Yatra Online, Inc.

Thank you all for standing by. Today's conference call with Yatra will be starting in a few moments' time. And just a reminder, it is Star 1 on the phone lines if you would like to ask a question today. Thank you. Today's call will be starting shortly. Bye. Hello everyone and welcome to YACHTRA's fiscal second quarter 2026 financial results call for the period ended September 30th, 2025. I'm pleased to be joined on the call today by YACHTRA's CEO and co-founder Dhruv Sringi and CFO Anuj Sethi. The following discussion, including responses to your questions, reflects management's views as of today, November 12th, 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, Ms. Amit 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 bans. 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 my segment notably our profitability metrics underscores our disciplined execution adjusted if it are charged 218 year-over-year to final 220 million or usc 2.4 million and profit for the period increased significantly to INR 98.8 million or USD 1.1 million versus the loss of INR 0.3 million or USD 0.1 million in the prior year when ahead of our earlier guidance. The corporate travel market is expected to reach around USD 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 room for digital adoption across the corporate travel industry. Online penetration is accelerating, driven by rapid adoption of digital booking platforms and the update of self-booking tools and integrated expense management solutions. In the lodging space, banded hotels and curated packages are witnessing increasing demand for both leisure and nice travelers, supported by improving supply, better service standards, and a growing preference for exponential stays. Overall, this large and expanding market, coupled with increasing digital penetration, presents a significant opportunity for Yatra, particularly in the under-penetrated corporate segment. Our corporate travel segment represents a meaningful part of our overall business, and delivers strong momentum for Yardster. 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 profitability. 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 via AI, our generative AI-powered travel assistance 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 size guarantees customers can be assured to access the lowest available hotel rates on Yapsha. 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, crop outdoor and paint 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 student sections The timeline 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 businesses. We remain committed to discipline, cost management, profitable scaling, and delivering long-term value to our shareholders while strengthening our competitive edge in the global travel ecosystem. Thank you, everyone, and I now request our CFO, Anuj Sethi, to brief you on the financial performance of 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 3508.7 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 my segment. Our adjusted margins performed strongly across segments, Air ticketing adjusted margin increased 14.7% year-on-year to INR 1016 million, equivalent to USD 11.4 million. Portals and packages adjusted margin rose 28.6% year-on-year to INR 514.5 million or 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 1329,000. However, our gross air bookings grew 11.7% year-on-year to INR 14811.4 million or USD 166.8 million. INR adjusted margins rose 14.7% year-on-year to 1016 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 cookings increased 40.4% year-on-year to INR 5141.6 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 20504.8 million or USD 231.0 million. On the liquidity front, cash and cash equivalents and term deposits stood at 2207.8 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.