Yatra Online Ltd (NSE: YATRA) Q4 2025 Earnings Call dated May. 30, 2025
Corporate Participants:
Dhruv Shringi — Co-Founder & Chief Executive Officer
Anuj Kumar Sethi — Chief Financial Officer
Analysts:
Nitin Padmanabhan — Analyst
Parth — Analyst
Anmol Garg — Analyst
Manik Taneja — Analyst
Moksh Ranga — Analyst
Unidentified Participant
Yash Modi — Analyst
Vinay Nadkarni — Analyst
Presentation:
Operator
Please wait while you are joined to the conference. The conference is now being recorded ladies and gentlemen, good day and welcome to the Q4 and FY ’25 Earnings Conference Call of hosted by Investec Capital Services India Private 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 Nitin from Investec Capital Services India Private Limited. Thank you, and over to you, sir.
Nitin Padmanabhan — Analyst
Thank you. Thank you, Alrik. Good afternoon, everyone. Thank you for joining the Yatra Q4 FY ’25 and full-year FY ’25 earnings call. Before we begin, let me mention a short cautionary statement. Some of the statements made in today’s call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. We have with us Mr, our Whole-Time Director and CEO; and Mr Anuj Kumar Sheti, our CFO on the call. I now hand over the call to Joe for his opening remarks. Over to you,.
Dhruv Shringi — Co-Founder & Chief Executive Officer
Thank you. Thank you, Nitin. Good morning, everyone, and thank you for joining us today. As we reflect on fiscal 2025, I’m thrilled to present our performance that demonstrates our story of resilience, strategic growth and unwavering momentum that solidifies Yatsha’s position as India’s premier corporate travel service provider. Before diving into the details, I want to spotlight our landmark achievement. Q4 FY ’25 was the most profitable quarter in history. This milestone reflects the strength of our business model, the success of our strategic initiatives and our commitment to delivering exceptional value to shareholders. It’s a proud moment that underscores our upward trajectory and sets an optimistic tone for what lies ahead.
For FY ’25, we are pleased to report annual revenue of INR7,914 million, up 87% year-over-year. Our full-year revenue reflects the momentum we have built across our corporate travel and mice businesses. These have been pivotal in navigating a competitive landscape. Notably, our profitability metrics underscore our disciplined execution. EBITDA for the year was up 105% and PAT was up 912% year-over-year to INR366 million. On a quarterly basis for the March quarter, we reported revenue of INR2,190 million, up 103% year-over-year, driven by the growth in our mice business and the inorganic contribution from the Globe acquisition.
Our revenue less service cost, which is our gross margin for the quarter came in at INR1,094 million, up 28% year-over-year. Adjusted EBITDA of INR251 million was up 62% year-over-year with 21% EBITDA to gross margin ratio. Now let’s take a broader look at the landscape. India travel Industries in a transformative way. IMARC forecasts corporate travel in India, which is currently at billion will hit 80 billion by 2033, driven by globalization of business operations, which has encouraged multinational companies to expand their business into India, plus growth of the domestic sector.
Add to that rising investments by public and private agencies for improving travel infrastructure and the growing online penetration. Other factors include rapid digitization, the rising partnership between businesses and airlines, the increasing trend for business leisure travel, continuous improvement in the airline, hospitality and tourism industries and the development of meeting incentives and conference, which is the mice segment are positively Influencing the markets in India. India is not just growing in the travel sector, it is thriving. And against this backdrop, Yatra’s success and future potential continues to look bright. India’s GDP at almost INR4 trillion is currently the fourth largest economy globally and is on a track to become the third by 2028. This economic ascent is boosting individual prosperity with GDP per-capita reaching $2,700 in 2024, which is a sixfold increase over the past two decades. Rising incomes are unlocking new opportunities for travel as more Indians prioritize leisure and business travel. Our corporate travel business remains a key growth engine for us. In Q4, we added 35 new corporate clients contributing to INR1.4 billion in expected annual business. For FY ’25, we secured 148 new clients contributing INR7.5 billion in expected annual business, reinforcing our market leadership. We continue to expand our corporate sales team across India, targeting high-growth sectors like IT, manufacturing, FMCG and consulting. This effect has quadrupled our sales pipeline, reflecting strong demand. Our mice business has emerged as a standout performer with significant revenue growth and margin expansion in the 4th-quarter, building on the strong foundation laid throughout fiscal 2025. The globe has long been recognized for its deep domain expertise and strong client relationships in the mice sector. By leveraging our expanded capabilities and globes expertise, we’ve captured a larger share of this high-margin segment, positioning Yatra as a dominant player in India’s mice market. The Globe acquisition has also expanded our reach into a diverse and largely non-overlapping client base, enhancing our exposure across multiple industries. This broader portfolio opens up meaningful cross-sell opportunities across our hotel inventory and expense management solutions, allowing us to deliver more integrated and customized travel programs to corporate customers. In just the last nine months of fiscal ’25, our combined MICE platform handled over 600 trips and served more than 80,000 travelers, a testament of the growing demand and our ability to execute at-scale. In India, mice market is estimated at 3.3 billion in 2023 and expected to grow to 10.5 billion by 2030, representing an 18% CAGR. We see a significant runway ahead and remain fully committed to aggressively expanding our presence in this high-growth segment. When we set-up our mice business about 15 months ago, we set ourselves a target of becoming one of the top three players over the next three years. I’m happy to share that I strongly believe that on the current run-rate, Globe and Yatra combined would become one of the top three players in this fast-growing segment in the current fiscal year itself. Switching tracks to our expense management solution, our expense management platform, continues to gain traction with multiple customers now live and actively using the solution. Early feedback has been very encouraging validating recap’s relevance as a complementary offering to our core travel services. We see strong cross-sell potential within our existing client base and the broader opportunity in the expense management space remains significant, both in India and select international markets. As adoption scales, recap is poised to drive deeper customer engagement while contributing meaningfully to our margin profile. We focused on accelerating this momentum and building recap into a pillar of our enterprise offerings. I’m also pleased to share that in FY ’25, Yatna became one of the first travel management companies in India to integrate the new distribution capabilities, which is a transformative distribution technology developed by the Ayata, which is the main airline body. Some of the benefits of Yatra’s NDC integration for corporate travelers is it offers more flight options and better pricing. NDC integration provides corporate travelers with access to a wider array of flight options, potentially including exclusive NDC fares that may be lower than those available through traditional channels. More-and-more airlines are adopting this kind of a distribution format, wherein there are certain fares, especially the more cheaper fares which are available only through these kinds of exclusive channels. There is real-time updates on seat availability and potentially dynamic pricing, which means sales can fluctuate based on-demand and other fact offering opportunities for cost-savings. There are personalized offers and richer content which is available through this program, which can include preferential seating, extra baggage or bundled offerings. Overall, move to integrate NBC with its self-booking platform for corporate travelers aims to enhance the customer’s working experience, improve cost-efficiency and streamline travel planning even further for our customers. This reinforces Jaatra’s commitment to innovation and leadership in corporate travel management, ensuring that we remain at the forefront of technology advances that benefit our customers. In our B2C business as well, we were able to address most of the decline and in Q4, gross bookings fell only 6%. The silver lining is that we’ve seen stabilization in our B2C business now and despite facing competitive headwinds, in Q4, bookings were almost flat, thanks to optimized discounting, SUO improvements and increase in personal travel attach rate through our corporate channel. Based on the current trends, we expect to start seeing gradual growth in our B2C business in the second-quarter of the current fiscal year. This would most likely have been the situation in the current quarter as well, had it not been for the disruption of 10 to 15 days due to situation. Thankfully, things have normalized pretty quickly and business is back on-track and I’ll talk more about just going-forward. On the AI front as well, we continue to embrace AI to enhance our customer experience, both on the corporate and on the consumer side. On the corporate front, last quarter, we introduced our AI-enabled low-fare finder. This is like a smart tool which post-booking optimizes our search process and continues to look for fares which might have dropped after the customer has booked. If a lower fare becomes available on the same flight up to six hours before departure, the system automatically alerts the traveler, giving them the option to rebook at the reduced price. This delivers tangible value to the customer while reinforcing trust in our platform. By integrating real-time pricing intelligence into the post-purchase experience, we are not just helping users save, we are also using technology to redefine what proactive travel services can look like. We’ve also been building intelligent bots to automate customer service email queries and calls. These bots will continue to improve as the LLMs evolve at a rapid pace and we will be able to significantly drive down the cost of servicing in the near-term. I’m also pleased to highlight a few recent accolades and awards that Yatra has received from its airline partners. These underscore the strength of our supplier relationships and the trust we’ve built with the global airline ecosystem. We were recognized by Singapore Airlines as its top travel partner in India. Similarly with Air Canada, we were honored with their prestigious circle of excellence. We received accolades from Etihad as well as one of their largest partners in the Asian region. These recognitions reflect our ongoing commitment to delivering value not only to our customers, but also to our partners. They reinforce our position as a preferred travel platform in the eyes of leading global carriers. As we look-ahead to fiscal 2026, we are encouraged by the momentum across our businesses. Strong corporate client acquisition, continued growth in our segment and ongoing investment in our proprietary technology platform, including AI-powered personalization and booking tools position us well for the next phase of growth. For FY ’26, we are introducing preliminary guidance of 20% growth in revenue less service cost or our gross margin and 30% growth in EBITDA. This will be driven by three pillars, expansion in corporate travel, continued scaling of mice and hotels packages and the full-cost synergies from Globe. I want to highlight two factors out here in this. One, our mice business has a certain amount of seasonality. The second-quarter and 3rd-quarter are typically higher quarters for the mice business followed by Q4 and Q1. So there will be a seasonal impact, which will be there as we go through the year. And secondly, today, our B2C business is now about 35% of our overall gross bookings. And on a next fiscal year basis, we expect our corporate and B2B business to be between 65% to 70% of our overall gross bookings. Before I close, I’d like to also just provide a quick update on the recent geopolitical developments that briefly disrupted travel. April began on a very strong note for us, but following the unfortunate incident in, one of India’s key summer destinations and the subsequent escalation of tension between India and Pakistan, we experienced a temporary disruption in travel activity. This led to a short-term dip in both leisure and corporate bookings, particularly in Northern India. During this period, we worked proactively with our airline and hotel partners to support customers through flexible cancellation and rebooking options . I’m pleased to report that this situation has now stabilized and with ceasefire in effect, we’ve seen prompt recovery in bookings across the country. Excluding the directly impacted area where demand is still gradually normalizing. In closing, we believe Yatra is well-positioned for sustained success. Our emphasis is on high-margin growth, operational excellence and strategic innovation. Thank you for your support, and I will now request our CFO, Anuj, to brief you on the financials in more details. Anuj.
Operator
Ladies and gentlemen, the management has got disconnected. I request you to stay online while I get them reconnected. Thank you I think may be in the interest of time I can take this on ladies and gentlemen, the management has been reconnected. Please go-ahead, sir. Hello, sir, please go-ahead.
Anuj Kumar Sethi — Chief Financial Officer
Thank you. I’m sorry for this small disruption. Should I go-ahead with my remarks on Drush?
Dhruv Shringi — Co-Founder & Chief Executive Officer
Yes, please. Over to you.
Anuj Kumar Sethi — Chief Financial Officer
Thank you, and good morning, everyone. Let me deep on you on your — on our financial performance for the period under review. For the 4th-quarter of financial year 2025, revenue from operations grew 103% year-on-year to INR2190 million, driven by a 50% — 54% increase in hotels and packages, growth in mice and inorganic growth contribution. More notably, our gross margin, which is revenue-led service costs jumped 28% year-on-year to INR1094 million, driven by our focus on high-margin areas like corporate travel and mice.
The adjusted EBITDA sold 62% year-on-year to INR251 million, yielding a 21% EBITDA to gross margin. Highlighting our operational usage, PAT for the quarter surged 173% to INR152 million, which is our highest-ever quarterly reported profit. For the annual results for the financial year 2025, revenue from operations grew 87% year-on-year to INR7,014 million, fueled by stellar growth in overall corporate travel business. Adjusted EBITDA rose 24% to INR687 million and net profit turned sharply positive, reaching an INR of INR366 million, a 912% improvement from last year’s loss.
These results showcase our ability to scale efficiently and deliver shareholder value. Looking at the liquidity, cash-and-cash equivalents and term deposits stands at INR106 million as on 31st March 2025, while gross debt reduced from $68 million as on 31st March 2024 to INR546 million as on 31st March 2025. This strong financial foundation provides us with ample flexibility to pursue growth of initiatives and strategic investments. From here, handing you back to youturf. Thank you.
Dhruv Shringi — Co-Founder & Chief Executive Officer
Thank you, Anuj, and thank you everyone for your continued support and we look-forward to updating you on our progress in the continued quarters. With that, we’d like to open the floor up to questions, please.
Questions and Answers:
Operator
Thank you, gentlemen. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star N1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star N2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Parth from Bastion Research. Please go-ahead.
Parth
Hi, thank you for the opportunity and congratulations on a good set of numbers. So if I look-back at full-year FY ’25, your air ticket revenue is actually up 7% and the volume is down 24%, right? And similarly in the hotel and packaging segment, revenues of 35% but volume is down at 1.7%. So essentially, your realization per transaction has improved this year and that has largely led to the growth. I just wanted to understand what — how did this happen? What did you guys do if which will make this happen? And is this sustainable?
Dhruv Shringi
Sure. So what we’ve been focused on, Parth, and thank you for your question is on moving more-and-more towards our corporate business, right? So what we’ve done is replace effectively lower-volume B2C bookings with high-value corporate bookings. The margins and the absolute realization on corporate travel are significantly higher than on B2C part of it. And because of that, you see that volumes have dropped — the gross bookings have improved and the earnings have improved much more meaningfully. So it’s an attempt on our part to rebalance our business more towards corporate, which has been in-line with our strategic initiatives, right, and our strategic approach that we’ve adopted for the last two years.
So this is a continuation of that same trend only. As I mentioned in my opening remarks as well, we are now at a stage where about 65% of our gross bookings are coming from our corporate and B2B part of our business. And we expect in the current year as well, this will continue to move more-and-more towards the corporate sector.
Parth
Thanks for that. And secondly, on the hotel and hotel booking part, this quarter sequential basis, we have seen some decline in the hotel booking. Is it seasonality or there’s something else to it?
Dhruv Shringi
Yes, it’s only seasonality. As I touched upon earlier that for our mice business, Q2 and Q3 are the seasonal strongest quarters followed by Q4 and Q1.
Parth
Okay. Okay. Just a final question from my side. How much during the quarter is contributing to your revenue?
Dhruv Shringi
Out of that? You don’t call-out so overall contribution to our revenue on a — on an annualized basis, right, we would expect that to be in terms of our revenue, less service cost in the range of about 10%.
Parth
Okay. Okay. Thank you so much and best of luck.
Dhruv Shringi
Yeah. Thank you.
Operator
Thank you. A reminder to all participants, you may press one to ask a question. The next question comes from the line of Garg from DAM Capital. Please go-ahead.
Anmol Garg
Hi, Dhruv. Thanks for the opportunity and congratulations on good profitability., just wanted to understand that as our B2B business proportion is increasing every year. So how do we plan to manage the working capital which gets associated to it with a higher number of working capital days on the B2B side of the business. And proportionately, do you believe that we will become cash-flow from operation positive going ahead in next year?
Dhruv Shringi
Hi,. So on the working capital side, we continue to work not just with banks on factoring services which are available to us, but also work closely with our corporate customers to migrate some of these corporate bookings from credit onto a credit card platform. This is a journey that we’ve undertaken a few years ago and now we are at a stage where almost 30 plus percent of our bookings are on credit card — corporate credit card platforms. So that will continue to happen and that will help reduce the working capital needs of the business. Having said that, today, from a — from a business point-of-view, we have almost INR160 odd crores of unutilized banking facilities also available with us.
And we have enough and more capital available, which will allow us to at least double our corporate business, if not take it 2.5 Times from where it is right now. In terms of your question on free-cash flow and operating cash-flow. So from a cash-flow from operations, including changes in working capital, in the current year, we should expect to be positive. We do expect to be positive because we now feel that the business is getting to a scale in the current year where the profits of the corporate business should be able to take care of the working capital needs of the business to grow at 22% 25%. It’s ultimately down to growth rate, Annol as you would understand, right? If we want to grow faster in the short-term, we will end-up deploying more working capital. And the corporate business, given that it has a 97% retention rate has a strong boat. So I do believe it’s important for us to continue to grow faster in the short-to-medium term as opposed to worrying more about the cash-flow from operations. I would focus and I would request you also to focus on the profitability at the moment, right, and how we are driving profitable growth. Once we are able to build a large defensive business, right, which is what we are trying to do, then automatically then the fallout from an operating leverage point-of-view into free-cash flow will be extremely high. So I want to first build-out a larger base and then use that larger base from a farming point-of-view to cross-sell more products and services. And after that, get to this stage from a cash-flow point-of-view. That is like the two to three-year journey that I’m mapping out in my mind. So for me, the next two, three years are more about continuing to drive scale and growing at upwards of 25% and maybe even closer to 30% on the corporate side.
Anmol Garg
Understood. Understood,., secondly wanted to understand on the volume increase from the next year perspective. So this year we have seen some impact on our overall volumes, while our pricing or per passenger pricing has increased, but the volumes have been impacted a bit. So from the next year perspective, as you said, your guidance is around 20% on the gross margin. Would that mean that — can we assume that we are assuming a similar kind of volume increase in next year as well or this will be a function of higher. So the volume increase would be closer to 15% or more?
Dhruv Shringi
The reason being because the mix of hotels, which are higher-yielding and more profitable is also growing up in the business. So from an air volume point-of-view, air volumes, we would expect them to grow closer to 15% and the profitability will be driven by a combination of this volume growth and higher-growth in the hotel segments.
Anmol Garg
Understood. Understood. And lastly, Group wanted to understand what is our discount in the B2C part of the business, what is our discount as a percentage of the GTV in the airline business.
Dhruv Shringi
So discounts are something we continue to optimize on a more and we are currently at a stage where the discounts are hovering based on competitive pressures at different times. But if I was to average out the quarter, it would be — the median would be between 3.5% to 4.5%.
Anmol Garg
Understood. Understood. Thank you for answering my question, and best of luck for the next year.
Dhruv Shringi
Thank you,. Thank you.
Operator
Participants you may press time one to ask a question. The next question comes from the line of Manik Taneja from Axis Capital. Please go-ahead.
Manik Taneja
Sir, thank you for the opportunity. So while your question — while the question related to how the balance sheet behaves with regards to transition, the business has been answered, if you can also talk about the customer acquisition costs, which have come down materially through the second-half this year as the business has towards a higher share of corporate and mice business. How should we be thinking about the customer acquisition costs, which have come down from almost about 4.7% in FY ’24 to essentially as low as 2.8% in the — in Q4 ’25 and thereby those comments will be built-up.
Dhruv Shringi
Sure. So in terms of looking at customer acquisition costs, I think we should start looking at the current run-rate to be the new normal. We should be trending at these levels with some variation on account of seasonality or some variation in terms of competitive pressures at times, but it will broadly trend around this number of 2.8. So if I was to model it, right, we are modeling it between 2.6 and 3. That’s why we would look at this going-forward. And this is happening on account of optimization work that we’ve been doing and being able to drive cross-sell of personal travel from our corporate customers.
Manik Taneja
Sure. And just to clarify on the seasonality aspect of some of these things, typically, you will have a higher proportion of B2C business in Q1 and Q3. So those are the quarters where one should be building in higher customer acquisition cost and then moderation on that frontill second-quarter and 4th-quarter. Is that the way?
Dhruv Shringi
That is absolutely right. Yes.
Manik Taneja
Great. Thank you and all the best-in the future.
Dhruv Shringi
Thank you.
Operator
Thank you. The next question comes from the line of Moksh Ranga from Aurum Capital. Please go-ahead.
Moksh Ranga
Hello. I would like to know the timeline for merging our subsidiaries and the cost-savings, which will let add.
Dhruv Shringi
So in terms of merging of the subsidiaries, this process should — it’s currently going through the NCLT process, the first order has already been passed in our favor. So we would expect this to get completed sometime around the August time-frame, right? So by end of August, we would expect this to be completed. And if I look at from a expense point-of-view, our current tax outflow is in the range of about 4 million to $5 million a quarter, we would expect that to go away as we move forward.
Moksh Ranga
40 lakh to INR50 lakh per quarter per quarter.
Dhruv Shringi
Yes. Yeah.
Moksh Ranga
Okay. Okay. And what is our SaaS opportunity and fintech opportunity which you have presented in our investor presentation? Could you provide some more color on that?
Dhruv Shringi
Yeah. So on the SaaS side, the SaaS obviously is our corporate travel platform that we have. This is a platform that we provide to all our business travel customers. More than 70% of our transactions are done by the customers using this platform. This platform then deeply integrates into the ERP systems, into the HRMS systems of the organizations, the company’s approval process mechanism and purchasing flow for travel sits on our platform. And from there, then it will go seamlessly integrate into an expense management solution as well for people to claim their expenses on trip.
So that’s the solution that we are offering. On the fintech side, while today it’s still relatively early days for the expense management, I think expense management combined with credit cards and credit card-led payment solutions are increasingly growing opportunity in the Indian corporate landscape. More-and-more companies want to move away from handing out interest and cash and automate all of that using prepaid card instruments or prepaid wallets, all credit card and credit card-led wallets. So that’s what we are working on at this point of time and this will be the next-stage, which will be there at some point in the second-half of the current fiscal year.
Moksh Ranga
Okay. And so are we planning a co-branded credit card for the corporate client way so that our working capital problem gets resolved? Is that what we are trying to get to?
Dhruv Shringi
That is the general idea. That is the broad idea for sure. There are obviously nuances around it, but that is the idea or that’s the direction in which we are headed.
Moksh Ranga
Okay. And will there be a co-branded credit card for the consumer platform also for B2C or it will be only for the corporate side?
Dhruv Shringi
See, see, for the B2C side, we already have a co-brand that’s been running with SBI cards, but this particular endeavor that we are working on right now would be more focused on the corporate side.
Moksh Ranga
And roughly how — what is the tangible benefit in working capital we will have through this? Just rough idea.
Dhruv Shringi
See, if you look at from a DSO point-of-view, right, we are typically around a 28-day DSO cycle and we get about six to seven days of supply credit. So net 21 days of working capital get deployed by us. And if we are doing on the — if I look at on the enterprise side, we guys are doing close to about, let’s say, INR400 odd crores a month. So on that 21 days effectively means about INR250 crores to INR300 crores of working capital that can be freed up over the next few years. I mean, it’s not to say that’s going to be an immediate move. It’s going to be a gradual move that will happen, but that’s the quantum of working capital that should get freed up as we successfully roll this solution out over the next two to three years.
Moksh Ranga
Okay . And for that corporate, we said that 30% plus bookings happened through our corporate credit card already, currently on a credit card platform. So what exactly is that coming in that?
Dhruv Shringi
So that is more of not our card platform, that is the card platform which is offered by the likes of an or a HDFC Bank or a Citibank, there are these three predominant platforms called BTA platforms or CTA platforms. So these are business cards which are there, right? So our companies will have these business purchase cards and payment comes to on these business purchase cards at T plus one or T plus 3 as the case might be?
Moksh Ranga
Okay. And so what we plan to do is migrate these corporate customers who are having these platforms to our credit card platform, is that what we are trying to do in the future?
Dhruv Shringi
That is right. That is right.
Moksh Ranga
Okay. Okay,
Dhruv Shringi
Because that then creates an incremental revenue stream for us,
Moksh Ranga
Right? And are we going to earn instead of helping us or actually helping us with our working capital, will it also help in getting some fee income to the platform?
Dhruv Shringi
That is right. So both of those benefits will be there.
Moksh Ranga
Yeah. Okay. Okay. I get it. I got what the direction which we are heading to. I’ll get back-in the queue.
Dhruv Shringi
Thank you.
Operator
Thank you. The next question comes from the line of Raj from Arujav Partners. Please go-ahead.
Unidentified Participant
Hello, am I audible?
Operator
Yes, please go-ahead. Sir,
Unidentified Participant
I have done some calculations, I just wanted to recheck it. So out of INR791 crores of sales, is it right to say that INR44 crores have come from packages and mice.
Dhruv Shringi
So if I look at the full-year number approximately, yes, you’re right, approximately INR440 crores would be coming from mice.
Unidentified Participant
All right, all right. And INR347 crores are from hotel and air right. That is the commission income from hotels and layers.
Dhruv Shringi
Yes,
Unidentified Participant
From hotels and aero care. And if I look at the EBITDA, that is INR55 crores, right, if we exclude the — yes, finance cost. Yeah. So out of INR50 — if we exclude the — if we exclude other income and finance income, EBITDA would be INR44 crores, right? But can we but
Dhruv Shringi
Then the other income is not just non-operating income. But yes, go-ahead. Please go-ahead.
Unidentified Participant
Yeah. On the top of INR44 crores of EBITDA, can we say the whole EBITDA is coming from package and mice and from air and hotel, it is at technically it is at zero EBITDA.
Dhruv Shringi
No, that would not be correct because we don’t talk about the breakup, that would not be correct. So the contribution of mice to EBITDA would be approximately and this is just directionally I’m sharing, about 50 odd percent whereas the balance will come from corporate hotels and corporate air. In fact, mines would be even lesser than that, right? So it would be more like between closer to 35% to 40%.
Unidentified Participant
Because how — I’ll just explain how I came to this figure, your service cost is around INR4 and INR4 crores, right? And if you are doing sales of INR44 crores from packages and mice, so the EBITDA from packaged and mice would be of the growth, right?
Dhruv Shringi
No, but that’s not — no, that is not EBITDA. That’s just the gross income, the gross margin right from that gross margin, then you will have the cost-related to mice as well, right? So people cost, sales cost, servicing cost and all the other operating costs will be after that as well, right?
Unidentified Participant
Yeah. So how much would it be?
Dhruv Shringi
So as I said, we don’t specifically call that out and that’s why I’m directionally telling you that it would be about, about 30% 35%, 35%.
Unidentified Participant
30% 35% would be the additional cost-related to packages and mic.
Dhruv Shringi
I’m saying the margin would be in that range, not the cost?
Unidentified Participant
No, no, it is still not clear, sir. Can you explain to me again, see, out of INR44 crores of EBITDA, how much would be for SKGs and let me again reiterate that.
Dhruv Shringi
We don’t as a company break-out EBITDA by each and every line-of-business that we do, right? Nor do we break-out by each and every product-line item because then there is allocation of common costs, et-cetera, that also comes into the picture. And directionally, what I was sharing with you is that on the mice gross margin that you have, you will have about a 35% kind of operating margin on that gross margin.
Unidentified Participant
All right, 35% operating margin. Okay.
Dhruv Shringi
Yeah, yeah. So that’s directionally that I want to — that’s at max what I can share with you.
Unidentified Participant
All right. So sir, going ahead in FY ’26 and FY ’27, how much growth and an investor would expect from mice and from hotel and air.
Dhruv Shringi
See, if I look at from an overall growth standpoint, we are talking about a 20% growth in revenue less service cost, which is our gross margin. Out-of-the gross margin growth that we have, we will expect hotels and packages growth to be closer to about 25% and we will expect AI growth to be closer to 15%.
Unidentified Participant
All right. Okay. All right. Thank you.
Dhruv Shringi
Thank you.
Operator
Thank you. The next question comes from the line of Yash Modi from Ashika Group. Please go-ahead.
Yash Modi
Yeah, good morning,, and congratulations on a good set of numbers. Regarding our guidance of 20% top-line and 30% EBITDA, is it just from our core business or are we taking building in some revenues from the cross-sell opportunities that we keep talking about?
Dhruv Shringi
Thank you,. Thank you, Yash. And in terms of the growth that we are looking at, this is a blended growth from both organic and the cross-sell because cross-sell also at the end-of-the day is part of the organic efforts of the team, right? It’s being sold to the same customer-base as well. And the cross-sell is what drives a faster growth in earnings versus the growth in revenue?
Yash Modi
Sure, sure.
Dhruv Shringi
So this would be a combination of both, which would be there.
Yash Modi
Got it. So in terms of, say, the SaaS opportunity, like last couple of quarters, we’ve been talking about these partnerships with a couple of Middle Eastern firms and some firm in Africa also. So where-is the SaaS like how big can say three years down the line, four years down the line, if I look at it, how big can the SaaS opportunity actually become for the company?
Dhruv Shringi
Yeah. I think if I look at this three to four years down the line, I would expect this to be in terms of bottom-line contribution, right, about INR10 crore to INR15 crores, right? So we are looking at somewhere between $1.5 million to $2 million of profitability coming from this over the next three years.
Yash Modi
And similarly, if we were to look at, say, the expense management tool and the fintech opportunity, like it’s not immediate, not this year, but say three, four years down the line, would these cross-sell opportunities in your model form, say, 30% 40% of profitability of Yatra, say, five years down the line?
Dhruv Shringi
So on the expense management and card solution, I’m a — I’m a lot more bullish on that, right? I do see that as a very healthy opportunity. And if I look at this three to five years down the road, I do think that from an income point-of-view, you know, one-third of our income could potentially come from these. And the expense management solution could be not just an India-focused solution, but will be a combination of India plus international markets. There are steps that we are trying to take and put in-place whereby we can have separate teams which are focused on driving much faster growth in these areas.
Yash Modi
Sure. Thank you. All the best.
Dhruv Shringi
Sure. Thank you, Yash. Thanks.
Operator
The next question comes from the line of Sriram from an Individual investor. Please go-ahead.
Unidentified Participant
Thank you for the opportunity. Sir, at the beginning of the call, you had mentioned that the corporate travel has higher realizations than B2C. Is that correct?
Dhruv Shringi
That is right because corporate travelers will typically book at the last-minute and they book much more bundled fares, fares, which will include seat, meal, bags included in that there is a much higher mix of business and first-class in corporate versus consumer. So the average realization on corporate for an air ticket and the same would hold true for hotels is about 1.5 times the B2C realization.
Unidentified Participant
Okay, 1.5 times B2C. The reason why I’m asking you this is because the hotel industry works in a different way, right, because retail pitches them higher realizations than corporate. So I’m just trying to understand how does it — how does this work actually?
Dhruv Shringi
So you know, on the corporate side as well for hotels, the same actually holds true because of a timing Timing difference. See, while retail will typically book 15 30 days in advance, corporate bookings are typically happening on a D minus 3 so the average realization is still higher on the corporate side. Now there will be some corporates, right, who will have specially negotiated rates, but what we’ve seen over the course of the last two years as demand has really surged in the Indian hotel industry. But number of times when the corporate rates are actually those deep discounted rates that corporate had are actually available is shrinking quite significantly. So more-and-more corporate business is moving to bar rates and bar, as you would know, closer to check-in is meaningfully higher than, 15 30 days out. What you’re saying was absolutely correct in the pre-COVID era. But given the surge in-demand that we’ve seen post-COVID and the scarcity of supply in the Indian hotel market, that dynamic is no longer true.
Unidentified Participant
Okay. Okay. And sir, what is our market-share in the corporate front?
Dhruv Shringi
In the managed — corporate travel space, out-of-the 13-odd thousand customers that we have identified as companies that we’ve identified as the key target in the managed corporate travel space, we are now addressing about close to 1,150 to 1,200. So getting on to about a 9% kind of market-share in terms of customers are in the managed corporate travel space. In terms of spend levels, because we’re addressing some of the largest customers in the category, our spend levels we estimate will be between 11% to 12%. 11% to 12%.
Unidentified Participant
Okay. Okay. That helps, sir. Thank you so much, sir. All the best.
Operator
Thank you. Thank you,. The next question comes from the line of Nitin Padmar from Investec Capital Services. Please go-ahead.
Nitin Padmanabhan
Yeah, hi. Congrats on a strong quarter. Couple of questions. One is, the — when we look at the deal bookings on corporate, do we still have a higher share of hotels within the order backlog at the moment
Dhruv Shringi
Hi, Nitin. Firstly, thank you. And yes, that would be the case. Yeah. We continue to have because what we are seeing is that the cross-sell opportunity on hotels is extremely large today. Right. More-and-more customers want to move into a — into a managed hotel program as opposed to employees book directly because hotel prices have gone up pretty sharply over the course of the last couple of years. Sorry, sorry, make sense.
Nitin Padmanabhan
Yeah, got it. So from a hotels mix in corporate, how has it evolved versus last year and how should we probably think about this on a going-forward basis?
Dhruv Shringi
I ask is Dubaiest margin segment space. That is right. So if you look at the growth rates that I’m talking about, right, we expect air to grow at closer to 15 and hotels to grow at closer to 25 plus. Today, in terms of mix on the corporate side, it would be about 60% coming in from air and 40% coming in from hotels and packages, hotels and mice. So we would expect that to grow at 25% or upwards of 25% and we would expect Air to grow closer to 15%.
Nitin Padmanabhan
Perfect. Now from a profitability perspective, considering the business has changed from a mix perspective over the last year quite meaningfully. Historically, we used to see a seasonality on profitability. Do you think the seasonality on profitability should be much lower on a going-forward basis more consistent within a narrow range. How should we think about it?
Dhruv Shringi
Yeah. No, Nitin, the seasonality will still remain because of mice, as I escalated in my prepared remarks, mice does tend to be a bit lumpy and it’s countercyclical to B2C, right, because for mice, there are large events which are happening, you need thousands of rooms at times. The availability during peak season is low. That’s why mice will typically be highest in Q2 and in the early parts of Q3 and then followed by Q4 and Q1. So there will still be seasonality, right? And that’s why I want people to start focusing more on the full-year trends as opposed to the seasonality of the quarters.
The quarter seasonality can be viewed year-over-year.
Nitin Padmanabhan
Okay. So the Q2 should have the highest profitability. Is that the way to look at it? Q2, Q3?
Dhruv Shringi
Q2 would have higher profitability for sure. Yeah.
Nitin Padmanabhan
All right. So in the same order, Q2, Q3, Q4, Q so — so that’s how it will be.
Dhruv Shringi
So Q1 should be better than a Q4 and Q4 should be — Q3 should be better than Q4.
Nitin Padmanabhan
Got it. And the last question is, on the globe integration, we still have margin synergies to play-out by when do you think that should play-out?
Dhruv Shringi
But they will play-out within the current quarter now.
Nitin Padmanabhan
Okay. And what kind of synergies would one expect from that?
Dhruv Shringi
See, in terms of overall from a impact on profit or in terms of margins? The profitability and margin both. So in terms of profits, I think the incremental synergies will add about INR1 crore to crore and a half a quarter somewhere in that kind of a range
Nitin Padmanabhan
Okay. Okay. This is very helpful. Thank you so much and all the best.
Dhruv Shringi
Sure. Thank you.
Operator
Thank you. The next question comes from the line of Raj from Partners. Please go-ahead.
Unidentified Participant
Hello, am I audible?
Operator
Yes, please.
Unidentified Participant
Yeah. So just wanted to look so I asked a question about EBITDA. So when we say 40% technically is the contribution of mice and package from EBITDA, what number are we taking for the EBITDA? Is it INR76 crores or is it INR55 crores of — for 40%?
Dhruv Shringi
And are we taking INR55 crores, you’re taking INR55 crores.
Unidentified Participant
So around INR20 crore INR25 crores is from mice, right? My mice and package.
Dhruv Shringi
No, it’s mice and packages, so it’s even lower you know. Again, I don’t really want to get into non-public information, right, Raj, I think we are bordering on that repeatedly. I would request that we stay to public information, please.
Unidentified Participant
Thank you. Yeah.
Operator
Thank you. The next question comes from the line of Mokshrana from Aurum Capital. Please go-ahead.
Moksh Ranga
I wanted to ask, we have mentioned that air should grew by 15% and hotel and mice could grow by a higher percentage. So three, four years down the line, where do you see the mix going towards? So are we trying to get more hotel bookings and nice bookings because those are basically higher-margin and higher take rates?
Dhruv Shringi
That is right. That is right. So on a blended overall business basis, we want to get to a stage in the next three years where we have at least a 50-50 mix which is there between air and hotels and packages.
Moksh Ranga
Okay. And how do you see the take rates because in our air ticketing and as well as hotel bookings, our take rates have deteriorated a little bit. So in the future, do you see take rates improving or you see them declining?
Dhruv Shringi
So the take rate change which is happening is only happening on account of change of the business mix. The take rate on consumer and this is the optical take rate, right, not the revenue less service cost or the gross margin, the take rate is only declining on account of the change in the business mix. On the corporate side, you don’t charge the convenience fee that is charged on the B2C side, right? But then on the corporate side, you don’t have any consumer promotion or marketing either. So at an operating profit level, it turns out to be more profitable.
Moksh Ranga
Okay. And on competitive intention.
Dhruv Shringi
So just to again — sorry, reclay — just to again reclarify, there is no change in-take rate per se, it is just the business mix which is driving the change in-take rate.
Moksh Ranga
Yeah, sorry, gone. Okay. Yeah. So I wanted to understand, we have added 35 new customer corporate clients. So going-forward, are we seeing heightened competitive incentive intensity while adding new clients because I think we have make my trip who is actually now getting aggressive in corporate and they have a bigger platform than us. So how are we looking at competitive intensity for — especially for the corporate side?
Dhruv Shringi
So on the corporate side, we continue to do extremely well on the corporate side from a competitive perspective. We think We have a very strong corporate travel solution, which is the most evolved that is available in the market today. Also do take into account that while, yes, we’ve got one, there are lots of other competitors as well who are in the market who may not have the technology chops to be able to compete effectively in the market, right? So it’s not a zero-sum game between only make and us. We expect that we will continue to thrive and continue to grow our business rapidly on the back of the solution that we are offering to our customers. We’ve also expanded our sales teams to be able to further estimate the growth rate which is there. So I don’t see a reason for us anytime in the near-term to slow-down in terms of corporate growth, irrespective of what the competition or what the competitive landscape might be.
Moksh Ranga
Okay. And are we able to add many international clients as well or more of our corporate clients are Indian?
Dhruv Shringi
I would say it’s a healthy mix between domestic and international customers. While, yes, some of the largest international customers will have global mandates and also in breaking those global mandates with a number of the large consulting firms in India, right three firms in India work with, right? So they will all some kind of data with global mandates that we’ve been able to break-through so we continue to have strong success. As the industry structuralized today, a larger part of international customers will still be with the global players, which are governed by their global mandates, which are decided as part of RFPs in their global headquarters.
Moksh Ranga
Okay. Okay. That was it from me. Thank you for the answers.
Dhruv Shringi
Yeah. Sure. Thank you.
Operator
The next question comes from the line of Vinay from Hathaway Investments. Please go-ahead.
Vinay Nadkarni
Thanks for the opportunity., just one question on recap. So you would be — you’re continuing to offer it only as a complementary or are you already started monetizing it?
Dhruv Shringi
So we’ve just started monetizing it the initial few customers were more complementary in some of the more recent ones, we’ve started monetizing it. The monetization also, there are different monetization structures that we are adopting where it might be complementary for a period of time and then start being charged, right? So it’s like a freemium kind of service.
Vinay Nadkarni
Okay, and it will be per user or per so there were different types of monetization.
Dhruv Shringi
It’s yes, yeah, but it’s largely per user per month.
Vinay Nadkarni
Okay. And just one last question. But yeah, is it possible or are you looking at adding the inventory of good-quality properties
Dhruv Shringi
We’ve looked at that — we’ve looked at that a couple of times, but the demand for that in the corporate sector is extremely low. So corporates have this demand for guest houses, right, which are the corporate managed guest houses. So those we are bringing onto our platform. But in terms of pure home sales like what an Airbnb would offer, the demand on the corporate side for that is extremely low. So it’s not really something which is in the priority set for the moment for us.
Vinay Nadkarni
Okay. Thanks a lot and congrats on a good set of numbers. Thank you so much.
Dhruv Shringi
Thank you.
Operator
Thank you. Participants may press time one to ask a question thank you. Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to Mr Dhruv Shingi, the CEO of Yatra for the closing remarks.
Dhruv Shringi
Thank you. Thank you, moderator, and thank you, Nitin, for hosting us today. I’d also like to thank all of you for joining us on our call today. As you would have seen, the business continues to perform really well. Over the last four quarters, we’ve consistently improved our profitability and we expect to do the same in the years to come as well, right? The business model is well-established and there is strong operating leverage in the business that we have. If I was to just recap for a minute, if I look at from an adjusted EBITDA point-of-view, our adjusted EBITDA has improved from INR10.4 crores in Q1 to INR13.6 in Q2 to 17.3 in Q3 to now INR25 crores. Similarly, on the PAT side, we started with a PAT of INR4 crores in the first-quarter, which went up to 7.3 in the second, improved further to 9 and is now at 15. So we continue to see strong momentum behind the business. We reiterate our commitment to the business and the kind of growth rate that we’ve spelt out in our guidance and we are looking-forward to a successful year with all of you. So thank you so much for your support.
Operator
Thank you, sir. Ladies and gentlemen, on behalf of Investec Capital India Private Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines