Here’s the 4 reason driving the bullish outlook:
Attractive valuations: In a statement the domestic brokerage said that the recent correction in the stock, down about 20% since early December, appears overdone. While it trimmed its FY26–28E consolidated revenue estimates by 1–4% and EBITDA margins by 22–34 basis points—leading to a 5–7% cut in FY26–28E EBITDA—it believes the recent price decline has largely addressed valuation concerns. The correction, it added, offers an attractive long-term entry point, with the stock now factoring in near-term uncertainties more than warranted while underappreciating its structural strengths and recovery potential.
Long term fundamentals remain intact: JM hopes that online travel agencies (OTAs) to benefit from structural tailwinds in India’s travel ecosystem, including improving infrastructure, better connectivity and rising affordability. These drivers are especially strong in tier-2 and smaller cities, where travel demand is growing faster than in tier-1 markets, supported by enhanced multi-modal connectivity. “We believe Ixigo is well positioned to capitalise on these trends over the medium to long term, given its strong brand recall in these markets, effective cross-selling across apps, consistent focus on customer experience and strong adoption of differentiated value-added offerings such as Travel Guarantee, Ixigo Assured and Abhi Assured,” JM said in a statement.
Air disruption overdone: Air industry disruption, primarily in the first half of December 2025, is not a structural issue for OTAs as underlying passenger demand remains strong. Moreover, as stability returns, Ixigo should revert to growing faster than other OTAs supported by improving air connectivity of tier-2+ cities, wherein it has a strong brand recall due to focus on utility-led offerings and regional language customer support.
Measured hotel expansion: JM expects Ixigo to focus on strengthening its product and building curated hotel supply rather than pursuing discount-driven growth as it scales its hotels business, which should help keep losses minimal, if any, in the foreseeable future. While strategic M&A remains a possibility, management has indicated it will pursue only profitable, capital-efficient and synergy-accretive acquisitions. Overall, Ixigo’s investments in the hotels OTA segment provide meaningful upside optionality while keeping downside risks contained.
What will happen in H2FY26?
In the same period last year, Ixigo had benefitted from Kumbh Mela-related travel demand. As normalcy returns this year, JM expects YoY GTV metrics to be optically softer (particularly in Q4FY26) across its business segments due to a high base, even if underlying demand trends remain stable. “We, therefore believe, GTV growth rates would normalise starting 1QFY27, once the Kumbh-led base effect is fully absorbed.”
Ixigo shares are down 10% since the beginning of 2026.
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)