💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew 48% YoY to INR 3,509 million in Q2 FY26. For FY 2024-25, the revenue mix shifted significantly: Hotel & Packages (including MICE) grew to 69.97% of total revenue (up from 46.74% in FY24), while Air Ticketing decreased to 25.72% (down from 48.82% in FY24). Others contributed 4.31%.

Geographic Revenue Split

Not specifically disclosed by region, but the company reported foreign exchange earnings of INR 64.90 Cr and a foreign exchange outgo of INR 50.78 Cr for FY 2024-25, indicating significant international transaction volume.

Profitability Margins

Net Profit Margin improved to 4.6% in FY25 from -1.1% in FY24, a 532% increase driven by the acquisition of Globe All India Services. Operating Profit Margin rose 56% YoY to 2.8% in FY25. PAT for Q2 FY26 was INR 143 million, representing a PAT margin of 11% on revenue less service cost.

EBITDA Margin

Adjusted EBITDA margin for Q2 FY26 was 20%, up from 15% in Q2 FY25. Adjusted EBITDA grew 88% YoY to INR 255 million. The company targets an EBITDA to gross margin ratio of 30% through operating leverage.

Capital Expenditure

While specific total CAPEX was not totaled, the company utilized IPO funds, contributing to a 17% decrease in the current ratio (from 2.3 to 1.9). Significant investment was noted in technology migration to the Google Cloud platform, costing approximately INR 5 crore.

Credit Rating & Borrowing

The Debt-Equity ratio remained stable and low at 0.1 times. Interest Coverage Ratio improved by 990% to 5.03 times in FY25 due to increased EBIT and lower interest costs. Finance costs for Q2 FY26 were INR 22 million, down 8% YoY.

⚙️ Operational Drivers

Raw Materials

As a service-based OTA, primary costs are 'Cost of Services' (INR 403.90 Cr in FY25, up from INR 86.40 Cr) and 'People Cost' (which increased by INR 1.5 Cr sequentially in Q2 FY26).

Import Sources

Not applicable for travel services; however, technology infrastructure is sourced via global providers like Google Cloud.

Key Suppliers

Key suppliers include airlines, hotel chains, and technology partners like Google Cloud Platform for infrastructure migration.

Capacity Expansion

The company expanded its corporate travel capacity through the acquisition of Globe All India Services Limited (effective September 11, 2024). It is also undergoing a corporate restructuring to amalgamate subsidiaries like TSI Yatra Private Limited and Globe All India Services into the parent company.

Raw Material Costs

Cost of services as a percentage of total income was approximately 49% in FY25 (INR 403.90 Cr out of INR 823.27 Cr). Procurement strategies focus on direct API integrations with hotels to ensure best-rate guarantees.

Manufacturing Efficiency

Efficiency is measured by 'Revenue Less Service Cost' (RLSC), which reached INR 3,875 million in FY25. Operating leverage is being achieved as revenue grows faster than people costs (INR 10 Cr revenue growth vs INR 1.5 Cr people cost increase).

Logistics & Distribution

Distribution is handled via digital channels (B2C) and SaaS platforms for B2B corporate clients.

📈 Strategic Growth

Expected Growth Rate

35-40%

Growth Strategy

Growth will be achieved by raising Adjusted EBITDA guidance to 35-40% (up from 30%) through improved operating leverage, scaling the high-margin MICE and hotel businesses, and integrating the 'healthily profitable' Globe All India Services acquisition.

Products & Services

Air ticketing, hotel room bookings, holiday packages, MICE (Meetings, Incentives, Conferences, and Exhibitions) services, and corporate travel SaaS solutions.

Brand Portfolio

Yatra, Yatra Online, Globe All India Services.

New Products/Services

Expansion of the MICE business and enhanced corporate travel SaaS features are expected to be primary contributors to the 35-40% EBITDA growth target.

Market Expansion

Focusing on the Indian corporate travel landscape and rising digital adoption in leisure travel; strengthening the corporate brand presence on platforms like LinkedIn.

Market Share & Ranking

Yatra is positioned as one of India's leading corporate travel service providers with a 19-year brand history.

Strategic Alliances

Partnerships with major airlines and hotel aggregators; acquisition of Globe All India Services Limited to dominate the B2B travel segment.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward high-margin non-air segments (Hotels/MICE) and increased digital adoption. Yatra is positioning itself by pivoting its revenue mix toward these segments (now 69.97% of revenue).

Competitive Landscape

Faces intense competition from other OTAs and traditional travel agents; competes by offering a comprehensive B2B and B2C value chain.

Competitive Moat

Moat is built on a 19-year brand legacy, a sticky corporate client base, and a scalable SaaS platform. This is sustainable due to high switching costs for corporate clients integrated into their travel management systems.

Macro Economic Sensitivity

Highly sensitive to consumer discretionary spending and corporate travel budgets, which are influenced by GDP growth and inflation.

Consumer Behavior

Increasing preference for online bookings and integrated travel-and-stay packages rather than standalone air tickets.

Geopolitical Risks

Travel demand is susceptible to international geopolitical tensions and changes in visa regulations.

⚖️ Regulatory & Governance

Industry Regulations

Subject to Ministry of Civil Aviation guidelines, GST regulations for travel intermediaries, and data privacy laws for consumer information.

Environmental Compliance

The company maintains a CSR policy focused on serving society, though specific ESG compliance costs in INR were not disclosed.

Taxation Policy Impact

Effective tax rate impacted by deferred tax; Q2 FY26 tax expense was INR 26 million.

Legal Contingencies

The company paid fines to NSE and BSE for non-compliance with Regulation 17(1) regarding Board composition for the quarter ended September 30, 2025. Internal auditors identified weaknesses in financial controls over vendor master updates and package payment documentation in FY25.

⚠️ Risk Analysis

Key Uncertainties

Integration risks associated with the amalgamation of subsidiaries and potential misstatements due to identified internal financial control weaknesses (e.g., vendor reconciliation issues).

Geographic Concentration Risk

Primarily concentrated in the Indian market, with significant operations in major hubs like Mumbai and Gurugram.

Third Party Dependencies

Dependent on Google Cloud for infrastructure and various airlines/hotels for inventory; migration costs recently increased 'other expenses' by INR 5 crore.

Technology Obsolescence Risk

Risk of falling behind in UI/UX or mobile-first features; mitigated by continuous investment in the Google Cloud platform and technology innovation.

Credit & Counterparty Risk

Trade receivables increased to INR 5,453 million in FY25, leading to a 23% decrease in the Debtors Turnover Ratio to 13.0 times, indicating a slight slowdown in collections.