ixigo Navigates Q2 FY26 with Strategic AI Push and Robust Growth

Le Travenues Technology Limited, popularly known as ixigo, has released its Q2 FY26 earnings, showcasing a period of strategic investment and resilient growth amidst market-led headwinds. The company reported a Gross Transaction Value (GTV) of INR 4,347.5 crores, marking a 23% year-on-year increase. Revenue from operations surged by 37% to INR 282.7 crores. While the Profit After Tax (PAT) for the quarter stood at a negative INR 3.5 crores, management clarified this was primarily due to a non-cash, non-recurring ESOP charge of INR 26.9 crores. Excluding this one-off item, the profit before tax would have seen a 26% year-on-year increase, underscoring the underlying operational profitability.

The quarter saw diversified performance across ixigo's key segments. The flight business demonstrated remarkable resilience, with GTV growing by 29% and revenue by an impressive 60%, despite the overall domestic market contracting by approximately 2% year-on-year due to capacity constraints and monsoons. This growth was largely driven by ixigo's strong brand presence in 'Next Billion User' (NBU) markets, attracting a significant number of first-time flyers. The bus segment emerged as a high-growth area, with passenger segments increasing by 46% and GTV by 51%. This was bolstered by the addition of seven new State Road Transport Corporations (SRTCs) to AbhiBus, expanding route connectivity to 17 major state transport corporations. The train segment, while facing ecosystem-related adjustments and regulatory changes, still managed to grow its passenger segments by 10% and GTV by 12% year-on-year, maintaining its market leadership.

Strategic Investments and AI-First Vision

A significant highlight of the quarter was the company's strategic fundraise of approximately INR 1,296 crores through a preferential issuance, with MIH Investments One B.V. (Prosus) as a key investor. This capital infusion is aimed at strengthening ixigo's balance sheet, accelerating AI-led growth, fueling investments in the nascent hotel OTA space, and providing flexibility for inorganic opportunities. Management emphasized that this move is strategic, enabling them to double down on their conviction in AI and the hotel business, rather than being driven by a need for capital due to cash flow issues.

ixigo is firmly committed to an 'AI-first' strategy, aiming to build the best AI-first travel experience for the next billion travelers. This involves deep investment in agentic AI capabilities, evolving travel apps into conversational, multi-modal, hyper-personalized agents that can not only assist but also act on behalf of customers. The impact of AI is already visible in operational efficiencies; nearly half of voice support calls and over 90% of chat interactions are now resolved by autonomous AI agents. This has led to a remarkable 97.4% of calls being answered within two minutes and refunds processed in just under three hours on average.

Segmental Performance and Market Outlook

The company's diversified business model proved crucial in navigating a challenging quarter. While the flight and train segments faced external pressures, the bus segment's robust growth provided a strong counterbalance. The management highlighted green shoots in October, with supply returning to the air sector and advance bookings for trains picking up for the holiday season. This suggests a more favorable macro environment in the upcoming quarters.

Management reiterated its commitment to growing significantly faster than the overall market, driven by continuous product innovation and a customer-centric approach. The focus remains on solving customer problems through AI-led solutions, expanding the hotel OTA business, and leveraging its multi-brand ecosystem for cross-selling and up-selling opportunities. The company's track record of capital efficiency and disciplined growth positions it well to capitalize on the robust Indian travel and tourism market, which is projected to become the third-largest global economy and fourth-largest domestic travel market by 2030.

Overall, ixigo's Q2 FY26 performance reflects a strategic clarity and disciplined execution. Despite temporary headwinds, the company's proactive investments in AI and diversified growth engines underscore its long-term vision and commitment to building a resilient and customer-obsessed travel platform.