Yatra Online Limited

YATRA

Sector: Travel & LeisureSub-sector: Online Travel Agency
Qtr Score Rank 32 / 57 (Top 46 percentile)Growth Score Rank 31 / 51 (Top 41 percentile)

Quarterly Score

Trend: Improving
Strong improvement - Recent 3Q avg 8.53 vs 3Q avg 8.17 (+0.37)

Showing the latest 12 quarterly points (newest to oldest).

Score context (latest 12 quarters)

Q2FY25
7.5

No additional context available.

Q3FY25
8.5

No additional context available.

Q4FY25
8.5

No additional context available.

Q1FY26
8.5

No additional context available.

Q2 FY2026
8.8

FY26 Adjusted EBITDA growth guidance raised from 30% to 35-40% YoY. Revenue less service cost (gross margin) growth guidance also increased from 20% to 22-23% YoY. The company onboarded 34 new corporate clients in Q2 with an annual billing potential of INR 2.6 billion, providing strong future visibility.

Quarter summary

  • The company delivered a 'standout' Q2 performance, significantly exceeding its financial and operating guidance, driven by sustained demand and consistent execution.
  • Strategic focus on the underpenetrated corporate travel market, including the MICE segment, continued to yield strong client acquisitions and high-margin growth.

Rationale

  • Financial performance significantly exceeded guidance, with Q2 FY26 revenue from operations growing 48% YoY to INR 3,509 million, Adjusted EBITDA surging 88% YoY to INR 255 million, and Profit After Tax increasing 96% YoY to INR 143 million.
  • Management raised FY26 Adjusted EBITDA growth guidance from 30% to 35-40% YoY and revenue less service cost guidance from 20% to 22-23%, reflecting strong confidence and sustained momentum.
Q3 FY2026Latest
8.3

The company comfortably exceeded its stated guidance for both Revenue Less Service Cost (RLSC) and EBITDA for the 9 months ended FY26. While no specific Q4 or FY27 numerical guidance for overall financials was provided, the new expense management solution is projected to add INR 50-70 million in revenue in FY27, with a strategic focus on scaling customer adoption. MICE bookings deferred from Q3 to Q4 FY26 and Q1 FY27 provide some near-term revenue visibility.

Quarter summary

  • The company successfully shifted its B2C business to a profitable growth trajectory, driven by tech innovations and strategic partnerships for demand generation.
  • Strong momentum in the corporate travel segment was evident through significant new client additions and very encouraging early traction for the newly launched expense management solution.

Rationale

  • Adjusted EBITDA surged 41% YoY in Q3 FY26 to INR 247 million and 81% YoY for 9M FY26 to INR 751 million, demonstrating strong operating leverage and profitability growth, and was comfortably above stated guidance.
  • Gross Margin (Revenue less service cost) grew 23% YoY in Q3 FY26 to INR 1,277 million, with the adjusted EBITDA to gross margin ratio at a healthy 19.34% for the quarter and 20.35% for 9M.

Future Growth Prospects

Growth score: 8.2Visibility: 8%Updated: 19 Feb 2026, 12:17 am

Catalysts (next 12-24 months)

Total triggers: 5Visible per view: 1 / 2 / 3Slides: 5

Swipe or use arrows to browse all triggers.

productFY27E (initial meaningful revenue)Impact: revenueQty: 5 ₹ Cr

Expense Management Solution rollout

• Q3 FY26 · concall · in FY27, we will add between INR 5 crores to INR 7 crores of revenue from here. The reason the revenue number at this point is not very large because the focus...is more on getting the initial spread of customers going.

Show evidence (2)

• Q3 FY26 · concall · This solution has not only become a door opener for getting new accounts but also gives us a huge upsell potential in our existing accounts.

orderbookNext few quartersImpact: revenueQty: 2.2 ₹ Bn

Corporate client base expansion

• Q3 FY26 · concall · We onboarded 40 new corporate clients in the quarter, collectively adding an annual billing potential of Rs 2.2 billion.

Show evidence (2)

• Q1 FY26 · ppt · Yatra continued to expand its corporate client base and closed 34 new corporate accounts during the quarter with potential annual billing of INR 2,010 Million.

mixQ4 FY26 & Q1 FY27Impact: revenueQty: 300 ₹ Mn

MICE business recovery from Q3 disruptions

• Q3 FY26 · concall · Over INR 300 Mn of MICE revenue slipped to subsequent quarters due to deferred group bookings amid travel uncertainty.

Show evidence (2)

• Q3 FY26 · concall · 70% to 75% of businesses for sure coming into Q4. Only very complicated travels... getting shifted into the 1st Quarter.

regulatoryUnspecified, ongoingImpact: fcf

US holding structure simplification

• Q3 FY26 · concall · It continues to remain a key priority for our U.S. shareholder base for us to be able to collapse the structure and simplify the holding structure.

Show evidence (2)

• Q3 FY26 · concall · will be a significant saving from a management bandwidth and time point of view.

productOngoingImpact: revenue

B2C tech innovation & affiliate partnerships

• Q3 FY26 · concall · tech innovation work that we have been working towards which is helping us drive demand with positive unit economics.

Show evidence (2)

• Q3 FY26 · concall · On the affiliate side, we have had our affiliate partners, especially on the hotel front, driving strong growth for us.

Variant perception

Non-consensus view
Consensus

Consensus may underappreciate Yatra's conservative guidance and the strategic shift to profitable B2C growth and corporate AI-driven solutions, possibly overemphasizing past B2C volatility.

Upside
  • Management intentionally set conservative guidance, often outperforming it, implying higher actual growth potential.
Show more (1)
  • AI tools, seen by management as an enabler for corporate personalization and B2C partnerships, could drive efficiency & demand.
Downside
  • The market might underestimate the continued impact of regulatory changes & supply chain disruptions on overall volumes.
Show more (1)
  • The early stage of corporate card platform adoption and expense management revenue could face slower-than-expected ramp-up.
base case75% conf
Growth: 22.5

Quick takeaway

RLSC growth 22-23% YoY, Adj. EBITDA growth 35-40% YoY for FY26E.

Risk watch: Ongoing industry disruptions from flight duty norms and capacity rationalization.

Show details (2 drivers, 2 risks)

Drivers

  • RLSC growth 22-23% YoY, Adj. EBITDA growth 35-40% YoY for FY26E.
  • Corporate gross bookings growth targeted at 20% post FY26, MICE recovery expected in Q4 FY26.

Risks

  • Ongoing industry disruptions from flight duty norms and capacity rationalization.
  • Slower online adoption in B2C and continued intense competition.
upside case85% conf
Growth: 25

Quick takeaway

Accelerated corporate client acquisition beyond 40 new clients/quarter.

Risk watch: Slower-than-expected resolution of US holding structure simplification.

Show details (2 drivers, 2 risks)

Drivers

  • Accelerated corporate client acquisition beyond 40 new clients/quarter.
  • Significant revenue contribution from Expense Management Solution (INR 5-7 Cr in FY27).

Risks

  • Slower-than-expected resolution of US holding structure simplification.
  • Intensified competitive pricing in B2C leading to margin pressure.
downside case40% conf
Growth: 10

Quick takeaway

Recurrence of Q3 FY26-like operational disruptions in air travel market.

Risk watch: Inability to monetize AI initiatives effectively in competitive B2C market.

Show details (2 drivers, 2 risks)

Drivers

  • Recurrence of Q3 FY26-like operational disruptions in air travel market.
  • Slower B2B online penetration and client implementation cycles.

Risks

  • Inability to monetize AI initiatives effectively in competitive B2C market.
  • Protracted working capital blockages from unforeseen event cancellations.

Story of the Stock - Top Strategies

Latest Fiscal Years: FY26, FY25, FY24Top strategies (ranks 1-3) per year
Curated from latest transcripts
Fiscal YearFY26
#1Impact: HIGH

Focus on Corporate Business Growth

Corporate business growing at ~20%+ YoY, driving higher operating leverage and profitability.

Show more

Yatra is strategically shifting its focus towards the corporate travel segment, which offers higher operating leverage and more stable profitability compared to the B2C segment.

Impact: 20 %

Evidence

Corporate business overall will be growing closer to 20-plus percent in terms of gross bookings.
The corporate business has higher operating margins as compared to the B2C business.
20% growth in gross bookings will result in 35%, 40% growth in terms of EBITDA.
#2Impact: HIGH

AI-Powered Travel Assistant (DIYA AI)

AI assistant aims to enhance customer experience and reduce servicing costs, potentially optimizing ~75-200 heads by end of FY27.

Potential optimization of ~75 heads by end of this fiscal year and ~200 by end of next year.
Show more

Yatra is investing in AI capabilities, including its AI travel assistant 'DIYA AI', to provide personalized travel experiences and automate customer service, leading to cost efficiencies.

Impact: 75 heads

Evidence

Our AI-powered travel assistant delivers a seamless post-booking experience.
This is something that I mentioned earlier as well that we are looking at least 75-odd heads being optimized by the end of this fiscal year.
And I think this has the potential to optimize about 200 heads from a headcount point of view by end of next year.
#3Impact: HIGH

Technology Integration and Platform Enhancement

Deep tech integration with customer ERPs leads to high retention rates and customer stickiness, with 73% of top 100 customers having tenure > 5 years.

Show more

Yatra's platform is tightly integrated with customer systems (ERP, HRMS), creating high switching costs and customer stickiness, which is a key differentiator.

Impact: 73 %

Evidence

Our product integrates quite tightly with the customers, and that introduces switching cost on the side of the customer.
If I look at our top 100 customers, right, 73 of our top 100 customers have been with us for more than 5 years, right.
That is where the secret sauce lies.
Fiscal YearFY25
#1Impact: HIGH

Focus on Corporate Travel and MICE

Corporate travel and MICE segments drive higher margins and contribute significantly to revenue growth, with corporate travel expected to grow at 25% annually and MICE at 18% CAGR.

Ongoing, with corporate business expected to continue moving towards the corporate sector.
Show more

Yatra is strategically rebalancing its business mix towards higher-margin corporate travel and MICE segments, which have better operating leverage than B2C.

Impact: 25 %

Evidence

"what we've done is replace effectively lower volume B2C bookings with high-value corporate bookings. The margins and the absolute realization on corporate travel are significantly higher than on B2C part of it."
"Our corporate travel business is now about 35% of our overall gross bookings. And on a next fiscal year basis, we expect our corporate and B2B business to be between 65% to 70% of our overall gross bookings."
"Our MICE business has a certain amount of seasonality. The second quarter and third quarter are typically higher quarters for the MICE business followed by Q4 and Q1."
"In India, MICE market is estimated at 3.3 billion in 2023 and expected to grow to 10.5 billion by 2030, representing an 18% CAGR."
#2Impact: HIGH

Leveraging Technology and AI for Customer Experience

AI-powered tools like Low Fare Finder and intelligent bots enhance customer experience, drive cost savings, and improve operational efficiency.

AI-enabled Low Fare Finder introduced last quarter; intelligent bots being built for customer service.
Show more

Yatra is embracing AI to enhance customer experience across both corporate and consumer segments, aiming to redefine proactive travel services and reduce servicing costs.

Evidence

"On the AI front as well, we continue to embrace AI to enhance our customer experience both on the corporate and on the consumer side."
"AI-enabled Low Fare Finder, this is like a smart tool, which post-booking optimizes the search process and continues to look for fares, which might have dropped after the customer has booked."
"We've also been building intelligent bots to automate customer service, e-mail queries and calls. These bots will continue to improve as the LLMs evolve at a rapid pace, and we will be able to significantly drive down the cost of servicing in the near term."
#3Impact: HIGH

Strategic Acquisitions (Globe Travels)

Acquisition of Globe Travels strengthens corporate travel leadership, adds ~360 corporate clients, and is immediately accretive to financials.

Acquisition completed on September 11, 2024.
Show more

The acquisition of Globe Travels for INR 1280 million enhances Yatra's market position in corporate travel and MICE, bringing domain expertise and expanding customer reach.

Impact: 1280 million

Evidence

"On September 11, Yatra completed the acquisition of Globe All India Services (Globe Travels) for INR 1280 million in cash."
"This strategic acquisition brought approximately 360 new corporate clients, further strengthening Yatra's leadership in India's corporate travel sector."
"With Globe Travels last year reporting adjusted revenue of approximately INR470 million and adjusted EBITDA margins exceeding 30%, this acquisition is immediately accreted to our financials."
"Globe’s expertise and strong service record complement Yatra’s offerings, enabling us to provide a more comprehensive and tailored travel experience across India."
Fiscal YearFY24
#1Impact: HIGH

Focus on Corporate Travel Growth

Significant growth in corporate travel segment, targeting ~10 Mn companies in India with registered GSTIN.

Ongoing, with expected growth in the coming quarters.
Show more

Yatra is leveraging its strong position and technology in the corporate travel sector to drive growth. This includes expanding its client base and focusing on cross-selling opportunities.

Impact: 10 Mn

Evidence

India's largest corporate travel service provider.
Customer base of ~800+ large corporates with addressable employee base of 7+ million employees.
Signed 26 new corporate customers in the December quarter with total annual billing potential of INR 2,237 Million.
B2B market expected to grow at 2x the overall travel market and approximately double over the next 5 years.
#2Impact: HIGH

Leveraging Technology for Seamless Customer Experience

Comprehensive and scalable tech platform providing seamless customer experience, leading to ~98% corporate customer retention rate.

Ongoing investment and development.
Show more

Yatra has invested in a secure, advanced, and scalable technology infrastructure, including a multi-platform cloud system and data analytics capabilities.

Impact: 98 %

Evidence

User Friendly Self Booking Platform
~98% corporate customer retention rate
Integrations with major HRMIS solutions and customer ERP systems to provide end to end solution
Data analytics capabilities to offer personalized experience to customers
#3Impact: HIGH

Enhancing Customer Loyalty and B2C Growth

Scaled B2C business with ~14 Million cumulative customers and ~75% repeat customer rate.

Ongoing, with continued focus on customer acquisition and retention.
Show more

Yatra is focusing on strengthening customer loyalty through its B2C offerings, including the Yatra Prime membership program and leveraging its strong brand recall.

Impact: 75 %

Evidence

Yatra one of the most well recognized travel brands in India.
~14 Million cumulative customers served since inception.
~75% Repeat customer rate.
Launched Yatra Prime offering with encouraging initial signups and positive response.

Business Segments

Community

Share your view anonymously. Comments are public and sorted newest first.

Anonymous post · 1500 characters left

Loading comments...