Yatra Online Limited Reports Strong Q2 Earnings with Robust Growth

Yatra Online Limited ((IN:YATRA)) has held its Q2 earnings call. Read on for the main highlights of the call.

The recent earnings call for Yatra Online Limited painted a largely positive picture, underscored by robust financial performance and promising growth prospects. Despite some challenges, such as declining ticketing volumes and complexities in corporate restructuring, the overall sentiment was optimistic, buoyed by impressive revenue growth and profitability improvements.

Strong Revenue Growth

Yatra Online Limited reported a remarkable 48.5% year-over-year increase in revenue, reaching INR 3,508 million (approximately $39.5 million) for the second quarter of fiscal year 2026. This substantial growth highlights the company’s ability to expand its market presence and capitalize on emerging opportunities in the travel industry.

Significant Increase in Profitability

The company achieved a significant boost in profitability, with adjusted EBITDA surging 218% year-over-year to INR 212 million ($2.4 million). Additionally, Yatra turned a profit of INR 98.8 million ($1.1 million) for the period, a notable improvement from a loss of INR 0.3 million ($0.1 million) in the previous year.

Corporate Client Expansion

Yatra successfully onboarded 34 new corporate clients, contributing an annual billing potential of INR 2.6 billion ($29.5 million). This expansion in the corporate travel segment underscores the company’s strategic focus on diversifying its client base and enhancing revenue streams.

Technological Advancements

Yatra is making strides in technological innovation with enhancements to its digital platforms and the introduction of Diya AI, a generative AI-powered travel assistant. These advancements are designed to improve user experience and streamline travel planning for customers.

Growth in Hotel and Packages Segment

The Hotels and Packages segment experienced significant growth, with hotel room nights increasing by 9.4% year-over-year to 504,000. Gross bookings in this segment also saw a 40.4% rise, reaching INR 5,141.6 million ($57.9 million), reflecting strong demand for travel packages.

Decline in Ticketing Passenger Volumes

Despite the overall positive performance, Yatra faced a 3.5% decline in ticketing passenger volumes, totaling 1,329,000. This dip indicates challenges in the ticketing sector, which the company may need to address to maintain its growth trajectory.

Complex Corporate Restructuring

Yatra is navigating complex corporate restructuring efforts across multiple jurisdictions. While these efforts aim to streamline operations and unlock shareholder value, the timeline for completion remains uncertain, posing a potential challenge for the company.

Forward-Looking Guidance

Looking ahead, Yatra surpassed its financial guidance for the fiscal second quarter of 2026, with significant growth in revenue and profitability metrics. The company remains committed to enhancing its digital platforms and pursuing restructuring efforts to streamline its corporate structure. Despite a decline in ticketing volumes, Yatra’s focus on expanding its corporate client base and growing its Hotels and Packages segment positions it well for future success.

In conclusion, Yatra Online Limited’s earnings call highlighted a strong financial performance with promising growth opportunities. While challenges exist, particularly in ticketing volumes and corporate restructuring, the company’s strategic initiatives and technological advancements offer a positive outlook for stakeholders.