TBO TEK Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript TBO TEK Ltd filed with BSE on 05 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
TBO Tek reported growth in both revenue and EBITDA for Q1 FY27 despite disruption from the Middle East crisis, with management highlighting 24% YoY growth in Europe and flat/1% constant currency growth in the Middle East. The company began disclosing constant currency figures this quarter due to an 11% gap between INR and constant currency hotel GTV numbers, driven by rupee depreciation. Management pointed to operating leverage, with EBITDA margins growing faster than gross profit or revenue, and discussed the integration progress of the Classic Vacations acquisition in North America.
Numbers mentioned
Europe YoY growth: 24% (Q1 FY27)
p. 4
“we still delivered 24% YoY growth in Europe”
Gaurav Bhatnagar, page 4 of the filed PDF · View the filing
Middle East constant currency growth: 1% (Q1 FY27)
p. 4
“It delivered 1% growth in constant currency which is very commendable and full marks to our team for delivering that.”
Gaurav Bhatnagar, page 4 of the filed PDF · View the filing
Hotel GTV gap between constant currency and INR: 11% (Q1 FY27)
p. 5
“There was almost an 11% gap in our hotel GTV when we looked at in constant currency versus INR”
Gaurav Bhatnagar, page 5 of the filed PDF · View the filing
Hotel GTV gap between constant currency and INR (prior quarter): 3% (prior quarter)
p. 5
“there was only a 3% gap in hotel GTV in constant currency versus INR”
Gaurav Bhatnagar, page 5 of the filed PDF · View the filing
EBITDA to GTV: 1.3% (Q1 FY27)
p. 6
“The EBITDA to GTV number in this quarter was at 1.3%, which was quite strong.”
Karan Uppal, page 6 of the filed PDF · View the filing
EBITDA to GP: 26% (Q1 FY27)
p. 6
“Gaurav, you are indicating 26% EBITDA to GP.”
Karan Uppal, page 6 of the filed PDF · View the filing
Organic business YoY growth: 15% (Q1 FY27, constant currency)
p. 8
“15% YoY growth on a CC terms is great at a time when the Middle East is affected definitely.”
Swapnil, page 8 of the filed PDF · View the filing
Organic EBITDA margin on GTV: 1.5% (Q1 FY27)
p. 9
“this quarter around you delivered 1.5% EBITDA margin on GTV”
Swapnil, page 9 of the filed PDF · View the filing
Classic Vacations margin: 3.4% (Q1 FY27)
p. 10
“the 3.4% margin is meaningfully higher versus the previous numbers that we have reported”
Swapnil, page 10 of the filed PDF · View the filing
Cash in bank: Rs. 1,980 plus crore
p. 11
“We have reported Rs. 1,980 plus crore as the cash in bank and we have 70 million USD of loan as well as 6 million euro of a working capital loan for Jumbo.”
Vikas Jain, page 11 of the filed PDF · View the filing
India Airlines GTV growth: 15% (Q1 FY27)
p. 11
“My first question pertains to India Airlines. Just trying to understand a bit more on this 15% percent GTV growth this quarter”
Kavish, page 11 of the filed PDF · View the filing
Organic SG&A growth YoY: 4% (Q1 FY27, constant currency)
p. 22
“if I just look at the organic SG&A growth, right, that was around 4% on a YoY basis in a constant currency term”
Samarth, page 22 of the filed PDF · View the filing
Organic hotels and ancillary gross profit as % of GTV change: down around 30 bps (Q1 FY27)
p. 23
“if I look at the organic hotels and ancillary gross profit as a percentage of GTV, that came down by around 30 bps”
Samarth, page 23 of the filed PDF · View the filing
Intercompany elimination on TBO sales to Classic: around INR 65 crores (Q1 FY27)
p. 23
“if I just look at the intercompany elimination on TBO sales to Classic, that was around INR 65 crores, thereabout”
Samarth, page 23 of the filed PDF · View the filing
Retail vs B2B GTV split: 50-50 (Q1 FY27)
p. 27
“GTV numbers would broadly be between 50-50 only as the last quarter.”
Vikas Jain, page 27 of the filed PDF · View the filing
Hosting and bandwidth expense decline: 14% (Q1 FY27)
p. 20
“this hosting and bandwidth expense fell like 14% this quarter.”
Prateek Kumar, page 20 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
GP to EBITDA conversion
stated as an aspiration by Gaurav Bhatnagar
p. 6
“I think the right metric to continue to look at especially from an operating level perspective is GP to EBITDA conversion and that number should continue to improve.”
Gaurav Bhatnagar, page 6 of the filed PDF · View the filing
North America like-for-like growth — starting October, November, December
stated as an aspiration by Gaurav Bhatnagar
p. 9
“We are also expecting to see reasonable growth likefor-like basis in North America as well starting whenever October, November, December when it's a like-for-like comparison”
Gaurav Bhatnagar, page 9 of the filed PDF · View the filing
Platform integration with Classic Vacations — seamless integration of TBO platform into Classic ecosystem · by CY end of this current calendar year
stated firmly by Gaurav Bhatnagar
p. 12
“The third is platform integration, which is the big one and which we are likely to finish by CY end of this current calendar year.”
Gaurav Bhatnagar, page 12 of the filed PDF · View the filing
Q2 GTV growth vs Q1 — Q2 FY27
stated conditionally by Gaurav Bhatnagar
p. 8
“From that perspective, Q2 should be somewhat better than Q1 given that July, which is the heaviest travel month in the northern hemisphere, falls in Q2.”
Gaurav Bhatnagar, page 8 of the filed PDF · View the filing
SG&A growth — rest of FY27
stated as an aspiration by Gaurav Bhatnagar
p. 22
“I would say that it will be range bound, but it may be the SG&A growth may slightly increase, but not at the pace of top line.”
Gaurav Bhatnagar, page 22 of the filed PDF · View the filing
Reverse selling from Classic to TBO — early next year
stated conditionally by Gaurav Bhatnagar
p. 23
“That will start showing up on the platform migration and happen probably early next year.”
Gaurav Bhatnagar, page 23 of the filed PDF · View the filing
Full-year Classic Vacations margin — around 2.5% margin · full-year
stated conditionally by Swapnil
p. 10
“On a full-year basis, one should build in around 2.5% margin. Will that be a fair assessment?”
Swapnil, page 10 of the filed PDF · View the filing
Operating margin expansion in Q2 — Q2 FY27
stated conditionally by Gaurav Bhatnagar
p. 21
“So, we should definitely see a little bit of other margin expansion in Q2.”
Gaurav Bhatnagar, page 21 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said EBITDA to enterprise GTV is a tricky metric to track and pointed to GP to EBITDA conversion as the better metric, which should continue to improve.
Answered by Gaurav Bhatnagar
Asked by Karan Uppal: Is the 1.3% EBITDA to GTV number sustainable and can it grow?
p. 6
“I think EBITDA to enterprise GTV is going to be a tricky number to track especially at this point for a few reasons.”
Gaurav Bhatnagar, page 6 of the filed PDF · View the filing
Management said the situation is too fluid to predict and they are not forecasting a recovery timeline.
Answered by Gaurav Bhatnagar
Asked by Karan Uppal: When will the Middle East come back to growth?
p. 7
“I would really not hazard a guess on what is going to happen in the Middle East and when it comes back to growth.”
Gaurav Bhatnagar, page 7 of the filed PDF · View the filing
Management said they would expect to return to the growth profile seen in Q3 of the prior year once conditions normalize, though timing is uncertain.
Answered by Gaurav Bhatnagar
Asked by Swapnil: How should growth be modeled going forward assuming normalization?
p. 8
“our expectation is that when things can get back to normal, business comes back to similar growth profile on the way we were growing at that point in time.”
Gaurav Bhatnagar, page 8 of the filed PDF · View the filing
Management described two opposing forces - Classic normalization taking time versus potential Middle East/Europe recovery - and said they could not predict the net blend.
Answered by Gaurav Bhatnagar
Asked by Manish Adukia: How should overall GP growth be modeled once Classic fully enters the base in December quarter?
p. 14
“Those are the two opposing forces that we need to blend for. I don't have an answer for you that what will that blend will look like.”
Gaurav Bhatnagar, page 14 of the filed PDF · View the filing
Management declined to give a specific margin guidance target, citing uncertainty from AI and the Middle East situation, and noted VOYA AI investment is minimal and experimental.
Answered by Gaurav Bhatnagar
Asked by Prateek Kumar: What EBITDA to gross profit margin should be modeled at peak, and what is the AI investment intensity?
p. 17
“we don't want to give any guidance on that because several things are in play right now.”
Gaurav Bhatnagar, page 17 of the filed PDF · View the filing
Management attributed the sequential gross margin decline to Classic seasonality and said margin expansion would vary with seasonality through the year.
Answered by Gaurav Bhatnagar
Asked by Chirag: Will the sequential decline in gross margin continue and is operating leverage sustainable?
p. 21
“because our business has seasonality, it will go both ways, right? for example, Q3 historically is less than Q2.”
Gaurav Bhatnagar, page 21 of the filed PDF · View the filing
Management said inbound-focused businesses in the Middle East are under serious stress while TBO's outbound-focused peers have not seen massive attrition.
Answered by Gaurav Bhatnagar
Asked by Divyansh: Are competitors vacating the Middle East market amid the crisis?
p. 24
“what is under serious stress is inbound businesses, which depend on travelers coming into Middle East.”
Gaurav Bhatnagar, page 24 of the filed PDF · View the filing
Management said neither Anthropic nor OpenAI have built transaction frameworks that make agentic bookings easier than OTA websites, and it currently feels like status quo with predictable gains coming from internal CX and sales AI initiatives.
Answered by Gaurav Bhatnagar
Asked by Kavish: How is AI likely to affect OTAs versus B2B travel aggregators like TBO?
p. 28
“As of now, it just feels like a status quo.”
Gaurav Bhatnagar, page 28 of the filed PDF · View the filing
Risks flagged
Middle East crisis causing severe disruption to travel globally
p. 3
“The increasing disturbances in the Middle East caused severe disruption in travel across the globe and the disruption expanded far beyond Middle East.”
Gaurav Bhatnagar, page 3 of the filed PDF · View the filing
Unpredictable and rapidly changing situation in the Middle East
p. 7
“the situation literally changes every hour.”
Gaurav Bhatnagar, page 7 of the filed PDF · View the filing
Possibility that the Middle East crisis could become prolonged like Russia-Ukraine
p. 17
“If this is a crisis which becomes something like RussiaUkraine, then you will have to go back, look at it and say, “Look, we need to find other levers of growth” and maybe there is an investment cycle because of it.”
Gaurav Bhatnagar, page 17 of the filed PDF · View the filing
Lower take rates in Middle East due to competitive pressure during crisis
p. 6
“there is the regions were fighting for business in a tough environment and from a dollar value perspective, any growth would be accretive.”
Gaurav Bhatnagar, page 6 of the filed PDF · View the filing
Stress on inbound Middle East travel businesses potentially leading to attrition
p. 24
“I think there we have serious stress and hopefully, situation will revive soon. Otherwise, we will see attrition over there.”
Gaurav Bhatnagar, page 24 of the filed PDF · View the filing
Uncertainty over AI's impact on industry efficiencies and business models
p. 17
“there is a whole thesis we still need to form on what AI does to efficiencies and the jury is still out on it.”
Gaurav Bhatnagar, page 17 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.