TBO Tek Ltd (TBOTEK) Q2 FY27 Results Analysis: Revenue Jumps 53%, Margin Misses Guidance

Cofacto Research Published November 02, 2026 3 min read

Negative

TBO Tek Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 865.63 Cr (+52.53% YoY) and PAT growth of +12.51% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	November 02, 2026
Revenue (Q2)	Rs. 865.63 Cr (+52.53% YoY)
PAT (Q2)	Rs. 75.99 Cr (+12.51% YoY)
EBITDA margin	15.73% (-27 bps YoY)
EPS (Q2)	Rs. 7.08 (+12.03% YoY)

Quarter Snapshot

Consolidated revenue grew 52.53% YoY to Rs.865.63 Cr but the growth is Classic Vacations-aided; standalone revenue grew just 8.11% and revenue, EBITDA and PAT all fell QoQ. Adjusted EBITDA margin of 15.73% missed management's ~18.3% base and EBITDA/GP conversion of 24.27% contradicted guided improvement, while an Rs.8.14 Cr fraud-related exceptional charge and an unprovided Rs.22.216 Cr FEMA penalty add overhangs. The standout positive is cash: H1 CFO of Rs.562.50 Cr (3.53x PAT) and FCF at 184.82% of EBITDA already exceed the year-end commitment, with borrowings reduced and a net-cash position.

Management Guidance vs Delivery

What management said	Where	What happened	Verdict
ETR 18–18.5% FY27	Q4 FY26 earnings call (CFO)	H1 18.21% (Q2 16.98%)	On Track
Pre-M&A Adj. EBITDA margin ≥ ~18.3% base	Open-ended margin-base guidance from prior-quarter commentary	15.73% (no M&A costs in the quarter)	Missed
EBITDA/GP conversion to keep improving from ~26–27.5%	Q1 FY27 earnings call (JMD confirmed)	24.27% (Q1: 27.14%)	Missed
SG&A growth significantly slower than GP	Q1 FY27 shareholders' letter/call	Q2: SG&A +51.29% vs GP +54.42%	Met
FCF/EBITDA >100% by FY27 year-end	Q4 FY26 earnings call	H1 FCF = 184.82% of Adj. EBITDA	On Track
Core EBITDA > GP growth from FY27	Q2 FY26 earnings call	Consolidated EBITDA +50.0% vs GP +54.4%; organic split absent	Too Early

Key Investment Insights

Key Positives

H1 operating cash flow of Rs.562.50 Cr vs Rs.28.67 Cr in H1 FY26 — 3.53x H1 PAT and 1.97x Adjusted EBITDA
H1 FCF of Rs.528.70 Cr equals 184.82% of Adjusted EBITDA, ahead of management's >100% FCF-to-EBITDA year-end commitment
H1 ETR of 18.21% is back inside management's guided 18-18.5% FY27 band after Q1 ran above it
Total borrowings reduced to Rs.565.47 Cr from Rs.645.10 Cr; cash rose to Rs.1,393.72 Cr, a substantial net-cash position
Normalized PAT of Rs.82.75 Cr grew 22.51% YoY; H1 normalized PAT Rs.166.11 Cr, +34.03%
Air ticketing GP margin improved YoY from 47.74% to 50.95% despite soft revenue (+3.26% YoY)
Standalone PAT grew 61.52% YoY to Rs.15.89 Cr on standalone revenue up 8.11%

Risk Factors

Adjusted EBITDA margin of 15.73% missed management's stated ~18.3% pre-M&A base; EBITDA/GP conversion fell to 24.27% from 27.14% in Q1, contradicting guided improvement
Revenue fell 6.50% QoQ, Adjusted EBITDA fell 9.19% QoQ and PAT fell 8.83% QoQ, contradicting management's prior comment that Q2 is historically the strongest quarter
Rs.8.14 Cr exceptional charge for suspected employee-collusion irregularities at an overseas subsidiary; final loss may differ
Rs.22.216 Cr FEMA penalty on the company (plus Rs.2.468 Cr on each JMD) with no provision made; appeal being filed
Net FX loss of Rs.8.87 Cr (nil a year ago) plus finance costs +91.19% YoY and D&A +109.53% YoY from debt-funded Classic acquisition weigh on PAT
Standalone revenue grew only 8.11% YoY and fell 0.79% QoQ, showing the organic leg is soft