Yatra Online Inc (NSE: YATRA) Q3 2026 Earnings Call dated Feb. 12, 2026
Corporate Participants:
Dhruv Shringi — Chief Executive Officer & Co-Founder
Siddhartha Gupta — Chief Executive Officer
Analysts:
Scott Buck — Analyst
Presentation:
operator
Ladies and gentlemen, thank you for standing by. Today’s conference call will begin shortly. If you would like to register a question at any time, please press R1 on your telephone keypad. Foreign. Hello everyone and welcome to Yatra’s fiscal third quarter 2026 financial results call period ended December 31, 2025. Today’s call is hosted by Yatra’s co founder and Executive Chairman Dhruv Shungi and CEO Siddhartha Klipta. The following discussion, including responses to your questions, reflects the management’s views as of today February 12, 2026. The company does not take any obligation to update or revise the information before they begin their formal remarks.
Please be reminded that certain statements made on this call may constitute forward looking statements which are based on Natura Management’s current expectations and beliefs and are subject to several risks and uncertainties that that could cause actual results. For a description of these risks, please refer to Yatra’s filings with the SEC and their press release filed earlier this morning on the IR section of Yatra website. With that, let me turn the call over to Yatcha’s co founder and Executive Chairman Dhruv Shungi. Dhruv, please go ahead.
Dhruv Shringi — Chief Executive Officer & Co-Founder
Good morning everyone. Thank you. Let me start by briefing you first on the events that happened during the quarter and how it has impacted the industry and then our senior performance and the performance in greater detail the third quarter which is typically a strong. Which operational challenges across the entire country. We covered in the second half of the month and we’ve seen more factors continue to rise in the month of January and thereon during the period was divergence between domestic and international travel trends. While domestic travel experienced short term headwinds in December, international travel remains strong with healthy year on year and sequential growth.
This reinforces that outbound and longbourn travel is in a structural upcycle benefiting organized travel platforms like Yatra, which on corporate and international travel franchises. Also, the recent Union Bargit sends a clear message and positive signal about the government’s long term commitment to the travel and tourism sector by positioning tourism as a strategic growth engine linked to the employment generation, foreign exchange earnings and research development. The policy framework shifts from episodic support to building a more structural and sustainable ecosystem for travel and hospitality in the country. Key areas such as rationalization of tax collection at source on overseas to a uniform rate Improve outbound segment in addition, increased emphasis on domestic connectivity through infrastructure investments including high rail corridors, waterways and regional access initiatives to enhance hospitality capabilities through a national Institute of hospitality and large scale skill programs and the talent pipeline Food Tourism Center.
There is a growing demand for Indian organizations to help digitize travel procurement while using AI driven platforms that offer end to end automation self booking tools and integrate expense management, prioritizing compliance and cost savings. AI and predictive analytics platforms automation procurement by forecasting demand, optimizing costs, enforcing policies and in real time AI enabled self pushing tools can perform real time OC compliance checks, flag risks like disruption analysis and personalized iterations with safety insights. Shifts. From reactive auditing to predictive cutting, administrative friction and enabling productivity. Yahya through its forward self working platform supported by AI Bot and is taking the lead to driving this industry dynamics Moving on More specifically to Ambassadors for the quarter business has been selected earlier by us. The E is now growing profitably additionally corporate and mine business. Supported by our continued focus on scaling the corporate travel business. The steady growth in corporate bookings along with the increasing contribution from higher margin hotels and my segments positions us well for sustained margin expansion and improved profitability over the long term.
With this, let me now introduce you to Mr. Siddharth Gupta who recently joined us as our new CEO. Siddharth brings with him a wealth of experience across the B2B SaaS industry and in his last role was the President of Vasa Consulting in India and was also heading their SaaS based talent acquisition business globally. Prior to this, Siddharth has also held leadership roles in large tech and SaaS companies like SAP and HP. With that, let me hand you over to Siddharth. Sid over to you.
Siddhartha Gupta — Chief Executive Officer
Thank you so much Dhruv Operator, I hope I am loud and clear on the line. Thank you so much Dhruv for giving a preamble on our quarter performance and industry trends. A very good morning to everyone on the call. Adding to Dhruv’s comments, despite an industry wide disruption in the airline sector during the quarter, Yatra continued to deliver in its air ticketing business supported by seasonally strong B2C travel demand. Gross bookings in the air ticketing increased 22% year on year supported by 14% growth in air passenger which far exceeds the industry growth of about 1%.
Take rates also improved from 6.2% to 7.1% on account of the quarter being more B2C focused in the hotels and packages segment. Overall performance during the quarter remained healthy. However, we did see some temporary impact in the mice and the corporate event subsegment with a few bookings getting deferred due to flight disruptions. Just to remind listeners, it was the disruption in the Indigo Airlines scheduled in India. This resulted in a modest one time impact on the quarter part of which we expect to roll over in quarter four. Supported by the continued strength in underlying corporate travel demand.
Gross bookings in the segment grew 20% year on year excluding the impact of deferment of the MICE, business. Hotels would have grown over 30% on a standalone basis supported by strong growth in our corporate business and in our affiliate business. While gross take rates moderated slightly from 12.2% to 11.7% year on year on account of change in business mix, gross margins improve further from 9.7% to 10.2% year on year, reflecting prudent discounting in B2C and better margin realization from suppliers. For corporate hotels, our B2B to B2C mix was approximately 60 to 40 for the quarter versus the nine month average of 6,535 in favor of B2B.
Our corporate travel business continues its strong momentum. We onboarded 40 new corporate clients in this quarter, collectively adding an annual billing potential of INR 2.2 billion. As mentioned earlier, the disruption happened during the highly productive first two weeks of December when corporate travel usually peaks before holidays. We saw deferment of mice travel into Q4 and subsequently few of the groups moved to Q1 of the next financial year as a direct result of uncertainty in the travel during that period. This deception not only adversely impacted our operating performance, but also led to incremental working capital deployment where advances had already been paid to vendors.
For MICE groups, these impacts were largely limited to the month of December and the business is back on track. In the corporate business, there’s more to cheer. The early response to our expense management solution has been very, very encouraging and we’ve onboarded eight customers now on our expense management platform. Early traction proves that Yatra understands the pulse of what our corporate customers need. This solution has not only become a door opener to get new accounts, but also gives us a huge upsell potential in our existing accounts. Few thoughts on what you can expect from Yatra in quarters ahead.
Our consumer focused line of business has returned to growth path while improving margins. This was a result of sharp execution coupled with successfully tapping into partnerships and affiliates for demand generation in the near future. You should hear more on organic demand generation projects making impact helping us further improve margins in this line of business. Our corporate value proposition still has a huge headroom for growth. Online Penetration is around 23% and we have laid a strong foundation for chasing this potential. We’ve sharpened our go to market by establishing separate teams to chase large and small and medium enterprises.
Demand generation is amplified by a new Insight sales team now which has started augmenting the efforts of the team on ground. Early signals are very promising beyond new customer acquisition, Our farming team have won multi year renewals from some of our largest customers this quarter, proving that corporates want trusted partners who can deliver value to them. Needless to say that our success is closely tied to the speed at which we can deliver tech innovation. Our early investments in adding talent to our product and tech team have started showing results. You can expect us to further add gap between us and what’s available in the market.
Hope that gives you a flavor of where we headed. At this moment I would have paused and handed over to Anuj Sethi who’s our CFO to brief you on the financial performance for the quarter under review. He is caught up in a medical emergency. Hence I’ll take you through the financial performance as well and then me and Dhruv will take the questions together on the financial performance for the third quarter of financial year 26 on a consolidated basis, our revenue from operations grew 10% year on year to INR 2,577 million or approximately $29 million, driven by steady demand across our key segments with robust growth from air ticketing business in terms of segmental performance, our air ticketing passenger volume grew 13% year on year to 1490 1000.
However, gross bookings grew 22% year on year to INR 16,931 million or $188 million and air adjusted margins rose 40% year on year to INR 1195 million or 13 million, with adjusted margin percentage improving from 6.2% to 7.1%. Under hotels and packages segment hotel room nights grew by 22% year on year to 508,000 DOS. Bookings increased 20% year on year to INR 4,306 million or close to $47 million with adjusted margin expanded 15% year on year to INR 502 million or $6 million. On the liquidity front, cash and cash equivalent and term deposits stood at INR20.42 million or 23 million as of 31 December 2025.
Gross debt has marginally increased from INR546 million as of 31 March 2025 to INR583 million or 6 million as of 31 December 2025. With this, I would like to hand back to the moderator and Open up for question and answer session. Thank you.
Questions and Answers:
operator
Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If you would like to withdraw your question, please press star followed by two. When preparing to ask your question, please ensure your device is unmuted locally. First question comes from Scott Buck with HC Wainwright. Your line is open. Please go ahead.
Scott Buck
Hello guys. Thanks for taking my questions. First, I’m curious, the revenue growth deceleration in the quarter, is any of that structural or you’re viewing that all as, you know, just kind of the ebbs and flow of managing some of the macro challenges that are out there.
Dhruv Shringi
Hi Scott, Good morning to you. This is largely seasonal in nature. Quarter three, if you would recall, is one of the lowest quarters for business travel, given the holidays that we have for Christmas, New Year’s and Diwali Dussehra. Which both happen in this quarter. So effectively you lose one month out of the three in holidays. And then it got compounded this year with the flight disruptions that happened during the first two weeks of December. So it’s not a structural shift, it’s just a one off given the disruption. That happened in the industry.
Scott Buck
Okay, that’s fair. Second, I just want to ask about the MICE business. Are you seeing some of the macro challenges out there, whether it’s tariffs or anything else having an impact on that business? I know there were some headwinds in the quarter.
Dhruv Shringi
No, we haven’t really seen any impact of that, especially things like tariff and all. We do in fact expect that given that there is a new trade deal which is in place between India and the EU and India and the US we will see business travel scale up even further when it comes to travel between both Europe and the US but we’re not really seeing any headwinds per se on account of these. Sid, if you want to add something extra on that. Yeah.
Siddhartha Gupta
So you know, this MICE as a segment has grown and has tremendous potential for us to grow into. This was a very fragmented market about three to four years back. And now over the last two years, Yatra has become one of the top three players operating in this space in India. And Indian economy is one of the fastest growing economies. So there are multiple industries where corporates are traveling not only outside India, but within India as well. And hence there is a huge headroom for growth. What we have seen is that this entire segment is getting more formalized.
So instead of very small players operating these events for corporates, now the corporates prefer doing business with large Vendors like ourselves. So I think there’s a huge potential and we don’t see any disruption in this space at all.
Scott Buck
Great, that’s helpful. Color. And then last one from me, guys. You continue to do a really nice job adding new corporate partners. On the travel side, I’m curious how many of those kind of obvious or low hanging fruit opportunities are still out there and at some point do you need to change or pivot the way you’re pitching some of these customers to continue to bring on that corporate travel business?
Dhruv Shringi
I think at this time we have got a lot of headroom in this. Our initial mapping had suggested close to about 13,000 organizations that we could target as part of this. We are still just in excess of about 1,000. So I think there is a lot of headroom for growth for us in this sector. I think Siddharth coming on board will also sharpen our focus on how we go to market. And maybe Siddharth can elaborate a bit more around how he’s gone ahead in the short period of time in augmenting the sales team and putting in some new things in place which will help us drive further growth.
Siddharth.
Siddhartha Gupta
Yeah. So to add, I concur with Dhruv completely. We have barely scratched the surface. There is a huge headroom for growth because the offline corporate travel still is the majority market. And the value proposition of Yatra from providing an online corporate travel platform which caters for all uniqueness of every corporate customer has a huge headroom for growth. To give you a parallel in my days at SAP or Hewlett Packard, corporate India itself has more than 30,000 companies which are potential customers to Yatra. We just about crossed 1300 right now. So there’s a huge headroom for growth for us.
From a, from a go to market standpoint, we have commenced a very ambitious and aggressive go to market sharpening exercise. At Yatra, we have divided our go to market into three pillars. One is. So we’ve separated these teams out. One is the elite sales team which looks at only large enterprises and tries to get us more inroads into large corporates where travel spends are very high. Then we’ve got a separate team which is looking at small and medium enterprises which operates through digitally creating demand and then through an inside sales landing it into our kitty.
And the third bit is we are already one of the larger players in India from a large enterprise automation. So we have a very large existing account base. So we have a team called key account managers and headed by a very senior senior leaders here in India and the mandate there is to upsell and grow our existing relationships, where we are introducing newer solutions like expense management and other solutions and especially international hotels and travel, so that we are able to upsell into our existing customer set as well. So overall, we are sharpening the go to market, running a very strong cadence on a weekly basis to ensure that pipes remain healthy and conversions remain healthy as well.
So you should see momentum pick up from here. And we expect our strategy of leaning more towards B2E to grow Yatra, you know, very successfully executed over the next three to four quarters.
Scott Buck
Great. That’s very helpful color guys. Well, I appreciate the time. Thank you.
Dhruv Shringi
Thank you.
Siddhartha Gupta
Thank you so much.
operator
As another reminder, if you’d like to ask a question, please press star one on your telephone keypad. Now. We have no further questions, so I’ll hand back to the management team for any final remarks.
Dhruv Shringi
Thank you, operator. Would you like to thank you everyone who joined the call today. And as always, we remain committed to driving shareholder value and being able to address any questions that you might have. Siddharth and I are always available. Please feel free to reach out to us through our IR and they can direct you to us. We look forward to engaging with you and continuing to deliver on the strong results that we have done for the last few quarters. Thank you for your time today.
Siddhartha Gupta
Thank you so much.
operator
Ladies and gentlemen, today’s call is now concluded. We’d like to thank you for your participation. You may now disconnect your lines.