Yatra Online raises EBITDA guidance after strong Q2 FY26 performance

Yatra Online Limited announced strong financial results for Q2 and H1 FY26, with Q2 revenue from operations surging 48% year-over-year to INR3,509m. This growth was propelled by robust performance in the hotel and packages business, and significant contributions from the MICE segment. Gross margins improved 34% year-over-year to INR1,257m, and adjusted EBITDA climbed 88% to INR255m, translating to a 20% EBITDA to gross margin ratio. Profit after tax for the quarter increased 96% year-over-year to INR143m.

For the first half of FY26, revenue from operations grew 66% year-over-year to INR5,607m, with gross margins rising 39% to INR2,414m. Adjusted EBITDA for H1 FY26 surged 109% year-over-year to INR504m, maintaining a 20% EBITDA to gross margin ratio, and profit after tax increased 168% year-over-year to INR303m. The company has raised its adjusted EBITDA growth guidance from 30% to a revised 35% to 40% for the full fiscal year.

The corporate travel market remains a key focus, projected to reach approximately $20bn by FY27. Yatra onboarded 34 new corporate clients in Q2, adding an annual billing potential of INR2.6bn. Technology innovations, including the DIYA AI-powered travel assistant and ongoing migration to the Google Cloud Platform, are expected to further streamline operations and reduce servicing costs, with an estimated optimization of 75-odd heads by the fiscal year-end and potentially 200 by next year.