What was filed
TBO Tek filed its unaudited standalone and consolidated results for the quarter ended June 30, 2026, together with a shareholders' letter. The document is a **revised** version — the company said an "inadvertent error" in the letter submitted earlier the same day required a corrected filing, and states that "The enclosed Revised Shareholders' Letter supersedes the earlier version submitted with the Stock Exchanges."
The quarter's numbers are reported on two bases: an *organic* view (without Classic Vacations, the North American business) and a *consolidated* view that includes it. Classic Vacations was, per the letter, in a seasonally strong quarter, and the wide gap between organic and consolidated growth rates reflects its inclusion.
Operating leverage and the Middle East drag
The founders frame the quarter around **operating leverage**: gross profit growing faster than SG&A, so a larger share of incremental gross profit flows to Adjusted EBITDA. In constant-currency terms, the company said organic SG&A grew only 4% year on year, with headcount costs described as flat for multiple quarters and hosting and bandwidth expenses down 13.7% despite higher platform activity.
Against this, the letter is candid that the **Middle East disruption** hurt the mix. The Middle East is described as among TBO's higher-margin markets, and its reduced saliency compressed the blended gross-profit margin of the Hotels and Ancillary business. Management said it made "a calibrated decision to protect strategically important volumes where the incremental business remained contribution positive," adding that exit margins improved as conditions normalised through the quarter. In India, the Hotels + Ancillary segment saw volume softness as bookings rerouted toward lower average-value destinations.
Cash and a working-capital note
Cash and equivalents rose during the quarter, which the company attributes in part to a release of timing-related working capital following consumption in preceding quarters. The letter cautions that "The magnitude of the release should not be considered a steady state outcome," and separately flags that the cash figure includes ₹65 crore drawn from a working-capital facility at Jumbonline — two qualifications a holder reading the headline cash number would want to keep in view.