Yatra(YTRA) - 2026 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For Q3 2026, consolidated revenue from operations grew 10% year-on-year to INR 2,577 million (approximately $29 million), driven by steady demand across key segments, particularly in air ticketing [15] - Gross bookings increased 22% year-on-year to INR 16,931 million (approximately $188 million), with air adjusted margins rising 40% year-on-year to INR 1,195 million (approximately $13 million) [16] - Gross margins improved from 9.7% to 10.2% year-on-year, reflecting prudent discounting in B2C and better margin realization from suppliers for corporate hotels [11] Business Line Data and Key Metrics Changes - The B2C business continued to grow profitably, with gross bookings in air ticketing increasing 22% year-on-year, supported by a 14% growth in air passenger volume, which far exceeds the industry growth of about 1% [9] - In the hotels and packages segment, hotel room nights grew by 22% year-on-year to 508,000, with gross bookings increasing 20% year-on-year to INR 4,306 million (approximately $47 million) [16] - The corporate travel business onboarded 40 new corporate clients in the quarter, adding an annual billing potential of INR 2.2 billion [12] Market Data and Key Metrics Changes - Domestic travel faced short-term headwinds in December, while international travel remained strong, indicating a structural upcycle in outbound and long-haul travel [4][5] - The company noted a divergence between domestic and international travel trends, with international travel showing healthy year-on-year and sequential growth [4] Company Strategy and Development Direction - The company is focusing on scaling its corporate travel business and enhancing its expense management solutions, which have shown early traction with eight customers onboarded [12][14] - Yatra is sharpening its go-to-market strategy by establishing separate teams for large enterprises and small to medium enterprises, aiming to capture a larger share of the corporate travel market [25] Management's Comments on Operating Environment and Future Outlook - Management indicated that the revenue growth deceleration in the quarter was largely seasonal and not indicative of a structural shift, compounded by flight disruptions in early December [19] - The company expects continued strength in corporate travel demand and is optimistic about the growth potential in the MICE segment, which has become more formalized [22] Other Important Information - The recent Union Budget signals a long-term commitment to the travel and tourism sector, with initiatives aimed at enhancing domestic connectivity and hospitality capabilities [5][6] - Cash and cash equivalents stood at INR 2,042 million (approximately $23 million) as of December 31, 2025, with gross debt increasing slightly from INR 546 million to INR 583 million [16][17] Q&A Session Summary Question: Is the revenue growth deceleration in the quarter structural or due to macro challenges? - Management clarified that the deceleration is largely seasonal, affected by holidays and compounded by flight disruptions in early December [19] Question: Are macro challenges impacting the MICE business? - Management stated that they have not seen significant impacts from macro challenges, and expect business travel to scale up due to new trade deals [21] Question: How many corporate partners are still potential opportunities? - Management indicated that there is significant headroom for growth, with around 13,000 organizations identified as potential targets, while they have only onboarded about 1,300 [23][24]