World · India Bureau
Ixigo shares surge 13% on record Q2 profit, analyst caution remains
Online travel platform Ixigo reported an all-time high consolidated profit after tax of ₹63.42 crore in the second quarter of FY27, buoyed by a partial divestment of its Freshbus subsidiary. The strong earnings drove a 13% jump in share price, though some analysts have maintained a cautious stance on the stock.
LSN India ·
Ixigo's second-quarter performance marked a significant milestone for the travel technology company, with consolidated net profit reaching ₹63.42 crore—the highest in the company's operating history. The exceptional result was substantially aided by the partial sale of stake in Freshbus, the group's bus aggregation platform, which contributed materially to bottom-line earnings.
The earnings announcement triggered a sharp positive market reaction, with Ixigo shares advancing 13% during trading. The rally reflects investor optimism about the company's profitability trajectory and the strategic value generated through the Freshbus transaction.
However, not all market participants have embraced an uniformly bullish outlook. Motilal Oswal Financial Services (MOFSL), a leading domestic brokerage, maintained a "neutral" rating on the stock despite the strong quarterly performance. The cautious stance suggests some analysts may be factoring in valuation considerations or near-term headwinds alongside the positive earnings momentum.
The results underscore Ixigo's expanding profitability in India's competitive online travel segment, where the company competes with established players across flight bookings, hotel reservations, and ancillary travel services. The Freshbus divestment appears to have accelerated the company's path to sustainable profitability during a period of strong domestic travel demand.