Ixigo shares jump 13% on Q2 profit turnaround, but why does Motilal Oswal retain its Neutral rating?
Ixigo shares rose over 13% after the travel platform reported a Q2 FY27 net profit of ₹63.42 crore, reversing a year-ago loss. Results were supported by a partial Freshbus stake sale and 159% growth in hotel-booking GTV, while revenue increased 13% year-on-year.
Le Travenues Technology shares, which operate under the ixigo brand, jumped over 13% on Monday, 19 October, after the company reported its September quarter results, posting a consolidated net profit of ₹63.42 crore for Q2 FY27, compared with a net loss in the year-ago period. The profit was aided by the partial sale of its stake in Freshbus and strong growth in hotel bookings.The travel and ticket-booking platform had reported a consolidated net loss of ₹3.46 crore in the July-September quarter of the previous financial year, according to a regulatory filing.Hotels emerged as ixigo’s fastest-growing business segment by gross transaction value (GTV), with the metric rising 159% year-on-year to ₹111.34 crore.
The company reported hotels as a separate business segment for the first time.Ixigo’s revenue from operations rose 13% year-on-year to ₹320.96 crore in the second quarter of FY27, compared with ₹284.23 crore in the corresponding period last year. However, total expenses increased to ₹309.51 crore from ₹291.89 crore.In a joint statement, ixigo Group CEO Aloke Bajpai, Group Co-CEO Rajnish Kumar and Group CFO Saurabh Devendra Singh said the company recorded a quarterly GTV of ₹5,304 crore in Q2 FY27, marking a 22% increase year-on-year.
Revenue from operations stood at ₹321 crore, up 13% from a year earlier.The executives said the company’s profit after tax (PAT) reached an all-time high, supported by the partial sale of its stake in Freshbus. They added that ixigo would continue investing in hotels and artificial intelligence (AI) as key drivers of its long-term growth.What should investors do post Q2 results? Motilal Oswal Financial Services said ixigo offers a structural growth opportunity in the travel-tech sector and is well-positioned to benefit from improving rail, road and air infrastructure in India, supported by strong brand recall among users.
The brokerage noted that ixigo’s competitive positioning is strengthened by its focus on addressing consumer pain points through innovative ancillary offerings and AI-driven travel solutions. However, it maintained a Neutral rating on the stock, citing continued investments in the hotel segment and technology over the next few quarters, which could weigh on margins and earnings in the near term. ixigo share price todayixigo share price today opened at ₹154.95 apiece on the BSE, the stock touched an intraday high of ₹163.30 per share, and an intraday low of ₹149.75 per share.Rajesh Bhosale, Technical Analyst at My Advisor Alpha, said the stock witnessed a gap-up opening, followed by buying in the morning session.
The price has crossed above its 20-day exponential moving average (DEMA) after an extended period and is on the verge of crossing the 50-DEMA, indicating improving momentum.Bhosale noted that the upmove could extend in the near term, supported by volume-based traction, with ₹178 acting as the next resistance level. This level coincides with the 200-day simple moving average (SMA) and the 89-day EMA.
On the downside, the bullish gap around ₹150 is likely to act as immediate support.Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
