Necessary Always Active
Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.
|
||||||
|
||||||
|
||||||
|
Published on
November 3, 2025
5 min read
Ixigo Shares Decline Over 20% Following Q2 FY26 Loss
In Focus
- Ixigo shares decline over 20% in three sessions after Q2 FY26 loss
- Ixigo Q2 loss INR 3.5 Cr drives investor caution despite revenue surge
- One-time ESOP expense impacts quarterly profitability
- New capital from Prosus N.V. aims to boost AI and hotel growth
Ixigo shares declined for the third consecutive session, dropping over 5% in a single day and more than 20% across three sessions, according to a report by Inc42. The steep correction followed the company’s announcement of its Q2 FY26 results, which revealed a net loss despite strong top-line growth.
Ixigo’s stock, which closed at ₹324.70 on Wednesday, fell to an intraday low of ₹255.65 in subsequent sessions. The correction underscores growing investor concerns about profitability pressures, cost escalation, and demand softness across India’s travel ecosystem.
Related Post – Info Edge Earns 36% IRR from Startup Bets, Sees 10x Returns
Financial Results Show Revenue Growth Amid Profit Pressure
Ixigo reported a net loss of INR 3.5 crore in Q2 FY26, compared with a profit of INR 13.1 crore in the same quarter last year. The company’s operating revenue rose 36% year-over-year to INR 282.7 crore, while quarter-over-quarter growth stood at 10%.
However, the one-time ESOP-related expense of INR 26.9 crore weighed heavily on the company’s financials. Despite steady business volume, cost-side challenges and subdued market sentiment offset the strong revenue momentum.
“It’s been a tough environment with de-growth across the entire travel ecosystem,” said Ixigo Co-founder and CEO Aloke Bajpai, as quoted by Inc42.
Industry Reaction to Earnings Announcement
- Ixigo stock down 20 percent in 3 sessions, erasing recent gains
- Ixigo Q2 loss impacts stock and investor sentiment
- ESOP expense of INR 26.9 crore drives profitability decline
- Travel slowdown adds pressure to sector-wide performance
Sector-Wide Weakness Impacts Digital Travel Firms
The drop in Ixigo shares reflects a broader slowdown across India’s online travel segment. Competitor MakeMyTrip Limited also reported a loss of around USD 5.7 million (approximately INR 50 crore) in the same quarter, indicating widespread industry headwinds.
After experiencing a post-pandemic boom, the online travel sector is entering a period of normalization. Demand for discretionary travel is stabilizing, while rising operational costs are putting downward pressure on margins.
“We are witnessing a period of normalization after post-pandemic peaks,” Bajpai added in the company’s earnings discussion. He noted that Ixigo continues to prioritize diversification and product innovation to maintain growth momentum. On October 31, 2025, Lenskart Solutions opened its initial public offering (IPO) with an early subscription of approximately 18% within the first hours of bidding.
Ixigo’s Plans for Capital Utilization and Expansion
To strengthen its growth trajectory, Ixigo has signed a share subscription agreement with Prosus N.V. to raise approximately INR 1,295.6 crore. The company intends to use the funds to scale its hotel booking segment, invest in AI-driven travel technologies, and pursue targeted mergers and acquisitions.
The capital infusion is expected to improve liquidity and fund new product development initiatives. For investors, the move represents a potential stabilizing measure following the recent ixigo shares decline and reported ixigo Q2 loss INR 3.5 Cr. India’s vibrant startup culture is set to witness a dramatic transformation as various Indian Startups’ IPO plans begin to materialize, tech startups worth a combined $100 billion will list on the public markets by 2027.
Investment Priorities for Upcoming Quarters
- Capital raise of INR 1,295.6 crore led by Prosus N.V
- Expansion of hotel and accommodation verticals
- Increased focus on AI-based personalization tools
Impact on the Broader Travel-Tech Market
The ongoing ixigo shares decline highlights both the challenges and transformation opportunities within India’s digital travel ecosystem. Ixigo’s continued investment in technology innovation and new business segments could create value chains for regional travel operators and hospitality partners.
While profitability recovery may take time, the company’s capital allocation toward high-growth areas positions it strategically for future expansion once market conditions stabilize.
