Synopsis: Motilal Oswal expects strong growth for TBO Tek, projecting revenue CAGR of 35% over FY25–FY28, supported by rising hotel contribution, global expansion, and improving margins.
This Small-Cap Stock, engaged in providing a global B2B travel distribution platform connecting travel agents with airlines, hotels, and ancillary services through its technology-driven ecosystem, jumped 5.24 percent after Motilal Oswal Securities gave a Buy target of Rs. 1,360, which has an upside potential of 33.5 percentWith a market capitalization of Rs. 11,575.46 crores, the share of TBO Tek Limited has reached an intraday high of Rs. 1,072.15 per equity share, rising nearly 5.24 percent from its previous day’s close price of Rs. 1,018.75. Since then, the stock has retreated and is currently trading at Rs. 1,066 per equity share.
News
Motilal Oswal Securities, a prominent brokerage firm, has recommended a “Buy” call on TBO Tek Limited with a target price of Rs. 1,360 per share, indicating an upside potential of 33.5 percent from its previous day’s close price of Rs. 1,018.75 per share.
Motilal Oswal remains positive on TBO Tek, citing its strong positioning as a technology-driven B2B travel platform connecting over 750 airlines and more than 1 million hotels globally. The company has evolved into a comprehensive travel ecosystem with a gross transaction value (GTV) of Rs. 308 billion, where 59 percent is contributed by hotels and ancillary services, providing a diversified and scalable revenue base.
A key driver of the bullish outlook is the projected revenue CAGR of 35 percent over FY25–FY28, supported by increasing contribution from higher-margin hotel and ancillary segments. These segments are expected to grow their share in GTV from 59 percent to around 70 percent, enhancing both revenue growth and overall profitability.
The company is also well-positioned to benefit from favorable industry trends. The global travel market is expected to grow at an 8.2 percent CAGR, with the hotel segment growing faster at around 10 percent. TBO Tek’s extensive network of nearly 2 million travel agents, presence across over 4,25,000 routes, and multi-currency and multi-language capabilities strengthen its global reach and competitive moat.
Further, operating leverage and cost control are expected to drive margin expansion, with EBITDA margins likely improving from 13.7 percent to around 18 percent by FY28. Strong free cash flow generation, supported by its negative working capital model, adds to long-term growth confidence.
Global Presence
TBO Tek has built a strong global presence as a leading B2B travel platform, operating across more than 140 source markets and offering over 30,000 destinations worldwide. Its platform connects a large network of more than 50,000 transacting travel agents, enabling seamless bookings across regions.
With over 16 million hotel searches recorded, TBO Tek demonstrates high platform activity and demand, supported by its scalable technology and wide international reach across North America, Europe, APAC, Latin America, and Africa.
Company Overview
TBO Tek Limited (formerly Tek Travels Private Limited) was incorporated on November 6, 2006, and is an India-headquartered B2B travel technology company that operates a global travel distribution platform connecting travel buyers and suppliers. It focuses on simplifying complex travel bookings for agencies and advisors rather than direct consumers.
Recent Quarter Results
Coming into financial highlights, TBO Tek Limited’s revenue has increased from Rs. 422 crore in Q3 FY25 to Rs. 784 crore in Q3 FY26, which has grown by 85.78 percent. The net profit has also grown by 8 percent from Rs. 50 crore in Q3 FY25 to Rs. 54 crore in Q3 FY26.
TBO Tek Limited’s revenue and net profit have grown at a CAGR of 53.21 percent and 89.13 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE stand at 26.7 percent and 24.6 percent, respectively. TBO Tek Limited has an earnings per share (EPS) of Rs. 22.4, and its debt-to-equity ratio is 0.52x.
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