Whalesbook
📉 The Financial Deep Dive
Yatra Online Limited has released its un-audited consolidated financial results for the third quarter of FY2025-26 (Q3-FY26), presenting a mixed performance. The company achieved a 9% year-on-year growth in revenue to INR 2,568 Mn. A key highlight was the Gross Margin (Revenue Less Service Cost - RLSC), which surged by 23% YoY to INR 1,277 Mn, exceeding the management's revised guidance of 22%. This indicates stronger profitability on services rendered.
EBITDA demonstrated significant momentum, growing by 64% YoY to INR 239 Mn. The Adjusted EBITDA also saw a substantial increase of 41% YoY, surpassing the revised guidance of 37.5%. The EBITDA margin, calculated as a percentage of RLSC, stood at a healthy 18.7% for the quarter.
However, the Net Profit for the quarter experienced a 17% year-on-year decline to INR 83 Mn. This contraction was notably influenced by an exceptional item (EOI) of INR 38 Mn, which stemmed from the one-time effect of the change in Labour Code. This item, while non-operational, directly impacted the bottom line.
For the nine-month period of FY26 (9M-FY26), Yatra Online reported robust growth across key metrics: revenue increased by 43% YoY to INR 8,175 Mn, Gross Margin grew by 33% YoY to INR 3,691 Mn, and EBITDA saw a substantial 124% YoY increase to INR 729 Mn. The EBITDA margin for 9M-FY26 stood at 19.7%, with Net Profit rising by 81% YoY to INR 386 Mn for the period.
🚩 Risks & Outlook
The quarter was significantly impacted by operational challenges due to stricter Flight Duty Time Limitation (FTDL) norms implemented in December. These regulations led to widespread airline disruptions, elevated cancellations, and delays. The estimated impact on Air Gross Bookings was approximately INR 480 Mn, while over INR 300 Mn of MICE revenue was deferred to subsequent quarters. Furthermore, last-minute cancellations resulted in working capital blockages and consequently, higher finance costs, exerting pressure on profitability.
Despite these headwinds, management commentary highlighted that the results exceeded revised guidance for the quarter. The appointment of Siddhartha Gupta as the new CEO, bringing extensive B2B SAAS experience, signals a strategic focus. The company's B2C business maintained profitable unit economics, and the corporate segment added 40 new customers with an annual revenue potential of INR 2,234 Mn.
The company remains committed to scaling high-margin segments and deepening technological capabilities to drive sustainable long-term value. The outlook suggests Yatra Online is well-positioned for a strong FY26, as Q3-FY26's Adjusted EBITDA and PAT already surpassed prior full-year FY25 levels. Investors should closely monitor the resolution of operational challenges and their impact on working capital and finance costs in the upcoming quarters.