Yatra Online, Inc.

Yatra's Fiscal First Quarter 2026 Financial Results Call. For the period ended June 30th, 2025, today's call is hosted by Yatra's CEO and co-founder Dhruv Sringi and CFO Anu Sethi. The following discussion includes responses to your questions, reflects the management's views as of today, August 11th, 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 and their 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 Sringi. 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 travel and strong execution across our platforms. For Q1 SI26, 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 13.5 million US dollars, up 36.6% year over year. Our growth in revenue and gross margins 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 standalone hotel trust selling to existing customers. Notably, our profitability metrics underscore our disciplined execution. Profit for the quarter stood at INR 110 million, which is approximately US dollars 1.3 million versus the loss of INRs 0.8 million or approximately 0.1 million in the June FI25 quarter. Our adjusted EBITDA of INR 206 million, which is approximately US dollars 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 FY27. However, online penetration in this segment remains low, at just about 20% in FY24, 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 nice 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 adoption presents a significant opportunity for Yatra, particularly in the under-penetrated corporate segment. Our corporate travel segment continues to deliver strong momentum for Yatra. In Q1, we onboarded 34 new corporate clients, collectively adding an annual billing potential of approximately 2 billion INR. On the B2C front as well, we continue to make good progress on rationalizing our cost of acquisitions and finding 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 banded fares across airlines, which offer unique airline specific fare options bundled with benefits such as baggage allowance, speed selection, and flexible changes. We have also recently launched our AI assistant, GIA, which stands for Digital Intelligent Yatra Advisor, which assists customers not only for the usual customer service inquiries, but also helps 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 search process should 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 it continues to get very positive feedback from its initial customer. In sales and marketing, we continue to amplify partner offers from banks and airlines through our own media and social media channels, ensuring consistent visibility and engagement. Our content marketing initiatives further strengthen brand reach with compelling travel stories, seasonal campaigns, and milestone celebrations that have resonated with our audience. We also executed innovative brand collaborations with leading consumer brands, delivering impactful outdoor campaigns and co-branded experiences that captured attention and drove conversion. With regards to our share 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 timeline is still unclear, but we will keep you informed as we continue to make progress. Just to also clarify on this, from our exchange ratio point of view, one US share is equivalent to approximately 1.58 shares in India. If 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, and a growing share of high margin hotels and packages and nice 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 of the quarter under review. Anuj.

Thank you Dhruv. Good morning everyone. For the first quarter of financial year 2026 on consolidated basis, our revenue from operations was INR 2098 million, which is approximately 24.5 million US. 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 our business. Our gross margin is defined as a revenue-less service cost due to INR 1156 million, approximately 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 US dollar 1.3 million. In terms of segment performance, our air ticketing passenger volumes declined 9% year-on-year to 1.206 million. However, gross air booking grew 4% year-on-year to INR 14103 million, approximately 4.4 million US. And our air gross margin rose 54% year-on-year to INR 647 million, with margins improving from 3.10% to 4.60%. Under hotels and packages segments, the hotel room nights grew marginally by 1% year-on-year to about 423,000. Gross bookings increased 43% year-on-year to INR 3433 million, while gross margins expanded 74% year-on-year to INR 311 million, or 40 million U.S. with margins improving from 7.46% to 9.05%. While the macroeconomic headwinds in the recent year have 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 2235 million, approximately 26 million US, as of 30 June 2025, as compared to 1.9 billion, approximately 22 million US, INR 1.9 approximately 20 million U.S. as of 31st March 2025. Gross tax has been significantly reduced from INR 546 million, about $6 million, to as of 31st March 2025 to just about INR 29 million, around 0.3 million U.S. as of 30th June 2025. With this, I would like to hand it back to the moderator and open up for question and answer session. Thank you.