Ixigo share hit 20% upper circuit, Q1 FY26 results: a strong start to the year

Ixigo's shares hit the 20% upper circuit today following the announcement of its Q1 results. The company reported solid financial results, including revenue, profit, and user activity, for the quarter ended June 2025. But before we deep dive into the results, let’s have a quick recap of Ixigo's business.

The company helps users plan and manage their journeys across trains, flights, buses, and hotels. It runs several popular travel apps, including ixigo Trains, ixigo Flights, ConfirmTkt, and AbhiBus. These platforms are used for searching, booking, and tracking travel, with added features like fare alerts, delay predictions, and flexible rescheduling. 

Key Financial Results

• In Q1 FY26, Ixigo’s Revenue from Operations was ₹314.47 crore. This was 73% higher than the same quarter in the previous year.
• Gross Transaction Value (GTV), which is the total value of bookings made on the platform, stood at ₹4,644.65 crore, up 55% year-on-year.
• The company’s Contribution Margin rose to ₹128.08 crore, a 48% increase from last year.
• Ixigo’s Adjusted EBITDA reached ₹31.35 crore, up 54% compared to Q1 FY25.
• Profit before tax (before exceptional items and share of associate loss) was ₹28.66 crore, showing a 76% rise from the same period last year.

Segment-wise Performance (Q1 FY26 vs. Q1 FY25)

The Ixigo has reported strong growth across its travel segments:

• Train Ticketing:
  • Revenue increased by 29% to INR 1,29.92 crore.
  • GTV increased by 30% to INR 20,55.10 crore.
  • Contribution Margin increased by 14% to INR 41.00 crore.
• Flight Ticketing:
  • Revenue increased by 149% to INR 1,03.19 crore.
  • GTV increased by 81% to INR 18,48.05 crore.
  • Contribution Margin increased by 102% to INR 42.96 crore.
• Bus Ticketing:
  • Revenue increased by 93% to INR 76.63 crore.
  • GTV increased by 81% to INR 681.04 crore.
  • Contribution Margin increased by 44% to INR 42.26 crore.

Strong Focus on AI and Product Features

Ixigo continues to improve its platform using Agentic AI, smart tools that help users and teams work faster and better.

• More than 60% of customer calls are now handled by AI voice agents
• Ixigo offers features like Price Lock, Travel Guarantee, and Flight Tracker Pro
• The TARA assistant, first launched in 2017, helps travellers manage bookings and get alerts

AI is also used internally to test software, create content, and handle tasks in HR, finance, and marketing.

Room for growth

Growth in the Bus Segment

Ixigo’s bus booking platform, AbhiBus, is growing fast:

• Only 20% of bus bookings in India are online, giving a large chance to grow
• Ixigo is expanding into more regions beyond South and West India
• New tools like Bus Insights and “Brand New Bus” filters help users book better
• The app has a high rating of 4.8+ on the Play Store

Ixigo is also working with many private bus operators and state-run transport systems.

Travel Trends and Market Opportunity

• India now has over 160 airports, up from 74 in 2014. The government plans to expand to 200+ by 2026
• Just 4% of Indians fly, compared to 37% in China and 85% in the US
• This shows a big room for air travel growth in the future

Ixigo is well placed to grow with this expansion, especially in Tier 2 and Tier 3 cities, where it already has a strong presence.

Hotel Bookings

Ixigo is building its hotel booking vertical carefully:

• Still in early stages, growing month-on-month in room nights
• The company wants to fix user problems before scaling up
• Online hotel booking in India is still only 30% of total bookings, much lower than 70%+ in China and the US

Investments in Branding and Marketing

Ixigo made higher marketing spends this quarter:

• Partnered with Rohit Sharma for ixigo Trains
• Ran campaigns with RCB, CSK, and TNPL for buses
• Held Anniversary and Flash Sales for flights

Most of the brand's focus was on the train and bus segments, supported by AI-driven marketing tools.The company aims to keep total marketing and discounts around 3.5% of revenue on average across the year.

Ixigo’s Valuation Is Higher Than Its Peers

Ixigo’s stock is priced higher than other online travel companies.

• P/E Ratio: Ixigo has a P/E of 125. This means investors are paying ₹125 for every ₹1 the company earns. In comparison, EaseMyTrip is at 35.7 and Yatra is at 39.5.
• Price-to-Sales Ratio: Ixigo’s ratio is 7.58. For every ₹1 in sales, investors are paying ₹7.58. EaseMyTrip is at 6.52 and Yatra is at 1.83.
• PEG Ratio: Ixigo’s PEG ratio is 3.8, which is higher than EaseMyTrip's (1.29) and Yatra (1.33). A lower number usually means better value after considering growth.
• Market Cap: Ixigo’s market value is ₹8,000 crore. EaseMyTrip is at ₹3,828 crore and Yatra is at ₹1,445 crore.

These figures show that investors expect more future growth from Ixigo compared to others in the same space.

Final Note

Ixigo’s Q1 FY26 shows strong growth in revenue, profit, and customer experience. Its investments in AI, product features, and regional markets are helping it grow faster than the industry in many areas.

The company believes that steady improvement, smart use of technology, and better service will help it scale in the coming years.

Source: Company filing, Screener

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