Motilal Oswal Forecasts Major Gains for TBO Tek and Ixigo Amid India’s Thriving Travel Boom.
The transformation of India’s travel and leisure sector signals a paradigm shift toward a digitally driven ecosystem, increasingly benefiting online travel platforms. Over the past two decades, this sector has evolved from a fragmented, offline market to a dynamic digital landscape, propelled by rising travel demand, enhanced digital adoption, and a shift in consumer preferences toward experience-led spending. Artificial intelligence is poised to be the next catalyst for growth, providing hyper-personalized travel planning, dynamic packaging options, and real-time decision-making, thereby enhancing customer experiences and operational efficiency within the sector.
Critical structural tailwinds, including rising disposable incomes, favorable demographics, increased workforce participation, and improved transportation infrastructure, contribute to an expanding addressable travel market. The online travel segment is projected to grow significantly, with India’s market anticipated to expand from approximately INR 2.1 trillion in FY23 to INR 3.8 trillion by FY28, reflecting a impressive CAGR of around 13%, higher than global counterparts. Digital penetration of travel bookings is expected to rise substantially, further emphasizing the sector’s shift towards online channels and platforms.
In terms of individual performance, TBO Tek demonstrates robust growth with an 83% YoY revenue increase in 4QFY26, driven largely by the integration of Classic Vacations. This integration, combined with a focus on high-value sectors such as hotels and ancillary services, suggests a sustained momentum in the business outlook, supported by a projected CAGR of 37% in revenue from FY25-28E. Similarly, Ixigo is establishing itself as a formidable player, particularly in train ticketing, which dominates with a 60% market share. The company’s differentiated strategy targets lower-tier markets and is expected to yield a CAGR of approximately 23% in revenue over the same period, with EBITDA margins poised for improvement.
Despite inherent risks, including competitive intensity and macroeconomic sensitivities, the medium-term outlook for the travel technology ecosystem in India remains promising. The convergence of under-penetrated online travel adoption and advancements in digital infrastructure positions this sector as a compelling growth opportunity for investors. Overall, the landscape is ripe for continued innovation and consolidation, making it imperative for Wealthova investors to actively engage with the evolving dynamics of this burgeoning market.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)