Online travel aggregator ixigo saw its shares climb over 13% following the announcement of a ₹63.4 crore consolidated net profit for Q2 FY27, marking a sharp recovery from a year-earlier loss and driven partly by strategic stake reduction in electric bus operator Freshbus.
- Q2 net profit jumps to ₹63.4 Cr from a loss of ₹3.5 Cr last year
- Gross transaction value climbs 22% YoY to ₹5,304.5 Cr
- Hotel bookings increase 295% YoY, leveraging existing user base
What happened
ixigo reported a consolidated net profit of ₹63.4 crore in Q2 FY27, a significant turnaround from the ₹3.5 crore loss recorded during the same period last year. This profit was partly supported by an exceptional gain of ₹40.7 crore derived from its partial sale of stake in Freshbus, an electric bus operator, which reduced ixigo's holding to 8.27% and resulted in Freshbus ceasing to be an associate company.
The company’s operating revenue for the quarter increased 12.9% year-over-year to ₹321 crore, driven by growth in train, bus, and flight bookings, along with an expanding hotel business. Despite a 10% sequential revenue decline, ixigo’s gross transaction value (GTV) rose 22% to ₹5,304.5 crore, signaling healthy demand across its travel segments.
Why it matters
This financial turnaround highlights ixigo's strengthening position in India's competitive travel aggregator market. The decisive profit swing demonstrates operational resilience and efficient capital allocation, especially through strategic investments and exits like the Freshbus stake sell-down.
ixigo’s growth in hotel bookings, which more than doubled year-over-year, confirms successful cross-selling to its existing customer base. With hotel room nights booked nearly tripling to 4.7 lakh in the quarter, the company is effectively diversifying its revenue streams, which supports a more integrated travel offering and increased monetization potential.
What to watch next
Investors and industry watchers should monitor ixigo’s ability to sustain its newly profitable trajectory while expanding its hotel business and maintaining growth in core travel verticals. The impact of the Freshbus stake sale is a one-time gain, so future quarters will reveal underlying profit trends excluding exceptional items.
Additionally, ixigo’s strategic initiatives to deepen engagement by encouraging existing train, bus, and flight customers to book hotels on its platform will be critical. Success here could drive further increases in gross take rate and overall GTV, positioning ixigo for longer-term growth in India's evolving online travel market.