Dubai Taxi Company: Conflict disruption in line with expectations. Reiterate Buy

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Dubai Taxi Company: Conflict disruption in line with expectations. Reiterate Buy

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Dubai Taxi Company

Conflict disruption in line with

expectations. Reiterate Buy

Reiterate Rating: BUY | PO: 2.95 AED | Price: 2.03 AED

Revenue pressure in line with expectations 12 May 2026

DTC’s 1Q26 revenue came in-line, and net income was 15% below consensus (-6%/-39% Equity

YoY) as mobility slowdowns in March impacted operations. January and February trends

were robust – revenues and EBITDA were +10%/+17% YoY (+155bp margin expansion).

Key ChangesMarch (-39%/-85% YoY for revenues and EBITDA) offset this momentum, driven by

mobility slowdown due to the regional conflict. We raise our 2026E revenue and net (AED) Previous Current

income by 5%/11%, reflecting taxi fleet expansion and base tariff uplift. We continue to 2026E EPS 0.07 0.09

see the risk-reward as attractive at 15x fwd P/E. Reiterate Buy; unchanged AED2.95 PO. 2027E EPS 0.13 0.14

2026E DPS 0.06 0.08

March slowdown offsets underlying strength in Jan & Feb

Trip volumes in 1Q26 were 14% below 1Q25, reflecting flat YoY for Jan and Feb, and Jameel Bakhsh, CFA >>

Research Analyst

42% decline for March. Whilst volumes were flat in the first two months, increased trip Merrill Lynch (DIFC)

durations and taxi base fare increases delivered +10% YoY revenue growth (+5% for the +971 4 425 8252 jameel.bakhsh@bofa.com

taxi franchise specifically), with c.155bp EBITDA margin expansion. Limousine revenues

Michael Jacks, CFA >>

and profitability remain under pressure (-9% YoY revenues in Jan & Feb; c.4ppts gross Research Analyst

margin contraction), whilst delivery bike revenues were up 74% in the first two months, Merrill Lynch (South Africa) +27 113 055 158

driven by +68% YoY fleet expansion. michael.jacks@bofa.com