Scaling the global travel stack
Niche B2B global travel aggregator: Connecting supply, compounding growth
TBOTEK is a technology-driven B2B travel platform that connects over 750 airlines, more than 1m hotels, and travel buyers worldwide. Its platform offers a one-stop solution for travel buyers, having evolved from a simple air ticketing platform for agents into a comprehensive global travel booking platform, with an annual GTV of INR308b (~41% from airlines and ~59% from hotels and ancillaries) and over 50k transacting partners.
TBOTEK has built strong moats in the global B2B travel distribution ecosystem over time through deep supply aggregation across airlines, hotels, and ancillaries (transfers and sightseeing, car rentals, and cruises), targeting a highly fragmented travel agent universe of ~2m, spanning freelancers, home-based consultants, small independent agencies, and full-time professional firms.
The global travel and tourism market, valued at ~USD1,869b, is expected to expand at a CAGR of 8.2% over CY23–27. Within this, the hotel segment is likely to expand at a faster CAGR of ~10%, while the ancillary and air segments are expected to expand at a CAGR of 8.5% and 5.7%, respectively. In terms of market composition, the segment mix currently stands at: 46% for Hotels, 38% for Air, and 16% for Ancillary Services. Notably, the hotels segment is highly fragmented, with over 80% of hotels (~3-3.6m) being independently owned, making it extremely difficult for intermediaries to establish direct reach.
TBOTEK addresses the structural challenges faced by fragmented travel intermediaries by providing an integrated global travel distribution platform. It aggregates travel supply across 4,25,000+ source destination pairs, supported by payment rails in 88 currencies, localized solutions, and 24×7 near-shore support in 16 languages. A multi-market compliance layer and streamlined booking infrastructure enable travel agents to broaden product access, improve operational efficiency, and compete more effectively, ultimately enhancing the end-traveler experience.
We expect TBOTEK to deliver Revenue/EBIT/PAT CAGR of 35%/37%/32% over FY25- 28, primarily on the back of increased contribution from high take-rate hotels and ancillary segments in the GTV mix, rising from 59% currently to 70%. Contribution from CV, which is focused on luxury and premium hotel properties, is expected to drive overall profitability. We value the stock at 28x FY28E EPS of INR48.7 to arrive at a TP of INR1,360. We initiate coverage on TBOTEK with a BUY rating.
On the operating profitability front, we expect EBITDA margins to expand gradually from FY27 onwards, led by operating leverage as the business continues to scale and a gradual tapering of SG&A expenses, with EBITDA margins rising from 13.7% as of 3QFY26 to ~18.0% by 4QFY28. A structurally negative working capital model is expected to support a strong FCF CAGR of over 40% between FY25-28
