Motilal Oswal Maintains Buy Call on TBO Tek, Targets Rs 1485
TBO Tek Posts Resilient 4QFY26 Performance Amid Geopolitical Disruptions
TBO Tek has reported a robust 4QFY26 performance, defying the challenging global economic landscape. The company's revenue skyrocketed 83% year-over-year (YoY) to INR8.14 billion (est. INR7.06 billion), driven in part by the consolidation of Classic Vacations. Organic revenue growth was equally impressive, increasing 21% YoY to INR5.42 billion.
| Metric | 4QFY26 | 4QFY25 |
|---|---|---|
| 4Q MTB (Reported) | 32,751 (+15% YoY) | - |
| 4Q MTB (Organic) | 30,063 (+6% YoY) | - |
| 4Q EBITDA | INR1.05 billion (est. INR988 million) | - |
| FY26 EBITDA | INR3.78 billion (est. INR3.72 billion) | - |
The company's 4Q EBITDA stood at INR1.05 billion, marginally below estimates at 12.9% (est. 14.0%). However, FY26 EBITDA came in at INR3.78 billion, exceeding estimates at 14.1% (est. 14.5%). On a YoY basis, PAT increased by 2% to INR601 million (est. INR568 million) in 4Q, while FY26 PAT stood at INR2.44 billion (est. INR2.41 billion).
TBO Tek's Outlook Remains Strong
We believe TBO Tek has delivered a solid set of numbers despite the challenging operating environment. The company is expected to deliver a compound annual growth rate (CAGR) of 37%/35%/30% in revenue/EBIT/PAT over FY25-28, primarily driven by increased contributions from high take-rate hotels and ancillary segments in the gross transaction value (GTV) mix. We reiterate our BUY rating on TBO Tek with a target price of INR1,485, valued at 32x FY28E EPS.
Investor Takeaway
Investors should consider TBO Tek for its strong performance and growth prospects.
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