Yatra Online Limited Reports Robust Growth Amid Challenges

Yatra Online Limited ((IN:YATRA)) has held its Q4 earnings call. Read on for the main highlights of the call.

The latest earnings call from Yatra Online Limited painted a picture of robust growth and strategic progress, despite some challenges. The company reported significant increases in revenue, profitability, and client acquisition, particularly in the corporate and MICE sectors. While there were concerns regarding the B2C Air business and geopolitical tensions, the positive aspects of the call far outweighed the negatives, indicating a strong business performance and strategic advancement.

Record Revenue Growth

Yatra Online Limited achieved record annual revenues of INR7.9 billion (approximately USD93.1 million), marking a 90% year-over-year increase. This impressive growth was primarily driven by the corporate travel and MICE (Meetings, Incentives, Conferences, and Exhibitions) businesses, highlighting the company’s successful focus on these sectors.

Adjusted Profit Surge

The company’s adjusted profit surged by 106.5% year-over-year to INR24 million. This remarkable increase underscores Yatra’s disciplined execution and effective cost management strategies, contributing to its overall financial strength.

MICE Business Expansion

Yatra’s MICE business demonstrated significant growth and margin expansion, handling over 600 trips and serving more than 80,000 travelers in the first nine months of FY’25. This expansion reflects the company’s strategic emphasis on this high-potential sector.

New Corporate Client Acquisition

In FY 2025, Yatra successfully acquired 148 new corporate clients, which are expected to contribute INR7.5 billion in annual volumes. This achievement highlights the company’s ability to attract and retain significant business clients, bolstering its revenue streams.

Technology Integration

Yatra has integrated new distribution capabilities with airlines, enhancing the booking experience and cost efficiency for corporate travelers. This technological advancement is a testament to the company’s commitment to improving service delivery and operational efficiency.

Recognition from Airlines

Yatra received accolades from major airlines such as Singapore Airlines, Air Canada, and Etihad Airways for its strong booking volume and efficient operations. This recognition underscores the company’s reputation and effectiveness in the travel industry.

B2C Air Business Challenges

The B2C Air segment faced challenges, with gross bookings falling by 6% in Q4 due to competitive headwinds. However, some stabilization was noted, indicating potential for recovery in this segment.

Geopolitical Impact

Geopolitical tensions between India and Pakistan caused temporary disruptions in travel demand, with up to 30% of business volumes potentially impacted. This situation presents a challenge that the company is monitoring closely.

Forward-Looking Guidance

Looking ahead, Yatra projects a 20% growth in revenue less service cost and a 30% increase in adjusted EBITDA for FY ’26. This optimistic forecast is driven by expansion in corporate travel, scaling of MICE and hotels, and cost synergies from the Globe Travel acquisition. The company remains focused on leveraging these growth opportunities to enhance its market position.

In conclusion, Yatra Online Limited’s earnings call reflected a strong performance with significant growth in key areas, despite some challenges. The company’s strategic focus on corporate and MICE sectors, coupled with technological advancements and new client acquisitions, positions it well for continued success. Investors and stakeholders can remain optimistic about Yatra’s future prospects, given its robust financial health and strategic initiatives.