26: -100bps, Q3FY26: neutral, Q4FY26: -200bps).
- Service fees (COGS) grew 110% YoY vs revenue +81%, indicating margin dilution from lower-margin acquired business.
- Depreciation and amortisation surged 137% YoY to ₹330 Mn, reflecting amortisation of acquisition-related intangibles.
- Finance costs rose 177% YoY to ₹146 Mn, likely from debt taken for Classic Vacations.
- Standalone revenue growth of only 6% YoY suggests limited organic momentum ex-acquisitions.
- Air ticketing segment revenue flat YoY at ₹727 Mn — no growth in the core B2B air business.
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