Detailed Narrative
FY26 Landmark Performance and Profitability
Fiscal year 2026 marked Yatra's most profitable year in its 20-year history, despite significant headwinds. The company reported a 27% year-over-year growth in revenue from operations, reaching INR 10,065 million. Gross margin (revenue less service cost) increased by 24.5% to INR 4,824 million, and Adjusted EBITDA grew 37.5% year-over-year to INR 917 million, reflecting strong operating leverage. Cash flow from operations also saw a substantial increase, almost tenfold year-over-year, to INR 761 million.
Q4 FY26 Performance Amidst Geopolitical Headwinds
Q4 FY26 saw a resilient performance despite geopolitical disruptions, particularly impacting MICE and international corporate travel. Revenue from operations for the quarter decreased 14% year-over-year to INR 1,890 million, and Adjusted EBITDA declined 34% to INR 166 million. Gross bookings grew 8.3% year-over-year, with air passenger volumes up 9.6% and hotel room nights increasing 36%. Total transactions rose 16.6% year-over-year, indicating continued platform activity.
Corporate Business Expansion and Diversification
Yatra continued to strengthen its corporate franchise, adding 163 new corporate customers in FY26 with an annual billable value of approximately INR 9,568 million, an increase from 148 customers and INR 7,475 million in FY25. The company has diversified its B2E business, with IT services now accounting for only 10-11% (or 7% including MICE and Globe acquisition) of the total, down from 20%. This diversification reduces reliance on any single sector and enhances resilience.
Air and Hotel Segment Growth and Margin Improvement
Both air and hotel segments demonstrated strong performance and margin expansion in FY26. Air ticketing passenger volume increased 2% year-over-year to 5,395,000, with gross bookings growing 12% to INR 61,874 million. Air gross margin improved from 3.42% to 3.96%. The hotel and packages segment saw room nights grow 16% to 1,936,000 and gross bookings increase 27% to INR 16,578 million, with gross booking margins expanding from 8.60% to 9.25%.
Strategic Focus on AI, API-led Distribution, and Working Capital
Yatra is leveraging AI to automate internal business processes and enhance customer servicing across both consumer and corporate channels. The company's API-led distribution model is gaining strong traction, with travel agents, affiliates, and B2B partners increasingly sourcing hotel inventory through the Yatra platform, which is a highly margin-accretive business. Efforts are also underway to optimize working capital cycles, with a corporate credit card solution expected to be ready within a quarter or two, aiming to improve ROCE to high teens in the next three to four years.
Outlook and Medium-Term Targets
Despite macro challenges🌐 expected to persist in the first half of FY27, Yatra remains optimistic for the full year, anticipating a materially stronger second half driven by pent-up consumer demand and MICE recovery. The company reiterated its medium-term growth CAGR targets of 20% for revenue-less service cost and 30% for Adjusted EBITDA. Q1 FY27 MICE run rates are already trending 20% above Q4 levels, indicating a strong recovery path.