Target: ₹2,000CMP: ₹1,233.20TBO Tek’s organic business maintained a steady trajectory in Q4-FY26 with GTV rising by about 16 per cent y-o-y to about ₹9,000 crore. While GTV grew by a strong around 27 per cent y-o-y in January and February, disruption was seen in March, led by West Asia conflicts with Hotels & Ancillaries/Airlines GTV growth of around 20.4/9.4 per cent y-o-y .GTV (including Classic Vacations) grew around 29 per cent y-o-y , led by Hotels GTV/Airline growth of about 39.2/14.6 per cent y-o-y. EBITDA grew 47.14 per cent y-o-y to ₹10,500 crore (in-line with street estimate). EBITDA margin fell around 311 bps y-o-y to about 12.9 per cent (from about 16 per cent in Q4-FY25), due to integration of Classic Vacation, which has lower margin (CV has better EBITDA/GTV conversion (about 2.55 per cent Vs TBO organic 0.9 per cent).Notably, adj EBITDA as percentage of revenue (about 10 per cent) is lower than TBO organic (15.4 per cent).We expect steady performance in H1-FY27e and a strong recovery from H2-FY27e onwards, aided by pent-up demand and platform’s diversified architecture. Operating leverage is likely to expand further, as SG&A growth continues to moderate and GP scales. Trimming our earnings estimate by 2.6 per cent for FY27/28e, we maintain Buy rating on the stock with an unrevised TP of ₹2,000, valuing it at around 42x FY28e EPS.Key Risks: Inability to retain buyers and loss of agents; suppliers changing terms or discontinue supply; and external factors curbing mobility/travel.Published on June 1, 2026