TBO Tek Q2 FY27 Results (NSE: TBOTEK)
Signal: Steady quarter
The read
The key inflection is profit conversion rather than top-line acceleration: standalone revenue grew only 8.1% YoY to 1,559.40 million, but PAT rose 61.5% to 158.89 million as operating income margin improved to 8.7% from 6.2% and other income rose 43.8% to 165.46 million. The quality of this improvement is mixed because other income represented 77.6% of profit before tax and included a 40.13 million foreign-exchange gain.
P&L walk
Standalone revenue grew 8.1% YoY, but PAT rose 61.5% to 158.89 million as other income increased 43.8% to 165.46 million and depreciation and other operating costs were contained relative to the prior-year quarter.
Segments
The standalone table shows hotels and packages driving momentum with revenue up 31.3% YoY to 307.51 million, while air ticketing dragged growth with revenue down 3.1% to 699.76 million; the supplied text does not provide consolidated segment results.
Key positives
- Hotels and packages revenue rose 31.3% YoY to 307.51 million, materially outpacing standalone revenue growth of 8.1%.
- Standalone operating cash flow turned positive at 1,297.07 million in H1FY27 versus an outflow of 831.43 million in H1FY26.
- Operating income rose 50.8% YoY to 135.06 million and its margin on revenue expanded to 8.7% from 6.2%.
- PAT rose 61.5% YoY to 158.89 million and basic EPS rose 60.9% to INR 1.48, with no material EPS dilution evident.
Key concerns
- Air ticketing revenue declined 3.1% YoY to 699.76 million, limiting the platform's overall standalone revenue growth to 8.1%.
- Other income increased 43.8% YoY to 165.46 million, including a 40.13 million net foreign-exchange gain; this made PAT growth materially stronger than operating growth.
- Employee benefits expense increased 9.6% YoY to 655.63 million and reached 42.0% of revenue versus 41.5% a year earlier.
- Trade receivables increased to 5,757.88 million from 4,962.76 million at March 31, 2026, requiring monitoring despite the improvement in operating cash flow.
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