Core Insights - Yatra Online, Inc. reported robust financial and operational performance for the three months ended December 31, 2025, exceeding initial full-year growth guidance despite challenges in the domestic aviation sector and geopolitical issues affecting international travel [1][2] Financial Performance - Revenue for the quarter was INR 2,576.9 million (USD 28.7 million), reflecting a year-over-year growth of 9.6% [1] - Adjusted EBITDA was INR 99.7 million (USD 1.1 million), a decrease of 17.9% year-over-year [1] - The company reported a loss from operations of INR 120.2 million (USD 1.3 million), compared to a profit of INR 14.8 million (USD 0.2 million) in the same quarter of the previous year [1] - Loss for the period was INR 129.3 million (USD 1.4 million), compared to a profit of INR 39.8 million (USD 0.4 million) in the prior year [1] Operational Highlights - Total Gross Bookings reached INR 21,761.9 million (USD 242.2 million), marking a 20.9% increase year-over-year [1] - The Corporate Travel segment onboarded 40 new corporate clients, increasing annual billing potential by INR 2,234 million (USD 24.9 million) [1] - Adjusted Margin from Air Ticketing was INR 1,195.8 million (USD 13.3 million), an increase of 39.4% year-over-year [1] - Adjusted Margin from Hotels and Packages was INR 502.1 million (USD 5.6 million), reflecting a 14.6% increase year-over-year [1] Strategic Initiatives - The integration of Globe Travels has progressed well, providing supplier synergies and technology enhancements [1] - The company is focused on restructuring efforts to unlock shareholder value, with timelines subject to regulatory complexities [1] - Future strategies include scaling high-margin segments and enhancing technology capabilities to drive sustainable long-term value [1]

Financial Data and Key Metrics Changes - The company recorded a gross booking value of $9.8 billion for the year, with a year-on-year growth rate of 25.9% in constant currency terms [6] - Adjusted operating profit reached an all-time high of $167.3 million, reflecting a year-on-year growth of 34.7% [6][25] - For Q4, gross booking value growth accelerated to 30.4% year-on-year in constant currency terms, while adjusted operating profit grew at a rate of 37.9% year-on-year [6][27] Business Line Data and Key Metrics Changes - The international air ticketing revenue grew by over 33% year-on-year, significantly outpacing industry growth [9] - The international hotels revenue grew by over 65% year-on-year, making it one of the fastest-growing segments [9] - The accommodation business, including hotels and packages, saw a gross booking value growth of 27.7% year-on-year in Q4 [11] Market Data and Key Metrics Changes - The international business now contributes 25% to overall revenue, up from 22% in the previous fiscal year [10] - Domestic departures crossed pre-pandemic levels, while international departures grew by 18.5% year-on-year [10] - The online penetration in international air ticketing is steadily increasing, aiding gross booking value growth [10] Company Strategy and Development Direction - The company is focused on enhancing user experience through generative AI, with features like trip planning chatbots and AI-driven support for booking changes [8][9] - The strategy includes expanding into underpenetrated international outbound markets and strengthening product propositions [9] - The company aims to maintain a marketing spend around 5% of gross booking value while investing in ancillary travel services and geographic expansion [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about recovering lost momentum following recent geopolitical disruptions, emphasizing collaboration with airline and hotel partners [22] - The company remains focused on driving growth in the twenties and does not foresee a slowdown in growth trajectory [39][40] - Management highlighted the importance of agility in responding to macroeconomic changes and maintaining a strong execution strategy [21][22] Other Important Information - The company has a capital allocation strategy focused on growth initiatives, exploring niche opportunities, and returning value to shareholders through buybacks [30] - The company has deployed approximately $21.7 million in its share repurchase program [31] Q&A Session Summary Question: On selling and marketing expenses - Management plans to maintain marketing expenses around 5% of gross booking value, focusing on driving growth rather than reducing spend [35][36] Question: Industry growth rate outlook - Management aims for growth in the twenties and believes the current trajectory will continue despite temporary challenges [39][40] Question: Competition from generative AI - Management is confident in leveraging their data and technology to stay ahead of potential competition in the AI space [42][44] Question: Competition in the Indian market - Management views the Indian travel market as underpenetrated and believes there is significant room for growth despite current competition [55][59] Question: Margin guidance and buyback strategy - Management aims to stabilize margins in the 1.8% to 2% range and will continue to be opportunistic with buybacks based on market conditions [70][74]