Yatra Online Ltd (NSE: YATRA) Q1 2026 Earnings Call dated Aug. 11, 2025
Corporate Participants:
Unidentified Speaker
Dhruv Shringi — Co-Founder and Chief Executive Officer
Anuj Kumar Sethi — Chief Financial Officer
Analysts:
Unidentified Participant
Biplab Debbarma — Analyst
Anmol Garg — Analyst
Nitin Padmanabhan — Analyst
Moksh Ranka — Analyst
Manik Taneja — Analyst
Chirag Kachhadiya — Analyst
Khush Gosrani — Analyst
Deepak Poddar — Analyst
Parth Agarwal — Analyst
Tejas Gutka — Analyst
Suresh Pal — Analyst
Swapnil Potdukhe — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Yatra online Q1FY26 earnings conference call hosted by Antique Stock Broking Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Biplab Deva Verma from Antique Stock Broking Ltd. Thank you. And over to you sir.
Biplab Debbarma — Analyst
Thank you, Manav. Good morning everyone and welcome to the Q1 FY26 earnings call of Yatra Online. Hosted by Antique Stockbroking. Please note certain statements made during this. Call may be forward looking in nature and are subject to risks and uncertainties. Actual results may differ materially. Today we have with us the management. Of the company represented by Mr. Dhrup Shringi, full time Director and CEO Mr. Anush Sethi, Chief Financial Officer. Without further ado, let me hand over. The call to Mr. Dhrup Singh. Over to you Dhrup.
Dhruv Shringi — Co-Founder and Chief Executive Officer
Thank you Biplub and good morning everyone. Thank you for joining us to discuss our first quarter financial year 26 earnings. I’m pleased to share that our first quarter performance delivered strong financial and operational results with growth well ahead of our annual guidance. Despite the disruption in the travel industry in India on account of cross border tension and the unfortunate air crash in June 2025, this momentum was driven by sustained demand in business travel and strong execution across our platforms. For Q1FY26, we are pleased to report revenue of Rupees 209 million up 108% year over year.
Revenue less service cost for the quarter of 115.6 crores, up 44% year over year. Our growth in revenue and gross margins reflects the momentum we have in our corporate business and in the higher margin hotels and packages business. On account of continued momentum in MICE and standalone hotel cross selling to existing customers. Notably, our profitability metrics underscore our disciplined execution. EBITDA for the quarter at rupees 24.2 crores was up 247% year over year and pact was up almost four times to rupees 16 crores. Our adjusted EBITDA of rupees 24.9 crores was up 138% year over year with 21% EBITDA margin.
Our gross margin and adjusted EBITDA growth rates for the quarter were significantly ahead of our annual guidance of 20% growth for gross margin and 30% growth for adjusted EBITDA. These results reaffirm the strength and sustainability of our business model as well as our commitment to delivering value to our shareholders. The corporate travel market is expected to reach around 20 billion US by FY27. However, online penetration in this segment remains low at just around 20% in FY24 compared to almost 45% for the overall travel industry in India. This indicates substantial headroom for digital adoption across the crop.
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 as they continue to rise across the corporate segment. In the lodging space, branded hotels and curated packages are witnessing increasing demand for both leisure and wise 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 adoption presents a significant opportunity for Yatra, particularly in the underpenetrated corporate segment. Our corporate travel sector continues to deliver strong momentum for Yatra.
In Q1 we onboarded 34 new corporate clients collectively adding an annual billing potential of approximately rupees 200 crores. On the B2C front as well, we continue to make good progress on rationalizing our cost of acquisition and finding avenues to scale profitably. B2C bookings were more impacted by the macro events of the quarter as I mentioned earlier, and declined marginally year over year. Had it not been for the effect of these macro events, it was likely that B2C gross bookings would also have registered a marginal increase year over year. On the technology front, we introduced a more refined user interface which makes it easier to upsell branded fares across airlines.
These fares offer unique airline specific fare options bundled with benefits such as baggage allowance seats and flexible changes. This allows us to be able to cross sell and upsell more value added products to the customer and as you would know, these value added products typically carry higher margin for us. We have also recently launched the beta version of our AI Assistant dia, which stands for Digital Intelligent Yatra Advisor, which assists customers not only for the usual customer service inquiries but also helps refine the search and help book personalized travel products. AI enabled servicing will provide us with further operating leverage in the quarters to come and a more refined search process should enable us to attract new customers.
Early indications are that we would be able to optimize the work of about 70 to 100 people by the end of this fiscal year and about 200 people by the end of next fiscal year. Additionally, our expense management solution offers an end to end travel and expense solution with Gen AI powered receipt parsing, ERP integration and advanced analytics and visualization and it continues to get very positive feedback from its initial customers in sales and marketing. We continue to amplify partner offers from banks and airlines through our own media and social our own marketing and social media channels, ensuring consistent visibility and engagement.
Our content marketing initiatives further strengthen brand reach with compelling travel stories, seasonal campaigns and milestones celebrating that resonate with our audiences. We also executed innovative brand collaborations with leading consumer brands, Maggie being one of the more prominent ones, delivering impactful outdoor campaigns and co branded experiences that capture attention and drove conversion. As we look ahead, we see strong sustained growth opportunities driven by rising digital adoption across both leisure and corporate travel segments. Yatra is well positioned to capture this growth through our expanding corporate client base, enhanced technology offerings and a growing share of high margin hotels and packages, Business and MICE business we remain committed to disciplined cost management, profitably scaling and delivering long term value to our shareholders while strengthening our competitive edge in the evolving global travel ecosystem.
Thank you everyone and I will now request our CFO Anu Sethi to brief you on the financial performance for the quarter under review.
Anuj Kumar Sethi — Chief Financial Officer
Anuj thank you Dhrukh Good morning everyone. For the first quarter of financial year 2026 on consolidated basis, our revenue from operations grew 108% year on year to INR 2098 million, driven by continued momentum across key segments including robust growth in our hotels and packages business and a meaningful contribution from our MICE business. Our gross margins, defined as revenueless service cost, rose 44% year on year to INR 1156 million. Underscoring the strength of our diversified business model, adjusted EBITDA surged 138% year on year to INR249 million, translating to a healthy 21% EBITDA to gross margin ratio.
As a result, profit after tax increased 300% year on year to INR 160 million. In terms of segmental performance, our air ticketing passenger volumes declined 9% year on year to about 1206,000. However, gross air booking grew 4% year to 14103 million and our gross margins rose 54% year on year to 647 million, with margins improving from 3.10% to 4.60%. Under hotels and packages segment total room nights grew marginally by 1% year on year to 423,000. Gross bookings increased 43% year on year to INR 3,433 million, while the gross margins expanded 74% year on year to INR 311 million, with the margins improving from 7.46% to 9.05%.
While macroeconomic headwinds and the recent air crash impacted volumes in both segments, we successfully delivered higher revenue and stronger margins. On the liquidity front. Cash and cash equivalents and term deposits stood at INR 2208 million as of 30 June 2025 as compared to INR 1906 million as of 31 March 2025. Gross debt has been significantly reduced from INR 546 million as of 31 March 25 to just INR 29 million as on 30 June 2025. With this, I would like to hand it back to the moderator and open up for question answer session. Thank you.
Questions and Answers:
operator
Thank you very much sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to withdraw yourself from the question queue, you may press STAR and two participants are requested to use handsets with while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. We have a first question from the line of Anmol Gar from Dam Capital. Please go ahead.
Anmol Garg
Yeah, hi. Thanks for the opportunity and congratulations on good profitability. Couple of things that I wanted to understand. Firstly, in this quarter we have seen a strong growth in the take rate both on sequential and buy and buy basis. So what has led to this? Is there any value added product that. Is particularly scaling up in our business?
Dhruv Shringi
Hi Anmol, good morning. Good morning. So if I look at, you know, from a take rate point of view, firstly referring to the air take rates, air take rates year over year have improved by about 50 basis points. But if I look at from a gross margin to net margin ratio, that net margin ratio, as Anuj mentioned, has improved from 3.1 to 4.6%. It’s been driven by two factors. First, optimization of discounting. So we’ve been working quite closely with our banking partners and other marketing partners and affiliate partners through whom we are able to now drive customer acquisition without needing to discount to the same level from our side.
So that’s definitely a big driver for improving our overall net margin. And then what’s also happened is as more and more airlines are seeing the kind of growth that we are delivering on corporate travel side, we are able to get some higher margins for value added products that we are cross selling or the higher fares that we are cross selling. Right. So I think we’ve discussed this in the past as well that the average ticket size on business travel is about one and a half times higher than the average ticket size on the retail platform.
So airlines are quite keen to get a larger share of business travel. And given that in this quarter especially we saw softness in the overall B2C demand, we were able to work closely with our airline partners to be able to focus on growing the corporate travel piece. So it’s a combination of optimization of discounting on the B2C side and a higher mix on the corporate side where margins are better from a net retention point of view that drove this improvement.
Anmol Garg
Understood? Understood. Usually what happens here is that our B2C take rates are usually higher on a gross basis. Not on a net basis, but on a gross basis. Our B2C take rates are higher and. On a gross basis only, our take. Rates have improved in this quarter. But is it. But you’re saying that this is not from the B2C business, right?
Dhruv Shringi
A smaller part of it is from the B2C business. A larger part is coming from the corporate travel business. Because what’s happening is as the corporate travel business is growing, it’s allowing us to achieve higher PLB thresholds, higher earning thresholds from the airlines.
Anmol Garg
Understood? Understood. Okay. Secondly, wanted to understand that now we have achieved decent profitability in this quarter. Any guidance for the full year profitability that you are giving both on the EBITDA and the PAT side and also any guidance on the revenue side as well?
Dhruv Shringi
So the guidance that we had given last time around, we had given our 20% growth guidance on gross margin and 30% growth for adjusted EBITDA. We remain firm on that and we would let our numbers do the talking. But we are very confident of achieving our guidance and continue to outperform. Right.
Anmol Garg
So can we expect going ahead some improvement in the B2C part of the business as well?
Dhruv Shringi
So as I mentioned, anmol, had it not been for the events, unfortunate events that happened in the month of May and June, B2C also would have started seeing growth. We are seeing definitely post that recovery continue to happen. After a short disruption of about 30 to 35 days, we’ve seen growth coming back in the B2C segment as well. So my sense at least is that B2C also will continue to recover at a healthy momentum.
Anmol Garg
Understood. And lastly, Dhruv Wanted to understand that in this quarter we have seen sequential jump up in the hotel and packages gross bookings. But if I look at the service cost that has actually dipped in this quarter which is a little contrast. So just wanted to understand that what has led to the same.
Dhruv Shringi
So this has been led by the cross sell of hotels to our existing corporate customers. So there it’s not mice which has driven this. So for mice, as you would recall, seasonally this is still a weaker quarter. Right. But we’ve had new customer wins on the corporate side. Those customers have been hotel led customers. So the implementation of those customers is what is giving us the increase in terms of gross bookings of standalone hotels.
Anmol Garg
Understood? Sure. Dhruvia, thank you so much.
Dhruv Shringi
Thank you.
operator
Thank you. We have our next question from the line of Nitin Padmanabhan from Investec, please go ahead.
Nitin Padmanabhan
Yeah, hi, good morning. Congrats on a very solid quarter. Two questions from my end. So one is through last year Raspy pivoted from consumer to corporate. Obviously we have seen the overall air volume sort of come off obviously at better profitability. But do you think considering we are now crossed Q1 and now you have sort of rebased, you think from here on we should start seeing volume growth as well on a annual, on a year, on year basis.
Dhruv Shringi
Hi Nathan. Firstly thank you. And yes we would definitely look at, you know, volume growth from here on in the overall air segment now we began to see some kind of flatlining to marginal growth on the B2C side. So the decline which was there all of last year is no longer going to be the case going forward. And corporate obviously we are seeing volume growth happening so we should see volume growth happening on air as well going forward.
Nitin Padmanabhan
Perfect. And when we look at these service costs for Q1 and basically compare that with maybe Q2 of last year, it’s maybe Q2 of last year was 49% higher. And fair to assume that Q2 seasonality obviously is going to be from a mice perspective will be very strong. And even if one sort of assumes that there is some drop in take rate which can obviously happen through the course of the year, still you should be able to sort of deliver from a profitability perspective.
Dhruv Shringi
So Nitin, you’re absolutely right, Q2 should be a much stronger quarter for mice. And yes, we expect that our profitability levels, we’ve defined the baseline now and we should be able to grow from here. But what I would look at this is I would look at this on a more annualized basis so quarters will have seasonal impact. But at least from an annualized basis, we are very, very confident that our business should continue to trend in the right direction. From a profitability point of view, the advantage which we have now is given the higher mix of corporate business, there is much more stability of earnings.
So there is much lesser volatility in the overall earnings which we had seen when we were more B2C skewed.
Nitin Padmanabhan
Correct. Perfect. Perfect. That’s pretty helpful. I’ll come back for a follow up. Thanks A time. All the very best.
Dhruv Shringi
Thank you Nitin.
operator
Thank you. We have our next question from line of Moks Ranka from Aurum Capital. Please go ahead.
Moksh Ranka
Hello. Congratulations on a good set of numbers. My first question was if I see on gross bookings for FY 23, 24, 25. So all those figures, mostly the gross bookings have been. There has not been much growth, so they have mostly been flat. So when do we see gross bookings increasing from here.
Dhruv Shringi
So if you look at, you know, on a Q on Q basis, sorry, year over year basis in the current quarter, gross bookings have grown in this quarter, year over year. Right. So that’s the first time we’ve seen, you know, after some what I would call stabilization, we’ve seen a 9% growth in terms of gross bookings this year in the Q1 versus Q1 of last year. Going forward, as I was responding to Nitin as well, we should see improvement happening and growth happening in gross bookings. Also this was over the last year or so more on account of rebalancing of our business mix between B2C and corporate.
Now that we are lapping that we will begin to see growth in terms of gross bookings as well.
Moksh Ranka
Okay. And if I see, if I see for the corporate side for the growth we need working capital and that’s, and that’s the reason we have negative cash flow. Do you have any guidance of when we can turn cash flow positive?
Dhruv Shringi
See if I look at your last fiscal year also we were positive in terms of cash flow even in the current quarter we would be positive when it comes to cash flow as well. So while you’re right that the corporate business does consume working capital, but we are at a size and scale today in terms of profitability where the internal accruals being generated are taking care of the working capital needs now there might be some blips quarter on quarter which will be there. So if we sign up a large corporate customer, for example, or there’s a large mice which is happening closer to the cutoff Period.
There might be some aberration on account of that. But on a consistent basis, we feel from a working capital point of view, our profits should be able to take care of the working capital requirements. I mean, if I look at last year, last year we had about, that was our first full year of positive working capital as well from operations of about 7.3 crores.
Moksh Ranka
Okay. And so if I look at we had planned for launching a corporate card and I think it’s for the H2 of this year. So apart from that, so that the rationale for launching the corporate card was reducing our working capital intensity. So are we taking any other initiatives of reducing, for example the days outstanding or any other things to reduce our working capital so that we don’t have much risk on our balance sheet and we can transfer that risk to somebody else?
Dhruv Shringi
So there are definitely, you know, some conversations which we are going, undergoing at this point of time to see how we can optimize for this working capital. As you mentioned, you know, working on business travel cards, migrating more customers to the card platform, those are definitely some of the more low hanging fruits that we are pushing at this point of time. But there are other solutions as well which we are evaluating, which we feel will help us optimize our working capital requirements as we go forward.
Moksh Ranka
Okay. And my last question was regarding our corporate. We are increasing our mix of corporate customers and there is no penetration. But still the growth in gross bookings have not been that substantial as we compare it to any other OTA players. So why do you think, do you think that corporate as a customer is a low growth customer base for us? And for high growth also we might have to stretch our working capital and it increases the risk in the balance sheet. So how exactly are we planning to grow from it?
Dhruv Shringi
Firstly, just to again clarify what you see as the blended average growth rate includes the B2C business as well. Right. And like I had explained earlier, our B2C business was still marginally negative in terms of growth rate. So the corporate business overall will be growing closer to 20 plus percent in terms of gross bookings. The difference out here on the corporate side is that Unlike, let’s say B2C corporate offers very strong operating leverage. So 20% growth in gross bookings will result in 35, 40% growth in terms of EBITDA. So that is the advantage of the corporate business.
Now corporate business, because it’s a technology led implementation cycle that we go through. Yes, it’s not going to have as high a growth rate as B2C on the B2C side, if you do a high degree of discounting, you do a high degree of consumer marketing, you can always drive high volume growth or gross booking growth, but the profitability impact of that is not going to be as positive. Right. Whereas on the corporate side, you build out a more defensible platform by implementing technology solutions which are integrated within your corporate customers that entail a much longer lifetime value and that platform drives much better operating leverage.
So there is obviously a certain amount of trade off just because of the nature of the business between growth and profitability. Corporate provides maybe slightly lower growth but more stable profitability and a much more longer lifetime value of the customer.
Moksh Ranka
Okay, thank you for the detailed answer. I’ll get back in the queue.
Dhruv Shringi
Sure. Thank you.
operator
Thank you. We have our next question from the line of Manik Taneja from Access Capital. Please go ahead.
Manik Taneja
Hi. Thank you for the opportunity. Dhruv. I just wanted to pick your thoughts around the improvement in profitability that we are witnessing as the business pivots away. And you’ve been talking about our margins as a percentage of revenue, less service cost or the conversion from gross profits to EBITDA which have been around the 2021% levels over recent quarter. If you could give your thoughts as to how do you think this dynamics or these margins evolve over the next, over the medium term and what do you think is the North Star in terms of these margins, margins going forward? That’s question number one.
The second question is if you could also help us understand your confidence in sustaining a growth momentum outside of the acquisition related tailwinds that we’ve enjoyed over the course of recent quarters.
Dhruv Shringi
Hi Manik. So firstly in terms of the gross margins, right. Our gross margin to EBITDA ratio which is currently at about 21% we think in the, you know, near term. Right. So let’s say in a 12 to 18 month horizon we should be able to get this to 25% and in a under 36 month period we do expect this to be closer to 30%. In terms of North Star having seen people who are operating at high amount of scale, right. People like bookings.com and some other players like Navan, which are doing more of a technology led corporate business, we would expect this number to be somewhere around the 35% kind of mark as the North Star that we are chasing.
But in the near term we should be able to get to 25% before getting to 30%.
Manik Taneja
Sure.
Dhruv Shringi
And in terms of on the growth rate side as well. So as I mentioned that on the B2C side we are beginning to see offshoots of growth coming through on the B2C side. So my expectation would be that we would start seeing gross booking growth as well in the second half of this year which will take care of the tailwind from the acquisition as well. So that will then be all organic growth that you will see in the second half of the year. So we are not very far from that. We are already trending well in that direction.
Manik Taneja
Sure. And if you could call out the the impact of the Globe acquisition in terms of our financials for the current year. If you want to go into a like to like comparison.
Dhruv Shringi
See if we were to do a like for like as well, our growth rates would not have been, I mean our growth rates again we don’t call out Globe separately. But if I was to look at organic EBITDA growth also you would see those numbers being in the very high double digits.
Manik Taneja
Sure.
Dhruv Shringi
16 70% plus kind of growth rate.
Manik Taneja
Right.
Dhruv Shringi
Even more. Yeah.
Manik Taneja
Thank you. Wish you all the best.
Dhruv Shringi
Thank you.
operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to take questions from all participants in the conference please restrict yourself to only two questions per participant. We request you if you have any follow up questions to rejoin the queue and go ahead with the questions. We have a next question from the line of Chirag Kacharya from Ashika Group. Please go ahead.
Chirag Kachhadiya
Hello. Am I audible?
operator
Yes Chirag.
Chirag Kachhadiya
Yeah, so I have question like to maintain this growth trajectory and operating profitability what generally the tech capex we going. To initiate in coming years considering you know to maintain this growth trajectory generally in tech platform or tech led businesses maintain the growth every year you need new initiatives required. So if you can guide on tech. Capex and also this is amortization part. Like what in coming years it will going to be in the similar range in line with what revenue groups to be or it will lower.
Dhruv Shringi
Yeah. Hi Chirag. So in terms of tech capex right. We’ve done the heavy lifting on the tech capex over the course of the last two years. So there is a significant amount of investment that we’ve already made in terms of building out our expense management solution, enhancing our corporate travel platform, doing a lot of work on the AI automations and the agentic bots. So the heavy lifting to a great extent on the tech capex has been done and now it’s more closer to maintenance capex. There are still, let’s say some pockets where we need to enhance the platform but the vast majority of it has been done.
So we should not see any significant increase from here on. In terms of capex. Whatever levels you’re seeing right now, we would expect capitalization and depreciation and amortization to be at current levels plus minus 10%. That’s the kind of range in which I would expect this to be from let’s say next year onwards. At this point of time there will still be some tale of projects which are currently in working capital, sorry, in capital work in progress which will get capitalized in the coming quarters. But next quarter onwards, next year onwards we will see stability in this number.
So we won’t see very significant change in terms of our capex. Right. Going forward.
Chirag Kachhadiya
Thank you. All the best.
Dhruv Shringi
Thank you.
operator
Thank you. We have a next question from line off. Kush Goswarani from Incred Asset Management. Please go ahead.
Khush Gosrani
Yeah, hi. Thanks Dhruv for the opportunity and congratulations on good set of numbers to book with. Keeping question as one, we have seen a drastic reduction in ESOP charge on the P L. So if you could highlight what would be the trajectory of the ESOP cost going ahead and is a new pool being created?
Dhruv Shringi
So at this point, you know, we would expect ESOPs to be in this kind of range. We’ll see a little bit of increase from this. Right. But not a, a very significant increase from this, you know, at least in the near term with regards to creation of a new pool. I think that’s something that we will look at in the next financial year. So at least at this point of time we are not seeing any significant change in the ESOP cost.
Khush Gosrani
Got it, sir. And in the other services we have seen a good decline in this quarter. So this is only because of some seasonality element. How should we look at that part?
Dhruv Shringi
Yeah, that’s more seasonality, especially when it comes to seasonality and macro factors. Because you know, freight business, because of all this tariff up and down got disrupted a little bit. Right. In the months of especially April and May. So that’s the reason why you see the other services number come down right now. So it was a difficult quarter for freight given the seesaw that we saw on tariffs.
Khush Gosrani
Got it, got it. I’ll get back in with you. Thank you.
Dhruv Shringi
Thank you. Thanks Kush.
operator
Thank you. We have our next question from the lineup. Deepak Podar from Sapphire Capital, please go ahead.
Deepak Poddar
Yeah, hello. Am I audible, sir?
Dhruv Shringi
Yeah, yeah.
Deepak Poddar
So. So, so I will have more than couple of queries but I will be pretty quick. So I would just request, please allow me to have Those queries. So, sir, just first up, wanted to Understand on the GTV side, I mean, our volume growth is 9%, but our revenue growth is 108%. So you mentioned this volume growth is lower because of some rebalancing between B2C and corporate. But then how our revenue growth is so high? I mean, can you just explain me through. So, so how is this happening?
Dhruv Shringi
Yeah, so given the revenue growth number that you’re seeing, that is also partially on account of the accounting of mice. So the better measure that we’ve been speaking about for the last now 5, 6/4 is to look at the revenue less service cost. Okay? Now, gross bookings were up 9%. Revenue less service cost was up about 45%. The reason revenue less service costs grew at a significantly higher pace to gross bookings was on account of multiple factors led by one optimization of discounting. So the kind of consumer promotions and discounts that we were giving, we’ve been able to optimize that.
We’ve been able to work with banking partners to be able to get better kind of offers that we can provide to our customers without needing to discount the same proportion from our pocket. Second, it’s the higher mix of hotels and packages. Hotels and packages have net margins closer to about 11% compared to about 3 to 4% net margin for air. Our mix of hotels and packages year over year has changed from about 15% of gross bookings to about 20% of gross bookings. And the third again is in terms of the change in business mix, we’ve got a much higher share now of corporate travel as opposed to B2C.
B2C does have a higher amount of couponing and marketing. So net retention on corporate tends to be better. So these are the factors on account of which, While we’ve had 9% growth in terms of gross bookings, revenue less service cost has grown at about 45%. Okay, so it’s better margin realization. Yeah, okay.
Deepak Poddar
Okay, I got it. And so what sort of booking gross booking growth we are targeting for this entire year? FY26 against 9%.
Dhruv Shringi
So FY26 we will see maybe closer to about 15% for the full year in terms of gross booking growth. And going forward, our endeavor is to be closer to about 20% in terms of gross booking growth.
Deepak Poddar
Okay, so this year about 15%. And overall, maybe from next year onwards, 20%. So in terms of our guidance, aren’t we conservative? Conservative when we are saying we want to see 30% growth in adjusted EBITDA.
Dhruv Shringi
Having been on the other Side, when we did the ipo, we had come out with certain expectations around profitability and the macro environment changed significantly, which led to us not being in the first few quarters, being closer to where we had not guided, but where we had indicated. So this time around, we’d rather be conservative and beat those numbers as opposed to give out a more aggressive guidance.
Deepak Poddar
Okay, okay, okay, I got it. And in terms of parameter you mentioned in terms of gross margin, I mean 21% to 25% to 30% in 36 months and 25% in 12 months. So what? Exactly the parameter we are talking here.
Dhruv Shringi
So this is the margin of EBITDA to gross margin. So revenue less service cost to EBITDA ratio.
Deepak Poddar
EBITDA to gross profit.
Dhruv Shringi
That’s right. EBITDA to gross profit. Yeah.
Deepak Poddar
And. And gross profit we are calculating based on revenue less service, right?
Dhruv Shringi
That’s right, yeah.
Deepak Poddar
Okay. Okay. And just one last thing from my side. In terms of holding structure, I mean, can you throw some light? I mean, in terms of US and India, how is the holding structure?
Dhruv Shringi
We have a, you know, U.S. listed entity, which is the Holdco, and that HoldCo owns about 65% of India and India then has about 35%, which is, you know, public and institutional shareholding. Largely institutional shareholding. Okay.
Deepak Poddar
So India entity, about 65% is held by your holdco, which is a UA listed entity.
Dhruv Shringi
That is right, yes.
Deepak Poddar
And remaining 35% would be. Okay, fair enough. That’s pretty clear. And, and very helpful and thank you for allowing. Allowing me questions.
Dhruv Shringi
Yeah, sure.
Deepak Poddar
Thank you so much. All the way back.
Dhruv Shringi
Thank you, Deepak. Thank you.
operator
Thank you. We have our next question from the line of part Agarwal from Bastion Research. Please go ahead.
Parth Agarwal
Hi. Thank you for the opportunity and congratulations on a good set of numbers. My question was more around. So I read somewhere in the presentation that almost 70% of your transaction are being done via, you know, basically a SaaS platform, but that has been integrated with customers, ERP or HR Ms. System. Right. So my question is, you know, what kind of stickiness can the customer has, right? Is it easy for him to move to, let’s say Mathematic or some other, you know, vendor or it could be difficult for them.
Dhruv Shringi
Parth, I think that’s an excellent question. So in terms of customer stickiness, right. That is the beauty of the product that we are building. Our product integrates quite tightly with the customers and that introduces switching costs on the side of the customer. So if I look at our top 100 customers, right. 73 of our top 100 customers have been with us for more than five years. Right. So that gives you the kind of retention that we have. Right? And our annual retention rate is upwards of 97%. So it’s a highly sticky proposition. Right. And that’s what gives us this kind of high operating leverage in the business.
Parth Agarwal
So essentially I can assume that. So at the same time, it would be difficult for you to gain new customers from your competitors because of the same stickiness. So can I assume.
Dhruv Shringi
No, there is a big difference in that, right? Actually, there’s a big difference in that, right. That from an online penetration point of view, right? We are these guys who are the leaders in the market when it comes to online penetration. Most of our competitors still service customers in the offline manner. Right. With minimal amount of integration. That is why for us there is a large opportunity right now to go and penetrate into the digital adoption that’s happening in mass across the industry. More and more companies want to digitize their business processes and that’s what’s driving the growth on the corporate side for us.
Parth Agarwal
So. And secondly, so as far as I know you, Yatra does not allow railway booking, right? So if I am a corporate and I’m making, I want to book a basically railway because of lack of connectivity to apply, so I will have to get out of the ATA platform and.
Dhruv Shringi
No, no, we do allow railway. We do allow rail bookings as well. We do offer rail bookings for our corporate customers. Yeah.
Parth Agarwal
Okay. Just a final question from myself. So you have a website, Yatra Corporate, where if I right now go and onboard myself. So is it counted as a plus one out of the 34 customers that have onboarded in the quarter or is there some different metric to the 34 customers that you’ve onboarded?
Dhruv Shringi
No. So the 34 customers who are there are on the managed corporate side. So these are customers who will typically have upwards of like 5 crores of annual corporate travel spend. So anyone signing on the website in general with a GST number typically qualifies as an SME customer and not as a managed corporate travel customer.
Parth Agarwal
That’s all from my side. Thank you so much and best of luck to other commenders.
Dhruv Shringi
Thank you.
operator
Thank you. We have our next question from the lineup. Aman Jain from Paras family office. Please go ahead.
Unidentified Participant
Hello. Hi sir. Congratulations for God set up Humber. Just wanted a couple of questions. Do you have any products with reality for winning the corporate business? Is it due to distribution and secondly within this what the annual new signups we are Targeting since we added 200 crore of new business in the current quarter. Thank you.
Dhruv Shringi
Sure. On the corporate side, you know, we have multiple levers which are driving this kind of growth for us. On the technology front, we offer an integrated self booking tool platform with expense management to our corporate customers with very advanced analytics as well which are available on a real time basis or near real time basis to our corporate customers. Our tool has multiple functionalities from being able to show the corporate rates, the retail rates, especially negotiated rates, all of those in one single window to the corporate customer which allows them to be able to choose whatever is the most appropriate for them.
The kind of rules and policies that we can configure on our corporate platform are extremely evolved compared to most other products that are available in the country at this point of time. And that becomes a big win factor for us when it comes to large corporate deals. Right. So you know, I’m talking about the likes of customers like let’s say an EY, PwC, KPMG, BCG. So these are the kind of large corporate customers that we service where we provide these kinds of technology solution which is very customizable to the needs of the corporate customer and offers an integrated flow end to end from the approval process mechanism to the booking to then the filing of the expense.
Unidentified Participant
Okay, wonderful. And any new acquisitions plan. And can you also going forward makeup between the B2C business versus the corporate business since that is not specifically called.
Dhruv Shringi
Out at this point of time, our B2B2C mix is about 60 late 60s of gross bookings coming from B2B and early 30s. In terms of percentage of gross bookings coming from B 2C our expectation would be that, you know, by next fiscal year this would be closer to about 7030 with 70% of our gross bookings coming from B2B segment and about 30% coming from B2C.
Unidentified Participant
Okay. And currently it is usage a late 60s for B2B. Right.
Dhruv Shringi
Sorry Amand, the last part was not clear.
Unidentified Participant
And you said currently we are in late 60s for B2B business.
Dhruv Shringi
Yes, late 60s. Yeah. We are around 66, 67 at the moment in terms of B2B business. So this for the full year we would expect this to be closer to about 70%.
Unidentified Participant
And last question in general, why are volumes falling on air? Since we’ve checked numbers for the analysis competitors like if they go or make my trip globally, their Q on Q Y O Y both volume, volume I’m talking about is rising. And you also mentioned earlier in the call that you’re Getting superior volume incentives. But if you look at absolute numbers, the volumes are actually falling. So how are we getting those better margins? Even though the absolute number.
Dhruv Shringi
The volume is changing on account of the mix between B2C and B2B. So what we have done is given up some of the low value kind of bookings which are there on the B2C side where the customer is extremely price sensitive and an absolute discount shopper. Those are the ones that we have willingly given up and focus more in terms of driving from corporate customers, where the average ticket size is about one and a half times higher than the B2C platform. So it’s the rebalancing of the mix between the business which has resulted in this volume decline.
As we move forward, as we begin to baseline this, we will start seeing volume begin to grow gradually in the coming quarters. But the last year it’s been more of an issue of baselining or rather rebalancing the business between the two parts of B2C and B2B.
Unidentified Participant
Okay. Specifically on the volume incentive part, since the volumes are actually falling and still we’re getting incentives, is that.
Dhruv Shringi
The volume is rising on the corporate side. Right. Where the incentive is coming from. So B2C volumes are falling. Right. So if, I don’t know if you’re familiar with us, but in the last fiscal, last, last fiscal year, let’s say if we were to take FY24, our mix was more heavily skewed in favor of B2C. Right. So it’s been a gradual rebalancing of the business away from B2C into the more profitable and higher net margin B2B business.
Unidentified Participant
Okay. So. So airlines are looking at us as a source for acquiring even B2B customers other than just low end B2C customers.
Dhruv Shringi
That is right. And that is the reason, right? Because for an. Let’s take the case of an average domestic segment, right? On the B2C platform, it would be around 5200, 5300 rupees. On the B2B platform, it would be about seven and a half thousand rupees. Right. Corporate travelers will look at the last minute, they will book much more flexible fares. Those are the places where the airlines also make money. Right. Airlines don’t make money on a customer who’s booking 30 days in advance and buying the cheapest fare.
Unidentified Participant
Got it. All right, cool. All right, thanks. Thanks a lot. Congratulations on good set of numbers and hopefully for the best. Thank you.
Dhruv Shringi
Thank you, thank you.
operator
Thank you. A reminder to all participants, please restrict yourself to Only two questions per participation. Should you have a follow up question, we request you to rejoin the queue. The next question is from the line of Tejas Gutka from Electrum Portfolio managers. Please go ahead.
Tejas Gutka
Good morning. Good to see some encouraging results. Quick question. I remember.
operator
Sorry to interrupt you, Mr. Tejas. Your voice is quite muffled. Can you speak to your headset?
Tejas Gutka
I’m actually talking through the headset. Let me try that again. I remember last year we reduced our employee base and you mentioned today as well that because of the chatbot you’re looking at reducing employees further. Also as probably B2P, the mix grows and assuming we don’t need to add a lot of employees, but I see that operating expenses are still growing. So just some thoughts on that. I also remember you mentioned that the ESOP cost would probably just go away completely this year. But that’s sometimes, like you said, that they’ll probably go up a little more.
So what’s happening there?
Dhruv Shringi
Sure, I Tejas. So in terms of the other expenses. Other expenses, the year over year growth is largely on account of the inclusion of globes numbers. If I look at on a sequential basis also there isn’t a significant increase in the other expenses numbers quarter on quarter.
Tejas Gutka
In terms of should that remain at this level or you think it grow further from year on in nine with the top line growth?
Dhruv Shringi
No, it won’t grow anywhere close to the top line growth level. It will grow at a much slower pace than the top line growth numbers.
Tejas Gutka
Understood. Understood. And on esop.
Dhruv Shringi
And on esop. As you would have seen, our ESOP cost has come down pretty significantly year over year. Right. And what you are seeing at this point of time is largely the tail effect of it that’s left off.
Tejas Gutka
Understood. And last bit is, you know, any. Update on the expense management software that you know, we were piloting?
Dhruv Shringi
The expense management software is currently being piloted with a few customers and it’s got very positive feedback. We’ve now put a full fledged team in place to be able to take that to market. So we will, or rather we’ve already started pushing that much more actively now, given that we’ve got very positive feedback from the initial customer.
Tejas Gutka
So we should expect that maybe a few quarters down the line you’ll still. Start reporting numbers on this one.
Dhruv Shringi
Right now we don’t make a lot of revenue on this. No, no. At this point of time the revenue numbers are still relatively small. But my sense is it’s only in next fiscal year that you will start seeing meaningful revenue. Because you know, expense management Also, you know, as we sign up customers, it first will have a two to three month kind of gestation period of sign up customers or even if it’s a cross sell customer. Right. It will have a month or two of a sales process and then it will go through a month or two of implementation as well.
Right. So it’s only in the next fiscal year that you will see the numbers coming in from the sale of software or expense management solutions.
Tejas Gutka
Understood. Thanks. That’s all from me.
Dhruv Shringi
Thank you.
operator
Thank you. A reminder to all participants, please restrict yourself to only two questions per participant. Should you have a follow up question, we request you to rejoin the queue. We have our next question from the line of Soresh Pal from KRSP Capital. Please go ahead.
Suresh Pal
Thanks for the opportunity. Sir, I have two questions. My first question is what is the growth guidance that you have given to some earlier participants? And my second question is the quality question. Sir, as I’m new to the company, so I can see that from last three quarters the top line has been more or less stagnant. However, the EBITDA and PAT numbers has been rising quite fast. So can you explain this phenomena? These are my two questions.
Dhruv Shringi
Sure. So in terms of the growth guidance, the guidance for the year that we’ve given is we’ve given a 20% growth in gross margin and we’ve given a 30% growth in EBITDA. That’s the guidance that we’ve given out. In terms of the second part of your question around why, from an overall point of view, while you’re seeing volumes remain stagnant or gross bookings remaining flattish, but profitability improving, it’s because of the change in the business mix that’s happening. So over the last year and a half we’ve been working towards driving more and more of our business coming in from corporate customers.
And the corporate business has higher operating margins as compared to the B2C business. So this is the culmination of that strategy that we had adopted about, you know, almost 18 odd months ago to push more aggressively on the corporate side and become a more dominant corporate player. So these are the results of that that you’re seeing.
Suresh Pal
Okay. And sir, just to follow up on the first question, sir, if our ebitda. Grows by 30%, then our path should grow even faster. Right. Due to operating leverage that you just explained.
Dhruv Shringi
That is right. Yeah. We will see faster path growth here.
Suresh Pal
Thank you sir. That’s all.
Dhruv Shringi
Yeah, thank you.
operator
Thank you. We have a follow up question from the line of Kush Gosarani From Incred Asset Management. Please go ahead.
Khush Gosrani
Yeah, hi. Thanks. I was just reading your SEC filing. There is a note that by October 13th the there should be a minimum share price of $1. So if we do not meet that criteria for some reason, how should the delisting process move higher then or what would happen? So there is any penalty?
Dhruv Shringi
No, no. There is no real complication in that because you can simply as a company, you can do a reverse stock split.
Khush Gosrani
Okay. Okay. Got.
Dhruv Shringi
Yeah. So there’s no complication in that. Yeah, that’s just more of a procedural thing.
Khush Gosrani
Got it. Okay. Sure. Thank you.
Dhruv Shringi
Sure. Thank you.
operator
Thank you. We have our next question from the line of swap from GM Financials. Please go ahead.
Swapnil Potdukhe
Hi. Thanks for the opportunity. A couple of questions. First is that we have been mentioning this annual billings potential of new corporates every quarter. And if I were to look at your numbers for the last two years, that number adds up to around 1300 crores of this new potential billings. Now I would like to understand how much of that has been realized in the past for all these buildings. I mean, so while it optically, in my opinion that number looks good, 200 crores, a new billings and getting added every quarter. But how much is actually getting realized? If you can start sharing that number will be great going forward.
Dhruv Shringi
But just to give you a sense at this point of time, right. So out of the 1300 about 750 odd was in the last fiscal year. Right. And what was signed up in the last six months of last fiscal year is typically what would currently be in the process of implementation. If you look at the. For example, I’ll give you one example out here, right. If you look at the standalone hotels business, you’ve seen a strong jump happening sequentially as well in the standalone hotels business. So net of mice that is happening on account of implementation of customers who are acquired in the previous quarters.
So we would today have a situation where maybe about out of this, you know, let’s say 1300 odd crores, about 600 odd would have 6 to 700 would have been implemented.
Swapnil Potdukhe
Okay, so is there any particular reason why the entire 1300 crores or a number closer to that we are not being able to get through.
Dhruv Shringi
See, it goes to an implementation cycle, right. So typically, you know, depending on the level of customers, there will be a larger integration cycle as well, which will be there. Right. So customers who would have been acquired in the last quarter of last year, for example, that will still be, you know, in the process of implementation. And some of the customers from the previous quarter as well will still be in the process of implementation. So that’s why I’m saying so 700 plus would have been implemented by now. And I know, you know, at least you know the balance is currently in the implementation pipeline and you will start seeing the effect of that in the coming quarters.
Swapnil Potdukhe
Got it, got it. And the second question is on your organic growth. So there was a question earlier too. I think Exop Globe, if you were to look at your bookings, revenue and ebitda, if you can just break it down some, you know, some color on the organic growth there and please do not include globe numbers in that.
Dhruv Shringi
Yeah, so you know, we don’t call that out separately, but just to give you an indication, and I’ll repeat the same answer that I gave the gentleman earlier, that in terms of organic growth, if you were to look at from an EBITDA point of view, the organic growth in EBITDA as well would have been upwards of like 70 to 80%.
Swapnil Potdukhe
No, but and what about the top line side bookings or revenue? Any sense on that side?
Dhruv Shringi
So on the revenue side as well, globes impact on our revenue would be about, you know, maybe around 12% odd. Right. So we would be upwards of 30% on revenue as well organically.
Swapnil Potdukhe
So this is the YY number you’re. Suggesting that
Dhruv Shringi
I’m referring to the yoy. So if you were to look at revenue less service cost, right. That’s the main measure that we look at, which has grown 45% year over year on an organic basis as well, that would have grown upwards of 30% and EBITDA would have grown upwards of like 70, 80% on an organic basis.
Swapnil Potdukhe
Got it Dhruv. Very, very clear. Thanks a lot for that clarification.
Dhruv Shringi
Thank you. Yeah, thank you.
operator
Thank you. We have our next question from the line of Soham from RV Investments. Please go ahead.
Unidentified Participant
Thank you, sir. I’m audible.
operator
Yes, sir.
Unidentified Participant
Sir, when we say this, you know, 34 customers we have added with a billing potential of 201. So this gets added into our 1300 large and medium corporate customers, right?
Dhruv Shringi
That is right, yeah.
Unidentified Participant
So sir, if you can tell me. Like in the last three.
operator
Sorry to interrupt you, sir, we can’t hear you. Voice is quite freaking.
Unidentified Participant
Hello? I’m audible.
operator
No, sir.
Unidentified Participant
Hello?
operator
Yeah, now we can hear you.
Unidentified Participant
Yeah. Sir, sir, when we say this, 34 customers, which we added with a potential of 201 gets added to our large and medium corporate customers. So in the last three fiscal year, if you can tell me how many of these 1300 have been active with us and the revenue potential of them. Annual revenue potential.
Dhruv Shringi
What I was just answering Swapnil as well. So out of the 1300 crores which is there, we’ve already got 700 plus crores which is trading and the balance will end up getting implemented as part of the subsequent quarters in the next quarter or two.
So it’s always a waterfall which will be there. Right. So customers, you’re acquiring customers and then depending on the size of the customer, you are seeing customers being implemented in a, let’s say average 190 to 180 day kind of cycle.
Unidentified Participant
Okay, thank you.
operator
Thank you. We have a follow up question from the line of Aman Jain from Paris family office. Please go ahead.
Unidentified Participant
Last question please. And most of the questions have been answered. Any new acquisitions planned and what is the worst quarter for the corporate business process.
Dhruv Shringi
In terms of acquisitions? We continue to keep our eyes and ears open. Good opportunities that we come across on the, especially on the corporate side or on technology solutions that can fit in within our corporate platform. So we continue to evaluate those as we move forward.
Unidentified Participant
And what is the best quarter for the corporate business?
Dhruv Shringi
The worst quarter for corporate business will typically be the third quarter because that has been the Christmas New Year break and the Diwali Dussehra break. Right. So you see a large number of corporates being off during those days. And in terms of seasonally best quarters, seasonally best quarters will typically be Q2 and Q4. So part of Q1. So you will see corporate travel being strong middle of May onwards all the way through till end of September before you get into the Diwali Dasher upbreak. And then again it will start picking up in the first week of June, sorry, first week of Jan.
And then be again strong till 31st of March.
Unidentified Participant
Okay, thank you. That’s it. Thanks a lot.
Dhruv Shringi
Thank you.
operator
We have another follow up question from the line of Moks Ranka from Aurum Capital. Please go ahead.
Moksh Ranka
Hello. I, I just had a question on your U.S. holding company. So I just wanted to ask is there any plans to delist it? Yeah, that’s my question.
Dhruv Shringi
Yeah, so Mokshura, we are working on that. We put out some, you know, press releases earlier as well that we are working and evaluating a process and we think we have a solution in place and we should be, you know, it’s hard to commit to a firm timeline on that because there are multiple jurisdictions involved. There’s, you know, Cayman, there is us, there is Singapore, Cyprus. So there are multiple Jurisdictions which are involved in that. But that’s something that we are actively working towards.
Moksh Ranka
Okay. And. Yeah, that’s my question. Thank you for the clarity.
Dhruv Shringi
Yeah, sure.
operator
Thank you. We have our next question from Lino. Vinay Nankarney from. Please go ahead.
Unidentified Participant
Yeah. Just one question. I’m a little intrigued with your DIA AI Chatbot. Can you just elaborate? What exactly does it do?
Dhruv Shringi
Sure. Hi, Vinay. What we are trying to do with Diya, which is, you know, basically over and above the kind of customer servicing that you would see. Right. Customer servicing is the most standard part where you can cancel your ticket, you can ask cancellation charges, you can ask for your E ticket. Right. Those kinds of. Those are the more basic things. What we are trying to do out here. Over and above that is see how do we refine search. So if, for example, if I look at the traditional way of doing a search online, I come In, I enter 5, 6 parameters in the search results box and then I get maybe if it’s a flight, I get maybe 100 options.
If it’s a hotel in a city, I might get a thousand plus options. What we are aiming to do is see how do we help the customer make his search much more contextual. So I can say, give me a flight on Indigo day after tomorrow between 10am and 11am, right. And we will try and find you that specific slide. You could say, I want a hotel near, let’s say, andheri, which has 1, 2, 3 kind of amenities, has a swimming pool, offers breakfast, has a restaurant. Right. And it will show you the more refined search options.
That is what we are working towards. We do feel. And obviously, you know, this is an iterative process and it is much more complex than what I’m making it sound. But ultimately we want it to be a scenario where as a customer, you can be as specific as you want and not have to filter through hundreds of results to get to the one hotel that you want to book or the one flight that you want to book.
Unidentified Participant
Okay. Will DIA help me in scheduling my. Day for leisure travel when I’m on a trip?
Dhruv Shringi
So it will give you itineraries. It will give you suggested itineraries of recommended things to do. You could say, you know, what are the kind of things that would be recommended for a family of four with two young kids? Right. You could ask for questions around what would be the ideal thing for teenagers to do in this city? Those are the kind of things that can recommend to you in addition to what I’m talking about on the search side.
Unidentified Participant
Great. And how many of your corporate travelers, I mean employees of the corporate travelers. When they are on my stores, use your app?
Dhruv Shringi
So this app is a very recent initiative. Right. This has just been launched. So it’s very early to say on the chatbot how many of them will actually use the bot. But I feel, you know that from a, from an opportunity point of view, offers a very large opportunity for cross sell. That’s the whole logic behind it. And when people are in destination, how do you become an enabler for them to be able to find out what else can they be doing when they’re in the destination? Similarly, the concept of entire blending of business, travel and leisure is also happening quite actively.
So if you’re a business traveler in a particular city and you have a few hours free, it can also prompt you that these are the activities based on your profile which would be the right thing for, you know, all the interesting things for you to look at. But those are all, you know, evolutionary steps that we are working on.
Unidentified Participant
Thanks. Thanks for the answer and all the best.
Dhruv Shringi
Sure. Thank you so much, Vinay. Thank you.
operator
Thank you. As there are no further questions, I now hand the conference over to the management for closing comments.
Dhruv Shringi
Thank you and thank you everyone for taking out the time. As you would have seen from our numbers, our business is well poised for sustained growth. We’ve got strong momentum behind our business and we look forward to your active support and participation as we move forward in this journey. So thank you for your time this morning. Thank you, operator.
operator
Thank you, sir. On behalf of Antique Stockbroking Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.
Anuj Kumar Sethi
Thank you.