Yatra Online, Inc. Q2 FY2026 earnings call

• Revenue grew 48.5% year-over-year in the second quarter of fiscal year '26, with adjusted EBITDA surging 218% year-over-year and profit increasing significantly.
• Onboarded 34 new corporate clients in Q2, adding an annual billing potential of INR 2.6 billion.
• Enhanced digital platforms with Diya AI for seamless travel experience, optimized hotel user interface with transparent pricing and best price guarantees.
• Celebrated 19th year with a big outing fest sales campaign, and strengthened corporate travel presence on LinkedIn.
• Ongoing restructuring efforts to adjust corporate structure, though affected by multiple jurisdictions with uncertain timeline.

For the second quarter of fiscal year 2026, Yatra's revenue grew 48.5% year-over-year to INR 3,508 million (approximately $39.5 million). Adjusted EBITDA surged 218% year-over-year to INR 212 million (USD 2.4 million). In the ticketing segment, passenger volumes declined 3.5% year-on-year to 1,329,000, but gross air bookings grew 11.7% year-on-year to INR 14,811.4 million, and adjusted margins rose 14.7% year-on-year to INR 1,016 million. In the Hotels and Packages segment, hotel room nights grew by 9.4% year-on-year to 504,000, gross bookings increased 40.4% year-on-year to INR 5,141.6 million, and adjusted margins expanded to 28.6% year-on-year to INR 514.5 million. Total gross bookings across all segments increased 16.2% year-on-year to INR 20,504.8 million.

• Expect corporate business to grow between 13% to 20%.
• Expect consumer business to grow in the mid- to high single digits, and this growth to be all profitable growth.

• Restructuring involves entities in multiple jurisdictions (Cayman Island, Cyprus, Singapore), with multiple regulators involved, making the timeline uncertain due to complexity.

Q: Could you provide more color around corporate travel trends in the India market and how much of your momentum there is driven by industry tailwinds versus your market share gains?

A: Good morning, Scott. Today, the corporate travel market in India is growing approximately at about 8% to 9%. We are growing almost at like 2x of that rate. The reason we are growing that much faster than the industry is because there is an increasing drive on the part of corporates in India to adopt digital technology to automate their business processes. And as part of that being the market leader in this segment, our teams, along with their own execution capabilities are growing at a rate which is faster than the market.

Q: How are you guys thinking about M&A and the potential to accelerate the MICE business even more through acquisitions. Is that on the table?

A: So we continue to evaluate opportunities, Scott. At this point of time, I think it's hard for me to give any more direct color on that. But just as an organization, if you look at the track record that we've had over the last few years, we've successfully made some acquisitions that we've been able to integrate within the Yatra platform. So we continue to evaluate these kinds of opportunities.

Q: Specifically on the consumer business, how profitable is it vis-a-vis our corporate travel business. And how do you see it trending? I understand in the last quarter or probably in Q4, you guided that we should be bottoming out around Q1, Q2 in the consumer business and then we should start picking it up. How is it trending now, the consumer business? And what percentage of your overall business does consumer contribute now?

A: So the consumer, let me just work backwards. The consumer business now is accounting for about 1/3 of our overall gross bookings. And in terms of the trending of the consumer business, the consumer business has definitely bottomed out, and we've seen profitability improve over there. We would expect a gradual kind of increase in the consumer business as well. While we would expect the corporate business to grow between 13% to 20%, we would expect the consumer business to grow in the mid- to high single digits. And this growth that we're looking at in the consumer business is all profitable growth only. We are not looking at doing any negative cost of acquisition.

Q: You mentioned towards your effort towards streamlining the corporate structure. You said you are doing some approvals. Can you just throw some more light exactly where we are and how do you see it progressing. By when do you see it to be completed?

A: It's hard to give an exact time line on that, but it remains a key priority for us as an organization. As you might be aware, we have -- our corporate structure entails entities in Cayman Island, Cyprus and Singapore. So it is a multi-jurisdiction transaction that has to go through. So to that extent, there are multiple regulators that will get involved in this process. That's the reason why it's difficult to give an exact time line on this. But I think from a commitment point of view, the organization is fully committed to this.

Q: Should we expect it to be completed in an year's time or it could be longer?

A: As I said, it's hard for me to give a time line to this. But if I was to give it my best estimate, I don't think it should take as long as a year. I mean that's my best estimate of it, but it's all obviously subject to regulatory approvals across the different jurisdictions.

Q: How are you planning it. Will it involve a delisting of the U.S. company, merger with the Indian company? I mean, merger with the Yatra Online. How exactly are you envisaging it currently?

A: I think it will be a bit premature to talk about that at this stage. When we have the exact plan, which is signed off by all regulatory elements, we will publish that out for shareholders. I think it will be difficult for me to really articulate that at this point.

Q: As you are aware, the other listed Indian OTA in the U.S. is MMT. And the valuation gap is quite considerable to MMT versus what we trade at. Any plans on how can we fix it?

A: See, I think in terms of the U.S. entity, the holding company today, as you rightly pointed out, trades at a meaningful discount to peers. Part of it is also driven by the much smaller market cap and the lack of liquidity. One of the ways that we are trying to solve for or rather the key way that we are trying to solve for is to introduce some kind of a fungibility because in India, the entity is trading at a much better multiple than where it's trading in the U.S. So that's the entire reason for taking on this exercise of trying to streamline the corporate structure and put in place some kind of a fungibility to the shares. That's definitely one way that we are looking at doing it. And in India, we've been -- based on the strong performance that we have, interacting with analysts, large amount of investor community, and that's what's driving the momentum behind the stock in India.

Q: Just for my clarity, what exactly do you mean the fungibility.

A: By fungibility, I mean the ability of a U.S. shareholder at some point to get the same price or similar price to what exists in India.