Ixigo Q2 FY27 Results: Hotels Cushion Air Weakness

Le Travenues Technology, which operates the ixigo travel platform, reported a mixed second quarter for FY27. Revenue from operations rose 12.92% year on year to ₹320.96 crore, while gross transaction value, or GTV, increased 22% to ₹5,304.47 crore. However, air-ticketing revenue declined as the company faced a lower take rate, airline capacity cuts and higher fares. Hotels emerged as a separately disclosed growth segment and delivered strong booking-value growth. The quarter also included a one-time gain from the partial sale of ixigo's Freshbus stake, which lifted reported profit.

Q2 FY27 financial performance

Ixigo reported consolidated net profit of ₹63.42 crore for the quarter ended September 30, 2026, compared with a loss of ₹3.46 crore in the corresponding quarter a year earlier. The reported figure included an exceptional gain of about ₹40.7 crore from the partial sale of its Freshbus stake. Excluding that gain, adjusted profit was about ₹20.6 crore, down 36.6% sequentially. Total income rose 18.53% year on year to ₹343.04 crore. Total expenses increased 6.03% to ₹309.51 crore. Basic earnings per share were ₹1.37, compared with a loss per share of ₹0.08 a year earlier.

Revenue misses broker estimate

Revenue of ₹320.96 crore was down 10% sequentially but up 13.5% year on year, according to the figures cited by ICICI Securities. The brokerage said revenue was 8.3% below its estimate. The sequential decline came despite higher overall booking value, underscoring the difference between travel volumes and the commission or take rate retained by the platform. The result was shaped chiefly by air-ticketing monetisation rather than a decline in total consumer demand across all travel categories. Ixigo's H1 FY27 revenue from operations stood at ₹677.71 crore, against ₹600.28 crore in the year-earlier half.

GTV growth remains positive

GTV, which represents the total value of bookings made through ixigo's platforms, reached ₹5,304.47 crore in Q2 FY27. This was 22% higher than the prior-year quarter. Flight GTV rose 37.2% year on year, demonstrating that the value of air bookings grew despite pressures on revenue conversion. The company therefore recorded growth in travel transactions while earning less revenue per unit of flight booking value. This distinction is important for platform businesses, where revenue depends not only on booking volume but also on commissions, incentives and net take rates.

Air-ticketing take rate declines

Air-ticketing revenue fell 7.5% year on year to ₹82.7 crore, even as air-ticketing GTV rose 37.2%. The net take rate compressed by 183 basis points year on year to 3.8%. Flight volumes also fell 10% sequentially amid airline capacity cuts and elevated fares. These conditions affected the company's ability to convert growing ticket value into revenue. The data suggests that the near-term issue was monetisation in the flight category, rather than the absence of demand for bookings.

Hotels becomes a reported segment

Hotels became a separately reported segment from Q2 FY27, giving investors a clearer view of an increasingly important business line. The segment processed more than 5,000 room nights each day during the quarter. Hotel GTV reached ₹111.34 crore, up 39% sequentially and 2.6 times from a year earlier. Hotel revenue was approximately ₹8.1 crore. The business achieved a gross take rate of more than 12%, which was materially above the 3.8% net take rate reported in air ticketing. This makes hotels relevant to ixigo's broader effort to improve the mix of its travel business.

Hotel losses narrow as scale rises

The hotel contribution margin improved to negative 15% of revenue from negative 55% a year earlier. The change shows that the segment's unit economics improved as booking activity scaled up, although it was still contribution-loss making in Q2 FY27. The disclosure does not establish when the hotel segment may turn profitable. Still, the margin improvement and higher take rate distinguish hotels from the pressure seen in air-ticketing. Hotel traction partly cushioned the impact of weaker air-ticketing monetisation on the overall business.

Costs weigh on adjusted profitability

Adjusted EBITDA was ₹23.58 crore, down 19.4% sequentially and 17.2% year on year. The adjusted EBITDA margin declined to 7.3%, from 8.2% in Q1 FY27 and 10.1% in Q2 FY26. Contribution increased by ₹15.3 crore, but costs below the contribution line rose faster. Employee costs excluding ESOPs increased by ₹16.9 crore year on year, while technology costs rose by ₹4.5 crore. The cost movement explains why higher revenue and GTV did not translate into stronger adjusted operating profit.

Freshbus gain lifts reported profit

The partial sale of the Freshbus stake generated a one-time gain of about ₹40.7 crore. That gain was the principal reason reported net profit rose sharply to ₹63.42 crore. Investors assessing recurring operating performance may therefore focus more closely on adjusted PAT and adjusted EBITDA than on statutory profit alone. Profit before exceptional items and tax was ₹31.04 crore, while profit before tax was ₹71.70 crore. The difference highlights the material effect of the stake-sale gain during the quarter.

Share-price and analyst response

Following the latest results, ixigo shares were reported to have risen 12% to ₹157. The market response followed statutory earnings per share of ₹1.35, which was cited as ahead of expectations, even though revenue was slightly below estimates. Separately, consensus from nine analysts projected FY27 revenue of ₹1,417.2 crore and statutory earnings per share of ₹3.24. These are analyst forecasts, not company guidance. The company released the audio recording of its earnings call for the quarter and half-year ended September 30, 2026, on October 19, 2026.

Why the quarter matters

Ixigo's Q2 FY27 results show two contrasting operating trends. The air-ticketing business delivered higher GTV but lower revenue because of take-rate compression and a difficult airline capacity and fare environment. At the same time, hotels delivered rapid growth in booking value, a take rate above 12%, and a substantial improvement in contribution margin. The reported profit was boosted by the Freshbus stake-sale gain, while adjusted profitability declined because of higher employee and technology costs. The next results will show whether hotel scale continues to improve economics and whether air-ticketing monetisation recovers as airline market conditions evolve.