TBO Tek Q2: consol. PAT +13% YoY (adj. +25% ex one-off); revenue misses Street view

TBO Tek's consolidated revenue for Q2 FY27 (quarter ended September 30, 2026) was ₹865.6 Cr, up 52.5% YoY from ₹567.5 Cr but down 6.5% QoQ from ₹925.8 Cr — below the ₹920–950 Cr range flagged in our pre-result preview, a miss on the topline even as it clears last year's base easily. Consolidated PAT was ₹76.0 Cr, up 12.5% YoY from ₹67.5 Cr (reported) but down 8.8% QoQ from ₹83.4 Cr. Most of the YoY revenue jump is inorganic: results now consolidate Classic Vacations LLC (acquired October 1, 2025), and the company's own notes flag that this quarter is not comparable with the year-ago quarter for that reason — Q1 FY27's organic (ex-Classic) growth was roughly 16% YoY per brokerage estimates, a more representative underlying pace than the headline 52.5%. Reported PAT growth was held back by a newly disclosed ₹8.1 Cr exceptional loss at a wholly-owned overseas subsidiary, where the company says it 'identified certain irregularities involving suspected collusion among certain current and former employees'; an external investigation is underway and an insurance claim has been initiated. Stripping that one-off, adjusted PBT was ₹99.7 Cr and adjusted PAT was roughly ₹84.1 Cr, up ~24.6% YoY — closer to the 15–20% full-year FY27 PAT growth brokerages have modelled. Margins moved in different directions: operating margin (segment operating income/revenue, per this filing) expanded to 16.7% from 15.5% both sequentially and year-on-year, but net margin (PAT/total income) compressed to 8.6% from 11.6% a year ago, as finance costs (₹17.0 Cr vs ₹8.9 Cr YoY, largely acquisition-related debt) and depreciation/amortisation (₹33.8 Cr vs ₹16.1 Cr YoY, on acquired intangibles) rose sharply post-acquisition and the exceptional item hit the bottom line directly. Hotels & packages — now the dominant segment at ₹745.3 Cr of segment revenue (86% of the total) — fell 6.8% QoQ and was the main driver of the sequential topline dip; Air ticketing was flat QoQ at ₹806.2 Cr. On guidance, management set no formal FY27 revenue or margin targets on the last call and said the Classic Vacations revenue uplift was 'several quarters away' — this quarter's print is consistent with that: there is no visible integration-driven lift yet, so guidance reads as on-track rather than beaten or missed. Separately, the company disclosed on October 21, 2026 a ₹22.2 Cr penalty from the Directorate of Enforcement under the long-running FEMA adjudication (plus ₹24.68 Cr on each Joint Managing Director), which management is appealing and has not adjusted into this quarter's results; brokerage coverage has treated it as an isolated compliance item rather than a systemic risk, with analyst consensus still Strong Buy and a ~₹1,740–1,860 target as of the pre-result read. Going into Q3 FY27, the markers are whether Classic Vacations integration starts showing up in reported revenue, whether the operating-margin expansion (16.7% this quarter) holds, and how the ED penalty appeal and the subsidiary collusion investigation/insurance claim resolve financially.