• Type of Event: Earnings Conference Call for Q4 & FY2026 results, followed by a Q&A session.
  • Date and Time: The call was held on Friday, May 29, 2026. A specific start time was not mentioned in the transcript.
  • Purpose: To discuss the company's financial results for the quarter and financial year ended March 31, 2026, and provide a strategic update.
  • Timing Relative to Earnings: The call was held after the results announcement, as it references a detailed Shareholder Letter shared the previous day (May 28, 2026).
  • Management Participants: The following management representatives were present:
  • Mr. Ankush Nijhawan - Co-Founder and Joint MD
  • Mr. Gaurav Bhatnagar - Co-Founder and Joint MD
  • Mr. Akshat Varma – Whole Time Director and CTO
  • Mr. Vikas Jain - Chief Financial Officer
  • Mr. Pramendra Tomar – General Counsel
  • Mr. Shreshth Mahajan– Associate Director, Investor Relations
  • Moderator: The call was moderated by Ms. Vanessa Fernandes from the Investor Relations team at Adfactors PR.
  • Availability of Materials: The company had previously shared a detailed Shareholder Letter. The transcript of this call is the disclosed document. There was no mention of a presentation deck, recording, or transcript being made available elsewhere.
  • UPSI Statement: The moderator's opening remarks included a standard forward-looking statement disclaimer, noting that certain statements are subject to risks and uncertainties and that the company undertakes no obligation to publicly update them.

Financial & Strategic Highlights from Opening Remarks

  • Financial Period Discussed: Q4 and Full Year FY26 (ended March 31, 2026).
  • Q4 Performance: The quarter saw disruptions due to geopolitical tensions (war) that began in late February. Despite severe impacts in its largest source market (Middle East) and Israel (a top-7 market), the company demonstrated year-on-year growth in both top and bottom lines. March was described as a "complete washout."
  • Recovery Signs: The business showed a sharp recovery corresponding to positive geopolitical news (e.g., a ceasefire announcement in April). Management remains hopeful that the long-term impact will be minimal.
  • Three-Pillar Strategy Recap:

1. Market Development: Increased investment in SG&A in the first 2-3 quarters to onboard new travel agents, which started to taper off by Q4. This investment led to a dramatic year-on-year growth in the number of monthly transacting buyers. Strong operating leverage and margin expansion were seen in Jan-Feb before the March disruption.

2. Luxury Segment Focus: Emphasis on the luxury end of the spectrum for its resilience and complexity. Launched a new AI-first tool called "Voya" to help travel advisors create and book complex, ultra-luxury itineraries.

3. Classic Vacations Acquisition: The integration of Classic Vacations (acquired to grow in North America) is underway and about halfway complete. Full integration is targeted by the end of Q3 CY2026 (end of Calendar Year 2026).

  • Q1 FY27 Outlook: Business has started to recover, especially in markets not directly impacted by the war. In directly impacted markets (Middle East, Israel), recovery is occurring but volumes are at or below pre-war levels. Management expects Q1 FY27 to be better than Q4 FY26 and better than Q1 FY26 YoY. If the top line plays out as anticipated, moderate SG&A growth should lead to "green shoots of operating leverage" in Q1.

Key Topics from Q&A Session

  • Growth Drivers: The strong performance despite shocks was attributed to market share gains from prior sales investments paying off with a lag, and the resilience of the premium/luxury segment.
  • Margins & Profitability: The EBITDA-to-GTV ratio has been stable at ~1%. Management indicated it is a "reasonable assumption" that this ratio could move up starting FY27 as SG&A growth tapers and the higher-margin hotels business grows faster than air.
  • Cash Flow: CFO was negative in FY26 due to timing issues: an experiment with not anticipating receivables in Brazil (reverted in mid-December) and delayed collections in Q4 due to the war and Eid holidays. Management expects to revert to historical conversion rates (historically >100% CFO-to-PAT) by the end of FY27.
  • Classic Vacations: The take rate has increased slightly from 23% to 25% due to business mix, not margin optimization. Growth is expected from the combined TBO North America and Classic entity, with a higher flow-through to the bottom line. Integration is on track for completion by end-CY2026.
  • Competition: Noted that the B2B travel market is growing faster than B2C. Expedia's B2B growth is not seen as a direct threat, as TBO does not directly compete with them in most markets.
  • AI: Viewed as a tool for internal productivity gains currently, not yet a material force changing business models. TBO's Voya tool is their strategic bet in this space.
  • Geographical Performance:
  • Middle East: Severely impacted in March; recovering but still below pre-war levels.
  • APAC: Performing well organically, led by Australia and API partners, though it is a price-competitive market.
  • LATAM: Expected to see moderate growth in FY27 due to currency headwinds and economic volatility.
  • North America: Seasonality in transacting agents (6,000 in Q4); a key growth focus post-acquisition.
  • Financial Metrics:
  • The business mix for hotels is roughly 50:50 retail vs. API by GTV.
  • The Expected Tax Rate (ETR) for FY27 is guided to be 18-18.5%.
  • FY26 had a 4-5% YoY positive impact on Hotel GTV from rupee depreciation.

Additional Notes Section

  • Attachment: The transcript itself was the enclosed document, submitted in compliance with SEBI Listing Regulations.
  • Financial Data: No new financial figures were disclosed in this transcript beyond what was previously published in the Shareholder Letter. The discussion elaborated on the reasons behind the published numbers and the future outlook.
  • Logistics: Dial-in numbers and access codes were not included in the transcript.