Can Hotels Become ixigo’s Fourth Growth Engine?
ixigo disclosed hotels as a separate operating segment in Q2 FY27, marking the business line's transition to material scale. Hotel segment revenue reached ₹8.1 Cr (2.5% of total operating revenue of ₹321 Cr), growing sixfold year-over-year with GTV reaching ₹111.3 Cr. While the segment posted a ₹1.2 Cr contribution loss with -15% margin, this represented margin improvement from -55% a year prior. Management attributed approximately ₹10 Cr of a ₹20 Cr increase in group costs to building and scaling the hotels business, funded by profitability from train, flight, and bus segments.
Key points
- Hotels reported as separate segment after sixfold revenue growth
- ₹8.1 Cr revenue and ₹111.3 Cr GTV with 2.6x year-over-year growth
- Contribution margin improved to -15% from -55% despite continued losses
- Positioned as fourth growth engine alongside transportation segments
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