Yatra’s Earnings Call: Strong Growth Amid Challenges

Yatra ((YTRA)) has held its Q2 earnings call. Read on for the main highlights of the call.

Yatra’s recent earnings call painted a picture of robust financial health and promising growth prospects. The company reported significant revenue and profit growth, driven by successful expansion in corporate travel and technological advancements. Despite facing challenges with restructuring and a decline in ticketing volumes, the overall sentiment was optimistic, with strong market opportunities on the horizon.

Strong Revenue Growth

Yatra reported a remarkable 48.5% year-over-year increase in revenue for the second quarter of fiscal year 2026, reaching INR 3,508 million (approximately $39.5 million). This substantial growth underscores the company’s ability to capitalize on market opportunities and enhance its financial standing.

Surge in Adjusted EBITDA

The company’s adjusted EBITDA saw an impressive surge of 218% year-over-year, amounting to INR 212 million (USD 2.4 million). This leap in EBITDA reflects Yatra’s operational efficiency and strategic initiatives aimed at boosting profitability.

Profit Turnaround

Yatra achieved a significant profit turnaround, with profits rising to INR 98.8 million (USD 1.1 million) from a previous loss of INR 0.3 million (USD 0.1 million) in the prior year. This marks a pivotal shift in the company’s financial trajectory, signaling a positive outlook for future profitability.

Corporate Travel Expansion

In a strategic move, Yatra onboarded 34 new corporate clients, contributing an annual billing potential of INR 2.6 billion (USD 29.5 million). This expansion highlights the company’s focus on strengthening its corporate travel segment, which is expected to drive substantial revenue growth.

Technological Advancements

Yatra is making strides in technological innovation, enhancing its digital platforms and introducing Diya AI, a generative AI-powered travel assistant. These advancements aim to streamline flight and hotel bookings, improving user experience and operational efficiency.

Positive Market Outlook

The corporate travel market is poised for growth, with significant opportunities in digital adoption and corporate segment expansion. Yatra is well-positioned to leverage these trends, enhancing its market presence and capturing new growth avenues.

Decline in Ticketing Passenger Volumes

Despite the overall positive performance, Yatra experienced a 3.5% decline in ticketing passenger volumes year-over-year, totaling 1,329,000. This decline presents a challenge that the company aims to address through strategic initiatives and market expansion.

Corporate Restructuring Challenges

Yatra faces uncertainty in its corporate restructuring timeline due to complexities involving multiple jurisdictions and regulators. This presents a challenge that the company is navigating carefully to optimize its corporate structure for better shareholder value.

Forward-Looking Guidance

Yatra’s forward-looking guidance remains optimistic, with the company focused on capturing growth opportunities in the expanding digital and corporate travel markets. The corporate travel market in India is projected to reach USD 20 billion by FY ’27, with significant growth potential in online penetration. Yatra is enhancing its digital platform with AI capabilities and optimizing its hotel booking interface, aiming to boost travel consumption and improve user experience.

In conclusion, Yatra’s earnings call highlighted a strong financial performance and a positive outlook for future growth. The company’s strategic initiatives in corporate travel expansion and technological advancements are driving significant revenue and profit growth. While challenges such as declining ticketing volumes and corporate restructuring remain, Yatra is well-positioned to capitalize on market opportunities and enhance shareholder value.