Ixigo Falls 13% After Strong Q1, JM Financial Cuts Target

Ixigo shares fell as much as 13.6% to an intraday low of Rs 174.15 on the BSE, and were trading 12.9% lower at Rs 175.70 at 14:10 IST. Inc42 headlines the move as a 13% crash, a figure that sits between the two numbers in its own copy. The drop followed a quarter that was, on the face of it, the best the company has reported.

Q1 FY27 net profit rose 81% to Rs 34.2 Cr from Rs 18.9 Cr. Operating revenue grew 13% to Rs 356.8 Cr, total income was Rs 385.9 Cr, and EBITDA rose 65% to Rs 53.5 Cr. Gross transaction value climbed 18.9% to Rs 5,524 Cr, with the bus business up 39.1% and flights up 26.7%. Management said it ‘continued taking market share and delivered resilient growth’ on record revenue and PAT.

The market read a different line. Adjusted EBITDA margin contracted 177 basis points year on year to 8.2%. Total expenses rose 15% to Rs 337.8 Cr against 13% revenue growth. JM Financial cut its 12-month target price to Rs 200 from Rs 220, kept a Reduce rating, and lowered FY27 to FY29 EBITDA estimates by 11% to 15% and EPS estimates by 5% to 9%. Inc42 attributes the concern to sustained spending on hotels and AI capabilities delaying margin expansion, alongside higher employee and branding costs. Ixigo has bought 54.66% of Brevistay for Rs 65.7 Cr, added supply across 10,000 plus hotels in 700 towns, and has board approval for another 11% of Zoop at Rs 36.4 Cr.

The number worth copying into your own model is the gap between GTV and revenue. GTV grew 18.9% while revenue grew 13%. The company is moving more value through the pipe and keeping a thinner slice of it. Profit still rose 81%, which is why the P&L looks clean, but the direction of the take rate is what a broker prices.

For a D2C brand the read across is simple. Investors pay for margin direction, not margin level. If your GMV outruns your net revenue and your cost base outruns both, an 81% profit jump buys you nothing at the next raise. Track contribution per order and opex growth against revenue growth every month, and be ready to explain any quarter where expenses grow faster than the top line before someone else explains it for you.