Yatra Online, Inc. Aktie

Hello, everyone, and welcome to Yatra's Fiscal Fourth Quarter and Full Year 2026 Financial Results Call for the period ended March 31, 2026. Today's call is hosted by Yatra's Co-Founder, Dhruv Shringi; Yatra's CEO, Siddhartha Gupta; and Yatra's CFO, Anuj Sethi.

The following discussion, including responses to your questions, reflect the management's views as of today, May 25, 2026. The company does not take any obligation to update or revise the information. Before they begin their formal remarks, please be reminded that certain statements made on this call may constitute forward-looking statements, which are based on Yatra management's current expectations and beliefs and are subject to several risks and uncertainties that could cause actual results to differ materially. For a description of these risks, please refer to Yatra's filings with the SEC and their press release filed earlier this morning on the IR section of the Yatra website. With that, let me turn the call over to Yatra's Co-Founder, Dhruv Shringi. Dhruv, please go ahead.

Thank you, operator, and good morning, everyone. Welcome to Yatra's Full Year 2026 and Q4 2026 Earnings Call. Fiscal 2026 has been a landmark year for Yatra. Despite some very significant macro headwinds that impacted 3 out of the 12 months of the year, it is the most profitable year in the company's 20-year history. This strong performance is a testament to the resilience of our business model, our commitment to innovation, the balance in our revenue mix, the quality of our corporate franchise and the dedication of our teams.

I'm very proud to announce our FY '26 results. Our revenue from operations grew 27% year-over-year to INR 10,074 million or approximately $107 million, while revenue less service costs, which is our gross margin, increased to INR 4,801 million, a growth of 22.6% year-over-year.

Adjusted EBITDA grew to INR 564 million or approximately $6 million, a growth of 64% year-over-year, reflecting strong operating leverage. On the corporate customer acquisition front as well, we added during FY '26 163 new corporate customers with annual billable value of approximately INR 9,568 million or about $102 million, up from 148 customers and INR 7,475 million or $80 million in FY '25. As Siddhartha will delve further in his remarks, you will see that this number has been increasing on a quarterly basis, underscoring the continued traction in our enterprise travel business and the strength of our go-to-market execution. Online penetration of corporate travel is still less than 25% in India in the managed business travel segment. And as the market leader, we are best positioned to capitalize on this as the industry moves up the online penetration curve.

We have demonstrated over the years that we not only have the ability to acquire customers but with a retention rate of almost 97%, have the ability to retain them for a very long lifetime value as well. In our assessment, the current macro environment driven by a conflict which has impacted energy prices and disrupted travel in the Middle East and more broadly, international travel does not reflect a structural change in the underlying travel demand ecosystem. It is a short-term blip, which the industry will tide over as soon as normalcy returns.

Corporate travel demand in India continues to remain resilient, and we expect recovery momentum to strengthen meaningfully in the second half of the year driven by revenge travel, just like we witnessed in the years following COVID. That said, the escalating conflict significantly impacted our MICE and international corporate travel business weighing on the overall Q4 results.

Several Q4 MICE and international corporate group travel bookings were either canceled or deferred into FY '27. Barring the impact of this, it was quite likely that we would have reported stronger results ahead of last year's performance. The current conflict and the balance of payments challenge has also heightened the government's focus on domestic tourism as a strategic pillar. The infrastructure build-out in rail and aviation and even the domestic highway network bodes well for domestic tourism. Yatra, given its market-leading domestic hotel supply, we believe is extremely well positioned to capitalize on this trend.

We have enhanced our API infrastructure framework and a migration on to the Google Cloud platform has significantly improved our ability to distribute our hotel content to a large network of domestic and international travelers. This is a highly margin-accretive business for Yatra and one that we expect to scale up further in the coming years. From a quarter's perspective, despite the headwinds, we reported resilient performance in Q4 especially in our core air and hotel segments.

Gross bookings grew 8% year-over-year. Air passenger volumes were up 9.6% year-over-year, roughly 2x the industry growth rate, reflecting continued market share gains. Our Hotels business continued its strong momentum with room nights growing 36% in the quarter and gross bookings growing 9% despite the significant disruption in MICE. Total transactions increased 15.2% year-over-year, a strong indicator of platform activity and engagement. Our Corporate business added 55 new clients during the quarter with an annual billable potential of INR 2,709 million or approximately $29 million, which is higher than the 40 closures worth INR 2,234 million or approximately $24 million in Q3, demonstrating the strength of our sales engine even through a challenging environment.

When there is a macro disruption outside our control, more importantly, the underlying demand from our corporate customers remains intact, and we expect a meaningful portion of the deferred business to return as conditions normalize. Structurally, the outlook for India's travel and corporate mobility sector remains compelling. India continues to be the fastest-growing major economy with strong investment flows across manufacturing and the outsourcing-driven business travel demand.

Based on the strength of our corporate customer base, our industry-leading hotel supply and our AI-enabled corporate travel technology, we remain confident of our medium-term growth CAGR of revenue less service costs of 20% and adjusted EBITDA of 30%. With that overview, let me hand you over to Siddhartha to walk you through the details of our performance. Siddhartha?

Thank you, Dhruv, and good morning, everyone. The larger headline is that Yatra delivered its strongest performance in financial year '26 despite a volatile macroeconomic and geopolitical backdrop. In FY '26, we delivered RLSC, which is revenue less service cost, or gross margin, growth of about 22.6%, while adjusted EBITDA grew 64.2% year-on-year, reflecting a strong operating leverage as well as disciplined cost control. This is particularly notable given FY '26 reflected only 9 months of full operations, underscoring both the strength of execution during the period while maintaining financial discipline. Another achievement worth emphasizing is the balanced nature of this growth across segments and lines of businesses.

Let me start by taking you through this segment performance. Across both air and hotels, Yatra strengthened its competitive position. The Air segment delivered a healthy TTV growth of 12% for the year to INR 61,874 million from INR 55,273 million while maintaining margin discipline, with passenger growth outpacing industry levels throughout the quarter and the full year while maintaining margin throughout the year.

A point to highlight is our air margins have steadily improved from approximately 2.7% in financial year '24 to nearly 4% in financial year '26, reflecting a structural improvement in the quality of our business mix. We remain one of the very few players in this space to consistently expand air margins despite intense competitive pressure across the sector. The hotels and packages business also gained strong momentum led by strong TTV growth of 27%. With the government's continued push towards domestic tourism and infrastructure-led travel growth, our extensive hotel supply footprint across India, positions us well to capture demand across both major metropolitan markets and emerging Tier 2 and Tier 3 cities.

Moving now to across lines of businesses. During financial year '26, Yatra added 163 new corporate customers with an annual billable value of approximately INR 9,568 million, which would be approximately $102 million, up from 148 customers and INR 7,475 million, which was close to $80 million in financial year '25.

This underscores the continued traction in our enterprise travel business and the strength of our go-to-market execution. It is important to note that corporate wins typically take 3 to 6 months to go live and ramp up to their full trading potential. This provides strong visibility into incremental revenue contribution over the coming year. Beyond our large enterprise wins, we continue to see significant white spaces in India's mid-market corporate travel segment, which remains substantially under-penetrated online. To capture this opportunity, we invested in building a dedicated mid-market sales team during Q3 with early contributions already visible in Q4.

Given the scale of the untapped market, we believe this segment can become a meaningful incremental growth driver for our corporate business over the medium term. Coupled with the fact that our corporate business continues to demonstrate exceptional stickiness with customer retention consistently above 97%, this positions us well for continued strong performance in our Corporate segment. Our consumer business performed well through the year as well, demonstrating the inherent resilience of domestic consumer spending. The diversified nature of our operations and multiple revenue levers enabled us to navigate periods of disruption while continuing to deliver a resilient full year performance.

During financial year '26, Yatra benefited from incremental demand from newly signed affiliates and partnerships helping us gain more air and hotel market share while further improving margins. This highlights the strong scalability of our API-led distribution model, which has emerged as an important growth driver. Combined with our extensive domestic hotel supply network, it positions us to accelerate growth in the periods ahead.

We are seeing strong traction in API-led distribution with travel agents, affiliates and B2B partners increasingly sourcing hotel inventory through the Yatra platform. This allows us to scale transaction volumes efficiently while preserving margin discipline.

We expect this trend to continue and any near-term softness in consumer demand during the first half of the year should be mitigated as the year progresses. Yatra delivered a resilient performance in Q4 with gross bookings growing 8% year-on-year. Air passenger volumes increasing 9.6% year-on-year, approximately double the industry growth rate, while total transactions rose 15.2% year-on-year.

The quarter was impacted by the conflict-related disruption, which slightly depressed air volumes and had a more pronounced impact on several MICE and international corporate group travel bookings, a number of which were either canceled or deferred into financial year '27. While the MICE category experienced temporary disruption during the quarter, we are seeing instances where customer preference is shifting from international to domestic programs, partially offsetting the impact. Importantly, we are already seeing signs of recovery with Q1 run rates currently trending approximately 20% above the Q4 levels.

We continue to view MICE as a structurally attractive category, given its close linkage to corporate reward engagement and incentive programs. Over the years, we have built strong execution capabilities and a broad partner network across domestic and international markets, creating a meaningful competitive advantage. Our gross margin, defined as revenue less service costs increased 1% year-on-year to INR 1,101 million or approximately $12 million. Adjusted EBITDA declined 49% year-on-year to INR 46 million or approximately $0.5 million.

Our Corporate business added 55 new clients during the quarter with an annual billable potential of INR 2,709 [Technical Difficulty] 40 client wins worth INR 2,234 million or approximately $24 million in Q3. This demonstrates the continued strength of our sales engine even in a challenging operating environment. Overall, while the quarter was impacted by geopolitical uncertainty stemming from the West Asia conflict, we remain optimistic about our trajectory, supported by our continued focus on scaling the corporate travel business.

The steady addition of new enterprise clients improving online adoption and the growing contribution of our hotel business within the Corporate segment positions us well to drive operating leverage and deliver gradual margin expansion over the medium term.

Looking ahead, AI and automation remain a core strategic focus area for Yatra. We continue to see encouraging adoption of our AI-powered servicing capabilities across both consumer and corporate channels. Our continued investments, automation and successful deployment across customer touch point reinforced both operational scalability and long-term profitability. Our continued collaboration with Google further strengthens our technology ecosystem, and supports product innovation across customer acquisition and services.

If past cycles are any indication, periods of market disruption are often followed by a meaningful release of pent-up consumer demand. Accordingly, we expect the second half of financial year '27 to be materially stronger than the first half. While macro changes are likely to persist in the first half of the year, we remain optimistic about financial year '27 backed by structural growth in India's travel and corporate mobility markets and Yatra's continued investment in AI technology, customer acquisition, hotel supply and its B2B platform. As Dhruv mentioned earlier, we remain confident of our medium-term growth CAGR of 20%, RLSC growth and 30% adjusted EBITDA growth.

With that, let me hand over to our CFO, Anuj Sethi to walk you through the detailed financial performance. Thank you. Anuj?

Thank you, Siddhartha. Good morning, everyone. For the fourth quarter of the financial year 2026, on a consolidated basis, our revenue from operations decreased 14% year-on-year to INR 1,890 million or approximately USD 20 million. Our gross margin, defined as revenue less service cost rose 1% year-on-year to INR 1,101 million or approximately $12 million. EBITDA loss increased year-on-year to INR 102 million or approximately $1 million. For the full year ended financial year 2026 on a consolidated basis, our revenue from operations grew 27% year-on-year to INR 10,074 million or approximately $107 million. Our gross margins rose 22.6% year-on-year to INR 4,801 million. Adjusted EBITDA of INR 564 million or approximately $6 million, representing a year-over-year growth of 64%.

While our EBITDA improved to INR 266 million or approximately $3 million, a year-on-year growth of 31%. In terms of segmental performance, our air ticketing passenger volume increased 2% year-on-year to 5,395,000 and our gross air bookings grew 12% year-on-year to INR 61,874 million or approximately $659 million. Air gross margin rose 30% from year-on-year to INR 2,449 million or approximately $26 million, with margins improving from 3.42% to 3.96%.

Under Hotels and Packages segment, hotel room nights grew 16% year-on-year to 1,936,000. Gross bookings increased 27% year-on-year to INR 16,578 million or approximately $177 million. While gross margin expanded 34% year-on-year to INR 1,502 million or approximately $16 million with margin improving from 8.60% to 9.25%.

On the liquidity front, cash and cash equivalent and term deposits stood at INR 2,512 million or approximately $26.7 million as of 31st March 2026. With this, I would like to hand it back to the moderator and open up for a question-and-answer session. Thank you.

[Operator Instructions]

At this time, it appears that we don't have any questions. I will now turn the call back to Siddhartha Gupta for closing remarks.

Reiterating structurally, the outlook for India's travel and corporate mobility market remains compelling. India continues to be the fastest-growing major economy with strong investment flows across manufacturing and GCCs driving business travel demand. Based on the strength of our corporate customer base, our industry-leading hotel supply and our AI-enhanced corporate travel technology, we remain confident of our midterm growth in CAGR of RLSC 20% and adjusted EBITDA of nearly 30%.

On that note -- on that positive note, I would like to thank you all for joining the call. I hope we were able to address all the queries that you might have. If you have any further questions, you can reach out to our IR partners at ICR, and thank you once again for participating in this call. Thank you.

This concludes today's call. Thank you for attending. You may now disconnect.

Thank you.

Thank you, operator. Thank you.

Hello, everyone, and welcome to Yatra's Fiscal Third Quarter 2026 Financial Results Call period ended December 31, 2025. Today's call is hosted by Yatra's Co-Founder and Executive Chairman, Dhruv Shringi; and CEO, Siddhartha Gupta.

The following discussion, including responses to your questions, reflects management's views as of today, February 12, 2026. The company does not take any obligation to update or revise the information.

Before they begin their formal remarks, please be reminded that certain statements made on this call may constitute forward-looking statements, which are based on Yatra management's current expectations and beliefs and are subject to several risks and uncertainties that could cause actual results -- for a description of these risks, please refer to Yatra's filings with the SEC and the press release filed earlier this morning on the IR section of Yatra website.

With that, let me turn the call over to Yatra's Co-Founder and Executive Chairman, Dhruv Shringi. Dhruv, please go ahead.

Thank you, operator. Good morning, everyone. Thank you for joining us on [Technical Difficulty] third quarter and 9 months ended fiscal year 2026 earnings. Let me start by briefing you first on the events that happened during the quarter, and how it has impacted the industry, and then our CEO, Siddhartha Gupta, will brief you on the operational performance and the financial performance in greater detail.

The third quarter, which is typically a strong period for leisure travel in India, witnessed healthy demand across [Technical Difficulty] limitations which led to operational challenges for the airlines and a spike in cancellations across the entire country. Market data indicates that domestic [Technical Difficulty] and recovered in the second half of the month, and we've seen those factors continue to rise in the month of January and thereon. But the key positive during the period was the divergence between domestic and international travel trends. While domestic travel experienced short-term headwinds in December, international travel remained strong with healthy year-on-year and sequential growth. This reinforces that outbound and long-haul travel is in a structural up cycle, benefiting organized travel platforms like Yatra with strong corporate and international travel franchises.

Also, the recent union budget sends a clear message and positive signal about the government's long-term commitment to the travel and tourism sector. By positioning tourism as a strategic growth engine linked to the employment generation, foreign exchange earnings, and regional development, the policy framework shifts from episodic support to building a more structural and sustainable ecosystem for travel and hospitality in the country.

Key measures such as rationalization of tax collection at source on overseas tour packages to a uniform 2% rate, lower upfront cost improved outbound segment. In addition, increased emphasis on domestic connectivity through infrastructure investments, including high-speed rail corridors, waterways and regional access, among the initiatives to enhance hospitality capabilities through a National Institute of Hospitality and large-scale skilling programs, expand the talent pipeline for the tourism sector.

There is a growing demand for Indian organizations to help digitize travel procurement while using AI-driven platforms that offer end-to-end automation, self-booking tools and integrated expense management, prioritizing compliance and cost savings. AI and predictive analytics platforms make travel procurement by forecasting demand, optimizing costs, enforcing policies and ensuring risks are attended in real time. AI-enabled self-booking tools can perform real-time policy compliance checks, flag risks like disruption or itinerary analysis and personalize itineraries with safety insights. The generative AI shifts from reactive auditing to predictive spend, cutting administrative friction and enabling productivity boosts in procurement.

Yatra through its corporate self-booking platform, supported by AI bot and its richer expense management solution is taking the lead in driving this shift in industry dynamics.

Moving on more specifically to our business for the quarter. Our B2C business, as was predicted earlier by us, [Technical Difficulty] is now still growing profitably. Additionally, our corporate and MICE business [Technical Difficulty] was well on track to deliver our strongest third quarter yet. With the exception of the recent inflation [Technical Difficulty] about our operational performance in the quarter.

We remain richly supported by our continued focus on scaling the Corporate Travel business. The steady growth in corporate bookings, along with the increasing contribution from higher-margin hotels and MICE segments, positions us well for sustained margin expansion and improved profitability over the long term.

With this, let me now introduce you to Mr. Siddhartha Gupta, who recently joined us as our new CEO. Siddhartha brings with him a wealth of experience across the B2B SaaS industry, and in his last role, was the President of Mercer Consulting in India and was also heading their SaaS-based talent acquisition business globally. Prior to this, Siddhartha has also held leadership roles in large tech and SaaS companies like SAP and HP.

With that, let me hand you over to Siddhartha. Sid, over to you.

Thank you so much, Dhruv. Operator, I hope I am loud and clear on the line. Thank you so much, Dhruv, for giving a preamble on our quarter performance and the industry trends. A very good morning to everyone on the call.

Adding to Dhruv's comments, despite an industry-wide disruption in the airline sector during the quarter, Yatra continued to deliver in its Air Ticketing business, supported by seasonally strong B2C travel demand. Gross bookings in the Air Ticketing increased 22% year-on-year, supported by 14% growth in air passenger, which far exceeds the industry growth of about 1%. Take rates also improved from 6.2% to 7.1% on account of the quarter being more B2C focused.

In the Hotels and Packages segment, overall performance during the quarter remained healthy. However, we did see some temporary impact in the MICE and the Corporate Events subsegment, with a few bookings getting deferred due to flight disruptions. Just to remind listeners, it was the disruption in the IndiGo Airlines schedule in India. This resulted in a modest onetime impact on the quarter, part of which we expect to roll over in quarter 4, supported by the continued strength in underlying Corporate Travel demand.

Gross bookings in the segment grew 20% year-on-year, excluding the impact of deferment of the MICE business. Hotels would have grown over 30% on a stand-alone basis, supported by strong growth in our corporate business and in our affiliate business. While gross take rates moderately -- moderated slightly from 12.2% to 11.7% year-on-year on account of change in business mix, gross margins improved further from 9.7% to 10.2% year-on-year, reflecting prudent discounting in B2C and better margin realization from suppliers for corporate hotels.

Our B2B to B2C mix was approximately 60-40 for the quarter versus the 9-month average of 65-35 in favor of B2B. Our Corporate Travel business continues its strong momentum. We onboarded 40 new corporate clients in this quarter, collectively adding an annual billing potential of INR 2.2 billion. As mentioned earlier, the disruption happened during the highly productive first 2 weeks of December, when Corporate Travel usually peaks before holidays.

We saw deferment of MICE travel into Q4 and subsequently, few of the groups moved to Q1 of the next financial year as a direct result of uncertainty in the travel during that period. This disruption not only adversely impacted our operating performance, but also led to incremental working capital deployment where advances had already been paid to vendors for MICE Groups. These impacts were largely limited to the month of December, and the business is back on track.

In the Corporate business, there's more to cheer. The early response to our expense management solution has been very, very encouraging, and we have onboarded 8 customers now on our expense management platform. Early traction proves that Yatra understands the pulse of what our corporate customers need. This solution has not only become a door opener to get new accounts, but also gives us a huge upsell potential in our existing accounts.

A few thoughts on what you can expect from Yatra in quarters ahead. Our consumer-focused line of business has returned to growth path while improving margins. This was a result of sharp execution, coupled with successfully tapping into partnerships and affiliates for demand generation. In the near future, you should hear more on organic demand generation projects making impact, helping us further improve margins in this line of business.

Our corporate value proposition still has a huge headroom for growth. Online penetration is around 23%, and we have laid a strong foundation for chasing this potential. We have sharpened our go-to-market by establishing separate teams to chase large and small and medium enterprises. Demand generation is amplified by a new inside sales team now, which has started augmenting the efforts of the team on ground. Early signals are very promising. Beyond new customer acquisition, our farming team have won multiyear renewals from some of our largest customers this quarter, proving that corporates want trusted partners who can deliver value to them. Needless to say that our success is closely tied to the speed at which we can deliver tech innovation.

Our early investments in adding talent to our product and tech team have started showing results. You can expect us to further add gap between us and what's available in the market. Hope that gives you a flavor of where we're headed.

At this moment, I would have paused and handed over to Anuj Sethi, who is our CFO, to brief you on the financial performance for the quarter under review. He has got caught up in a medical emergency. Hence, I'll take you through the financial performance as well, and then me and Dhruv will take the questions together.

On the financial performance, for the third quarter of financial year '26, on a consolidated basis, our revenue from operations grew 10% year-on-year to INR 2,577 million or approximately $29 million, driven by steady demand across our key segments with robust growth from air ticketing business.

In terms of segmental performance, our Air Ticketing passenger volume grew 13% year-on-year to 1,491,000. However, gross bookings grew 22% year-on-year to INR 16,931 million or $188 million. And Air adjusted margins rose 40% year-on-year to INR 1,195 million, or $13 million with adjusted margin percentage improving from 6.2% to 7.1%.

Under Hotels and Packages segment, hotel room nights grew by 22% year-on-year to 508,000. Gross bookings increased 20% year-on-year to INR 4,306 million or close to $47 million, with adjusted margins expanded 15% year-on-year to INR 502 million or $6 million.

On the liquidity front, cash and cash equivalent and term deposits stood at INR 2,042 million or $23 million as of 31st December 2025. Gross debt has marginally increased from INR 546 million as of 31st March 2025 to INR 583 million or $6 million as of 31st December 2025.

With this, I would like to hand back to the moderator and open up for question-and-answer session.

[Operator Instructions] First question comes from Scott Buck with H.C. Wainwright.

First, I'm curious, the revenue growth deceleration in the quarter, is any of that structural? Or you're viewing that all as just kind of the ebbs and flow of managing some of the macro challenges that are out there?

Scott, this is largely seasonal in nature. Quarter 3, if you would recall, is one of the lowest quarters for business travel, given the holidays that we have for Christmas, New Year and for Diwali, Dussehra, which both happen in this quarter. So effectively, you lose 1 month out of the 3 in holidays. And then it got compounded this year with the flight disruptions that happened during the first 2 weeks of December. So it's not a structural shift. It's just a one-off, given the disruption that happened in the industry.

Okay. That's fair. Second, I just want to ask about the MICE business. Are you seeing some of the macro challenges out there, whether it's tariffs or anything else, having an impact on that business? I know there were some headwinds in the quarter.

No, we haven't really seen any impact of that, especially things like tariff and all. We do, in fact, expect that given that there is a new trade deal which is in place between India and the EU and India and the U.S., we will see business travel scale up even further when it comes to travel between both Europe and the U.S. But we're not really seeing any headwinds per se on account of these. Sid, if you want to add something extra on that?

Yes. So this MICE as a segment has grown and has tremendous potential for us to grow into. This was a very fragmented market about 3 to 4 years back. And now over the last 2 years, Yatra has become one of the top 3 players operating in this space in India. And Indian economy is one of the fastest-growing economies. So there are multiple industries where corporates are traveling, not only outside India, but within India as well. And hence, there is a huge headroom for growth.

What we've seen is that this entire segment is getting more formalized. So instead of very small players operating these events for corporates, now the corporates prefer doing business with large vendors like ourselves. So I think there's a huge potential, and we don't see any disruption in this space at all.

Great. That's helpful color. And then last one for me, guys. You continue to do a really nice job adding new corporate partners on the travel side. I'm curious how many of those kind of obvious or low-hanging fruit opportunities are still out there? And at some point, do you need to change or pivot the way you're pitching some of these customers to continue to bring on that Corporate Travel business?

I think at this time, we have got a lot of headroom in this. Our initial mapping had suggested close to about 13,000 organizations that we could target as part of this. We are still just in excess of about 1,000. So I think there is a lot of headroom for growth for us in this sector. I think Siddhartha coming on board will also sharpen our focus on how we go to market. And maybe Siddhartha can elaborate a bit more around how he's gone ahead in the short period of time in augmenting the sales team and putting in some new things in place, which will help us drive further growth. Siddhartha?

Yes. So to add, I concur with Dhruv completely. We have barely scratched the surface. There is a huge headroom for growth because the offline Corporate Travel still is the majority market and the value proposition of Yatra from providing an online Corporate Travel platform, which caters for all uniqueness of every corporate customer has a huge headroom for growth.

To give you a parallel, in my days at SAP or Hewlett-Packard, corporate India itself has more than 30,000 companies, which are potential customers to Yatra. We have just about crossed 1,300 right now. So there's a huge headroom for growth for us.

From a go-to-market standpoint, we have commenced a very ambitious and aggressive go-to-market sharpening exercise at Yatra. We have divided our go-to-market into 3 pillars. One is -- so we've separated these teams out. One is the elite sales team, which looks at only large enterprises and tries to get us more inroads into large corporates where travel spends are very high. Then we've got a separate team, which is looking at small and medium enterprises, which operates through digitally creating demand and then through an inside sales, landing it into our kitty. And the third bit is we are already one of the larger players in India from a large enterprise automation. So we have a very large existing account base.

So we have a team called key account managers, and it's headed by a very senior leader here in India. And the mandate there is to upsell and grow our existing relationships where we are introducing newer solutions like expense management and other solutions and especially international hotels and travel so that we are able to upsell into our existing customer set as well.

So overall, we are sharpening the go-to-market, running a very strong cadence on a weekly basis to ensure that spikes remain healthy and conversions remain healthy as well. So you should see momentum pick up from here, and we expect our strategy of leaning more towards B2E to grow Yatra being very successfully executed over the next 3 to 4 quarters.

[Operator Instructions] We have no further questions, so I'll hand back to the management team for any final remarks.

Thank you, operator.

Dhruv, would you like to....

And thank you, everyone, who joined the call today. And as always, we remain committed to driving shareholder value and being able to address any questions that you might have. Siddhartha and I are always available. Please feel free to reach out to us through our IR firm, ICR, and they can direct you to us. We look forward to engaging with you and continuing to deliver on the strong results that we have done for the last few quarters. Thank you for your time today.

Thank you so much, everyone.

Ladies and gentlemen, today's call is now concluded. We'd like to thank you for your participation. You may now disconnect your lines.

Hello, everyone, and welcome to Yatra's Fiscal Second Quarter 2026 Financial Results Call for the period ended September 30, 2025. I'm pleased to be joined on the call today by Yatra's CEO and Co-Founder, Dhruv Shringi; and CFO, Anuj Sethi. The following discussion, including responses to your questions, reflects management's views as of today, November 12, 2025. We don't take any obligation to update or revise the information.

Before we begin our formal remarks, let me remind you that certain statements made on today's call may constitute forward-looking statements, which are based on management's current expectations and beliefs and are subject to several risks and uncertainties that could cause actual results to differ materially. For a description of these risks, please refer to our filings with the SEC and our press release filed earlier this morning on the IR section of our website.

With that, let me turn the call over to Dhruv. Dhruv, please go ahead.

Thank you, and good morning, everyone. Thank you for joining us on this conference call to discuss our second quarter and first half of fiscal year 2026 earnings. Let me start by briefing you first on the operational performance for the period under review, after which our CFO, Mr. Anuj Sethi, will brief you on the financial performance in detail.

As you would have seen from our results and presentations that have been uploaded, it has been a remarkable quarter for Yatra as we have not only delivered strong financial and operational performance well ahead of guidance, but also celebrated 19 incredible years as one of India's most trusted travel brands. For second quarter of fiscal year '26, our revenue grew 48.5% year-over-year to INR 3,508 million, which is approximately $39.5 million. Adjusted revenue grew significantly year-over-year as well. Our growth in the quarter was fueled by resilient demand and consistent execution across both our corporate and consumer platforms. This also reflects the momentum we have gained in our corporate business and the higher-margin Hotels and Packages business as well as continued momentum in the MICE segment.

Notably, our profitability metrics underscore our disciplined execution. Adjusted EBITDA surged 218% year-over-year to INR 212 million or USD 2.4 million, and profit for the period increased significantly to INR 98.8 million or USD 1.1 million versus a loss of INR 0.3 million or USD 0.1 million in the prior year, well ahead of our earlier guidance. The corporate travel market is expected to reach around USD 20 billion by FY '27. However, online penetration in this segment remains low at just about 20% in FY '24 compared to almost 45% for the overall travel market in India. This indicates substantial headroom for digital adoption across the corporate travel industry.

Online penetration is accelerating, driven by rapid adoption of digital booking platforms and the uptake of self-booking tools and integrated expense management solutions. In the lodging space, branded hotels and curated packages are witnessing increasing demand from both leisure and MICE travelers, supported by improving supply, better service standards and a growing preference for experiential stays. Overall, this large and expanding market, coupled with increasing digital penetration presents a significant opportunity for Yatra, particularly in the underpenetrated corporate segment.

Our Corporate Travel segment represents a meaningful part of our overall business and delivers strong momentum for Yatra. In Q2, we onboarded 34 new corporate clients, collectively adding an annual billing potential of INR 2.6 billion or USD 29.5 million. On the B2C front, we continue to make good progress in rationalizing our cost of acquisition and finding avenues to scale profitably. Bookings, which were impacted in the previous quarter due to macro events have now started to show signs of recovery.

Additionally, the recent reduction in income tax and GST rates in India is expected to further boost travel consumption and discretionary spending, supporting a stronger growth outlook in the quarters ahead. On the technology front, we continue to enhance our digital platforms to deliver a more seamless and intelligent travel experience. Our Diya AI, our generative AI-powered travel assistant now enables seamless flight and hotel search bookings, streamlining the entire travel journey from planning to payment.

We have also introduced a new user interface designed for hotels with a transparent per room per night pricing model, along with upfront display of taxes and fees to eliminate surprises for users. The optimized interface is designed to improve usability and drive higher conversion rates. Additionally, our best price guarantees customers can be assured to access the lowest available hotel rates on Yatra. If they find a lower price elsewhere, we match it or offer a better rate for the same booking.

In sales and marketing, we celebrated our 19th year with a big outing fest, a high-impact sales campaign that was amplified across digital, social, outdoor and print platforms. As part of our broader brand-building efforts, we also strengthened our corporate travel presence on LinkedIn, driving greater visibility and engagement among enterprise customers.

As part of our ongoing efforts around restructuring, the company believes it has a viable structure to pursue. While some hurdles remain, we are actively navigating processes across jurisdictions. The time line is uncertain due to complexity, but we are fully committed. This transition is key for Yatra and its shareholders, aligning us with the market and unlocking value. We'll share more updates as we move forward.

As we look ahead, we see strong sustained growth opportunities driven by rising digital adoption across both leisure and corporate travel segments. Yatra is well positioned to capture this growth through our expanded corporate client base, enhanced technology offerings and a growing share of high-margin hotels and MICE business. We remain committed to disciplined cost management, profitable scaling and delivering long-term value to our shareholders while strengthening our competitive edge in the globally -- in the global travel ecosystem.

Thank you, everyone. And I'll now request our CFO, Anuj Sethi, to brief you on the financial performance for the quarter under review.

Thank you, Dhruv. Good morning, everyone. For the second quarter of financial year 2026, on a consolidated basis, our revenue from operations grew 48.5% year-on-year to INR 3,508.7 million or equivalent to USD 39.5 million, driven by continued momentum across key segments, including robust growth in our Hotels and Packages business and a meaningful contribution from MICE segment. Our adjusted margins performed strongly across segments. Air ticketing adjusted margin increased 14.7% year-on-year to INR 1,016 million, equivalent to USD 11.4 million. Hotels and Packages adjusted margin rose 28.6% year-on-year to INR 514.5 million or USD 5.5 million -- USD 5.8 million and Other Services adjusted margin grew 25.1% year-on-year to INR 95 million or USD 1.1 million, underscoring the strength of our diversified business model.

Adjusted EBITDA surged 217.7% year-on-year to INR 212 million or USD 2.4 million. As a result, profit after tax increased significantly to INR 98.8 million or USD 1.1 million versus a loss of INR 0.3 million or USD 0.1 million in the prior year. In terms of segment performance, our ticketing passenger volumes declined 3.5% year-on-year to 1,329,000. However, our gross air bookings grew 11.7% year-on-year to INR 14,811.4 million or USD 166.8 million, and our adjusted margins rose 14.7% year-on-year to INR 1,016 million or USD 11.4 million, with adjusted margin percentage improving from 6.7% to 6.9%.

In the Hotels and Packages segment, the hotel room nights grew by 9.4% year-on-year to 504,000. Gross bookings increased 40.4% year-on-year to INR 5,141.6 million or USD 57.9 million, while the adjusted margins expanded to 28.6% year-on-year to INR 514.5 million or USD 5.8 million with the adjusted margin percentage at 10% compared to 10.9% in the previous year.

Total gross bookings across all segments increased 16.2% year-on-year to INR 20,504.8 million or USD 231.0 million. On the liquidity front, cash and cash equivalents and term deposits stood at INR 2,207.8 million or USD 24.9 million as of September 30, 2025.

With this, I would like to hand it back to moderator and open the floor for the question-and-answer session. Thank you.

[Operator Instructions] We have the first question on the phone lines from Scott Buck with H.C. Wainwright & Co.

I was hoping you might be able to provide a little bit more color around corporate travel trends that you're seeing in the India market. And maybe how much of your momentum there is driven by just kind of industry tailwinds versus your market share gains?

Good morning, Scott. Scott, to answer your question, I think today, the corporate travel market in India is growing approximately at about 8% to 9%. We are growing almost at like 2x of that rate. The reason we are growing that much faster than the industry is because what we've seen over the last few years now, last couple of years, at least, is that there is an increasing drive on the part of corporates in India to adopt digital technology to automate their business processes.

And as part of that being the market leader in this segment, our teams, along with their own execution capabilities are growing at a rate which is faster than the market. So market itself is growing, you're right, but within the market as well, given the technology solution that we offer, we are able to gain market share as well.

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

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

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

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

Okay. Perfect. I appreciate the added color guys. And congrats on all the progress.

[Operator Instructions] I can confirm that does conclude the question-and-answer session here. And I'd like to hand it back to Dhruv for some final closing -- I apologize. We do have a question on the line from Aman Jain with PMB Securities.

I just wanted to check specifically on the consumer business, how profitable is it vis-a-vis our corporate travel business. And how do you see it trending? I understand in the last quarter or probably in Q4, you guided that we should be bottoming out around Q1, Q2 in the consumer business and then we should start picking it up. How is it trending now, the consumer business? And what percentage of your overall business does consumer contribute now?

So the consumer, let me just work backwards. The consumer business now is accounting for about 1/3 of our overall gross bookings. And in terms of the trending of the consumer business, the consumer business has definitely bottomed out, and we've seen profitability improve over there. We would expect a gradual kind of increase in the consumer business as well. While we would expect the corporate business to grow between 13% to 20%, we would expect the consumer business to grow in the mid- to high single digits.

And this growth that we're looking at in the consumer business is all profitable growth only. We are not looking at doing any negative cost of acquisition. So whatever growth rate we are projecting out here on the consumer business, that is all going to be incremental and accretive from a bottom line point of view.

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

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

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

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

And how do you -- how are you planning it. Will it involve a delisting of the U.S. company, merger with the Indian company? I mean, merger with the Yatra Online. How exactly are you envisaging it currently?

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

Okay. But so my key takeaway is it should take less than a year, but that is the best estimate. There is no commitment from your side.

[Operator Instructions] We have a follow-up question from Aman.

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

See, I think in terms of the U.S. entity, the holding company today, as you rightly pointed out, trades at a meaningful discount to peers. Part of it is also driven by the much smaller market cap and the lack of liquidity. One of the ways that we are trying to solve for or rather the key way that we are trying to solve for is to introduce some kind of a fungibility because in India, the entity is trading at a much better multiple than where it's trading in the U.S.

So that's the entire reason for taking on this exercise of trying to streamline the corporate structure and put in place some kind of a fungibility to the shares. That's definitely one way that we are looking at doing it. And in India, we've been -- based on the strong performance that we have, interacting with analysts, large amount of investor community, and that's what's driving the momentum behind the stock in India.

Okay. Just for my clarity, what exactly do you mean the fungibility.

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

Okay. So does that mean getting the Indian shares?

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

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

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

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

Hello, everyone, and welcome to the Yatra's Fiscal First Quarter 2026 Financial Results Call for the period ended June 30, 2025. Today's call is hosted by Yatra's CEO and Co-Founder, Dhruv Shringi; and CFO, Anuj Sethi.

The following discussion includes responses to your questions reflects the management's views as of today, August 11, 2025. The company does not take any obligation to update or revise the information.

Before they begin their formal remarks, please be reminded that certain statements made on this call may constitute forward-looking statements, which are based on Yatra's management, current expectations and beliefs are subject to several risks and uncertainties, that could cause actual results to differ materially.

For a description of these risks, please refer to Yatra's filings with the SEC on the press release filed earlier this morning on the IR section of Yatra's website. With that, let me turn the call over to Yatra's CEO and Co-Founder, Dhruv Shringi. Dhruv, please go ahead.

Thank you, and good morning, everyone. Thank you for joining us to discuss our first quarter fiscal year 2026 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 travel in India on account of the cross-border tension and the unfortunate air crash in June 2025.

This momentum was driven by sustained demand in business channel and strong execution across our platforms. For Q1 FY '26, we are pleased to report revenue of INR 2.098 billion, which is approximately USD 24.5 million, up 99.7% year-over-year and revenue less service cost or gross margin for the quarter of INR 1.15 billion or USD 13.5 million, up 36.6% year-over-year.

Our growth in revenue and gross margin 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 stand-alone hotel cross-selling to existing customers.

Notably, our profitability metrics underscore our disciplined execution. Profit for the quarter stood at INR 110 million, which is approximately USD 1.3 million versus the loss of INR 0.8 million or approximately $0.1 million in the June FY '25 quarter. Our adjusted EBITDA of INR 206 million, which is approximately USD 2.4 million was up 214% year-over-year, significantly ahead of our annual guidance of 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 in India is expected to reach around $20 billion by FY '27. However, online penetration in this segment remains low at just about 20% in FY '24 compared to almost 45% for the overall travel market in India. This indicates substantial headroom for digital adoption across the corporate travel industry.

Online penetration is accelerating driven by rapid adoption of digital booking platforms and the uptake of self-booking tools and integrated expense management solutions. In the lodging space, branded hotels and curated packages are witnessing increasing demand from both leisure and MICE travelers, supported by improving supply, better service standards and a growing preference for experiential states.

Overall, this large and expanding market, coupled with an increasing digital adoption presents a significant opportunity for Yatra, particularly in the underpenetrated corporate segment. Our corporate travel segment continues to deliver strong momentum by Yatra. In Q1, we onboarded 34 new corporate clients collectively adding an annual billing potential of approximately INR 2 billion.

On the B2C front as well, we continue to make good progress on rationalizing our cost of acquisitions and timing avenues to scale profitably. B2C bookings were more impacted by the macro events of the quarter 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 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, which offer unique airlines specific fare options. Bundles with benefits such as baggage allowance, speed selection and flexible changes. We have also recently launched our AI assistant DIYA, which stands for Digital Intelligent Yatra Adviser which assist customers, not only for the usual customer service inquiries, but also help refine the search and helps book personalized travel products.

AI-enabled servicing will provide us with further operating leverage in the quarters to come and a more refined service process to enable us to attract new customers to Yatra. Additionally, our expense management solution offers an end-to-end travel and expense solution with GenAI-Powered Receipt Parsing ERP integration and Advanced Analytics and visualization, and continues to get very positive feedback from this initial customer.

In sales and marketing, we continue to amplify our partner offers from banks and airlines through our owned media and social media channels, ensuring consistent visibility and engagement. Our content marketing initiatives for the strengthened brand reach with compelling travel stories, seasonal campaigns and milestone celebrations that have resonated with our audience.

We also execute with innovative brand collaborations with leading consumer brands, delivering impactful outdoor campaigns and co-branded experiences that capture attention and grow conversion. With regards to our fare convertibility as previously stated, we have a strategy in place to restructure to effectively support the conversion of U.S. shares into India shares, while some regulatory complexities remain we are navigating the required processes across multiple jurisdictions.

Given this complexity, the time line is still unclear, but we'll keep you informed as we continue to make progress. Just to also clarify on this from an exchange ratio point of view, 1 U.S. share is equivalent to approximately 1.5x shares in India.

As you 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, a growing share of high-margin hotels and packages and MICE business.

We remain committed to disciplined cost management, profitable scaling and delivering long-term value to our shareholders, while strengthening our competitive edge in the evolving global travel ecosystem.

Thank you, everyone, and I will now request our CFO, Anuj Sethi, to brief you on the financial performance for the quarter under review. Anuj?

Thank you, Dhruv. Good morning, everyone. For the first quarter of financial year 2026. On a consolidated basis, our revenue from operations was INR 2,098 million, which is approximately USD 24.5 million. an increase of 99.7%, driven by continued momentum across key segments, including robust growth in our hotels and packages business and a meaningful contribution from MICE business.

Our gross margin defined as revenue less service cost due to INR 1,156 million, approximately USD 13.5 million rising 36% year-on-year, underscoring the strength of our diversified business model. Adjusted EBITDA surged to INR 206 million, which is approximately $2.4 million, up [ 214% ] year-on-year. As a result, Profit for the period increased to INR 110 million, approximately USD 1.3 million.

In terms of segment performance, our air ticketing passenger volumes declined 9% year-on-year to INR 1.206 million. However, gross share bookings grew 4% year-on-year to INR 14,103 million, approximately USD 4.4 million. NRA gross margin rose 54% year-on-year to INR 647 million with margin improving from 3.10% to 4.60%.

Under Hotels and Packages segment, the hotel room nights grew marginally by 1% year-on-year to about INR 423,000, gross bookings increased 43% year-on-year to INR 3,433 million, while gross margin expanded 74% year-on-year to INR 311 million or USD 40 million with margins improving from 7.46% to 9.05%. While the 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 equivalent and term deposits stood at the INR 2,235 million, approximately USD 26 million as of 30 June 2025 as compared to INR 1.9 billion, approximately USD 22 million as of 31st, March 2025. Gross debt has been significantly reduced from INR 546 million, about $6 million to as of net 31st March 2025, to just about INR 29 million, around USD 0.3 million as of 30 June 2025.

With this, I would like to hand it back to the moderator and open up for question and answer session. Thank you.

[Operator Instructions] The first question we have comes from Scott Buck with H.C. Wainwright.

And congrats on the quarter. Dhruv, I'm curious, given the momentum in MICE, what is your appetite for potentially doing another deal in the space to even accelerate that growth further?

Scott. We continue to evaluate opportunities our endeavor at this point was first to make sure that the Globe acquisition is successfully integrated within Yatra and that's something that we've been able to achieve over the course of the last 2 odd quarters. And we continue to look out for opportunities, if there is something interesting that comes up, we will obviously evaluate it on its merits.

But it's a segment that we are quite attracted by. It has the right dynamics from a growth trajectory point of view and also from a profitability point of view. So we will continue to look at avenues to see how we can scale up faster on the corporate travel and MICE segments.

Great. That's helpful. And then my second question, Dhruv, you mentioned some hurdles remaining in the restructuring. Can you give us just a bit more color on what steps remain? And are you waiting reliant on the SEC here in the States? Is it something on the Indian side? Any additional color there, I think, would be helpful.

Scott on that side, given that it's more of a regulatory process, there isn't too much else that I can share at this point of time. Apart from the fact that we do have a strategy in place that they are executing on. It does entail they're working with multiple regulators in different jurisdictions, multiple law firms right across different markets. So it is a time-consuming process, but it's definitely something, which is absolutely in top of mind for us and the Board.

Okay. And I guess as a bit of a follow-up, what were the quarterly operating expenses tied to this effort. I mean was it material?

In the current quarter, they were not as material, but even in the last quarter, obviously, it was quite significant. But in the current quarter, they were less so. Yes.

[Operator Instructions] We have another question from [ Mal Ramesh ] with [indiscernible].

Hello morning, everyone. Just wanted for to check, I see that has increased by remember right, like 9% or so. So I thought that overall travel has grown by double digits and is it because of the, to some extent, the low growth in terms of the air and is Yatra not gaining or losing market share in air and we'll be gaining in hotels and meetings?

So yes, in terms of your question, the overall industry growth rates on the aviation side would have been maybe slightly higher. For Yatra, specifically, what has happened is there are 2 parts to our business. One is the corporate business, which is the larger part of our gross bookings and then it comes to consumer business.

While the corporate business was growing and has grown well ahead of the market, the consumer business declined marginally and this, what you see is the weighted average impact of the 2. The consumer business got impacted to a certain extent also on account of the macro factors in India which there being a product skirmish with Pakistan in the month of May, and then there was a large air crash in the month of June, both of which negatively impacted consumer sentiment, when it came to travel.

Business travel on the other hand, recovered quite promptly. Hence, the business travel arm of our -- of the Yatra was be able to grow at a rate, which was much higher. But the B2C business did lag behind a bit. On the hotels and packages given that the hotels and MICE packages are largely on the corporate travel side, there you see growth rates, which is well ahead of market.

Okay. What's the share of your business corporate travel to this consumer? It used to be, what, 2/3, 1/3 the time now?

Yes, sir. So corporate is about 2/3 and consumer is 1/3.

Okay, you still been taking the ratios. Okay. And just another question on jet topic. There is -- I mean you were going through restructuring of companies merging every company into whatever Yatra Limited. Is that going to provide any significant savings or it's not a material amount?

It will -- there will be some savings, which will be there, plus there will be tax saving as well, which will happen. So in India, the tax saving impact of that will be about approximately $0.5 million plus a year.

[Operator Instructions] We have no further questions, and that concludes the question-and-answer session here. And I would like to hand it back to management for some final closing comments.

Thank you, operator. And I'd like to thank all of you for joining the call today. If you have any further questions, you can reach out to our IR partner at ICR. Thank you once again for participating in today's call and we look forward to your support going forward. Thank you.

Thank you.

Thank you for dialing in. I can confirm that does conclude today's conference call with the Yatra. Thank you all for your participation. You may now disconnect, and please enjoy the rest of your day.

Hello, everyone, and welcome to the Yatra 4Q '25 and FY '25 Earnings Conference Call. My name is [ Ezra ], and I will be your coordinator today. [Operator Instructions]. I will now hand you over to your host, Manish Hemrajani, VP, Investor Relations, to begin. Manish, please go ahead.

Thank you. Good morning, everyone, and welcome to our fourth quarter and full year FY '25 earnings conference call for the period ended March 31, 2025.

I'm pleased to be joined on the call today by Yatra's CEO and Co-Founder, Dhruv Shringi; and CFO, Anuj Sethi.

Before we begin, I would like to remind you that certain statements made on today's call may constitute forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to various risks and uncertainties that could cause actual results to differ materially. For a detailed discussion of these risks, please refer to our filings with the SEC and the press release we issued yesterday, which is available on the IR section of our website.

With that, I'll turn the call over to Dhruv. Dhruv, go ahead.

Thank you, Manish. Good morning, everyone, and welcome to our fourth quarter and full year fiscal '25 earnings conference call for the year ended March 31, 2025.

I'm pleased to be joined on the call with my colleague, Anuj Sethi as well, who is our CFO.

As we reflect on fiscal year 2025, I'm thrilled to present our performance that demonstrates a story of resilience, strategic growth and unwavering momentum that solidifies Yatra's position as India's premier corporate travel service provider.

For FY '25, we are pleased to report annual revenues of INR 7.9 billion, which is approximately USD 93.1 million, up 90% 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. Adjusted EBITDA for the year was up 28% and adjusted profit was up 106.5% year-over-year to INR 24 million.

On a quarterly basis, for the March quarter, we reported revenues of INR 2.2 billion, which is approximately USD 25.7 million, up 114% year-over-year, driven by the growth in our MICE business and the inorganic contribution from the Globe Travels acquisition. Our revenue less service cost for the quarter came in at INR 1.1 billion, approximately $12.8 million, up 34% year-over-year.

Adjusted EBITDA of INR 90 million, approximately $1.1 million was up 23% year-over-year.

Now let's take a broader view of the landscape in India. India's travel industry is in a transformative stage. IMARC forecast corporate travel in India, which is currently at $42 billion, will hit $80 billion by 2033, driven by globalization of business operations, which has encouraged multinational companies to expand their businesses in India.

Add to that rising investments by public and private agencies for improving travel infrastructure and 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 developing of Meetings, Incentives, Conference and Events segment.

These are all positive influences, which are helping the Indian market grow exponentially. India's GDP also is valued at almost $4 trillion now, making it currently the fourth largest economy, and it's on track to become the third largest 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 2 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 INR 1.4 billion in expected annual volumes. For fiscal year '25, we secured 148 new clients contributing to INR 7.5 billion in expected annual volumes, reinforcing our market partnership.

We continue to expand our corporate sales team across India, targeting high-growth sectors like IT, manufacturing, FMCG and consulting. This effort has quadrupled our sales pipeline, reflecting strong momentum.

Our MICE business has emerged as a standout performer with significant growth and margin expansion in the fourth quarter, building on the strong foundation laid throughout fiscal year 2025. Globe has long been recognized for its deep domain expertise and strong client relationships in the MICE sector. By leveraging our expanded capabilities and Globe's 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 also expanded our reach into a diverse and largely nonoverlapping 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 9 months of fiscal year 2025, our combined MICE platform handled over 600 trips and served more than 80,000 travelers, a testament to the growing demand and our ability to execute at scale. The Indian MICE market is estimated at $3.3 billion in 2023 and is expected to grow to $10 billion by 2030, representing a CAGR of 18%.

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 3 players over the next 3 years in this segment. I'm happy to share that I strongly believe that on current run rate, Globe and Yatra combined would become one of the top 3 players in this fast-growing segment in the current fiscal year itself.

On the expense management side, our expense management platform, RECAP, 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 contemporary offering to our core travel services. We see strong cross-sell potential within our existing client base and the broader opportunities in the expense management space remain significant, both in India and select international markets.

As adoption scales, RECAP is poised to drive deeper customer engagement while building meaningfully to our margin profile. We are focused on accelerating this momentum and building RECAP into a core pillar of our enterprise offering over the coming years.

I'm also pleased to share that in FY '25, Yatra became one of the first travel management companies in India to integrate the new distribution capabilities that the airlines are offering.

This is a transformative technology developed in conjunction with IATA by the airlines. Some of the key benefits of this for corporate travelers is that it provides them more flight options and better pricing. You would all have seen a trend over the last few years that increasingly airlines are only sharing the cheapest fare on certain exclusive channels, including their own websites.

The NDC is one such channel that allows you to access these special fares, which might otherwise not be available in traditional distribution platforms. The real-time seat availability and dynamic pricing of this is a key enabler for cost saving for large corporate organizations. This also allows us to offer more personalized and richer content and making sure that policy compliance is even tighter.

This will include things like preferred seating, extra baggage or bundled offers being brought forward to the corporate travelers through our own technology solution. This smoother and more transparent booking experience enhances Yatra's self-booking tool and aims to provide a more seamless and transparent booking experience to our clients.

Overall, Yatra's move to integrate NDC with its self-booking tool for corporate travel aims to enhance the booking experience, improve cost efficiency and streamline travel planning even further for our customers.

This reinforces our commitment to innovation and leadership in the corporate travel market, ensuring that we remain at the forefront of technology advances that benefit our customers. In our B2C Air business, we were able to arrest some of the decline in gross bookings. And in Q4, our gross bookings fell only 6%. The silver lining is that we've seen stabilization in our B2C Air business now despite facing competitive headwinds.

And the stabilization in Q4 has been achieved through optimization of our discounts, SEO improvements and increased personal travel attach rates through our corporate channel. Based on the current trends, we expect to start seeing gradual growth in B2C starting 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 caused for about 10 to 15 days due to the war-like situation in India.

Thankfully, things have normalized pretty quickly and business is back on track. On the AI side as well, we continue to embrace AI, enhancing 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, a smart post-booking fare optimization tool that underscores our continued investment in customer-centric innovation.

Built using machine learning algorithms, this tool continuously stands for fare drops even after a customer has completed their booking. If a lower fare becomes available on the same flight up to 6 hours before departure, the system automatically alerts the traveler, giving them the option to rebook at a 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 service can look like.

We have also been building intelligent bots to automate customer service e-mail queries and calls. These bots will continue to improve as the LLMs evolve at a rapid pace, and we'll be able to significantly drive down the cost of servicing in the near term. I'm pleased to highlight a few recent accolades as well that Yatra has received from international airlines and our supply partners.

This underscores the strength of the brand and the trust that we've built with them. Singapore Airlines recently acknowledged or recognized Yatra as its top travel partner in India, an acknowledgment of our strong booking volumes, efficient operations and alignment in the region. Air Canada honored Yatra with its prestigious Circle of Excellence Award, and we received similar accolades from Etihad Airways as well for being one of their top 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 airlines.

Now let me update you on the convertibility of the shares.

We've made substantial progress on our path to convertibility into India shares. We've defined a structure that we believe works and allows for this convertibility. While there are still some hurdles to overcome, we are confident in the structure's viability. We've now focused on navigating the necessary process and procedures across multiple jurisdictions. Given the complexity involved, we can't commit to a specific time line, but rest assured, we are dedicating all our efforts to making this a reality.

This transition is a critical step for Yatra and our shareholders, aligning us with the market and unlocking value. We'll provide updates as we continue to make progress. As we look ahead to fiscal 2026, we are encouraged by the momentum across our business. Strong corporate client acquisition, continued growth in our MICE 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 gross margin and 30% adjusted EBITDA growth driven by 3 pillars: expansion in corporate travel; continued scaling of MICE and hotels; and full cost synergies from Globe travels. I would just like to highlight that the MICE business does have a certain amount of seasonality with fiscal Q2 being the strongest quarter followed by Q3, Q4 and then Q1.

So the margins and the profit will get appropriately seasonalized as well. But on the whole, we are confident of achieving the guidance that we are setting ourselves.

Before I close, I'd also like to provide a quick update on recent geopolitical developments that briefly impacted the travel demand in India.

April began on a strong note for us. But following the unfortunate incident in Pahalgam, one of India's key summer travel destinations and the subsequent escalation of tensions between India and Pakistan, we experienced a temporary disruption in travel activity. This led to a short-term dip in both leisure and corporate travel, particularly in the northern part of 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 with the situation now stabilizing and a cease fire in effect, we've seen a prompt recovery in booking volumes across the country, excluding the directly impacted areas where demand is gradually expected to normalize.

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'll now request our CFO, Anuj, to brief you on the financial details. Anuj, over to you.

Thank you, Dhruv, and good morning, everyone. Let me brief you on our financial performance for the period under review.

For the fourth quarter of financial year 2025, the revenue from operations grew 114% year-on-year to INR 2,192 million, approximately USD 25.7 million, driven by a 54% increase in hotels and packages, growth in MICE and inorganic Globe contribution. More notably, our gross margins, revenue less service cost jumped 34% year-on-year to INR 1,094 million, approximately USD 12.8 million, driven by our focus on high-margin areas like Corporate Travel and MICE.

Adjusted EBITDA was up 28% year-on-year to INR 90 million, approximately USD 1.1 million, yielding an 8.2% adjusted EBITDA to gross margin. For the annual results of financial year 2025, the revenue from operations grew by 90% year-on-year to INR 7,957 million, approximately USD 93.1 million, fueled by stellar growth in overall Corporate Travel business.

Adjusted EBITDA rose 28% to INR 344 million, approximately USD 4 million, and net profit turned positive to reaching INR 24 million, approximately USD 0.3 million, a 106.5% improvement from last year.

Looking at liquidity, the cash and cash equivalent and term deposits stands at INR 1,960 billion (sic) [ 1,906 million ], approximately USD 23 million as on 31st March 2025, while gross debt reduced from INR 638 million, approximately USD 7.5 million as at 31st March 2024 to INR 546 million, approximately USD 6.4 million as at 31st March 2025.

This strong financial foundation provides us with ample flexibility to pursue growth initiatives and strategic investments.

Dhruv, handing over back to you.

Thank you, Anuj. And we would now like to open the call for questions.

[Operator Instructions]. Our first question comes from Scott Buck with H.C. Wainwright.

Dhruv, if the situation were to further deteriorate along the Pakistan border, how much of the business has historically been tied to that region?

So Scott, about the northern part of India accounts for almost about 25% to 30% of our overall business volumes.

But what ends up happening is while that might be the origination of the business, it's also the travel endpoint for travelers coming into this region. So on an overall basis, I think it's safe to say that 30-plus percent of the business would get impacted if something was to escalate a bit further.

Okay. That's helpful. And then I understand it's a little early given your prepared remarks. But what can you tell us about the proposed corporate structure? And what does that mean for share fungibility?

As I put in the remarks that we've got, I think, a structure in place that now we think works.

Given that the structure itself took a bit of time given the multiple jurisdictions involved, I think that in itself is a key achievement that we have a structure that according to all jurisdictions seems to work.

Now it's the process of just going through and making sure that all the procedural associated with that structure gets put in place over the course of the next couple of months. The good thing and the positive out of that is that at least there is a defined structure in place now.

Yes. Okay. And we should get even more clarity over the next 2, 3, 4 months.

That's right. Yes.

It sounds like. Yes. Perfect. I appreciate that. And then on MICE, you guys have made some really nice progress there. Are there acquisition opportunities out there that could help you even accelerate that further?

Sure. So we continue to evaluate opportunities. We've done one about 6 months back, 6, 7 months now, and we are in the process of fully integrating that. I think that should get done in the current quarter itself, and that will then free us up to start looking at other opportunities going forward.

That's helpful. And then last one for me. The guide for fiscal year '26 suggests some operating leverage. But how much capacity do you have for future revenue growth before you have to make some significant investments in the OpEx?

I guess, can you grow the business 50% from here without having to add meaningfully on the cost side?

We think we can at least grow 30% to 40% without needing to change the cost structure significantly. That much growth we should be able to achieve. In the numbers that you see, the escalation in operating cost, which is there is largely due to legal and professional fees, which is associated with the collapse of the structure that we are working on.

Otherwise, our cost structure has changed year-over-year only because of the addition of Globe's numbers for the first time in the full fiscal year. Cost otherwise has remained fairly constant.

[Operator Instructions]. We currently have no further questions. So I will hand back over to Manish for any closing remarks.

Thank you, Ezra. Thank you, everyone, for joining the call today. As always, we are available for follow-ups. Thank you.

Thank you.

Thank you.

Thank you very much, Manish, and thank you, Dhruv and Anuj for being today's speakers. That concludes our conference call. We appreciate everyone for joining. You may now disconnect your lines.