Yatra Online Limited

Yatra Online has successfully pivoted towards higher-margin corporate travel and MICE segments, which are projected to constitute 65-70% of overall gross bookings in the next fiscal year. This strategic rebalancing led to a significant improvement in profitability, with FY25 PAT surging 912% YoY to ₹36.6 crores and Q4 PAT increasing 173% YoY to ₹15.2 crores, marking the company's most profitable quarter ever. The MICE market in India is expected to grow at an 18% CAGR to $10.5 billion by 2030, and Yatra aims to be a top-three player in this segment within the current fiscal year.

The company reported strong financial results for Q4 FY25 and the full year. Q4 revenue grew 103% YoY to ₹219.0 crores, with gross margin increasing 28% YoY to ₹109.4 crores. Full-year FY25 revenue reached ₹791.4 crores, an 87% YoY increase, while Adjusted EBITDA for FY25 rose 25% to ₹66.7 crores. For FY26, Yatra has provided guidance of 20% growth in revenue less service costs (gross margin) and 30% growth in EBITDA, driven by continued expansion in corporate travel, MICE, and hotel packages, along with full synergies from the Globe acquisition.

To address the working capital needs associated with its growing B2B business, Yatra is actively migrating corporate bookings to credit card platforms, with over 30% already utilizing such systems. The company has access to ₹160 crores of unutilized banking facility and anticipates freeing up ₹250-300 crores of working capital over the next 2-3 years through these initiatives. As of March 31, 2025, Yatra maintained a strong liquidity position with cash and equivalents totaling ₹190.6 crores, while gross debt was reduced from ₹63.8 crores to ₹54.6 crores.

Yatra is leveraging technology to enhance customer experience and drive efficiency, including the introduction of an AI-enabled Low Fare Finder for corporate clients and the development of intelligent bots for customer service. The RECAP expense management platform is gaining traction and has begun monetization through a freemium model, with a projected bottom-line contribution of ₹10-15 crores (USD1.5-2 million) over the next three years. The company also expects its expense management and fintech solutions to contribute one-third of its income in the next 3-5 years, with a focus on international expansion.

Customer acquisition costs have significantly improved, reducing from 4.7% in FY24 to a new normal run rate of 2.6-3% in Q4 FY25, attributed to optimization and cross-selling efforts. While B2C gross bookings saw a 6% decline in Q4, stabilization is observed, with gradual growth expected from Q2 FY26. The company aims to achieve a 50-50 mix between air and hotels/packages within the next three years, shifting from the current 60% air and 40% hotels/packages, driven by anticipated air volume growth of ~15% and hotels/packages growth of ~25%.

The company experienced a temporary disruption in travel activity in April due to geopolitical developments in Northern India, which affected both leisure and corporate bookings, though the situation has since stabilized. Despite competitive headwinds in the B2C segment, Yatra remains confident in its strong corporate travel solution and expects to continue rapid growth. Management also noted that changes in take rates are primarily due to the business mix shift towards corporate clients, which, while not incurring convenience fees, are more profitable at an operating level.