Yatra Online, Inc. Q4 FY2025 earnings call

• FY’25 performance showed resilience, with 90% YoY revenue growth, 28% YoY adjusted EBITDA growth, and 106.5% YoY adjusted profit growth.
• India's travel industry in transformative stage, with corporate travel expected to grow from $42 billion to $80 billion by 2033.
• Corporate travel business added 148 new clients in FY’25, expanded sales team targeting high growth sectors.
• MICE business grew significantly, with Globe acquisition enhancing capabilities and market position, handling over 600 trips and serving over 80,000 travelers in FY’25 nine months.
• Expense management platform RECAP gaining traction with customers.
• Integration of NDC technology to provide more flight options, better pricing, and enhanced booking experience for corporate clients.
• B2C Air business stabilized in Q4 with optimization of discounts, etc., expected to gradually grow from FY’26 Q2.
• AI applied in customer experience on corporate and consumer sides, such as AI-enabled low fare finding tool.
• Geopolitical developments in April led to temporary travel demand dip, but recovery seen with situation stabilizing.

For FY’25, annual revenues were INR7.9 billion (approximately USD93.1 million), up 90% year-over-year. Adjusted EBITDA was up 28% and adjusted profit was up 106.5% year-over-year to INR24 million. For the March quarter, revenues were INR2.2 billion (approximately USD25.7 million), up 114% year-over-year. Revenue less service cost for the quarter was INR1.1 billion (approximately $12.8 million), up 34% year-over-year. Adjusted EBITDA was INR90 million (approximately $1.1 million), up 23% year-over-year. Corporate travel business added 148 new clients in FY’25 contributing to INR7.5 billion in expected annual volumes. MICE business saw significant growth in Q4, with combined platform handling over 600 trips and serving over 80,000 travelers in the past nine months of FY’25. Expense management platform RECAP gaining traction. B2C Air business saw 6% decline in gross bookings in Q4 but stabilized, expected to gradually grow from FY’26 Q2. Integration of NDC technology to enhance booking experience for corporate clients.

• FY’26 preliminary guidance: 20% growth in revenue less service cost and 30% adjusted EBITDA growth driven by expansion in corporate travel, continued scaling of MICE and hotels, and full cost synergies from Globe Travel.
• MICE business has seasonality with FY Q2 being the strongest quarter, followed by Q3, Q4, and Q1.

• Geopolitical developments in India, such as the incident in Pahalgam and tensions with Pakistan, caused temporary disruption in travel activity leading to short-term dip in leisure and corporate travel.
• Complexity in the process of share convertibility across multiple jurisdictions, although a structure has been defined.