ixigo Soars in Q3 FY26: AI-Powered Resilience Drives Record Performance

Le Travenues Technology Limited, popularly known as ixigo, has delivered an exceptional performance in the third quarter of Fiscal Year 2026, showcasing robust growth and remarkable resilience amidst industry disruptions. The AI-powered travel platform reported all-time high revenues and profitability, underscoring the strength of its diversified multimodal strategy and customer-first approach. For Q3 FY26, ixigo's revenue from operations surged to INR317.6 crore, marking a significant 31% year-on-year increase. Gross Transaction Value (GTV) also reached an unprecedented INR4,902.9 crore, up 21% year-on-year, while profit after tax (PAT) climbed an impressive 54% to INR24 crore. These headline figures highlight the company's strong execution across its core businesses and its ability to leverage operating leverage effectively.

The quarter's performance is particularly noteworthy given the significant operational challenges faced by the flight industry in December 2025. Following revised DGCA norms, a major airline experienced approximately 4,500 flight cancellations and reschedules, leading to a two-fold surge in customer reach-outs and a five-fold increase in the usage of ixigo's flight tracking products. ixigo's proactive response, including setting up a dedicated cross-functional war room and being the first OTA to refund full ticket amounts, convenience fees, and ixigo Assured fees for affected bookings, reinforced customer trust and demonstrated the efficacy of its AI-led customer experience stack. This approach allowed ixigo's flights business to grow faster than the overall market, with GTV increasing by 22% and revenue by 49% year-on-year, leading to market share gains and significant goodwill.

Strategic Growth Across Multimodal Segments

ixigo's diversified business model proved to be a key strength, with strong growth observed across its various segments:

Flights: International flights emerged as a significant growth driver, with GTV increasing over 50% year-on-year in Q3 and now contributing over 20% to overall flights GTV. This growth is fueled by strengthened international coverage through GDS partnerships and onboarding 26 airlines on New Distribution Capability (NDC) pipes, offering better fares and direct integrations. Demand from Tier 2 and Tier 3 cities for destinations in Southeast Asia and the Middle East is robust, further supported by the government's expansion of the e-Tourist Visa scheme to 211 countries. The company's focus on addressing friction points in international travel bookings, such as pricing transparency and post-booking support, positions it well for sustained growth.

Trains: The train segment remains a crucial pillar of ixigo's strategy, contributing 43% of GTV and 35% of contribution margin, with GTV growing in the mid-teens. ixigo's leadership in this segment is driven by deep product innovation and an AI-driven 'peace of mind' stack for travelers. Indian Railways' passenger-friendly changes, including mandatory Aadhaar verification for peak booking windows, and plans to double originating train capacity across 48 major cities by 2030, present significant opportunities. Initiatives like Vande Bharat Sleeper and Amrit Bharat Express are expected to strengthen supply and connectivity, addressing the historically supply-constrained segment.

Buses: The bus segment continues to be one of ixigo's strongest growth engines. Since acquiring AbhiBus in 2021, the business has scaled its annual GTV from INR400-500 crore to over INR2,400 crore in the last 12 months, representing nearly 6x growth, and continues to compound at 40-50% year-on-year. The strategy here prioritizes growth over margins in the short to medium term, driven by continuous investment in penetration, brand recall, and industry-first product innovations. AbhiBus has launched features like Abhi Assured, Pink Seat, Bus Insights, 360-degree Walk-throughs, Bus Safety Reports, and a Roadside Assistance Program, enhancing customer experience and safety.

Hotels: While seeing quarter-on-quarter growth, the hotel business is still in the 'product-market fit' stage. ixigo is focusing on solving the 'what you see versus what you get' problem in the budget hotel space and is actively adding direct supply through channel managers and partnerships with budget hotel chains. The company expects to intensify its efforts on both product and supply in the coming fiscal year.

Financial Summary

AI as a Strategic Imperative

ixigo's leadership emphasized that AI is not just a technological tool but a fundamental shift, akin to the emergence of the internet or smartphones. The company's AI strategy involves both organic investments in its AI stack and inorganic strategic investments or acquisitions in AI-first teams and products that align with its core travel ecosystem. AI is deeply embedded across all products, from planning and discovery to pricing, customer support, and supply-side efficiency. The company believes this AI cycle offers early access to exceptional talent and platforms, creating a durable strategic advantage and long-term optionality. The management highlighted that all software will be rewritten, not line by line but rule by rule, with intelligence adapting continuously to user intent, making AI a critical differentiator.

Outlook and Investor Confidence

Management expressed confidence in continued growth, particularly in the train segment, expecting to outpace the overall industry. The bus segment will continue its growth-over-margins strategy in the short to medium term. The company's capital deployment strategy, following a preferential issue, earmarks 25% for inorganic growth and 25% for organic growth opportunities, focusing on high-impact initiatives with clear synergies. An Investment Committee has been constituted to evaluate and approve such investments, ensuring prudence and leveraging the expertise of board members. ixigo's Q3 FY26 performance demonstrates its ability to not only deliver strong financial results but also to build enduring customer trust and lead industry transformation through strategic AI investments and a diversified business model.