India’s listed travel-tech companies delivered different operating performances in the June quarter. TBO Tek, MakeMyTrip and Ixigo are in focus after Jefferies highlighted medium-term growth and market-share opportunity across the three companies.
The June-quarter numbers showed the difference in the earnings profiles. TBO’s organic gross transaction value grew 22%, while organic earnings before interest, taxes, depreciation and amortisation increased 28%. MakeMyTrip delivered 21% constant-currency gross bookings growth and 17% growth in earnings before interest, taxes, depreciation and amortisation. Ixigo posted 19% gross booking value growth, but earnings before interest, taxes, depreciation and amortisation declined 5%.
Jefferies on TBO Tek: ‘Buy’
Jefferies retained its ‘Buy’ rating on TBO Tek and raised its price target to Rs 1,905 indicating an upside of 18%. The brokerage based the target on 35 times estimated September 2028 price-to-earnings and estimated a 41% compound annual growth rate in profit after tax between FY26 and FY29. Jefferies said it had raised its FY27 and FY28 earnings-per-share estimates by 3% to 8% on improving growth visibility.
TBO delivered the strongest quarter among the three companies in Jefferies’ comparison. The brokerage said organic gross transaction value increased 22% year-on-year, organic revenue rose 16% and organic earnings before interest, taxes, depreciation and amortisation increased 28% in the first quarter of FY27. Total adjusted profit after tax increased 51%.
| TBO Tek | 1QFY26 | 1QFY27 | YoY change |
| Gross transaction value | Rs 8,119.3 crore | Rs 11,154.3 crore | 37.4% |
| Net sales | Rs 511.3 crore | Rs 925.8 crore | 81.1% |
| Earnings before interest, taxes, depreciation and amortisation | Rs 77.9 crore | Rs 143.5 crore | 84.2% |
| Adjusted profit after tax | Rs 55.2 crore | Rs 83.4 crore | 50.9% |
| Earnings before interest, taxes, depreciation and amortisation margin | 15.2% | 15.5% | +30 basis points |
Source: Company data and Jefferies research.
Jefferies said the quarter marked an improvement in operating leverage. TBO’s earnings before interest, taxes, depreciation and amortisation as a percentage of gross profit increased to 26% from 23.4%, while the earnings before interest, taxes, depreciation and amortisation margin increased to 15.5% from 15.2%.
“The qtr marked a clear margin inflection, with Oplev driving EBITDA growth ahead of gross profit,” Jefferies said.
TBO Tek vs MakeMyTrip vs Ixigo: Growth and profitability
Jefferies’ comparison showed TBO ahead on the combination of organic growth and operating leverage, while MakeMyTrip remained the largest of the three by market capitalisation.
| Metric | TBO Tek | MakeMyTrip | Ixigo |
| Gross transaction or booking value growth | 22% organic | 21% constant currency | 19% |
| Revenue growth | 16% organic | 17% constant currency | 13% |
| Earnings before interest, taxes, depreciation and amortisation growth | 28% organic | 17% constant currency | -5% |
| Adjusted profit after tax growth | 51% | 39% | 70% |
| Jefferies rating | ‘Buy’ | ‘NR’ | ‘NR’ |
Source: Jefferies research. MakeMyTrip figures are on a constant-currency basis in this comparison.
The comparison showed why Jefferies’ preference was not simply based on booking growth. TBO combined 22% organic gross transaction value growth with 28% organic earnings before interest, taxes, depreciation and amortisation growth. Ixigo delivered 19% gross booking value growth, but earnings before interest, taxes, depreciation and amortisation declined 5%. MakeMyTrip delivered 21% constant-currency gross bookings value growth and 17% constant-currency revenue growth.
TBO Tek vs MakeMyTrip vs Ixigo: Hotels become a bigger growth driver
Hotels were a major part of Jefferies’ comparison. The brokerage’s data showed TBO’s hotel gross transaction value rising from Rs 5,059.7 crore in 1QFY26 to Rs 7,577.7 crore in 1QFY27.
Airline gross transaction value increased from Rs 3,059.6 crore to Rs 3,576.6 crore over the same period.
| TBO Tek segment | 1QFY26 | 1QFY27 |
| Hotel gross transaction value | Rs 5,059.7 crore | Rs 7,577.7 crore |
| Airline gross transaction value | Rs 3,059.6 crore | Rs 3,576.6 crore |
| Hotel take rate | 8.35% | 10.55% |
| Airline take rate | 2.56% | 2.27% |
Source: Company data and Jefferies research.
The difference in take rates was significant. Jefferies’ data showed TBO’s hotel take rate at 10.55% in the June quarter, compared with 2.27% for airlines.
Jefferies also highlighted TBO’s increasing North American exposure. The brokerage said North America accounted for around 25% of hotel gross transaction value.
“Hotels have been the biggest mkt share opportunity,” Jefferies said.
Jefferies said TBO’s strategy remained focused on optimising gross transaction value without sacrificing margins. The brokerage noted that recent key-account-manager investments were expected to take four to six quarters to generate accretive gross transaction value, depending on geography.
Jefferies on MakeMyTrip: Steady earnings
Jefferies classified MakeMyTrip as ‘NR’ and did not assign an active rating or price target in the report. The brokerage said the company delivered a resilient quarter, with gross bookings increasing 9% year-on-year and 20% in constant-currency terms.
Jefferies said gross bookings growth was broad-based across air, hotels and buses. Growth across these categories ranged between 19% and 34% in constant-currency terms, although flight bookings declined 2%. Higher airfares supported gross bookings value, while constant-currency revenue increased 17%.
| MakeMyTrip | 1QFY26 | 1QFY27 | YoY change |
| Reported gross bookings | $2.608 billion | $2.855 billion | 9% |
| Adjusted revenue | $283 million | $310 million | 9% |
| Earnings before interest, taxes, depreciation and amortisation | $48 million | $50 million | 6% |
| Constant-currency gross bookings value | Rs 22,300 crore | Rs 27,000 crore | 21% |
| Constant-currency adjusted revenue | Rs 2,400 crore | Rs 2,900 crore | 21% |
Source: Company data and Jefferies research. The underlying report presents the dollar figures in US dollars and the constant-currency figures in Rs billion.
Jefferies said MakeMyTrip’s adjusted earnings-before-interest-and-tax margin remained steady at 1.8% of gross transaction value, despite continued investment in customer acquisition and artificial intelligence. The brokerage also said management had highlighted strength in domestic leisure, pilgrimage, short-haul international travel and alternative stays.
MakeMyTrip Vs TBO TekVs Ixigo: Scale against operating leverage
Jefferies’ peer comparison put MakeMyTrip‘s market capitalisation at $5.7 billion, compared with $1.8 billion for TBO Tek and $0.8 billion for LE Travenues Technology.
MakeMyTrip’s accommodation network had expanded to more than 1.01 lakh properties, according to Jefferies. The brokerage also noted that OneCircle loyalty coverage had expanded to more than 13,000 hotels.
Jefferies said intercity cabs had grown more than 40% from a low base, while the experiences business had expanded to more than 50 cities with more than 3,000 offerings.
The brokerage said management had reiterated a long-term target of around 20% constant-currency adjusted revenue growth. It also noted that market-share gains remained a priority over profitability as the company continued spending on customer acquisition and growth.
Jefferies also noted that MakeMyTrip’s India subsidiary had confidentially filed a draft red herring prospectus with the Securities and Exchange Board of India. The proceeds were earmarked for liquidity, convertible-security buybacks and growth opportunities, according to the brokerage.
Jefferies on Ixigo: Margin pressure a concern
Jefferies classified Ixigo as ‘NR’ and did not assign a price target. The brokerage said Ixigo delivered 19% gross booking value growth in 1QFY27, driven by 39% growth in buses and 27% growth in flights.
| Ixigo | 1QFY26 | 1QFY27 | YoY change |
| Gross booking value | Rs 464.47 crore | Rs 552.43 crore | 19% |
| Revenue | Rs 31.45 crore | Rs 35.68 crore | 13% |
| Earnings before interest, taxes, depreciation and amortisation | Rs 2.55 crore | Rs 2.44 crore | -5% |
| Earnings before interest, taxes, depreciation and amortisation margin | 8.1% | 6.8% | -129 basis points |
Source: Company data and Jefferies research. The underlying report presents these figures in Rs million.
Jefferies attributed the margin pressure to lower air take rates and contribution margins, together with higher investments in technology, hotels and brand building.
“Mgmt said the near term profitability trade-off is intended to accelerate investments in Hotels and AI,” Jefferies said.
The brokerage’s operating data showed bus gross booking value rising from Rs 68.10 crore in 1QFY26 to Rs 94.74 crore in 1QFY27. Flight gross booking value increased from Rs 184.81 crore to Rs 234.18 crore, while rail gross booking value increased from Rs 205.51 crore to Rs 213.89 crore.
Ixigo vs MakeMyTrip: Investment-led growth comes with margin pressure
Jefferies said Ixigo had more than 10,000 direct hotel partnerships and was targeting a leading position in India’s budget accommodation segment over the next three to five years. The brokerage noted that nearly 90% of hotel bookings came through Ixigo’s existing-user funnel.
Hotels and artificial intelligence were viewed by management as two of Ixigo’s largest long-term growth drivers, according to Jefferies. Ixigo NEXT was being developed around agentic artificial intelligence, proprietary models, workflow automation and travel-focused small language models.
Jefferies said management expected artificial-intelligence costs to remain elevated in the near term but believed the investment could improve productivity, product quality and scalability without proportional increases in headcount.
The brokerage also said rail regulatory issues and weak airline capacity remained near-term constraints, while strong bus performance continued to support growth.
TBO Tek vs MakeMyTrip vs Ixigo: Which stock is cheaper?
Jefferies’ peer valuation table showed TBO with the lowest estimated FY28 enterprise-value-to-earnings-before-interest, taxes, depreciation and amortisation multiple among the three companies.
| Company | Market capitalisation | FY27E EV/EBITDA | FY28E EV/EBITDA | FY27E P/E | FY28E P/E |
| TBO Tek | $1.8 billion | 27x | 20x | 52x | 35x |
| MakeMyTrip | $5.7 billion | 29x | 23x | 33x | 25x |
| Ixigo | $0.8 billion | 51x | 34x | 56x | 41x |
Source: Bloomberg and Jefferies research.
TBO’s estimated FY28 enterprise value to earnings before interest, taxes, depreciation and amortisation multiple stood at 20 times, compared with 23 times for MakeMyTrip and 34 times for Ixigo.
On estimated FY28 price-to-earnings multiples, MakeMyTrip was at 25 times, compared with 35 times for TBO and 41 times for Ixigo.
The valuation comparison showed that MakeMyTrip carried the lowest estimated FY28 price-to-earnings multiple, while TBO had the lowest estimated FY28 enterprise-value-to-earnings-before-interest, taxes, depreciation and amortisation multiple.
TBO Tek vs MakeMyTrip vs Ixigo: Aviation remains a tougher segment
Jefferies said aviation continued to face capacity constraints, elevated fares and geopolitical disruptions, resulting in weaker flight volumes across online travel agencies, although higher ticket prices supported bookings.
MakeMyTrip’s flight bookings declined 2%, according to Jefferies, while Ixigo’s flight gross booking value increased 27%. TBO’s airline gross transaction value increased from Rs 305.96 crore in 1QFY26 to Rs 357.66 crore in 1QFY27.
Jefferies said Indian travellers were increasingly choosing domestic holidays, Southeast Asia, buses and shorter leisure trips. The brokerage said bus ticketing had emerged as the strongest segment across the online travel companies covered in the report, while both companies were expanding their presence in corporate travel.
TBO Tek vs MakeMyTrip vs Ixigo: Artificial intelligence becomes a common theme
Jefferies said artificial intelligence was increasingly being embedded across booking, customer support, personalisation, software development and operations. MakeMyTrip had highlighted productivity gains from Myra and automation, Ixigo continued investing in agentic artificial intelligence and proprietary travel models, while TBO was focused on artificial-intelligence-led customer engagement and sales productivity.
The brokerage described artificial intelligence as a “competitive differentiator, not disruptor”.
Jefferies said MakeMyTrip’s Myra 2.0 had generated more than 8 million conversations during the quarter, with 45% of usage coming from tier-two and smaller markets. Artificial intelligence generated around 75% of code, while the voice bot autonomously resolved around 50% of customer interactions, according to the brokerage.
For Ixigo, Jefferies said artificial-intelligence costs were expected to remain elevated in the near term as the company continued investing in its technology platform.
Conclusion: Which travel-tech stock does Jefferies prefer?
The preferred option from Jefferies’ report is TBO Tek.
Jefferies also pointed to the improvement in operating leverage, with earnings before interest, taxes, depreciation and amortisation as a percentage of gross profit rising to 26% from 23.4%.
Overall, Jefferies’ comparison favoured TBO Tek on the immediate earnings profile, with the brokerage pointing to stronger operating leverage, broad-based growth and the growing contribution from hotels. MakeMyTrip had the advantage of scale, while Ixigo was pursuing a more investment-heavy strategy in hotels and artificial intelligence.
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