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    Yatra Online Limited

    YATRA
    Consumer Services·12 Nov 2025
    Management Summary

    Yatra Online delivered a strong Q2 FY26, with significant year-over-year growth across revenue, gross margins, EBITDA, and PAT, driven by corporate and consumer segments. The company onboarded 34 new corporate clients and saw strong momentum in its hotels and packages business. While air passenger volumes saw a slight decline, profitability metrics remained robust, and the company raised its adjusted EBITDA growth guidance for the year.

    Highlights

    5

    • Revenue from operations grew 48% YoY to INR3,509 million, driven by robust growth in hotels, packages, and MICE segments.

    • Gross margins improved by 34% YoY to INR1,257 million, underscoring a diversified business model.

    • Adjusted EBITDA surged 88% YoY to INR255 million, translating to a healthy 20% EBITDA to gross margin ratio.

    • Profit after tax increased 96% YoY to INR143 million, well ahead of earlier guidance.

    • Gross debt significantly reduced from INR546 million as of March 31, 2025, to INR211 million as of September 30, 2025.

    Concerns

    2

    • Air ticketing passenger volume declined 3% YoY to 1,329,000 in Q2 FY26.

    • Airline net take rates declined from 4.6% in Q1 to 3.9% in Q2 due to higher consumer promotions during the anniversary month.

    What Changed2

    vs Q3 FY26

    Guidance items13 → 8 (-5)Risks discussed4 → 3 (-1)
    Key financials

    Metrics

    6

    Periods

    2

    Headline

    2
    • Cash & Equivalents
      2,139 Mn
    • Gross Debt
      211 Mn

    Q2

    4
    • Revenue from Operations
      3,509 Mn
      YoY+48%
    • Gross Margin
      1,257 Mn
      YoY+34%
    • Adjusted EBITDA
      255 Mn
      YoY+125%
    • PAT
      143 Mn
      YoY+96%

    Segment breakdown

    • Air Ticketing14,811 Mn74.2%
    • Hotels & Packages5,142 Mn25.8%
    Donut· Share of Gross Bookings

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Debt

    Gross ₹211 million

    Liquidity

    Cash ₹2,139 million

    Guidance & targets

    8
    CategoryTargetPriority
    Profitability
    Adjusted EBITDA Growth
    35-40%
    		High
    Profitability
    Revenue less Service Cost Growth
    22-23%
    		Medium
    Profitability
    EBITDA to Gross Margin Ratio
    23-25%
    		High
    Profitability
    EBITDA to Gross Margin Ratio
    30%
    		High
    Profitability
    Return on Capital Employed (ROCE)
    ~8%+
    		High
    Profitability
    Return on Capital Employed (ROCE)
    ~13-14%
    		High
    Headcount
    AI-led Headcount Optimization
    75 heads
    		High
    Headcount
    AI-led Headcount Optimization
    200 heads
    		Medium

    GCP Migration Cost Moderation

    coming quarters
    CurrentINR5 crore increase in other expenses, partly due to GCP migration
    TargetINR1-2 crore reduction in GCP costs

    Why it matters

    Reduction in these costs will improve overall profitability and EBITDA to gross margin ratio.

    The GCP cost should moderate📎 as we settle down on the platform, right? So initial transition will always have a little bit of higher cost. But as we optimize for the platform cost, we will see approximately anywhere between INR1 crore to INR2 crore kind of reduction in this cost in the coming quarters⏳.

    How to verify

    key_financials.metrics[label='Adjusted EBITDA (Q2)']

    Risks & concerns

    3
    RiskSeverity

    Seasonality in corporate travel demand

    Q3 is seasonally weaker for corporate travel due to Diwali, Dussehra, and Christmas breaks. — Management acknowledged

    medium

    Temporary impact of GCP migration costs

    Incremental costs for Google Cloud Platform migration temporarily impacted other expenses, but expected to moderate. — Management acknowledged

    low

    Impact of anniversary sales on take rates

    Higher consumer promotions during the August anniversary month led to a temporary decline in airline net take rates. — Management acknowledged

    low

    Q&A highlights

    8

    “So if I look at this from a year-over-year perspective, Nitin, growth in terms of consumer actually would still be slightly negative. They are about 10%-odd negative year-over-year. And in the case of corporate, corporate is close to about 20% and I'm including MICE in this, right, almost about 25% positive year-over-year.”

    Provides a clear breakdown of growth drivers by segment, highlighting the stronger performance of the corporate business.

    asked by Nitin Padmanabhan

    2 min read5 chapters

    Detailed Narrative

    01

    Strong Q2 FY26 Performance Driven by Corporate and Hotels Segments

    Yatra Online reported a robust Q2 FY26, with revenue from operations growing 48% year-over-year to INR3,509 million. This performance was significantly bolstered by a 34% year-over-year improvement in gross margins to INR1,257 million. The company's corporate business, including MICE, showed strong momentum, contributing to a 25% positive year-over-year growth in gross bookings, while the hotels and packages segment saw a 40% increase in gross bookings to INR5,142 million and a 9% rise in hotel room nights.

    02

    Profitability Surges with Raised EBITDA Guidance

    The quarter demonstrated strong profitability, with Adjusted EBITDA surging 125% year-over-year to INR255 million, achieving a healthy 20% EBITDA to gross margin ratio. Profit after tax also saw a significant increase of 96% year-over-year, reaching INR143 million. Building on this performance, management raised its adjusted EBITDA growth guidance for FY26 from 30% to 35-40%, reflecting confidence in continued operating leverage and business momentum.

    03

    Strategic Focus on AI and Technology for Efficiency

    Yatra is actively leveraging technology, particularly AI, to enhance efficiency and customer experience. The DIYA AI assistant is live, aiming to provide a concierge-like experience for corporate travelers and streamline flight and hotel searches. The company anticipates significant cost savings through AI-led headcount optimization, targeting 75 heads by the end of the current fiscal year and potentially 200 by the end of next year, by automating back-office requests and improving policy compliance.

    04

    Debt Reduction and Improving Capital Efficiency

    The company significantly reduced its gross debt to INR211 million as of September 30, 2025, down from INR546 million at the end of March 2025. This, combined with working capital optimization, is expected to drive substantial improvements in Return on Capital Employed (ROCE). Management projects ROCE to increase from approximately 5% last year to over 8% this year, with a further target of 13-14% by next year, primarily through increased adoption of the corporate credit card platform.

    05

    Conservative Guidance and Market Share Gains in B2B

    Despite strong results, management maintains a conservative stance on guidance, preferring to let performance speak for itself. In the B2B segment, Yatra is growing significantly faster than the industry average of 9%, gaining market share across competitors. This success is attributed to its proven technology solution, integrated stack, and deep understanding of the Indian market, allowing for personalized and policy-compliant travel solutions for large enterprises.

    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.