# 1. Financial Performance ## A. Key Figures * Revenue from Operations: ₹2,568 Mn Q3 consolidated (+9%) · ₹8,175 Mn 9M FY2026 (+43%) * Adjusted EBITDA: ₹247M Q3 (+41%) · ₹751M 9M FY2026 (+81%) * PAT: ₹83 Mn Q3 (–17%) · ₹386 Mn 9M FY2026 (+81%) * Cash & Term Deposits: ₹2,005.51 Mn (as of Dec 2025) · Gross Debt: ₹583 Mn (up from ₹546 Mn) ## B. Revenue Growth * **B2C-Driven Momentum:** Revenue growth supported by strong consumer travel demand and a B2C-skewed mix, despite **postponed group bookings worth INR 30 Cr** impacting Q3. * **Annual Target Tracking:** Company has achieved **~78% of full-year RLSC target** by Q3, signaling strong execution and visibility into year-end performance. ## C. Gross Margin * **Margin Resilience Amid Mix Shift:** Gross margin expansion driven by improved air-ticketing take rates and better corporate hotel supplier terms, offsetting slight declines in hotel/package take rates. * **High-Value Ancillary Streams:** Advertisement and other operating income contribute **55–60% contribution margin**, affirming their strategic role in B2C platform economics. ## D. EBITDA & Profit * **EBITDA Outperformance, PAT Dragged by One-Offs:** Adjusted EBITDA surged with a **34–35% EBITDA-to-gross-margin ratio**, exceeding guidance, while Q3 PAT decline attributed to **one-time labour code implementation charge of INR 8 Cr**. * **MICE Deferral Impacted Margins Temporarily:** Q3 margin dip to **~19%** due to deferred MICE revenue (high-margin) and B2C cancellation costs; management affirms **long-term margin trajectory remains intact**. * **Proforma Performance Strong:** Excluding deferrals, **adjusted revenue near INR 290 Cr** would have implied **~22–23% revenue growth and >50% EBITDA growth**, reflecting underlying strength. ## E. Balance Sheet & Cash Flow * **Working Capital Dynamics:** Corporate B2B segment funds **net 21 days of working capital**, while B2C and hotel API models operate on **negative or neutral working capital**, minimizing cash conversion risk. * **Short-Term Cash Pressure Managed:** **INR 35–40 Cr incremental working capital** absorbed via overdrafts due to advance supplier payments and migration delays; **no fixed deposit breakage** required. * **Payables Structure Clarified:** **INR 277 Cr payables in FY25** primarily relate to gross bookings owed to airlines (especially BSP) and hotels for future stays, not RLSC. --- # 2. Segment & Mix Trends ## A. Key Figures * **B2B:B2C Mix:** 60-40 (Q3) vs. 65-35 avg. (9M) * **B2C Gross Bookings:** **~₹870 Cr** (40% of total, Q3) * **Air Gross Bookings Growth:** **+22% YoY** (+14% pax) * Hotel Gross Bookings Growth: +20% YoY (₹4306 Mn) · +30% stand-alone * **Hotel Room Nights:** **508,000** (+22% YoY) * Hotel Gross Margin: ₹438 Mn (+25%) → 10.17% margin (from 9.7%) * **MICE Service Cost Proxy:** **₹130 Cr** (grossed up ~10% for bookings) * **MICE Take Rate:** **9–10%** · **>50% contribution margin** ## B. B2B vs B2C Mix * **B2C Recovery Confirmed:** Consumer business has turned the corner, now growing with **profitable unit economics** and positive net contribution, aided by tech-driven conversion and AI partnerships. * **Temporary Mix Shift:** Q3 saw a swing to 60-40 B2B:B2C (from 65-35 avg.), driven by short-term demand dynamics, not strategic shift. * **B2E Remains Strategic Priority:** Despite B2C rebound, enterprise focus remains intact, with client mix progressing toward **70-30 B2E:B2C** excluding Q3. * **Cross-Segment Synergy:** Personal travel via corporate platforms (B2E) is growing, representing **6–7% of B2B** and **10–12% of B2C**, unlocking incremental value. * **All-Boats-Rising Trend:** Both B2C and B2E are expanding simultaneously, supported by strong underlying travel demand and no cannibalization. ## C. Air vs Hotel Growth * **Air Outperformance:** Air segment grew gross bookings **22% YoY** on 14% passenger growth, significantly outpacing industry (+1%), driven by corporate additions and pipeline execution. * **Hotel Margin Expansion:** Standalone hotel business grew over **30% YoY**, with gross margins doubling to **17%** due to favorable mix and tech-enabled efficiency. * **Structural Travel Shift:** International and long-haul travel showing strong structural growth, benefiting Yatra’s corporate and global franchise. * **Growth Outlook:** Management expects **~20% weighted average gross booking growth** over next 2–3 years, with hotels exceeding **25%** and air at **15–20%**. ## D. MICE Contribution * **High-Margin Growth Engine:** MICE remains a top EBITDA-margin business with **>50% contribution margins** and **9–10% take rate**, highly accretive despite people-intensive model. * **Resilient Demand:** MICE deferrals due to December disruptions are modest and largely rolling into Q4/Q1; large-customer concentration explains divergence from broader market trends. * **Scalable Model:** Advance payments reduce working capital strain, and AI-driven efficiencies could enhance scalability with moderate cost increases. * **Acquisition Tailwinds:** Globe Travel integration continues to fuel MICE strength, a key driver over the past 7–8 quarters. --- # 3. Corporate & Customer Metrics ## A. Key Figures * **New Corporate Clients:** **40** added in the quarter (+220 Cr annual billing potential) * **Online Adoption:** **~70%** of corporate transactions now online · **<20–23%** market-wide penetration * **Expense Solution Customers:** **8** new clients added (6 new to Yatra) * **Headcount Rationalization:** Plan to reduce **75 roles** by FY-end, with up to **200 more** possible next year ## B. New Client Adds * **Strong Corporate Momentum:** Robust client acquisition and billing potential reflect effective sales restructuring and multi-year renewals from major accounts. * **Structured Growth Engine:** Three-pillar go-to-market strategy—large corporates, SMEs, and elite sales—is driving high lead inflows, improved CRM conversion, and a healthy pipeline. * **Product-Market Validation:** Expense management solution gaining traction with **new-to-Yatra clients**, signaling standalone demand beyond core travel services. * **Upsell Levers Activated:** Most corporate clients currently use only air booking, creating significant operating leverage potential through cross-selling. ## C. Online Adoption * **Digital Shift Accelerating:** ~70% of Yatra’s corporate transactions now self-served online, reflecting strong digitization tailwinds in Indian enterprises. * **Large Market Gap = Growth Runway:** With less than a quarter of India’s corporate travel online, Yatra is well-positioned to capture share via dedicated sales and automation. * **Adoption Ceiling Near 85%:** Online usage expected to stabilize at 80–85%, with complex trips and policy-driven needs preserving demand for hybrid (online + assisted) models. * **Defensible Corporate Model:** High customization in policy, compliance, and credit makes B2B travel resilient to AI disruption, unlike standardized B2C segments. * **Hotel Booking Lags:** Low adoption of hotel inventory among existing clients represents a key untapped growth vector. ## D. Key Account Expansion * **Targeted Upselling Underway:** KAM team incentivized to expand usage, particularly into hotel bookings, leveraging deep client relationships and data insights. * **End-to-End Demand Confirmed:** Clients increasingly seek integrated travel-to-expense solutions for full policy enforcement and compliance control. --- # 4. Product & Technology ## A. Key Figures * **New Customers:** **8** onboarded in one quarter for expense management platform ## B. Expense Platform * **Strategic Product Launch:** Expense management solution is driving new customer acquisition and upsell opportunities, closing a critical gap in corporate travel offerings with a tech-first, cost-effective alternative to legacy OCR-based systems. * **Platform Integration & Adoption:** Fully embedded in B2B/B2C apps (DIYA), integrated with HRMS systems, and enables self-booking with real-time policy compliance, personalization, and operational efficiency. * **Client-Centric Enhancements:** Pay-at-hotel feature launched to reduce friction, while dynamic rate selection (corporate + retail) improves adoption by delivering the **best available compliant rate**. ## C. AI & Automation * **AI as Growth Catalyst:** AI and predictive analytics are central to Yatra’s differentiation, enabling end-to-end automation, proactive forecasting, and personalized experiences—leveraging **two decades of proprietary travel data** to build institutional memory and boost conversions. * **Competitive Edge & Efficiency:** AI is viewed as an enabler, not a threat, enhancing service delivery, workforce optimization, and ERP/HRMS integration; Dr. Shakti Goyal’s team is advancing an LLM-based bot for corporate clients. * **Revenue & Margin Levers:** Tech innovations like NDC fares, branded fares, and add-on sales are increasing revenue per user, while automation supports **stable corporate headcount (70–75)** despite growth, aiding margin expansion. ## D. Tech Architecture * **Modernized Foundation:** Completed major B2C tech refresh and re-architected platform 18–24 months ago to unify corporate and retail rates, improving relevance and competitiveness. * **Future-Ready Search:** Actively adapting to chatbot-driven search behaviors beyond SEO, ensuring visibility in evolving digital ecosystems. --- # 5. Supply & Partnerships ## A. Key Figures * **Active Hotels:** **25,000–30,000** annually (driving **75%–80%** of hotel revenue) * **Total Hotel Inventory:** **~80,000** properties in India (~90,000 total supply relationships) ## B. Hotel Inventory Strategy * **Differentiated Corporate Access:** Retention of non-API distributed corporate rates preserves competitive advantage in the enterprise segment. * **Quality-Over-Quantity Focus:** Platform prioritizes demand-aligned, higher-quality accommodations; low-cost properties like Dharamshalas remain out of scope. * **Concentrated Revenue Base:** Strong revenue contribution from a focused set of active hotels underscores relationship depth and yield optimization. ## C. Affiliate Demand & Partnerships * **High-Margin Affiliate Growth:** Hotel API network shows strong expansion with **extremely high contribution margins**, expected to boost net gross margins despite pressure on gross take rate. * **Strategic Distribution Model:** API integrations target B2C partners with minimal overlap—foreign OTAs and offline agencies—ensuring complementary, non-dilutive demand. * **Back-End Scaling for International Supply:** Recent investments in integration capabilities signal intent to scale global supply via upcoming partnership announcements. * **MICE Working Capital Advantage:** Business model de-risked by **50%–70% customer advances** pre-departure, countering assumptions of high capital intensity. --- # 6. Risks & Industry Factors ## A. Aviation Disruptions * **Resilient Demand Amid Disruptions:** Despite temporary declines in domestic traffic due to **stricter crew duty regulations**, underlying travel demand remained strong, supported by festive season momentum and recovering load factors. * **Q3 Revenue & Working Capital Impact:** Peak-period disruptions caused **large-scale business travel cancellations**, leading to revenue loss and **incremental working capital deployment** from prepaid vendor obligations for MICE groups. * **One-Off Working Capital Strain:** The cash flow mismatch was exacerbated by the **re-registration of the new legal entity with corporate clients**, a necessary step for operational streamlining under a unified structure. ## B. Regulatory Changes * **Pro-Growth Policy Shift:** The union budget elevated tourism to a strategic priority, signaling a move toward a **sustainable, structural ecosystem** with long-term benefits for travel and hospitality players. * **TCS Rationalization Boosts Demand:** A uniform **2% TCS rate on overseas packages** reduces consumer friction and is expected to lift demand for organized travel providers like Yatra. * **Infrastructure-Led Expansion:** Ongoing investments in **high-speed rail, waterways, and destination connectivity** are poised to enhance both domestic and outbound travel capacity. * **Minimal DPDP Impact:** Data practices align with global privacy standards; **transactional data focus and encryption** limit exposure, with compliance managed through structured phases led by CIOs. ## C. Competitive Pressures * **AI Not a Threat to Core Business:** Management dismisses AI advancements, including those from Anthropic, as a material risk to its corporate travel segment despite broader industry concerns. * **Procurement Inertia Overcome:** Initial resistance from corporate clients due to **entrenched hotel relationships** has been addressed through value-driven engagement and platform differentiation. * **ROCE Dilution Explained:** The gap between 33% and 8% ROCE reflects **corporate overheads and B2C operations**, which weigh on consolidated returns despite high incremental returns in core segments. --- # 7. Guidance & Outlook ## A. Key Figures * 22% growth on revenue-less service cost (RLSC) · 37.5% growth on adjusted EBITDA * Adjusted EBITDA Target: ₹917 Mn full-year target confirmed * **ROCE Trajectory:** **4%** last year → **~7%** expected this year → **double-digit** targeted next year * **Incremental ROCE:** **>30%** per new corporate customer * **FY27 Expense Solution Revenue:** **₹5–7 Cr** expected ## B. Revenue Forecast * **New Product Monetization:** Expense management solution to contribute **₹5–7 Cr** in FY27, with accelerated growth expected post-customer acquisition via upsell leverage. * **Near-Term Headwinds:** **₹30 Cr** in revenue deferred due to industry-wide corporate travel disruption, though **70–75% of delayed business expected in Q4**, with only complex itineraries pushed to Q1. * **Growth Reaffirmed:** Full-year RLSC and EBITDA guidance unchanged despite short-term volatility, signaling confidence in underlying demand recovery. * **International Expansion:** Strategic focus on **GCC and Asian markets** to attract larger corporates; regional scale seen as key to winning major contracts. ## C. Margin Trajectory * **Profitability Path Intact:** Long-term margin target of **25–30%** remains on track, supported by high-margin segments (hotels, MICE) and scaling corporate travel. * **Cost Discipline:** Headcount rationalization and **stable fixed costs** expected to support margin expansion, despite inflation-linked opex growth. * **Global Margin Advantage:** International gross take rates anticipated to exceed domestic levels, enhancing profitability as cross-border business scales. ## D. ROCE Target * **ROCE Scaling Confirmed:** Secular upward trend underpinned by **>30% incremental ROCE** per new customer and low incremental fixed costs. * **Capital Efficiency Focus:** Weighted average ROCE projected to rise from **4% to ~7%** this year, with another step-up expected toward double digits next year.