TBOTEK Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹784 Cr
verified against source
Revenue YoY
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reported change
EBITDA
Pending
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
TBO Tek reported Q3 FY26 revenue of 784 CR with first-time consolidation of Classic Vacations (CV), adding complexity to metric interpretation. The enterprise take rate stood at 8.08% (organic: 6.04%; CV: 24.94%), though management emphasized gross profit as a more analytically robust metric given CV's commission pass-through structure. GP-to-Adjusted EBITDA conversion was 23.7% at enterprise level versus 25.3% organic. Air business delivered 16% YoY organic GTV growth despite Indigo disruptions, with management projecting sustained Q4 momentum. CV cross-sell has commenced with promising early signs—CV as a TBO customer ranks among top 20. Platform migration remains a multi-quarter project given CV's legacy systems. Management reaffirmed Q4 operating leverage commitment, expecting significant bottom-line flow-through as seasonal top-line growth outpaces SGA expansion. Key risks include integration execution on CV, working capital headwinds from CV's longer booking windows, and forex volatility from hedging costs.
Colored figures show movement against the previous available record.
Guidance to track
- Management reaffirmed expectation of significant operating leverage in Q4 as seasonal top-line growth significantly outpaces SGA expansion, leading to meaningful bottom-line flow-through on organic business.
- Air segment momentum is expected to continue into Q4 with at least double-digit GTV growth, maintaining the 16% organic growth trajectory achieved in Q3.
- Over the next 3-4 years, North America business (combined TBO organic + CV) is expected to grow at high double digits from a base of over $600M, leveraging CV's 10,000 luxury travel advisors and consortial relationships.
- Cross-sell from CV buying TBO inventory will commence within weeks (TBO selling to CV has already started). TBO buying from CV requires more technical integration work and will follow shortly.
Risks flagged
- Platform migration from CV's legacy systems to TBO ecosystem is a multi-quarter project expected to take 2-3 quarters. This delays full realization of operational synergies and cost efficiencies.
- CV's longer booking-to-check-in windows and luxury multi-product itineraries create highly negative working capital dynamics at consolidated level. Analyst specifically asked for balance sheet details; management deferred to Q4 call.
- As travel agents grow in size, some may bypass TBO to deal directly with suppliers, reducing wallet share. Management acknowledged this as occasional leakage risk, particularly for top-tier agents.
- Forex line includes hedging costs, MTM on hedges, unhedged positions, and revaluation of intercompany loans. While YoY forex impact has reduced materially, hedging costs continue to impact reported numbers.
Key quotes
- Gross profit strips out pass through commissions and better reflects the net economic value retained by the platform. For this reason, we believe gross profit as a percentage of GTV is more analytically robust measure of value capture.
- We remain convinced on that and that's only organic business not counting CV. So we should be able to demonstrate that operating leverage in Q4.
- It would be hard to translate that into our book model where we when a booking is reconfirmed we count it as revenue because of the nature of that business. So if we try to do that I think we'll create a fair bit of complexity. So we'll try and run the business on an as-is basis rather than try and force fit it into our business model.
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