Whalesbook
Financial Deep Dive
Yatra Online Limited, a prominent player in India's online travel space, announced its third-quarter financial results for FY26 on February 12, 2026. The company reported a consolidated revenue from operations of ₹256.8 crore, marking a respectable 9% year-on-year (YoY) growth. This top-line expansion was driven by strong performance across its core segments.
However, the bottom line saw a dip. Consolidated Profit After Tax (PAT) fell by 17% YoY to ₹8.3 crore. This decline was primarily attributed to a one-time charge of ₹3.8 crore incurred due to compliance with new labour codes, a cost that impacted profitability in the short term. Despite this, the company's operational efficiency shone through, with Consolidated Adjusted EBITDA growing robustly by 41% YoY to ₹24.7 crore. The ratio of Adjusted EBITDA to Gross Margin also improved, standing at 19.34%.
Looking at the nine-month period of FY26, Yatra showcased substantial growth. Consolidated revenue reached ₹817.5 crore, up 43% YoY. Consolidated Adjusted EBITDA more than doubled, surging 81% YoY to ₹75.1 crore, with the EBITDA to Gross Margin ratio at a healthy 20.35%. PAT for the nine months also saw an impressive 81% YoY growth, reaching ₹38.6 crore.
Segmental Strength & Strategic Focus
Both the Air Ticketing and Hotels & Packages segments contributed positively. Air ticketing saw a 14% YoY increase in passenger volume and a 22% YoY jump in gross bookings, leading to a 32% YoY rise in gross margin. The Hotels segment also performed well, with a 22% YoY growth in room nights and a 20% YoY increase in gross bookings, boosting its gross margin by 25% YoY.
The company is actively pursuing a strategy focused on scaling its corporate travel business, leveraging Artificial Intelligence (AI) for digitizing travel procurement and enhancing customer experience. An expense management solution is showing early traction, with management projecting ₹5-7 crore in revenue from this in FY27. Corporate online adoption is already over 70%, indicating a successful digital push in this segment.
The MICE (Meetings, Incentives, Conferences, and Exhibitions) segment, identified as margin-accretive, also saw deferred bookings impacting December, with recovery anticipated in Q4.
Financial Health & Leadership Change
Yatra maintains a strong balance sheet. As of December 31, 2025, the company held ₹200.55 crore in cash and cash equivalents. Its gross debt stood at ₹58.3 crore, a marginal increase from ₹54.6 crore in March 2025, indicating prudent debt management. The company anticipates achieving double-digit Return on Capital Employed (ROCE) in the next fiscal year.
A significant development mentioned is the appointment of Mr. Siddhartha Gupta as the new CEO, effective October 2025. This leadership transition marks a new chapter for the company as it aims to execute its growth strategies.
Outlook & Risks
Management has revised its FY26 guidance upwards, expecting 22% growth on Revenue Less Service Cost (RLSC) and 37.5% growth on Adjusted EBITDA. The outlook remains positive, with long-term projections for gross booking growth in the early twenties, driven by continued demand in both air and hotel segments.
While the one-time charge impacted Q3 PAT, the overall financial trajectory and strategic initiatives suggest a positive future. The company has demonstrated resilience in managing operational challenges like travel disruptions and is focused on technological advancements to drive efficiency and customer satisfaction. No systemic risks or significant governance concerns were highlighted in the earnings call.
Peer Comparison
Competitors like MakeMyTrip and EaseMyTrip are also navigating the dynamic online travel market. MakeMyTrip, a larger player, has consistently focused on platform innovation and expanding its service offerings, including hotels and holiday packages. EaseMyTrip often competes on price and has also been investing in technology. Yatra's strategic pivot towards corporate travel and AI integration aims to carve out a stronger niche. While all players benefit from India's growing travel demand, Yatra's recent performance shows a healthy recovery in operational profitability, particularly in Adjusted EBITDA, despite the temporary PAT setback.