Financial Performance Summary (Q1 FY27 Consolidated)

  • Revenue from Operations: ₹1,879 million (decreased 10.4% YoY)
  • Gross Margin: ₹1,227 million (increased 6.1% YoY)
  • Adjusted EBITDA: ₹151 million (decreased 39.4% YoY)
  • Adjusted EBITDA to Gross Margin Ratio: 12.29%
  • Profit After Tax: ₹3.4 million
  • Cash & Cash Equivalents + Term Deposits: ₹1,976.9 million as of June 30, 2026

Operational Metrics

  • Gross Bookings: ₹21,007 million (increased 17% YoY)
  • Total Transactions: Increased 12.2% YoY

Air Ticketing Segment

  • Gross Air Bookings: ₹16,579 million (increased 17.6% YoY)
  • Air Passenger Volume: 1.264 million (increased 4.8% YoY)
  • Air Gross Margin: ₹699 million (increased 8% YoY)
  • Air Margin Percentage: 4.2% (declined from 4.6% YoY)

Hotels & Packages Segment

  • Gross Bookings: ₹3,876 million (increased 13% YoY)
  • Room Nights: 548,000 (increased nearly 30% YoY)
  • Gross Margin: ₹386 million (increased 24% YoY)
  • Margin Percentage: 9.95% (improved from 9.05% YoY)

Key Business Developments

Market Context & Challenges

  • International travel significantly impacted by West Asia conflict disrupting air connectivity
  • MICE activities particularly affected with industry-wide inquiries for international destinations declining 10-15%
  • Elevated airfares and longer routes due to flight rerouting
  • Shift from international to domestic group travel increased competitive pressures
  • Timing of airline incentive programs created near-term headwind (PLB targets not closed due to disruption)

MICE Business Impact

  • MICE top line approximately ₹300 million lower YoY
  • Total MICE gross margin impact of approximately ₹60 million YoY (₹30 million from lower volume, ₹30 million from margin compression)
  • Management views this as short-term transitory factor rather than structural change
  • Q2 FY27 MICE bookings already trending approximately 50% higher than Q1 with healthier margin profile

Strategic Initiatives & Investments

  • AI Integration: Embedding AI across platform for search, recommendations, conversational interfaces, and automation
  • Travel Pro (MSME Offering): Added 30+ new customers representing approximately ₹800 million annual billable potential
  • RECAP Expense Management: Added more than 20 customers since launch
  • Kanoo Travel Partnership: Extending corporate platform capabilities to Middle East market
  • Technology made global-ready over preceding two quarters for international deployment

Corporate Customer Acquisition

  • Added 53 new corporate customers in Q1 FY27
  • Expected annual billable potential: ₹2,223 million
  • Corporate customer retention rates in excess of 97%

Business Mix Changes

  • International share decreased to under 30% (from late 30s-40% previously)
  • B2B/B2C mix moved from late 60s to mid-60s in favor of B2C
  • Domestic travel remained resilient despite global challenges

Management Commentary & Outlook

Growth Opportunities

  • India's online travel market expected high-single to low-double-digit CAGR
  • Structural expansion supported by rising disposable income, digital adoption, improving connectivity
  • Long runway for outbound travel growth with low-teens growth projected over next decade
  • Online penetration in managed corporate travel market still relatively low

Margin Expectations

  • Expect margin improvement in second half of FY27 as capacity normalizes
  • Target rebuilding EBITDA margins towards 20%+ in near-term
  • Aspiration for 30%+ EBITDA margins over mid-term as growth initiatives scale
  • Air margins expected to recover in H2 FY27 as airline incentive programs finalize

Investment Phase

  • Deliberate choice to invest through period of turbulence
  • Building capacity ahead of expected revenue generation from new initiatives
  • Incremental costs for Kanoo project setup affecting current quarter profitability
  • People costs elevated due to hiring and training for Kanoo project

Q&A Session Highlights

Air Margin Outlook

  • Middle Eastern carriers still determining capacity deployment for current year
  • PLB (productivity-linked bonus) deals typically closed early Q1 but delayed due to disruption
  • Expect margins to improve in second half with capacity normalization

Corporate Restructuring Update

  • Merger of Yatra India with parent company ongoing for ~6 quarters
  • Involves multiple jurisdictions: India, Singapore, Cyprus, Cayman, and SEC
  • Timeline uncertain due to regulatory processes across markets
  • Block transaction in February 2026 to fund legal expenses for collapse

Working Capital Initiatives

  • Corporate card platform development with banks to reduce MDR costs
  • Working with American Express (BTA platform), HDFC, Citibank (CTA card platform), and SBI
  • Focus on having airline and hotel suppliers pick up credit card costs
  • Long lead time but high priority for working capital management