Le Travenues Technology Ltd Management Discussions

Economic Review Global Economy Overview1

In CY2024, the global economy grew at 3.3%, showing resilience amid geopolitical conflicts, trade fluctuations and shifting monetary policies. Advanced economies saw modest growth of 1.8%, while emerging markets and developing economies expanded more robustly at 4.3%. Global headline inflation continued its downward trend, easing from 6.6% in CY2023 to 5.7% in CY2024. However, the pace of disinflation varied across regions. Advanced economies made steady progress towards their inflation targets, while emerging markets grappled with high inflation due to currency depreciation and persistent supply chain issues.

As inflation eased, major central banks began shifting away from tight monetary policies, implementing gradual interest rate cuts to boost liquidity and stimulate private investment. However, the global trade landscape remains unstable, with recent tariff implementations creating significant challenges for businesses dependent on international supply chains. In response, businesses are re-evaluating their pricing strategies to maintain competitiveness while protecting profit margins.

Outlook

While uncertainties persist and the global economy continues to face challenges, the outlook for the years ahead remains cautiously optimistic, with GDP growth projected at 2.8% in CY 2025 and 3.0% in CY 2026. Global inflation is anticipated to decrease further to 4.3% in CY2025, allowing central banks to adopt more accommodative monetary policies. Energy commodity prices are projected to decline by 7.9% in CY2025, helping to further ease fuel-related cost pressures. This trend is expected to support global disinflation, although short-term volatility may persist due to geopolitical risks.

As inflation subsides and monetary policy becomes more accommodative, coupled with rising consumer confidence, businesses in demand sensitive industries such as travel and mobility are poised to capitalise on increased consumer spending and investment.

Trade tensions are likely to remain a significant factor in the economic landscape, as nations adjust to ongoing policy shifts and potential tariff adjustments, particularly in response to US measures. Businesses will need to prioritise adaptability by strengthening regional trade partnerships and building more resilient supply chains to mitigate risks.

Emerging markets are expected to play an influential role driven by their expanding customer bases and manufacturing capabilities. With supportive policy frameworks and technological innovation, the global economy is positioned to navigate challenges and capitalise on new opportunities.

Indian Economy Overview

The Indian economy sustained its strong performance and established its position as one of the worlds fastest-growing major economies in a challenging global environment, with GDP growth rate of 6.5% in FY 20252. This resilience stems from strong macroeconomic fundamentals, robust domestic demand and ongoing structural reforms.

The countrys economic growth is being driven by favourable demographics, including a growing middle class and a young population with increasing disposable income and purchasing power. This demographic shift is creating substantial growth potential across various sectors, particularly in consumer-driven industries such as tourism. Both domestic and international tourism are witnessing steady recovery, driven by improved infrastructure and connectivity, thereby supporting growth in the services sector through rising regional, corporate and leisure travel activity.

Inflation remained largely within the Reserve Bank of Indias (RBI) target range, supported by proactive monetary policy despite supply- side pressures and global commodity volatility. The RBI maintained a balanced policy approach, effectively managing inflation while supporting economic growth. Headline inflation eased to 3.3% in March 2025, driven primarily by a moderation in food prices.3 The Central Banks monetary measures played a significant role in maintaining liquidity and supporting economic activity.

Outlook

Indias economic outlook remains positive, driven by increasing consumer demand, improved investment activity and supportive policy frameworks. The Reserve Bank of India reduced the repo rate by 25 basis points to 6.00% in its April 2025 monetary policy committee meeting, following an earlier cut to 6.25% in February, alongside a CRR reduction to 4% in 2024.4 This marks back-to-back rate cuts as the RBI shifts to an accommodative stance in response to easing inflation and global uncertainties. These measures have injected additional liquidity into the financial system, eased borrowing costs and are expected to further support credit availability and economic growth. India is attentively monitoring international tariff landscape and developing a measured response.

As one of the worlds top five economies, India is on track to become the third-largest by FY2028, with a projected GDP of $5 trillion.5 The Union Budget has introduced significant income tax relief measures for salaried individuals, which are expected to boost urban consumption and fuel overall economic growth further.

Industry Overview Travel & Tourism Industry

Global

The global travel and tourism industry saw a significant resurgence in 2024, emerging as a key driver in the post-pandemic recovery. The sector contributed $10.9 trillion to the global economy, representing 10% of global GDP an 8.5% increase from 2023 and surpassing the previous peak in 2019.6 International visitor spending reached $1.87 trillion, nearly a 12% increase from the previous year, while domestic visitor spending grew by 5.4% to $5.3 trillion.7 Overall travel spending encompassing both domestic and international travel was estimated at $8.6 trillion, nearly 9% of global GDP in 2024.8

Several factors are driving this growth, including increased technological integration and a diversification of destinations as travellers seek unique experiences. The Asia-Pacific region is leading the recovery, with international arrivals expected to fully rebound to pre-pandemic levels by the end of 2025. The Middle East is experiencing increasing tourist activity in countries like Saudi Arabia and the UAE, due to significant investments in infrastructure and entertainment. In Europe, intra-regional travel remains robust, although geopolitical tensions may influence traveller choices.

Looking ahead, in 2025, the travel and tourism sector is expected to contribute an unprecedented $11.7 trillion to the global economy. International visitor spending is anticipated to reach a record $2.1 trillion, surpassing the previous high of $1.9 trillion in 2019.9

Indian

Indias travel and tourism industry is witnessing a strong rebound, supported by a mix of young demographics, rising disposable incomes and growing digital connectivity. The momentum that began in the post- pandemic years carried into 2024, with a visible surge in both domestic and international travel activity.

According to provisional estimates from the Ministry of Tourism, India recorded 9.66 million foreign tourist arrivals in 2024, contributing over Rs 2.77 lakh crore in foreign exchange earnings with a strong 19.8% growth over the previous year.10 This growth reflects the impact of policy measures such as expanded e-visa access, improved airport infrastructure and aggressive digital promotion through platforms such as the revamped Incredible India portal.

Spiritual and religious travel has emerged as a major driver, now accounting for over 60% of all domestic travel, supported by large-scale projects such as the PRASHAD scheme, corridor developments and heritage circuit planning. Tourism-focused infrastructure investments have crossed Rs 7,000 crore, improving last-mile connectivity, hospitality services and safety standards. India improved its position on the World Economic Forums 2024 Travel & Tourism Development Index, moving up to rank 39 out of 119 countries, with marked progress in the areas of health, safety and prioritisation of tourism development.11

Outbound travel is also gaining ground. As of 2024, India is among the top five fastest-growing outbound markets globally, with international departures crossed 27 million. Travel budgets are expanding and preferences are shifting toward curated, experience-rich itineraries.12 Digital tools, visa relaxations and the launch of the Incredible India Digital Portal are further enhancing the travel experience and facilitating seamless planning for both Indian and foreign tourists.

Domestic tourism, continues to benefit from heightened awareness through campaigns like Dekho Apna Desh and infrastructure development under schemes like Swadesh Darshan 2.0 and PRASHAD, aimed at revitalizing spiritual and heritage sites across states. With the sector already contributing close to 5% of Indias GDP, tourism is being positioned as a key pillar of Indias growth strategy.13 Looking ahead, the sector is projected to double its economic contribution to around Rs 43.25 trillion by 2034, making tourism a central pillar of Indias long-term development vision under @2047.14

Online Travel Agent Market Global

The global OTA industry is experiencing strong growth, due to evolving consumer preferences and a resurgence in global travel demand. The market is valued at approximately USD 938 billion in 2025 and is projected to reach USD 1.19 trillion by 2029 at a compound annual growth rate (CAGR) of 6.2%.15 This expansion is supported by rising disposable incomes, strong economic growth in emerging markets, rapid urbanization and the widespread adoption of smartphones and high-speed internet, which are fundamentally reshaping how travellers plan and book their journeys.

Consumers increasingly favor digital platforms for their convenience, real-time price comparisons and seamless payment options. OTAs are leveraging Artificial Intelligence (AI), machine learning and big data analytics to deliver hyper-personalized recommendations, dynamic pricing and frictionless booking experiences. Innovations such as AI- powered itinerary planning, predictive fare algorithms are redefining convenience and user engagement. AI-driven chatbots and automated customer service tools have become standard, offering real-time support and enhancing satisfaction.

Younger travelers, particularly Millennials and Gen Z, are driving demand for self-service, experience-driven platforms. Their preference for adventure, unique destinations and spontaneous travel is compelling OTAs to expand offerings beyond traditional bookings to include activities, experiences and curated packages.

In terms of market composition, transportation services including flights, trains, car rentals and intercity buses are account for the largest share of OTA transactions at 45%, followed by vacation packages at 30%, due the growing demand for bundled and customizable solutions.16 Regionally, the Asia-Pacific (APAC) market is the fastest-growing, driven by a growing middle class, increased internet penetration and government initiatives promoting tourism. North America currently holds the largest market share, supported by high digital literacy and the widespread adoption of online booking platforms. The integration of emerging technologies and the growing trend of experiential travel present significant opportunities for sustained growth.

Indian

The accelerated adoption of smartphones and affordable high-speed internet, particularly in Tier II, III and IV cities, has made digital travel bookings increasingly accessible to a broader demographic. Mobile-first behavior is now the norm, with a significant share of bookings transacted via user-friendly apps that offer seamless payment options, real-time updates and personalized recommendations. In 2025, the Indian online travel market is estimated to reach USD 19.05 billion, with projections indicating robust growth to USD 31.38 billion by 2030, with a CAGR of 10.5% over the forecast period.17

Rising disposable incomes and the expansion of Indias middle class are fueling discretionary spending on travel. Price sensitivity continues to be a defining feature of the Indian online travel agency industry, prompting OTAs to broaden their range of budget-friendly offerings. This includes partnerships with low-cost airlines, the integration of hostel accommodations and the rollout of discounted vacation packages, all aimed at catering to value-conscious travelers. The surge in domestic tourism is another dominant trend, fueled by improved infrastructure, enhanced connectivity and a growing appetite for short-haul, experiential and local travel.

Indias Air Travel Industry

India has maintained robust growth and is retaining its position as the worlds third-largest domestic aviation market. The country recorded ~2.20 million domestic air passenger traffic in FY 2024-25 (April 24 - February 25), up 7.5% year-on-year.18 The increasing penetration of the middle class, greater mobility from Tier-II and Tier-III cities and a growing preference for digital bookings have further strengthened air travel as a preferred mode of transportation. Also, the post-pandemic surge in leisure and business travel, supported by improved airport infrastructure and growing regional connectivity, continues to expand the market.

On the infrastructure front, India now has 159 operational airports-more than double the number from a decade ago.19 Major terminal expansions and the development of new greenfield airports are currently underway, backed by substantial government investment and support.

The country is projected to become the fifth-largest outbound market by 2027, rising from its tenth position in 2019- an upward shift expected to generate substantial demand for air travel.20

Key Growth Drivers

Rising Middle Class and Youth Lead Demand

Indias demographic advantage continues to be a major growth engine, with over 65% of the population under the age of 35, the country is home to a large, tech-savvy generation. Increased disposable income and a cultural shift toward experience-led spending are pushing more Indians from Tier II and Tier III cities to choose air travel for work, leisure and education.

Surge in Domestic Tourism

Domestic tourism is driving a major share of Indias air traffic growth. Travelers are increasingly choosing short-haul flights to explore Indias diverse cultural, spiritual and natural destinations. Government-backed connectivity initiatives and better infrastructure are encouraging more frequent and longer domestic trips. The overall travel market in India is projected to grow from $53 billion in 2023 to $97 billion by 2030, creating a strong and sustained demand base for air travel.21

Competitive Pricing

India remains one of the most price-sensitive aviation markets globally. The availability of low-cost carriers and competitive pricing strategies continue to attract a large base of value-conscious travellers. A consistent decline in real airfares over the last decade has made air travel increasingly accessible narrowing the gap between rail and air transport on shorter routes.

Rise in Outbound and Diaspora-Driven Travel

Outbound travel is gaining strong momentum as visa processes become more seamless and disposable incomes rise. Indian travellers are now venturing beyond traditional destinations, exploring newer global markets. Additionally, Indias vast diaspora continues to generate steady international traffic, particularly across corridors linking the Middle East, Southeast Asia, Europe and North America. The country is also strengthening its position as a connecting hub between East and West, supporting growing transit volumes.

Government Initiatives

Expanding Regional Connectivity through UDAN

Launched in 2016, the UDAN (Ude Desh ka Aam Nagrik) scheme continues to be a cornerstone of Indias regional aviation growth strategy. Designed to make flying affordable and accessible for all, the scheme has significantly improved connectivity to underserved and unserved regions.

As of 2025, 619 routes across 88 airports have been operationalised, facilitating air travel for over 14.8 million passengers through nearly 300,000 flights.22 The government has extended UDAN for another 10 years, with plans to connect 4 crore additional passengers and activate 120 new destinations.23

Infrastructure Development

Indias airport infrastructure is experiencing rapid transformation, supported by strong public investment and long-term planning. As of 2024, 12 out of 21 approved greenfield airports have already been made operational and enhancing capacity across strategic urban and regional hubs.24

Under the National Infrastructure Pipeline, a capital investment of over Rs 91,000 crore was allocated for airport development between FY20 and FY25, with more than Rs 82,600 crore already deployed.25 The Union Budget 2025-26 has further announced the development of 50 new airports over the next five years aligning with Indias broader aviation roadmap of building 350 airports by 2047, including 34 mega airports capable of handling over 2 crore passengers annually.26 These developments are expected to boost air travel penetration across India.

Indian Railway Industry

Indian railways remain a foundational pillar of national mobility, offering widespread, affordable and increasingly modernised transport for millions of passengers daily. In the fiscal year 2024-25, the network facilitated travel for approximately 7.15 billion passengers, marking an ~5% increase in passenger traffic compared to the previous year.27

Digitalisation and service upgrades have been at the heart of this growth, driven by a rising base of smartphone users across Tier II and Tier III cities, who are increasingly relying on app-based platforms for planning and booking their rail journeys. The railway networks deep penetration into semi-urban and rural areas also makes it a uniquely positioned channel for enabling tourism, education and employment-related mobility. With sustained government investment as evidenced by the record capital outlay of T2.65 lakh crore for FY2025-26 and continued focus on modernising both infrastructure and services, the Indian railway industry is expected to remain a core enabler of mass mobility in the years to come.28

Key Developments and Government Initiatives

Rolling Stock Modernization

In Budget 2025-26, approval was received for 17,500 general coaches, 200 Vande Bharat, 100 Amrit Bharat and 50 Namo Bharat trains, with a mix of sleeper and chair car configurations to enhance both short- and long- distance connectivity.29

Safety Investments

A record Rs 1.14 lakh crore allocated for safety including track renewal, signaling upgrades and construction of 1,000 new road over/ under bridges.30

High-Speed Rail

The government aims to construct a 7,000-km high-speed rail network by 2047, with trains capable of reaching speeds up to 250 km/h.31

Passenger Experience

Next-generation e-ticketing, digital ticketing systems and improved passenger amenities are being rolled out nationwide.

Indias Road Infrastructure

India has the worlds second-largest road network, with National Highways span a total length of 146,195 km.32 This vast network forms the backbone of the countrys logistics, passenger movement and economic integration. For millions of travellers, especially from Tier II and Tier III cities, road transport remains a vital link for both short-haul and long-distance journeys. Over the past decade, sustained government investment and ambitious flagship programs have driven a remarkable transformation in road infrastructure to support both rural and urban connectivity, facilitating industrial growth and reducing travel times across key corridors.

In recent years, sustained public investment and policy focus have transformed the landscape of road infrastructure. The construction of high-speed corridors, expressways and multi-lane highways has reduced travel time, improved safety and made road travel more accessible and dependable. With an average daily construction pace exceeding 34 km per day and an ambitious pipeline of expressways under the Bharatmala Pariyojana, the pace of development has remained robust. Digitisation and tolling reforms such as the widespread adoption of FASTag have also streamlined travel, reduced congestion and enhanced user experience. Including the initiatives to expand charging infrastructure and build green corridors, the sector is evolving toward a more sustainable and future- ready ecosystem.

Key Developments and Government Initiatives

Capital Allocation to Highways Sector

The Union Budget 2025-26 allocated a record Rs 2.87 lakh crore to the Ministry of Road Transport and Highways, with a sustained policy push to strengthen Indias surface transport backbone. The National Highways Authority of India (NHAI) received the largest share Rs 1.87 lakh crore to support highway expansions, expressways and digital infrastructure.

Bharatmala Pariyojana

It targets the development of about 26,000 km of economic corridors, ring roads, bypasses and elevated corridors to decongest urban centers and enhance logistics efficiency. Under the Bharatmala Phase-I program, over 24,800 km of road projects have been awarded and 14,250 km completed as of December 2024. This national-level corridor development plan aims to plug infrastructure gaps in freight and passenger mobility, improving road accessibility to rural and border regions.33

Expressways and Greenfield Corridors

High-speed greenfield corridors are a major focus, with 6,669 km awarded and 4,610 km completed by February 2025.34 Projects like the Delhi-Mumbai Expressway, Mumbai-Goa Highway and Kanpur- Lucknow Expressway are setting new benchmarks in connectivity and travel efficiency.

Focus on Regional Connectivity and Border Roads

Special attention has been given to the North-East, Jammu & Kashmir and border areas, with targeted projects under the SARDP-NE and Vibrant Villages programmes. These efforts aim to improve connectivity to strategic locations while promoting inclusive growth.35

Indian Hospitality Industry 36

Indias hospitality industry has entered a robust growth phase in FY2025, driven by the resurgence of both domestic and international travel, rising disposable incomes and the growing preference for leisure and spiritual tourism. The market size reached to USD 281.8 billion in 2025 and is expected to grow at a strong 13.96% CAGR to USD 541.7 billion by 2030. This impressive growth is supported by a surge in domestic tourism, a rebound in business travel, rising disposable incomes and significant government-led infrastructure development.

This expansion is further supported by the shift in travel behavior, with more Indians opting for short weekend getaways, staycations and destination-led experiences. Pilgrimage and spiritual tourism have gained remarkable traction post-pandemic, leading to strong demand for hotel accommodations in non-metro clusters. Indias improved airport and road infrastructure, digital payment penetration and smoother visa processes have enhanced traveller experience, creating a more supportive ecosystem for hospitality services.

Indias hosting of global-scale events such as G20 meetings, international conferences and large-scale weddings has further supported demand across luxury and mid-range segments. The steady flow of inbound medical tourism, driven by affordability and world-class treatment, continues to support the hospitality sectors health. FY2025 witnessed record-breaking performance in the hotel sector, with pan-India occupancy rates have reached between 60-67% and Revenue per Available Room (RevPAR) soaring by 89-91%.

Key Growth Drivers

Government Support and Infrastructure Development

Ambitious government initiatives-such as the development of new airports, multimodal connectivity and the creation of complete tourism destination packages-are unlocking new markets and driving demand for hotel establishments across the country. The Swadesh Darshan 2.0 scheme and digital platforms like NIDHI+ have streamlined industry operations and improved business conditions for stakeholders.

Rising Domestic Tourism and Business Travel

Domestic tourism is the fundamental growth engine, with leading states like Uttar Pradesh, Tamil Nadu, Andhra Pradesh, Karnataka and Gujarat seeing the highest tourist visits. The robust recovery of business travel and the expansion of hotel chains into Tier III and Tier IV cities are further boosting demand.

Strategic Hotel Chain Expansion

Major hotel chains are accelerating their expansion, as both international and domestic brands are targeting established and emerging destinations, developing properties across segments to reach diverse consumer groups. This expansion is particularly notable in Tier III cities, where operators are adapting their offerings to local market requirements.

Economic Growth

The reduction in personal income tax rates and overall economic growth have increased disposable incomes, enabling more Indians to spend on leisure and premium hospitality services. This has led to a rise in experiential travel and demand for higher-quality accommodations and services.

Swadesh Darshan 2.0 and PRASHAD Schemes

Under the Swadesh Darshan 2.0 initiative, the government aims to develop 55 tourist destinations across 32 states and UTs. Similarly, the PRASHAD (Pilgrimage Rejuvenation and Spiritual Augmentation Drive) scheme focuses on upgrading infrastructure at 29 religious sites, 12 of which are already operational.

Tourism in the North-East and Border States

Special emphasis has been placed on enhancing hospitality infrastructure in the North Eastern region, Jammu & Kashmir, Ladakh and other remote areas. The government has relaxed eligibility norms for tourism operators in these regions to encourage grassroots entrepreneurship and improve service penetration.

Company Overview

Le Travenues Technology Limited (ixigo) is one of Indias fastest-growing Online Travel Agency (OTA), catering to the unique needs of the Next Billion Users (NBU) across the country. With a deep focus on Tier II, III and IV markets, ixigo has built a multi-brand, multi-platform ecosystem that empowers Indian travellers to seamlessly plan, book and manage their journeys across trains, flights, buses and hotels.

Founded in Fiscal 2007, ixigo has evolved from a travel utility platform into Indias second-largest OTA by consolidated revenue from operations in FY2023*. The Company is leveraging Artificial Intelligence (AI), machine learning and data science to deliver innovative, user-centric solutions via its websites and mobile applications.

Ixigo operates leading platforms including ixigo Trains, ixigo Flights, ConfirmTkt and AbhiBus, a comprehensive suite of services, including ticket booking, real-time travel information, personalized recommendations and a host of value-added services. It effectively positions ixigo as a one-stop travel solution for the rapidly expanding Indian travel market. Further to this, the Company has continued to strengthen its focus on brand and performance marketing across its portfolio, establishing a strong foundation for organic growth. In addition, collaboration with a well-known Indian cricketer for the ixigo Trains brand campaign. Further enhanced visibility across railway stations, television channels, the Maha Kumbh, and other key platforms.

Business Segments

The Company operates a diversified, technology-driven business model structured around four core segments- Train Ticketing, Flight Booking, Bus Ticketing and Others (Hotel and other services), serving both utility- led and aspirational travel needs of Indian consumers. Each segment is designed to address the unique travel needs of Indian consumers, particularly the rapidly growing next billion users from non-metro and emerging urban areas.

Train

Rail travel has remained central to ixigos business model, leveraging Indias vast rail network and the high volume of railway travelers. The ixigo Trains and ConfirmTkt apps offer comprehensive solutions, including ticket booking, PNR status checks, real-time train status, seat availability alerts and prediction for confirmation. The ability to book train tickets through ixigo platforms, combined with value-added services like Assured, Assured Max and Travel Guarantee, has further strengthened customer trust.

The flight segment has emerged as a significant growth engine for ixigo, with the increasing adoption of air travel among Indian consumers. The ixigo flights platform facilitates both domestic and international flight bookings and offers features such as real-time price comparisons, automated web check-in, fare alerts, dynamic pricing, instant refunds and personalized travel recommendations.

AI-powered solutions like Assured and Assured Flex offer customers fully refundable and reschedulable tickets, delivering greater flexibility and peace of mind. Recent additions of Flight Tracker Pro have elevated the air travel experience by offering real-time updates. The newly launched Price Lock feature addresses fare volatility in flight bookings. It allows users to hold a ticket at a fixed fare for a nominal fee and complete the purchase later. This feature appeals to cost-conscious travellers who want to avoid fare hikes while finalising their plans. In Fiscal 2025, the flight segment delivered a 60.21% year-on-year increase in GTV, supported by better airport infrastructure and strategic pricing that targets users transitioning from trains and buses to air travel.

The AbhiBus platform is a high-margin and rapidly expanding vertical for ixigo, catering to a vast and largely underpenetrated market of intercity road travellers. AbhiBus enables users to book tickets across over 100,000 routes, access real-time tracking, compare amenities and benefit from delay predictions. Value-added features like Abhi Assured guarantee refunds and compensation for service quality issues, which enhances trust and loyalty among customers.

Others (Hotel Bookings and Other Services)

ixigo launched its hotel business in Fiscal 2024, which has rapidly gained traction by leveraging cross-selling opportunities within its extensive user base. During the year, the Company acquired a majority stake in Zoop Web Services Private Limited (Zoop), enhancing its service offerings to include food delivery on trains. Al-powered tool PLAN by ixigo is a generative AI trip planner that provide personalized itineraries and real- time recommendations to enhance the overall travel experience.

Growth in this segment is being driven by rising user adoption of bundled services, increasing awareness of travel protection benefits and ixigos ability to personalise offerings through its Al-driven recommendation engine. Together, hotel and ancillary services are helping the Company increase wallet share per user while deepening engagement across its platforms.

Opportunities and Threats

Opportunities

Expansion in Tier-II and Tier-III Markets

With increasing smartphone penetration and affordable internet access, ixigo has the opportunity to deepen its presence in non-metro regions. The Companys multilingual interfaces and regionally tailored user experience position it well to serve the next wave of digital- first travellers.

Growth in Multi-modal Travel Demand

As travellers increasingly prefer flexible and end-to-end journey planning, ixigos multi-modal offering across trains, flights, buses and hotels can drive higher engagement and cross-selling. Rising demand for spiritual, leisure and wellness tourism further supports this shift.

Rising Digital Adoption & Mobile-First Behaviour

The rapid adoption of UPI payments, digital ticketing and mobile bookings, especially among younger users, provides strong long-term tailwinds for ixigos app-first strategy. Value-added features like AI- powered chatbots and instant refunds enhance engagement.

International Travel Recovery

The rebound in outbound travel and liberalisation of visa regimes open opportunities for ixigo to expand its international flight and hotel booking segments.

Partnerships and Ancillary Monetisation

The Companys partnerships with banks, fintech players and service providers open new avenues for monetisation via co-branded products, insurance, holiday packages and travel cards. These alliances also enable deeper engagement through offers and loyalty schemes.

Threats

Intense Industry Competition

The OTA industry in India is dominated by a few large players and price sensitivity is high. Aggressive discounting, cashback-led models or vertical integration by competitors may impact customer acquisition costs and margins.

Data Privacy Concerns

As a digital travel platform ixigo is exposed to cybersecurity threats as it handles sensitive customer data and payment information. Any breach or data leak can lead to reputational loss, regulatory scrutiny and user churn.

Macroeconomic and Geopolitical Uncertainties

Fluctuations in fuel prices, inflation, currency volatility and visa restrictions can impact travel demand. Prolonged economic slowdowns or geopolitical tensions may delay recovery in business and outbound travel.

Company Outlook

The Company will continue to focus on investing in technology, Artificial Intelligence, and other strategic initiatives aimed at enhancing the overall customer experience. These measures are also expected to strengthen the Companys brand positioning and support its growth in the coming years. Further, in Fiscal 2026, the Company plans to maintain its commitment to financial discipline while prioritizing sustainable growth.

Financial Performance

In Fiscal 2025, ixigo reported a robust 39.39% year-on-year increase in revenue from operations to Rs 9,142.46 million, driven by strong growth across train, flight, and bus bookings. Operating leverage supported a 131.45% rise in Profit before tax (ex share of loss of an associate and exceptional items) to T862.16 million, though profit after tax declined by 17.53 % to T602.52 million due to a higher deferred tax expenses and reduced exceptional gains as compared to previous year. The Company maintained positive cash flows and improved adjusted EBITDA margins, reflecting disciplined cost management and effective cross-platform synergies across ixigo, ConfirmTkt, and AbhiBus.

(Rs in million)

S. Particulars No.	FY25	FY24	Growth (%)
Income
I Revenue from operations	9,142.46	6,558.73	39.39%
II Other income	180.20	92.18	95.49%
III Total income (I + II)	9,322.66	6,650.91	40.17%
IV Expenses
Employee benefits expense	1,636.17	1,410.20	16.02%
Finance costs	23.30	28.86	(19.27%)
Depreciation and amortization expense	103.38	129.24	(20.01%)
Other expenses	6,697.65	4,710.10	42.20%
Total expenses	8,460.50	6,278.40	34.76%
V Profit / (loss) before share of loss of an associate, exceptional items and tax (III-IV)	862.16	372.51	131.45%
VI Share of loss of an associate, net of tax	(90.97)	(59.07)	(54.00%)
VII Profit / (loss) before exceptional items and tax (V+VI)	771.19	313.44	146.04%
VIII Exceptional Items	46.04	297.21	(84.51%)
IX Profit / (loss) before tax (VII+VIII)	817.23	610.65	33.83%
X Tax expense / (credit) :
Current tax	40.09	1.25	3,107.20%
Deferred tax charge / (credit)	174.62	(121.21)	244.06%
Total tax expense / (credit)	214.71	(119.96)	278.98%
XI Profit / (loss) for the year (IX-X)	602.52	730.61	(17.53%)
XII Other comprehensive income
Items that will not be reclassified to statement of profit and loss in subsequent year
(a) Re-measurement gains / (loss) on defined benefit plans	(11.24)	(1.63)	(589.57%)
Income tax effect relating to items that will not be reclassified to profit and loss	2.91	0.40	627.50%
(b) Share of other comprehensive income / (loss) of associate	0.01	-	NA
Income tax effect relating to items that will not be reclassified to profit and loss	-	-	NA
Other comprehensive income / (loss) for the year, net of tax	(8.32)	(1.23)	(576.42%)
XIII Total comprehensive income for the year, net of tax (XI+XII)	594.20	729.38	(18.53%)

Total Income

Total income grew by 40.17% year-on-year to Rs 9,322.66 million in Fiscal 2025, supported by a 39.39% increase in revenue from operations. Other income increased by 95.49 % from T92.18 million in Fiscal 2024 to T180.20 million in Fiscal 2025, primarily due to higher interest income on bank deposits and gain on fair value changes and sale of mutual funds .

(Rs in million)

Particulars	FY25	FY24	Growth (%)
Income
Revenue from operations	9,142.46	6,558.73	39.39%
Other income	180.20	92.18	95.49%
Total income (I + II)	9,322.66	6,650.91	40.17%

Revenue from Operations

Reconciliation of Gross and Net Revenue from Operations

Revenue from operations grew by 39.39% to Rs 9,142.46 million in Fiscal 2025, driven by a 43.21% rise in gross revenue from increased bookings across segments. Discount increased by 57.44% to Rs 2,770.71 million in Fiscal 2025, reflect competitive pricing to support user growth and retention.

(Rs in million)

Particulars	FY25	FY24	Growth (%)
Gross revenue from operations	11,913.17	8,318.58	43.21%
Less: Discount	(2,770.71)	(1,759.85)	57.44%
Revenue from operations	9,142.46	6,558.73	39.39%

Break-up of Revenue from Operations

Revenue from contracts with customers primarily includes Ticketing Revenue, Advertisement revenue and Other Operating Revenue.

(Rs in million)

Particulars	FY25	FY24	Growth (%)
Ticketing revenue	8,487.95	6,056.77	40.14%
Advertisement revenue	424.02	292.13	45.15%
Other Operating Revenue	230.49	209.83	9.85%
Total revenue from contracts with customers	9,142.46	6,558.73	39.39%

Revenue from operations grew by 39.39% year-on-year in Fiscal 2025, driven by a 40.14% rise in ticketing revenue, 45.15% increase in Advertisement revenue and 9.85% increase in other operating revenue.

Breakup of Revenue by Segment

(Rs in million)

Particulars	FY25	FY24	Growth (%)
Segment Revenue	9,142.46	6,558.73	39.39%
Flight	2,533.93	1,463.96	73.09 %
Train	4,569.02	3,703.70	23.36%
Bus	1,969.24	1,317.79	49.44%
Other	70.27	73.28	(4.11%)

Flight revenue grew by 73.09%, driven by higher gross transaction value and improved take rates, resulting in an increased contribution to total revenue—from 22.32% in Fiscal 2024 to 27.72% in Fiscal 2025. Train revenue, while maintaining its position as the largest contributor, recorded a more moderate growth of revenue of 23.36%. Bus revenue rose by 49.44%, with its contribution in revenue increasing from 20.09% to 21.54%, aided by a rise in passenger volumes and service coverage.

Other Income

Other income is increased by 95.49% as compare to Fiscal 2024, primarily on account of interest income on deposits with banks and gain on sale of mutual funds and change in fair value of investments.

Expenses

Expenses comprise-employee benefits expense, finance costs, depreciation and amortization expenses and other expenses. Total expenses increased by 34.76% from Rs 6,278.40 million in Fiscal 2024 to Rs 8,460.50 million in Fiscal 2025.

Employee Benefits Expense

Employee benefits expense comprises-salaries, wages and bonus; contribution to the provident and other funds; gratuity expense; employee stock option scheme expense; and staff welfare expenses.

Employee benefits expense increased by 16.02% from Rs 1,410.20 million in Fiscal 2024 to Rs 1,636.17 million in Fiscal 2025, primarily due to annual salary increments, higher headcount across key business and technology functions, and increased expense related to employee stock option schemes.

Finance Costs

Finance costs comprise interest on borrowings and interest on lease liabilities.

Finance costs decreased from T28.86 million in Fiscal 2024 to T23.30 million in Fiscal 2025 despite an increase in interest on borrowings from T10.29 million in Fiscal 2024 to T12.92 million in Fiscal 2025. This was due to a decrease in interest on lease liabilities from T18.57 million in Fiscal 2024 to T10.38 million in Fiscal 2025.

Depreciation and Amortization Expenses

Depreciation and amortization expenses comprise depreciation on property, plant and equipment; depreciation on right of use; and amortization of intangible assets.

Depreciation and amortisation expense decreased by 20.01% from T129.24 million in Fiscal 2024 to T103.8 million in Fiscal 2025, primarily due to an decrease in Amortization on intangible assets by 37.30% from T84.88 million in Fiscal 2024 to T53.22 million in Fiscal 2025.

Other Expenses

Other expenses include, amongst others - distribution costs; partner support cost; customer refunds/cancellation costs; advertising and sales promotion; payment gateway charges; outsourcing cost; Technology and related cost; and other overheads

Other expenses increased by 42.20% from Rs 4,710.10 million in Fiscal 2024 to Rs 6,697.65 million in Fiscal 2025, primarily due to higher Advertising and sales promotion, Customer refunds and cancellation costs, partner costs and distribution costs in line with business scale-up.

(Rs in million)

Particulars	FY25	FY24	Growth (%)	Reason of change
Customer refunds / cancellation costs	1,811.30	1,301.61	39.16%	Customer refunds/cancellation costs increased primarily on account of increased volume of Value added services wherein the cost of refund/modification is borne by the Company.
Advertising and sales promotion	2,190.40	1,503.56	45.68%	Advertising and sales promotion expenses increased significantly due to intensified branding activities aimed at enhancing market presence and boosting customer awareness.
Partner support cost	1,023.17	801.51	27.66%	Partner support costs increased primarily due to a rise in train bookings and new offerings in Trains LOB.
Payment gateway charges	580.14	389.01	49.13%	Payment gateway charges increased due to an overall rise in the Gross Transaction Value, leading to higher transaction volumes processed through payment gateways.
Distribution cost	297.67	154.09	93.18%	Distribution costs increased as a result of higher transactions with distribution partners, reflecting expanded reach and distribution network activity.
Outsourcing cost	132.26	82.99	59.37%	Outsourcing costs increased due to first level customer support being outsourced vs keeping it inhouse and also the increased operations necessitated additional external resources to support business functions efficiently.
Other Overheads	662.71	477.33	38.84%	Due to overall scaling of business operations.
Total other expenses	6,697.65	4,710.10	42.20%

Share of loss of an associate

The share of loss from an associate rose from T59.07 million in Fiscal 2024 to T90.97 million in Fiscal 2025. This increase was primarily due to higher operational losses incurred by the associate in Fiscal 2025 compared to Fiscal 2024. Additionally, during Fiscal 2024, Freshbus Private Limited was partially consolidated as a subsidiary until the holding Company lost control, resulting in some of its losses being recorded line by line.

EBITDA and Adjusted EBITDA

Adjusted EBITDA experienced a robust year-on-year growth of approximately 71.34%, rising from Rs 553.11 million in Fiscal 2024 to T947.72 million in Fiscal 2025. This impressive increase was primarily driven by significant revenue growth across major segments, effective cost management strategies, and operational efficiencies that enhanced profitability. Simultaneously, EBITDA surged by roughly 86.36%, increasing from Rs 530.61 million in Fiscal 2024 to Rs 988.84 million in Fiscal 2025, reflecting improved gross margins and a favorable operating environment that contributed to enhanced earnings.

Exceptional Items

Exceptional items decreased substantially by 84.51%, dropping from T297.21 million in Fiscal 2024 to T46.04 million in Fiscal 2025. This reduction is largely attributed to the absence of the previous years one- time gain of Rs 297.21 million related to the loss of control in a subsidiary. In contrast, Fiscal 2025 included a share issue expense of Rs 11.67 million, which was offset by a positive income of Rs 57.71 million arising from the deemed disposal of associates, contributing to the overall reduction in exceptional items.

Tax Expenses / (income)

Total tax expenses increased by T334.67 million, shifting from a tax income of Rs 119.96 million in Fiscal 2024 to a tax expense of T214.71 million in Fiscal 2025. This rise was predominantly due to changes in deferred tax, where Fiscal 2024 benefited from a deferred tax credit of T121.21 million, compared to a significant deferred tax charge of T174.62 million in Fiscal 2025.

Profit after Tax

The decline in Profit after tax from Rs 730.61 million in Fiscal 2024 to T602.52 million in Fiscal 2025 can be attributed to several key factors, particularly concerning one-off items and tax-related adjustments:

1. Fiscal 2025 One-Offs:

• The share of loss from Freshbus, as an associate, increased to T90.97 million, impacting overall profitability.

• A revaluation gain of Rs 57.71 million on Freshbus due to their fundraising partially offset some losses.

• Additional expenses included Rs 11.67 million related to share issue costs associated with the Companys initial public offer.

2. Fiscal 2024 One-Offs:

• A larger revaluation gain of T297.21 million was recognized during FY24, contributing significantly to profitability.

• The share of loss from Freshbus, as an associate, was lower at Rs 59.07 million.

• Losses from Freshbus Private Limited, while it was a subsidiary, amounted to Rs 52.37 million and were part of the consolidated financials.

3. Tax Adjustments:

• Total tax expenses increased by T334.67 million, shifting from a tax income of T119.96 million in Fiscal 2024 to a tax expense of T214.71 million in Fiscal 2025. This rise was predominantly due to changes in deferred tax, where Fiscal 2024 benefited from a deferred tax credit of T121.21 million, compared to a significant deferred tax charge of T174.62 million in Fiscal 2025.

Overall, when evaluating these elements on a like-to-like basis, Fiscal 2025 experienced a net charge of Rs 259.64 million due to these adjustments, as opposed to a net gain of T305.73 million recorded in Fiscal 2024. The combination of reduced one-off gains and increased tax expenses were pivotal in the reduction of Profit after Tax in Fiscal 2025 compared to Fiscal 2024.

Financial Performance:

In Fiscal 2025, ixigo demonstrated robust financial growth across several key metrics, underscoring its strategic initiatives and market positioning. The Company achieved a 39.39% increase in revenue from operations, reaching Rs 9,142.46 million, driven by strengthened performance in its primary segments, including train, flight, and bus bookings. This revenue uptick reflects successful customer acquisition strategies and an enhanced user experience facilitated by technological advancements.

A significant milestone for ixigo was the successful completion of its Initial Public Offering (IPO) on the Bombay Stock Exchange on June 18, 2024. The IPO raised T740.10 crore, providing the Company with the financial resources to further its growth initiatives, expand service offerings, and invest in technological advancements. This infusion of capital is set to accelerate ixigos strategic goals and enhance shareholder value.

Additionally, the acquisition of a majority stake in Zoop Web Services Private Limited bolstered the Companys service portfolio, particularly enhancing its capabilities in the food delivery segment on trains. This strategic acquisition supports ixigos commitment to enriching the travel experience with value-added services, facilitating further customer engagement and trust.

Despite a challenging economic environment, ixigos disciplined cost management resulted in a substantial improvement in EBITDA, which surged by 86.36% to T988.84 million in Fiscal 2025. Adjusted EBITDA also witnessed significant growth of 71.34%, reaching T947.72 million. These gains indicate operational efficiency and a focus on scalable growth initiatives.

On the profitability front, ixigos Profit After Tax moderated to T602.52 million, down from T730.61 million in the previous fiscal year. This decrease was primarily due to specific one-off items and a significant reversal of tax credits, leading to increased tax expenses. Nonetheless, the overall financial health of the Company remains strong, with a focus on sustainable financial practices and investment in core growth areas.

Through strategic initiatives like the IPO and Zoop acquisition, ixigo continues to position itself for continued growth and innovation in the competitive travel market.

Operational Performance:

Operationally, ixigo continued to harness its technological capabilities to enhance user engagement and expand its market footprint. The Companys Gross Transaction Value grew impressively by 45.60%, reaching ^1,49,715.86 million, supported by the robust growth in all line of businesses.

ixigo saw consistent demand from non-Tier I cities, which accounted for a significant portion of their user base. The Companys strategy of localized market penetration, coupled with multilingual support and a user-friendly interface, has reinforced its position as a market leader in the online travel agency sector.

The Company also placed significant emphasis on strengthening partnerships with travel service providers and enhancing its platforms functional offerings, thereby increasing customer satisfaction and retention rates. These efforts have contributed to a higher Contribution Margin, which increased by 36.58% to Rs 4,013.48 million.

Overall, ixigos financial and operational metrics in Fiscal 2025 reflect its strategic focus on growth, operational efficiency, and customer-centric innovation. As the Company moves forward, its commitment to leveraging technology for enhanced service delivery positions it for continued success in the competitive online travel market.

Human Resource

The Company recognises that its human resources are the driving force behind its success and driving innovation and excellence across all operations. With a diverse workforce of over 507 dedicated professionals, ixigo emphasises a culture defined by customer obsession, empathy, ingenuity, ownership, resilience and excellence. The team is a blend of seasoned industry experts and young talent, all committed to delivering the best customer experience and maintaining Ixigos position as one of the leading online travel agencies in India.

507

Total number of employees

Risk and Concerns

The Company operates in a dynamic and highly competitive environment and serving diverse industry segments. This expansive footprint exposes the business to a broad range of risks stemming from both internal operations and external factors. To effectively navigate these uncertainties, the Company has implemented a comprehensive and integrated risk management framework that is embedded within its strategic decision- making and business planning processes. This framework facilitates the timely identification, assessment and mitigation of material risks across all functions and business units. Through scenario planning, real-time monitoring and cross-functional collaboration, the Company remains agile in responding to the evolving risk landscape. This proactive approach reinforces business continuity, enhances organisational resilience and supports sustained leadership in the global marketplace.

Internal Control Systems

The Company has a strong internal audit system in place, which is regularly monitored and updated to safeguard assets, comply with regulations and promptly address any issues. The audit committee diligently reviews internal audit reports, takes corrective action as required and maintains open communication with the auditors to ensure the effectiveness of internal control systems. This robust internal audit framework ensures that the Company operates with integrity, transparency and accountability while mitigating risks and safeguarding the interests of stakeholders.

Cautionary statement

This statement made in this section describes the Companys objectives, projections, expectation and estimations which may be forward looking statements within the meaning of applicable securities laws and regulations. Forward- looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised by the Company. Actual result could differ materially from those expressed in the statement or implied due to the influence of external factors which are beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward- looking statements on the basis of any subsequent developments.