Yatra Online, Inc. Q4 FY2026 earnings call

Overall Full Year Performance

• FY26 was the most profitable year in Yatra's 20-year history, despite significant macro and geopolitical headwinds impacting 3 months of the year. Revenue from operations grew 27% YoY to INR 10,074 million ($107 million), gross margin (revenue less service costs) grew 22.6% YoY to INR 4,801 million, and adjusted EBITDA grew 64% YoY to INR 564 million ($6 million).
• Strong operating leverage and disciplined cost control drove profitability growth, even with only 9 months of full operations during the fiscal year.

Market Position and Strategic Advantages

• Yatra is the market leader in India's online managed corporate travel segment, where overall online penetration remains less than 25%, creating large untapped growth opportunities. The company holds a 97% corporate customer retention rate, supporting long-term customer lifetime value.
• Yatra has market-leading domestic hotel supply across major cities and emerging Tier 2/3 markets, positioning it to capitalize on Indian government policy prioritizing domestic tourism.
• Completed migration to Google Cloud, which enhanced API infrastructure and improved ability to distribute Yatra's hotel content to a large global partner network, creating a highly margin-accretive scalable business line.

Q4 FY26 Performance

• Despite geopolitical disruption, gross bookings grew 8% YoY, air passenger volumes grew 9.6% YoY (~2x the industry growth rate, indicating continued market share gains), hotel room nights grew 36% YoY, and total transactions increased 15.2% YoY.
• Q4 gross margin grew 1% YoY to INR 1,101 million ($12 million), while adjusted EBITDA declined 49% YoY to INR 46 million ($0.5 million) due to conflict-related booking cancellations and deferrals.

Innovation and Growth Initiatives

• AI and automation are core strategic priorities: AI-powered servicing capabilities are seeing strong adoption across consumer and corporate channels, improving operational scalability and long-term profitability.
• Added a dedicated mid-market corporate sales team in Q3 FY26, with early positive contributions visible in Q4 FY26. The mid-market corporate travel segment remains heavily underpenetrated online, and is expected to become a meaningful medium-term growth driver.
• API-led distribution via third-party travel agents, affiliates, and B2B partners is seeing strong traction, allowing efficient volume scaling while maintaining margin discipline.

Air Ticketing Segment (Full Year FY26): Gross air bookings grew 12% YoY to INR 61,874 million ($659 million), gross margin rose 30% YoY to INR 2,449 million ($26 million), and margin improved from 3.42% to 3.96% of gross bookings. Air passenger volume grew 2% YoY to 5,395,000. This segment contributed ~51% of total full year gross margin.

Hotels and Packages Segment (Full Year FY26): Hotel room nights grew 16% YoY to 1,936,000, gross bookings increased 25% YoY to INR 16,578 million ($177 million), gross margin expanded 34% YoY to INR 1,502 million ($16 million), and margin improved from 8.60% to 9.25% of gross bookings. This segment contributed ~31% of total full year gross margin.

Corporate Travel Segment (Full Year FY26): Added 163 new corporate customers with annual billable value of INR 9,568 million ($102 million), up from 148 customers and INR 7,475 million ($80 million) in FY25. In Q4 FY26, added 55 new clients with annual billable potential of INR 2,709 million ($29 million), up from 40 clients and INR 2,234 million (~$24 million) in Q3 FY26. Customer retention exceeds 97%.

Consumer Business Segment: Delivered resilient full year performance supported by domestic consumer spending and incremental affiliate/partnership demand, gaining market share for both air and hotel offerings.

• Management reaffirmed its medium-term target CAGR of 20% for gross margin (revenue less service costs, RLC) and 30% for adjusted EBITDA, supported by India's structural growth as the fastest growing major global economy and increasing online penetration of corporate travel.
• Management expects the first half of FY27 to face ongoing macro and geopolitical softness, but forecasts the second half of FY27 to be materially stronger than the first half, driven by the release of pent-up deferred demand similar to the post-COVID recovery period.
• A meaningful portion of Q4-deferred MICE and international corporate travel is expected to return to Yatra once geopolitical conditions normalize, with early Q1 run rates already tracking ~20% above Q4 levels.

• The ongoing escalated geopolitical conflict in West Asia has pushed up energy prices, disrupted international and Middle East travel, and caused multiple Q4 MICE and international corporate group travel bookings to be canceled or deferred to FY27, weighing on near-term results.
• Short-term macroeconomic volatility and geopolitical uncertainty could continue to suppress international travel demand and impact corporate travel budgets in the first half of FY27.
• Intense competitive pressure across the Indian air ticketing segment creates ongoing pressure on margins, though Yatra has structurally improved its air margin over the past two years.

No investor questions were submitted during the Q&A portion of the call. Management closed the call by reaffirming its medium-term growth targets and structural positive outlook for India's travel and corporate mobility markets, and directed participants to contact Yatra's IR partners with any follow-up inquiries.