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    Yatra Online Limited

    YATRA
    Consumer Services·11 Aug 2025
    Management Summary

    Yatra Online delivered strong Q1 FY26 results with revenue growing 108% YoY to ₹209.8 crores and PAT up 300% to ₹16 crores, despite macro-economic headwinds impacting B2C volumes. The company demonstrated disciplined execution with adjusted EBITDA surging 138% YoY to ₹24.9 crores, driven by corporate travel and higher-margin Hotels & Packages segments. Significant debt reduction and progress on technology initiatives like the AI assistant DIYA were also highlighted.

    Highlights

    5
    • Revenue from operations grew 108% year-on-year to ₹209.8 crores, driven by strong momentum in Hotels & Packages and MICE business.

    • Revenue less service cost (gross margin) rose 44% year-on-year to ₹115.6 crores, underscoring a diversified business model.

    • Adjusted EBITDA surged 138% year-on-year to ₹24.9 crores, translating to a healthy 21% EBITDA to gross margin ratio.

    • Profit after tax increased 300% year-on-year to ₹16 crores.

    • Gross debt was significantly reduced from ₹54.6 crores as of March 31, 2025, to just ₹2.9 crores as of June 30, 2025.

    Concerns

    2
    • B2C bookings declined marginally year-over-year due to macro events like cross-border tension and an air crash in June 2025.

    • Air Ticketing passenger volumes declined 9% year-on-year, though gross bookings grew 4%.

    What Changed1

    vs Q2 FY26

    Guidance items8 → 9 (+1)

    Key financials

    Single quarter

    05 metrics
    1. 01Revenue from Operations₹209.8 Cr+108%YoY
    2. 02Revenue less Service Cost₹115.6 Cr+44%YoY
    3. 03Adjusted EBITDA₹24.9 Cr+138%YoY
    4. 04Adjusted EBITDA Margin21%
    5. 05PAT₹16 Cr+3%YoY

    Segment breakdown

    • Air Ticketing₹1,410.3 Cr80.4%
    • Hotels & Packages₹343.3 Cr19.6%
    Donut· Share of Gross Bookings

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Gross ₹2.9 crores

    Liquidity

    Cash ₹220.8 crores

    Cash and cash equivalents and term deposits stood at ₹220.8 crores as of June 30, 2025.

    Guidance & targets

    9
    CategoryTargetPriority
    Profitability
    Gross Margin Growth
    20%
    High
    Profitability
    Adjusted EBITDA Growth
    30%
    High
    Margin
    EBITDA to Gross Margin Ratio
    25%
    High
    Margin
    EBITDA to Gross Margin Ratio
    30%
    High
    Margin
    EBITDA to Gross Margin Ratio (North Star)
    35%
    Medium
    Volume
    Gross Booking Growth
    15%
    Medium
    Volume
    Gross Booking Growth
    20%
    Medium
    Business Mix
    B2B Gross Bookings Share
    70%
    High
    Capex
    Tech Capex
    Current levels +/- 10%
    High

    B2C Segment Recovery

    next quarter
    CurrentMarginally declined YoY
    TargetHealthy momentum / growth

    Why it matters

    B2C recovery is crucial for overall volume growth and complements the corporate segment's performance.

    We've seen growth coming back in the B2C segment as well. So my sense, at least is that B2C also will continue to recover at a healthy momentum.

    How to verify

    key_financials.segment_breakdown[name='Air Ticketing'].metrics[label='Passenger Volumes']

    Risks & concerns

    3
    RiskSeverity

    Macroeconomic headwinds and travel disruptions

    Cross-border tension and an air crash in June 2025 impacted B2C bookings, leading to a marginal year-over-year decline.Management acknowledged

    medium

    Seasonality in B2C and other services

    The 'other services' segment (including freight) saw a decline due to seasonality and tariff fluctuations in April and May.Management acknowledged

    low

    US listing delisting criteria

    The company needs to meet a minimum share price of $1 by October 13; management is working on a solution, potentially a reverse stock split.Analyst acknowledged

    medium

    Q&A highlights

    8

    “So if I look at from a take rate point of view, firstly, referring to the air take rates. Air take rates year-over-year have improved by about 50 basis points. But if I look at from a gross margin to net margin ratio, that net margin ratio, as Anuj mentioned, has improved from 3.1% to 4.6%. Its been driven by two factors. First, optimization of discounting.”

    Clarifies the drivers behind improved take rates and gross margins, attributing it to discounting optimization and a higher mix of corporate travel and value-added products.

    asked by Anmol Garg

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Financial Performance and Margin Expansion

    Yatra Online reported robust financial results for Q1 FY26, with revenue from operations growing 108% year-on-year to ₹209.8 crores. Revenue less service cost, a key measure of gross margin, increased by 44% year-on-year to ₹115.6 crores. Adjusted EBITDA surged 138% year-on-year to ₹24.9 crores, achieving a healthy 21% margin. Profit after tax (PAT) saw a significant increase of 300% year-on-year, reaching ₹16 crores, underscoring disciplined execution and a strong business model.

    02

    Strategic Shift to Corporate Travel and Higher-Margin Segments

    The company's growth was primarily driven by sustained demand in business travel and strong execution across its platforms, particularly in the corporate segment and higher-margin Hotels & Packages business. This strategic pivot has led to improved profitability, with the EBITDA to gross margin ratio targeted to reach 25% in 12-18 months and 30% in 36 months. The B2B gross bookings share is expected to increase from the current late 60s to 70% by the next fiscal year, reflecting a deliberate rebalancing away from lower-margin B2C volumes.

    03

    B2C Segment Impact and Expected Recovery

    B2C bookings were marginally impacted year-over-year due to macro events, including cross-border tension and an air crash in June 2025. Air Ticketing passenger volumes declined 9% year-on-year, though gross bookings still grew 4%. Management expects the B2C segment to recover with healthy momentum following a 30-35 day disruption, and anticipates overall air segment volume growth going forward. The company has optimized discounting and leveraged banking partnerships to improve net margins in the B2C segment.

    04

    Technology and AI Initiatives

    Yatra Online has made significant investments in technology, including building out its expense management solution, enhancing its corporate travel platform, and developing AI automation and Agentic bots. The beta version of its AI assistant, DIYA (Digital Intelligent Yatra Advisor), has been launched to assist customers with service inquiries and personalized travel searches. These initiatives are expected to provide operating leverage and attract new customers, with meaningful revenue from the expense management software anticipated in the next fiscal year.

    05

    Debt Reduction and Liquidity

    The company significantly reduced its gross debt from ₹54.6 crores as of March 31, 2025, to just ₹2.9 crores as of June 30, 2025. Cash and cash equivalents, along with term deposits, stood at a healthy ₹220.8 crores as of June 30, 2025. Management confirmed that internal accruals are sufficient to cover working capital needs, indicating a strong liquidity position.

    06

    Corporate Client Acquisition and Implementation

    In Q1 FY26, Yatra onboarded 34 new corporate clients, adding an annual billing potential of approximately ₹200 crores. The company noted that out of ₹1,300 crores in annual billing potential from new corporates over the last two years, over ₹700 crores is already trading or in the process of implementation. The corporate business benefits from high customer stickiness, with 73 of the top 100 customers having been with Yatra for over 5 years, and an annual retention rate upwards of 97%.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.