ixigo slips into Q2 loss despite 37% jump in revenue; one-off ESOP expense weighs on profit

Online travel platform Ixigo reported a strong second quarter performance for FY26 with revenue from operations up 37% year-on-year to ₹2,827.41 crore, even as a one-time employee stock option (ESOP) expense weighed on profitability.

The company reported loss of ₹3.46 crore in the September quarter of FY26. The travel technology firm had recorded profit of ₹13.085 crore during the same period year ago.

“It was not an easy quarter, and yet we continued to grow profitably," said Saurabh Devendra Singh, group chief financial officer (CFO), ixigo.

Gross Transaction Value (GTV) rose 23% to ₹43,474.97 crore, driven by robust growth across verticals - flight GTV surged 29%, bus bookings were up 51%, and train GTV grew 12% over the same quarter last year. Contribution margin climbed 20% YoY to ₹1,095.84 crore, while adjusted EBITDA increased 36% to ₹284.76 crore.

Profit Before Tax (PBT), Share of Loss of Associates, and Exceptional Items stood at ₹(2.5) crore in Q2 FY26, which included a one-off ESOP accounting charge of ₹26.9 crore. Excluding this non-cash expense, PBT was ₹24.4 crore — a 26% increase from ₹19.4 crore in Q2 FY25.

“This one-time ESOP expense of about ₹26.93 crore represents the accounting recognition of stock-price-linked, performance-based stock options that vested after meeting clear, pre-defined targets,” said Singh in earnings call. “I wish to reiterate that this charge is non-cash in nature and reflects our intent to maintain strong corporate governance and alignment with shareholders’ long-term interests.”

Co-founder and group CEO Aloke Bajpai described the quarter as one of steady growth and resilience. “Despite some market-led headwinds in the flight and train businesses, the teams found areas of opportunity where our agility and resilience led to continued growth. On the bus side, this quarter further reinforces the long-term runway that exists for online bus bookings,” he said.

Ixigo also highlighted its upcoming strategic push in AI-led products and the hotel segment, backed by a ₹1,296 crore fundraise through a preferential issue to onboard global technology investor Prosus (MIH Investments One B.V.). “The future will allow us to be more strategic,” said the CFO. “The cushion we now have allows us to invest in building AI-driven digital assets, platforms, and capabilities that will power the next phase of growth.”

Rajnish Kumar, co-founder, underscored the company’s vision for an AI-native future. “We believe travel apps will evolve into conversational, multimodal, and hyper-personalised agents that can take actions on behalf of customers as intelligent assistants. This is a once-in-a-lifetime opportunity to reimagine our company’s AI-native future,” he said.

On a segmental level, Ixigo’s flight and bus businesses outperformed the broader market, aided by increased inventory, new state transport corporation tie-ups, and rising adoption among first-time users. While train growth moderated due to regulatory changes, Bajpai said the company maintained its market share and continues to focus on innovation and user experience improvements.

Ixigo’s operating cash flow stood at ₹915.46 crore for the first half of FY26, reflecting its continued capital efficiency and healthy business fundamentals. As the company doubles down on AI-first platforms and deeper hotel integrations, management said it remains focused on sustainable growth, not aggressive discounting.

“We have never believed in the ‘capital as a moat’ playbook,” Bajpai said. “What this capital allows us to do is take bolder long-term bets that can have asymmetric long-term payoffs.”