TBO Tek Q2 revenue rises 53% as hotels and packages lead

TBO Tek Limited reported consolidated revenue from operations of Rs 865.626 crore for the quarter ended September 30, 2026, up 53% year on year, led by Rs 745.264 crore from hotels and packages. Profit for the period rose 12% to Rs 75.994 crore, although the company said the results include Classic Vacations and are not comparable with the prior-year period.

How much did TBO Tek’s revenue grow in Q2?

TBO Tek’s revenue from operations rose 53% year on year to Rs 865.626 crore in the quarter ended September 30, 2026, from Rs 567.510 crore in the quarter ended September 30, 2025. Total income, which includes other income, increased to Rs 880.389 crore from Rs 582.698 crore. Revenue was lower than Rs 925.780 crore in the quarter ended June 30, 2026.

Profit before exceptional items and tax increased to Rs 99.678 crore from Rs 78.226 crore a year earlier, while profit before tax rose to Rs 91.538 crore from Rs 78.226 crore. Profit for the period reached Rs 75.994 crore, compared with Rs 67.547 crore in the September 2025 quarter and Rs 83.358 crore in the June 2026 quarter. The board approved the unaudited consolidated results on November 2, 2026.

For the six months ended September 30, 2026, TBO Tek recorded revenue from operations of Rs 1,791.406 crore, compared with Rs 1,078.788 crore a year earlier. Six-month profit for the period rose to Rs 159.352 crore from Rs 130.515 crore. The statutory auditor issued an unmodified conclusion following its limited review of the consolidated financial results.

Which segment drove TBO Tek’s quarterly revenue growth?

Hotels and packages drove TBO Tek’s quarterly growth, with segment revenue rising 55% year on year to Rs 745.264 crore from Rs 479.458 crore. The segment represented about 86% of the Rs 865.626 crore total revenue reported for the September 2026 quarter. Its revenue was, however, below Rs 799.736 crore in the June 2026 quarter.

Air ticketing generated Rs 80.622 crore of revenue, up from Rs 78.080 crore a year earlier and down from Rs 81.226 crore in the preceding quarter. The other segment generated Rs 39.740 crore, compared with Rs 9.972 crore in the September 2025 quarter and Rs 44.818 crore in the June 2026 quarter. Segment revenue therefore changed most sharply in hotels and packages in absolute terms.

Hotels and packages reported segment results of Rs 479.946 crore, against Rs 316.760 crore a year earlier. Air ticketing segment results were Rs 41.079 crore, up from Rs 37.279 crore, while other segment results were Rs 40.050 crore versus Rs 9.310 crore. Before finance costs, depreciation, foreign-exchange effects and other income, operating income was Rs 144.585 crore, compared with Rs 88.059 crore a year earlier.

TBO Tek said the September 2026 quarter and six-month results include Classic Vacations, acquired on October 1, 2025, and are not comparable with the corresponding 2025 periods. The purchase consideration for Classic Vacations was Rs 982.425 crore, including Rs 422.595 crore of goodwill. The acquisition was funded through internal accruals, an inter-corporate loan and credit facilities.

Why did TBO Tek’s profit increase more slowly than revenue?

TBO Tek’s profit increased more slowly than revenue because several cost lines rose and the quarter included an exceptional loss of Rs 8.140 crore. Service fees increased to Rs 304.551 crore from Rs 204.161 crore, employee benefits expense rose to Rs 190.717 crore from Rs 107.896 crore, and depreciation and amortisation increased to Rs 33.837 crore from Rs 16.149 crore.

Finance costs were Rs 16.962 crore in the September 2026 quarter, compared with Rs 8.872 crore in the September 2025 quarter. TBO Tek also reported a net foreign-exchange loss of Rs 8.871 crore, whereas the prior-year quarter included a net foreign-exchange gain of Rs 0.454 crore in other income. Other expenses rose to Rs 225.773 crore from Rs 167.394 crore.

The exceptional item reflected an estimated net financial loss of Rs 8.140 crore at an overseas subsidiary after suspected collusion involving certain current and former employees of the subsidiary and TBO Tek was identified after the quarter end. Management said the final loss may differ when the detailed assessment is completed. The group has appointed an external expert and an independent law firm, initiated legal action and started an insurance claim process.

TBO Tek recorded tax expense of Rs 15.544 crore in the September 2026 quarter, versus Rs 10.679 crore a year earlier. That left profit for the period at Rs 75.994 crore, despite a Rs 21.452 crore year-on-year increase in profit before exceptional items and tax. Basic earnings per share were Rs 7.08, compared with Rs 6.32 in the September 2025 quarter.

What changed in TBO Tek’s cash flow and balance sheet?

TBO Tek generated net operating cash inflow of Rs 562.495 crore in the six months ended September 30, 2026, compared with Rs 28.668 crore in the six months ended September 30, 2025. Cash generated from operations rose to Rs 585.718 crore from Rs 48.108 crore before net income taxes paid. The movement included a Rs 561.180 crore increase in trade payables.

The cash-flow gain was partly offset by a Rs 368.521 crore increase in trade receivables and a Rs 173.965 crore decrease in other liabilities, including contract liabilities. Net cash used in investing activities was Rs 109.156 crore, against an inflow of Rs 300.205 crore a year earlier. Net cash used in financing activities was Rs 95.371 crore, following Rs 161.229 crore of borrowing repayments.

Cash and cash equivalents stood at Rs 1,393.719 crore at September 30, 2026, up from Rs 1,021.620 crore at March 31, 2026. Total assets increased to Rs 9,932.016 crore from Rs 9,308.883 crore. Trade receivables reached Rs 5,737.197 crore, while trade payables other than those owed to micro and small enterprises were Rs 6,067.467 crore.

Total equity rose to Rs 1,737.329 crore at September 30, 2026 from Rs 1,550.661 crore at March 31, 2026. Non-current borrowings declined to Rs 411.786 crore from Rs 557.034 crore, while current borrowings increased to Rs 153.682 crore from Rs 88.068 crore. Contract liabilities declined to Rs 1,181.704 crore from Rs 1,321.812 crore over the same period.

What regulatory and accounting matters did TBO Tek disclose?

TBO Tek disclosed an adjudication order under the Foreign Exchange Management Act, 1999, that imposed a Rs 22.216 crore penalty on the company and Rs 2.468 crore on each Joint Managing Director. The Special Director, Adjudication, passed the order on October 21, 2026, and TBO Tek received it on October 26, 2026. The auditor drew attention to the matter without modifying its conclusion.

Management said TBO Tek is in the process of filing an appeal and, based on legal advice, considers the prospects of success high. No adjustment was made to the September 30, 2026 financial results while the appeal outcome remains pending. The underlying complaint cited alleged contraventions of Rs 49.370 crore, while TBO Tek identified total amounts including other customers of Rs 71.229 crore.

One subsidiary’s financial information was prepared on a non-going-concern basis because it had ceased operations, although TBO Tek said the subsidiary was not material to the group. The winding-up of two step-down subsidiaries was also under process. Separately, the group continues to monitor central and state rules and government clarifications related to the New Labour Codes that became effective on November 21, 2025.

Conclusion

TBO Tek’s September 2026 quarter showed a 53% increase in revenue to Rs 865.626 crore, principally from hotels and packages, while reported profit increased 12% to Rs 75.994 crore. The quarter’s cost movements, foreign-exchange loss and Rs 8.140 crore exceptional item meant profit did not grow at the same rate as revenue, while working-capital changes helped lift six-month operating cash inflow to Rs 562.495 crore.

The next disclosed matters to watch are TBO Tek’s planned appeal against the FEMA adjudication order, the completion of the assessment into suspected collusion at the overseas subsidiary and progress on the related insurance claim. Future results will also show how Classic Vacations, acquired for Rs 982.425 crore on October 1, 2025, affects comparisons across revenue, costs and cash flow.