
Shares of Le Travenues Technology soared 15 per cent in Thursday's trade to hit a fresh high after India's second-largest technology-driven online travel agency reported a strong set of June quarter results. The stock climbed 15 per cent to hit a high of Rs 206.40 on BSE, taking its six-month rally to 42 per cent. JM Financial has come out with a note on Le Travenues Technology with a target price of Rs 220, hinting at a potential 6.58 per cent upside ahead.
Le Travenues Technology, operating under the brand name ixigo, has reported impressive financial results for the June quarter, showcasing a 55 per cent year-on-year (YoY) growth in gross transaction value (GTV) to Rs 4,640 crore. This figure surpassed JM Financial's estimate by 6 per cent, highlighting the company's strong market presence despite challenging conditions in the flight segment.
According to JM Financial, "Notably, the company delivered such exceptional growth despite a challenging quarter for the flight business." The flight and bus segments both experienced approximately 81 per cent YoY growth, while the train segment saw a 30 per cent increase in GTV. This resulted in a consolidated revenue increase of about 73 per cent YoY to Rs 310 crore, outpacing JM Financial’s expectations by approximately 15 per cent.
The robust growth came alongside increased investments aimed at accelerating the company's expansion, which led to a 700 basis points drop in the contribution margin to 40.7 per cent. Despite these investments, the EBITDA margin decreased marginally by 112 basis points YoY to 8.1 per cent, still ahead of JM Financial's forecast of 7.5 per cent. The reported EBITDA showed a 52 per cent YoY growth to Rs 25.5 crore, surpassing expectations by around 25 per cent.
Ixigo’s train segment continues to solidify its leadership in the online travel agency (OTA) market, with GTV rising by 30.1 per cent YoY. "The management mentioned that ixigo’s market share in the train OTA segment increased to 60 per cent from 58 per cent in 4Q," illustrating a strengthening foothold.
Revenue in the train segment climbed to Rs 130 crore, up 29.3 per cent YoY, though the contribution margin faced pressure, reflecting the company’s growth ambitions.
In the bus segment, ixigo marked an 80.9 per cent YoY rise in GTV, driven by innovations such as Travel Guarantee and expansion into new markets and operator partnerships. The revenue from this segment reached Rs 76.6 crore, showing a 93.3 per cent increase YoY. The gross take-rate was recorded at 12.2 per cent, and the segment's contribution margin was 55.1 per cent due to strategic market penetration efforts.
The flight segment also showed resilience amid operational challenges, with a GTV growth of 80.9 per cent YoY and a segment revenue increase of 149 per cent YoY to Rs 103.2 crore. Despite the headwinds, ixigo managed to expand its market share, supported by an increase in passenger segments and the addition of new flight capacities in emerging markets.
JM Financial anticipates continuing this growth trajectory by leveraging cross-selling opportunities across its platforms and focusing on enhancing customer experience. With an unchanged valuation multiple of 65x, ixigo is poised for further delivery of above-market growth, supported by robust service differentiation and strong customer traction, JM Financial said.
Future projections remain optimistic as ixigo capitalises on its strategic initiatives to expand its customer base, particularly in Tier 1 cities, and continue benefiting from the increased flight supply in lower-tier cities.
JM rolled forward its estimates to June 2026. Its EPS upgrades led to a revised target price of Rs 220 on Le Travenues Technology , reflecting confidence in sustained growth. The strategic focus on customer experience and market expansion is expected to further bolster its position.