Yatra Online Inc., (NSE: YTRA) one of India’s prominent online travel aggregators, reported steady year-on-year growth for the third quarter of fiscal year 2026, though profitability softened as operating expenses increased and the domestic aviation sector faced disruptions.
The company posted consolidated operating revenue of about ₹256.8 crore for the quarter, representing a 9% rise from ₹235.2 crore in the same period last year. Including other income of roughly ₹4.8 crore, total income stood at approximately ₹261.5 crore.
Despite the top-line improvement, revenue declined sequentially by 27% from ₹350.8 crore recorded in the preceding quarter, suggesting a moderation in travel demand or booking momentum compared with earlier months.
Margin Expansion Signals Operational Progress
A notable highlight was the improvement in profitability metrics at the operating level. Revenue less service cost (RLSC)—a measure the company uses as gross margin—rose 23% year-on-year to ₹127.7 crore from ₹104.1 crore. Meanwhile, gross margin edged up to 5.9% from 5.8% a year earlier.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased sharply by 64% to ₹23.9 crore, with EBITDA margin expanding to 18.7% from 14% in the corresponding quarter of the previous fiscal year.
The improvement in margins indicates ongoing operational efficiencies and a potentially stronger mix of higher-margin services, even as broader industry conditions remained uneven.
Profit Slips on Rising Expenditure
Profit after tax came in at approximately ₹8.3 crore, down 17% from ₹10 crore reported in the year-ago quarter.
Financial data show that overall expenses climbed to around ₹249 crore during the quarter, with service costs accounting for roughly 52% of total expenditure. Employee benefits were about ₹43 crore, while spending on marketing, legal, information technology, and other operational areas added to the cost base.
The higher expenditure weighed on net earnings even as the company continued to scale operations.
Nine-Month Performance Reflects Stronger Momentum
For the nine-month period of FY2026, Yatra reported operating revenue of ₹817 crore, marking a 43% increase compared with ₹572 crore in the corresponding period a year earlier.
This broader growth trajectory suggests sustained demand across travel categories, positioning the company for continued expansion despite quarter-to-quarter volatility.
Industry Context and Outlook
Yatra’s latest results highlight a balance between growth and margin management in a competitive online travel market. The company noted that performance occurred “despite disruptions in the domestic aviation sector,” underscoring the resilience of travel demand even amid sector-specific challenges. While profit moderated during the quarter, the combination of rising operating revenue, expanding EBITDA margins, and improving gross margin metrics points to underlying operational strength. The company’s ability to manage costs while sustaining revenue growth will likely remain a key factor shaping its financial trajectory in the coming quarters.