Yatra Online achieves 48.5% revenue growth in Q2 2026, surpassing guidance amid strong corporate travel demand and digital expansion.

Thank you all for standing by. Today's conference call with Yatra Online will be starting in a few moments time. And just a reminder, it is star one on the phone lines if you would like to ask a question today. Thank you. Today's call will be starting short hello everyone and welcome to Yatra Online's fiscal second quarter 2026 financial results call for the period ended September 30, 2025. I'm pleased to be joined on the call today by Yatra Online's CEO and Co Founder Dhruvasaringi and CFO Anuj Sethi. The following discussion, including responses to your questions, reflects management's views as of today November 12, 2025. We don't take any obligation to update or revise the information. Before we begin our formal remarks, let me remind you that certain statements made on today's call may constitute forward looking statements which are based on management's current expectations and beliefs and are subject to several risks uncertainties that could cause actual results to differ materially. For a description of these risks, please refer to our filings with the SEC and our press release filed earlier this morning on the IR section of our website. With that, let me turn the call over to Dhruv Dhruv, please go ahead.

Thank you and good morning everyone. Thank you for joining us on this conference call to discuss our second quarter and first half of fiscal year 2026 earnings. Let me start by briefing you first on the operational performance for the period under review, after which our CFO, Mr. Anuj Sethi will brief you on the financial performance in detail. As you would have seen from our results and presentations that have been uploaded, it has been a remarkable quarter for Yatra Online as we have not only delivered strong financial and operational performance well ahead of guidance, but also celebrated 19 incredible years as one of India's most trusted Travel Brands. For second quarter of fiscal year 26, our revenue grew 48.5% year over year to INR 3508 million which is approximately $39.5 million. Adjusted revenue grew significantly year over year as well. Our growth in the quarter was fueled by resilient demand and consistent execution across both our corporate and consumer platforms. This also reflects the momentum we have gained in our corporate business and the higher margin hotels and packages business as well as continued momentum in the MICE segment. Notably, our profitability metrics underscore our disciplined execution. Adjusted EBITDA surged 218% year over year to INR 212 million or USD 2.4 million and profit for the period increased significantly to INR 98.8 million or USD 1.1 million versus the loss of INR 0.3 million or USD 0.1 million in the prior year, well ahead of our earlier guidance. The corporate travel market is expected to reach around USD 20 billion by FY27. However, online penetration in this segment remains low at just about 20% in FY24 compared to almost 45% for the overall travel market in India. This indicates substantial headroom for digital adoption across the corporate travel industry, online penetration is accelerating driven by rapid adoption of digital booking platforms and the uptake of self booking tools and integrated expense management solutions in the lodging space. Branded hotels and curated packages are witnessing increasing demand for both leisure and MICE travelers, supported by improving supply, better service standards and a growing preference for exponential stays. Overall, this large and expanding market coupled with increasing digital penetration presents a significant opportunity for Yatra Online, particularly in the underpenetrated corporate segment. Our corporate travel segment represents a meaningful part of our overall business and delivers strong momentum for Yatra. In Q2, we onboarded 34 new corporate clients collectively adding an annual bidding potential of INR 2.6 billion or USD 29.5 million. On the B2C front, we continue to make good progress in rationalizing our cost of acquisition and finding avenues to scale profitably. Bookings which were impacted in the previous quarter due to macro events have now started to show signs of recovery. Additionally, the recent reduction in income tax and GST rates in India is expected to further boost travel consumption and discretionary spending, supporting a stronger growth outlook in the quarters ahead. On the technology front, we continue to enhance our digital platforms to deliver a more seamless and intelligent travel experience. Our DIA AI, our Generative AI powered travel assistance now enables seamless flight and hotel search bookings, streamlining the entire travel journey from planning to payment. We have also introduced a new user interface design for hotels with a transparent per room per night pricing model along with upfront display of taxes and fees to eliminate surprises for users. The optimized interface is designed to improve usability and drive higher conversion rates. Additionally, our best price guarantees customers can be assured to access the lowest available hotel rates on Yatra Online. If they find a lower price elsewhere, we match it or offer a better rate for the same booking. In sales and marketing, we celebrated our 19th year with a big outing fest, a high impact sales campaign that was amplified across digital, social, outdoor and print platforms. As part of our broader brand building efforts, we also strengthened our corporate Travel presence on LinkedIn, driving greater visibility and engagement among enterprise customers. As part of our ongoing efforts around restructuring, the company believes it has a viable structure to pursue. While some hurdles remain, we are actively navigating processes across jurisdictions. The timeline is uncertain due to complexity, but we are fully committed. This transition is key for Yatra Online and its shareholders, aligning us with the market and unlocking value. We'll share more updates as we move forward. As we look ahead, we see strong, sustained growth opportunities driven by rising digital adoption across both leisure and corporate travel segments. Yatra Online is well positioned to capture this growth through our expanded corporate client base, enhanced technology offerings and a growing share of high margin hotels and mice business. We remain committed to disciplined cost management, profitable scaling and delivering long term value to our shareholders while strengthening our competitive edge in the global travel ecosystem. Thank you everyone and I'll now request our CFO Anup Sethi to brief you on the financial performance for the quarter under review.

Thank you, Dhruv Good morning everyone. For the second quarter of financial year 2026 on a consolidated basis, our revenue from operations grew 48.5% year on year to INR 3508.7 million or equivalent to USD 39.5 million. Driven by continued momentum across key segments, including robust growth in our hotels and packages business and a meaningful contribution from my segment. Our adjusted margins performed top three strongly across segments. Air Ticketing adjusted margin increased 14.7% year on year to INR 116 million, equivalent to USD 11.4 million. Totals and Packages adjusted margin rose 28.6% year on year to 514 INR 514.5 million or USD 5.5 million, 5.8 million and Other Services. Adjusted margin grew 25.1% year on year to INR 95 million or USD 1.1 million. Underscoring the strength of our diversified business model, adjusted EBITDA surged 217.7% year on year to INR 212 million or USD 2.4 million. As a result, profit after tax increased significantly to INR 98.8 million or USD 1.1 million versus a loss of INA 0.3 million or USD 0.1 million in the prior year. In the in terms of segment performance, our ticketing Passenger volumes declined 3.5% year on year to 13, 29,000. However, our gross air bookings grew 11.7% year on year to INR 1481 1.4 million or or USD 166.8 million. INR adjusted margins rose 14.7% year on year to 10. 16 million or USD 11.4 million, with adjusted margin percentage improving from 6.7% to 6.9%. In the hotels and packages segment, the Hotel Nights Hotel room nights grew by 9.54% year on year to 504,000. Gross bookings increased 40.4% year on year to INR 5,141.6 million or USD 57.9 million, while the adjusted margins expanded to 28.6% year on year to INR5.1 4.5 million or USD 5.8 million, with the adjusted margin percentage at 10% compared to 10.9% in the previous year. Total gross bookings across all segments increased 16.2% year on year to INR 2,054.8 million or USD 231.0 million. On the liquidity front, cash and cash equivalents and term deposits stood at 2207.8 million or USG 24.9 million as of September 30, 2025. With this, I would like to hand it back to moderator and open the floor for for the question and answer session.

Thank you. Thank you. We will now begin the question and answer session and if you would like to ask a question, please press STAR followed by one on your telephone keypad. If you change your mind, please press STAR followed by two. And as a reminder, that is STAR followed by one to register for any questions we have the first question on the phone lines from Scott Bark with H.C. wainwright and company. Please go ahead.

Hi, good morning guys. Thank you for taking my questions. I was hoping you might be able to provide a little bit more color around corporate travel trends that you're seeing in the Indian market and maybe how much of your momentum there is driven by just kind of industry tailwinds versus your market share gains.

Good morning Scott. Scott, to answer your question, I think today the corporate travel market in India is growing Approximately at about 8 to 9%. We are growing almost at like 2x of that rate. The reason we are growing that much faster than the industry is because what we've seen over the last few years, now, last couple of years at least, is that there is an increasing drive on the part of corporates in India to adopt digital technology to automate their business processes. And as part of that, being the market leader in this segment, our teams, along with their own execution capabilities are growing at a rate which is faster than the market. So market itself is growing, right? But within the market as well. Given the technology solution that we offer, we are able to gain market share as well.

Great. I appreciate the added color there. And I'm curious, how are you guys thinking about M and A and the potential to accelerate the MICE business even more through acquisition? Is that on the table?

So we continue to evaluate opportunities. Scott, at this point of time, I think it's hard for me to give any more direct color on that. But just as an organization, if you look at the track record that we've had over the last few years, we successfully made some acquisitions that we've been able to integrate within the Yattra platform. So we continue to evaluate these kinds of opportunities.

Perfect. And then last one, I know you touched on it in the prepared remarks, but the restructuring efforts. Can you give us a little more color on maybe where you are? Are you waiting for regulators at this point or are there more steps that you need to complete on your end?

I think there are a few more steps that we need to complete at our end. But along with mds, given the nature of this work in tandem with the regulators as well, we are hoping that in the near term we can give some more concrete information. Right. Given that there are multiple jurisdictions, multiple regulators involved in the process, the timeline is a is slightly uncertain, but we are quite confident that we are moving in the right direction with this.

Okay, perfect. I appreciate the added color guys and congrats on all the progress.

Sure. Thank you.

Thank you. If you would like to ask any further questions, please press star followed by one on your telephone keypads. Now star followed by one to register for a question. I can confirm that does conclude the question and answer session here. And I'd like to hand it back to Dhruv Dhruv for some final close. Oh, I apologise. We do have a question on the line from Amin Jain with PMB Securities. Please go ahead when you're ready.

Hello. Hi. Please go ahead. Hi Dhruv. Just wanted to check specifically on your consumer business. How profitable is it versus, our corporate travel business and how do you see it trending? I understand in the last quarter or probably in Q4 you guided that we should be bought in, out around Q1, Q2 in the consumer business and then we should start picking it up. How is it trending now, the consumer business? And what percentage of your overall business is consumer not contribute now?

So the consumer. Let me just work backwards. The consumer business now is accounting for about 50% of our overall gross bookings. And in terms of the trending of the consumer business, the consumer business has definitely bottomed out and we've seen profitability improve over there. We would expect, you know, a gradual kind of increase in the consumer business as well. While we would expect the corporate business to grow, you know, between 13 to 20%, we would expect the consumer business to grow in the mid to high single digits. And this growth that you're looking at in the consumer business is all profitable growth only. We are not looking at doing any negative cost of acquisition. So whatever growth rate we are projecting out here on the consumer business, that is all going to be incremental and accretive from a bottom line point of view.

Very good. Next is you just on the call on the previous question you mentioned towards your effort towards streamlined the corporate structure. You said you are doing some, some, some approvals. Can you just throw some more light? Exactly where we are and how do you see it progressing by when do we see it to be completed?

It's hard to give an exact timeline on that, but it remains a key priority for us as an organization. As you might be aware, we have, you know, our corporate structure entails entities in Cayman Island, Cyprus and Singapore. So it is a multi jurisdiction transaction that has to go through. So to that extent, there are multiple regulators that will get involved in this process. That's the reason why it's difficult to give an exact timeline on this. But I think from a commitment point of view, the organization is fully committed to this.

Should we expect it to be completed in a year's time or it could be longer?

As I said, it's hard for me to give a timeline to this. But you know, if I was to give it my best estimate, I don't think it should take as long as a year. I mean, that's my best estimate of it. But it's all obviously subject to regulatory approvals across the different jurisdictions.

And how do you, how are you planning it? Will it involve delisting of the US Company, merger with the Indian company and merger with Yatra Online? How exactly are you envisaging it currently?

I think it'll be a bit premature to talk about that at this stage. You know, when we have the exact plan which is signed off by all regulatory elements, we will publish that out for shareholders. I think it'll be difficult for me to really articulate that at this point.

Okay, but, but so my key takeaway is it should take less than a year, but that is the best estimate. There is no comment from your side. All right. Yeah, that's it. Thank you. Thanks a lot. That was my question.

Thank you. Thank you. Thank you. Thank you. One Final reminder, that is star followed by one to register for any questions. And we have a follow up question from Ahmed. Please go ahead.

I will take my. I will take my liberty here. As you are aware, the other listed Indian OTA in US is MMT. And the valuation gap is quite considerable to MMT versus what we trade at. Any plans on how we can fix it?

I think in terms of the US entity, the holding company today, as you rightly pointed out, trades at a meaningful discount to peers. Part of it is also driven by the much smaller market cap and the lack of liquidity. One of the ways that we are trying to solve for, or rather the key way that we are trying to solve for, is to introduce some kind of a fungibility because in India the entity is trading at a much better multiple than where it's trading in the us so that's the entire reason for taking on this exercise of trying to streamline the corporate structure and put in place some kind of a fungibility to the shares. That's definitely one way that we're looking at doing it. And in India, we've been based on the strong performance that we have interacting with analysts, large amount of investor community, and that's what's driving the momentum behind the stock of India.

Okay, just for my clarity, what exactly.

Do you mean by fungibility? By fungibility, I mean the ability of a U.S. shareholder at some point to get the same price or similar price to what exists in India.

Okay, so that, does that mean getting the Indian share?

As I said to you earlier as well, that's something that once the plan is concrete, approved and adopted by the board, we will share that out transparently with all shareholders. Awesome.

Thank you. Thank you. Thanks a lot.

Thank you. I can confirm that does conclude the question and answer session here. I'd like to hand it back to you for some final closing comments.

Thank you, moderator. I'd like to thank all of you for joining the call today. If you have any further questions, please reach out to our IR partners, icr. Thank you for your time.

Thank you. This does conclude today's conference call with Yatra. Thank you all for your participation. You may now disconnect and please enjoy the rest of your day. Thank you.