Dubai Taxi Company (DTC.DU): Looking Ahead to 2Q26 Results

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Dubai Taxi Company (DTC.DU): Looking Ahead to 2Q26 Results

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21 Jul 2026 10:07:38 ET │ 14 pages

Dubai Taxi Company (DTC.DU)

Looking Ahead to 2Q26 Results

CITI'S TAKE

Buy DTC reports 2Q results on Thursday and we expect weak trading. We

gauge recent DXB flight data and traffic jam delay data (shown below) Price (21 Jul 26 14:00) Dh2.15

which suggests a sharp decline in trips in 2Q (particularly for Airport Taxis) Target price Dh2.50↓

although improving vs 1Q. Considering this and with our view of a delayed from Dh2.80

recovery, we now expect trips recovering to pre-conflict levels 2Q27 vs Expected share price return 16.3%

2H26 earlier. We cut FY26/27e EBITDA by 17%/11% as we believe that Expected dividend yield 4.7%

lower trip growth, and lower quality trips (less km driven), would severely

Expected total return 20.9% impact margins in the near-term given the high operating leverage.

Market Cap Dh5,375M Nonetheless, we believe the consolidation of National Taxi would support

growth once consolidated from 3Q with synergies supporting the margin US$1,463M

in 2027 and mid-term. Moreover, anticipated government support

through reduced plate costs (cAED35m in 3Q26, in our view) would act as

a catalyst. Thus, we maintain our Buy with revised TP of AED2.5 (earlier

Klas BergelindAC

AED2.8). +44-20-7986-4018

klas.bergelind@citi.com

2Q26 Preview — We expect top-line to decline by c23% YoY to AED 482m (cons at Ashish Khetan

AED 467m) on the back of lower number of trips/less km driven. We expect EBITDA

+91-22-4277-5121at AED74m (margin 15.3%) vs cons at AED 82m (margin 17.6%). We understand the

ashish.khetan@citi.complate cost discount from the government was expected to be in 2Q26 which would

have supported DTC’s margin but has now been delayed to 3Q26 with exact details