IntrCity SmartBus Sees 40.1% Increase in Revenue in FY26
Travel-tech platform IntrCity SmartBus reported a 40.1% increase in operating revenue year-on-year for FY26, following a Series D funding round of Rs 250 crore led by A91 Partners in October 2025, aimed at facilitating expansion and technological enhancements. Nonetheless, losses surged by 76% to reach Rs 28 crore during the fiscal year.
Revenue Growth
IntrCity’s operational revenue grew to Rs 690.9 crore in FY26, up from Rs 493.2 crore in FY25, according to the company’s consolidated financial statements submitted to the Registrar of Companies. IntrCity SmartBus provides intercity bus travel via its digital platform and collaborates with independent operators, offering services such as live tracking, onboard captains, and boarding lounges.
Expansion in Bus Operations
The company also manages RailYatri, a platform focused on train travel information and services, relying on partnerships and rented vehicles instead of owning a fleet. Bus operations accounted for the majority of revenue, amounting to Rs 670.35 crore, which is around 97% of total operating revenue in FY26. Revenue from this segment saw a 42.5% increase from Rs 470.56 crore in FY25, as IntrCity expanded its core intercity travel services.
Revenue Breakdown
However, commission income fell by 23.6% to Rs 14.18 crore from Rs 18.55 crore in the previous financial year. At the same time, revenue from advertisement services nearly doubled, reaching Rs 2.44 crore, up from Rs 1.27 crore. Including additional operating and non-operating income, IntrCity’s total income reached Rs 693.6 crore in FY26.
Cost Analysis
On the expenses side, costs associated with bus operations increased by 43.5%, reaching Rs 539.8 crore in FY26 compared to Rs 376.13 crore in FY25. This expenditure represented nearly 75% of total costs, consistent with IntrCity’s asset-light model that leans on rented vehicles and partner operators.
Commission and Employee Expenses
Commissions paid to sales agents saw an increase of 51%, rising to Rs 75.97 crore from Rs 50.35 crore, facilitating ticket sales and customer acquisition through various booking partners. Employee benefit expenses also climbed by 8%, reaching Rs 49.85 crore, compared to Rs 46.17 crore, while advertisement expenditures stood at Rs 15.9 crore.
Total Expenses Growth
Legal and professional fees, along with repair, maintenance costs, payment gateway charges, IT expenses, and other overheads, contributed to an overall 41% rise in total expenses, climbing to Rs 722.8 crore in FY26, compared to Rs 512.2 crore in FY25.
Financial Performance
The company’s EBITDA loss worsened to Rs 27.69 crore in FY26 from Rs 16 crore in FY25, and its EBITDA margin declined to -4%, down from -3.2%. As operating costs rose faster than revenue, IntrCity’s losses increased by 76% to Rs 27.9 crore in FY26. On a unit level, the company spent Rs 1.05 for each unit of operating revenue generated during this period.
Cash Reserves
Despite the rise in losses, cash and bank balances improved to Rs 49 crore as of the end of FY26, up from Rs 21 crore a year prior. Current assets also saw an increase, rising to Rs 62.5 crore from Rs 32.6 crore.
Market Competition
IntrCity competes with Abhibus, Zingbus, Leafybus, and ixigo’s Freshbus. While the bus sector is benefiting from improved highway networks and the demand for flexible availability and pricing, the company’s RailYatri platform faces challenges as AI advancements address user queries without the need to visit various sites. This situation may be disappointing for the firm, which likely had higher expectations for it two years prior.
Future Strategy
There’s a potential need for the firm to refine its priorities more sharply regarding the bus booking sector and explore ways to maximise its potential. In this context, repurposing RailYatri as a platform focused on train ticket availability and alternative bus routes could be invaluable to preserving its legacy traffic and market strength.