Ixigo Q2 Loss: Share Price Plunges 19% Following Net Loss Report
Travel technology giant Ixigo (Le Travenues Technology) shocked investors on Wednesday by reporting a Q2 net loss of ₹3.46 crore, causing the Ixigo share price to plunge 19% in the market. This dramatic reversal marks a significant setback for the online travel aggregator, which posted a net profit of ₹13.1 crore in the same quarter last year.
Revenue Growth Masks Ixigo Share Price Decline
Despite the negative Ixigo share price movement, the company demonstrated strong operational growth. Operating revenue surged 37% year-on-year to ₹282.7 crore from ₹206.5 crore, and Gross Transaction Value (GTV) climbed 23% to ₹4,347.5 crore. Flight revenue grew impressively by 60% to ₹89.4 crore, while bus revenue jumped 64% to ₹65.4 crore during Q2.
Key Factors Behind the Ixigo Share Price Collapse
The Ixigo share price decline was primarily driven by one-time ESOP (Employee Stock Ownership Plan) expenses totaling ₹26.9 crore. Employee benefit expenses surged 92% year-on-year to ₹74.2 crore, significantly impacting profitability. EBITDA turned negative at -₹3.60 crore against a positive ₹17.87 crore in Q2 FY2025. Adjusted EBITDA, excluding ESOP costs, grew a healthy 36% year-on-year to ₹28.5 crore, suggesting underlying business strength despite the Ixigo share price crash.
Prosus Investment Provides Relief for Ixigo Share Price
In a positive development, global consumer internet group Prosus invested ₹1,295 crore for a 10% stake in Le Travenues Technology at ₹280 per share. Prosus plans to increase its holding to 16%, signaling long-term confidence in the company despite the Ixigo share price volatility and recent quarterly loss.
Looking Ahead: Ixigo Share Price Outlook
While the Ixigo share price has experienced significant pressure from this quarter’s results, company leadership remains optimistic. Management stated that Ixigo continues growing faster than the market across all business segments, positioning the company for recovery.
Disclaimer: This article is intended for educational purposes only. The information provided should not be considered as personal investment advice or a recommendation to buy or sell any securities. Readers should conduct their own research and consult with financial advisors before making investment decisions.