TBO Tek posted a robust first quarter of fiscal year 2027. Revenue climbed 81% year‑on‑year to ₹9,258 million, surpassing the ₹8,228 million estimate. Organic sales grew 16% to ₹5,950 million, also beating expectations.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) reached ₹1,435 million, up from the ₹1,112 million forecast. The company’s margin stood at 15.5%, higher than the projected 13.5%. Gross profit growth exceeded SG&A growth, reflecting strong operating leverage.
Motilal Oswal notes that TBO Tek delivered solid results even amid a tough operating environment. The company’s performance demonstrates resilience and efficient cost management.
For the next three years, the firm is expected to grow at a compound annual growth rate (CAGR) of 35% in revenue, 46% in EBITDA and 52% in profit after tax. The growth is driven mainly by higher contribution from high‑take‑rate hotels and ancillary services within the gross transaction value mix.
The research house maintains a BUY recommendation. The target price is set at ₹1,850, valuing the company at 35 times its FY28 earnings per share.
Overall, TBO Tek’s Q1FY27 results, forward growth prospects and attractive valuation make it an appealing investment for long‑term investors.