Yatra Online, Inc.

Hello, everyone, and welcome to Yatra's fiscal third quarter 2026 financial results call, period ended December 31st, 2025. Today's call is hosted by Yatra's co-founder and executive chairman, Dhruv Shungi, and CEO, Siddhartha Kripta. The following discussion, including responses to your questions, reflects the management's views as of today, February 12th, 2026. 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 YACHTRA management's current expectations and beliefs and are subject to several risks and uncertainties that could cause . For a description of these risks, please refer to YACHTRA's filings with the SEC and their press release filed earlier this morning on the IR section of YACHTRA website. With that, let me turn the call over to Yatris co-founder and executive chairman, Dhruv Shungy. Dhruv, please go ahead. Thank you, Opris.

Thank you, everyone. Thank you for the . Let me start and give you first on the events that happened during the quarter and how it has impacted the industry, and then our of the operation process and the . The third quarter is just typically a strong witness and . And recovered in the second half of the month and we've seen more factors continue to rise in the months of January and there on. The key problems during the period was divergence between domestic and international travel trades. When domestic travel experienced short-term headwinds in December, international travel remained strong with empty year-on-year and sequential growth. This reinforced that outbound and long-haul travel is in a structural upcycle, benefiting organized travel platforms like Yatra with strong corporate and international travel franchises. Also, the recent union budget sends a clear message and positive signal about the government's long-term commitment to the traveling tourism sector. By positioning tourism as a strategic growth engine linked to the employment generation, foreign exchange earnings, and research development, the policy framework shifts from episodic support to building a more structural and sustainable ecosystem for travel and hospitality in the country. Key areas such as rationalization of tax collection at source on overseas tour packages to a uniform 2% rate and local outcomes in two outbound segments. In addition, increased emphasis on domestic connectivity through infrastructure investments including high-risk rail corridors, waterways, and regional access initiatives to enhance hospitality capabilities to a national institute of hospitality and large-scale screening programs and the talent pipeline for the tourism sector. There is a growing demand for Indian organizations to help digitize travel procurement while using AI-driven platforms that offer end-to-end automation, self-booking tools, and integrate expense management, prioritizing compliance and cost savings. AI and predictive analytics platforms to determine the forecasting demand, optimizing costs, enforcing policies, and in real time. AI-enabled self-procurement tools can perform real-time policy compliance checks, slide risks by disruption of analysis, and personalize activities with safety insights. The creative AI shifts from reactive marketing to predictive marketing, cutting administrative friction and enabling productivity boosts in procurement. Yagra through its corporate networking platforms, supported by a AI bot, and its recalibrated execution is taking the lead in driving this industry dynamics. Moving on more specifically to our business for the quarter, our B2C business has been selected earlier by us. The banner is now still growing profitably. Additionally, our corporate and my business Our business was well-attracted ever since the start of the year. We are actually supported by our continuous focus on scaling the corporate travel business. The steady growth in corporate bookings along with the increase in contributions from higher margin hotels and night segments positions us well for sustained margin expansion and improved profitability over the long term. With this, let me now introduce you to Mr. Siddharth Gupta, who recently joined us as our new CEO. Siddharth brings with him a wealth of experience across the B2B SaaS industry and in his last role was the president of Bursa Consulting in India and was also heading their SaaS-based talent acquisition business globally. Prior to this, Siddharth has also held leadership roles in large tech and SaaS companies like SAP and HP. With that, let me hand you over to Siddharth. Sid, over to you. Thank you so much, Dhruv, for our operator. I hope I am loud and clear on the line. Thank you so much, Dhruv, for giving a preamble on our quarter performance and industry trends. A very good morning to everyone on the call. Adding to Dhruv's comments, despite an industry-wide disruption in the airline sector during the quarter, Yatra continued to deliver in its air ticketing business, supported by seasonally strong B2C travel demands. Gross bookings in the air ticketing increased 22% year-on-year, supported by 14% growth in air passenger, which far exceeds the industry growth of about 1%. Take rates also improved from 6.2% to 7.1% on account of the quarter being more B2C focused. In the hotels and packages segment, overall performance during the quarter remained healthy. However, we did see some temporary impact in the MICE and the corporate events sub-segment, with a few bookings getting deferred due to flight disruptions. Just to remind listeners, it was the disruption in the Indigo Airlines schedule in India. This resulted in a modest one-time impact on the quarter, part of which we expect to roll over in quarter four, supported by the continued strength in underlying corporate travel demand. Gross bookings in the segment grew 20% year-on-year, excluding the impact of deferment of the miles business, hotels would have grown over 30% on a standalone basis, supported by strong growth in our corporate business and in our affiliate business. While gross take rates moderated slightly from 12.2% to 11.7% year-on-year, on account of change in business mix, gross margins improved further from 9.7% to 10.2% year-on-year, reflecting proven discounting in B2C and better margin realization from suppliers for corporate hotels. Our B2B to B2C mix was approximately 60 to 40 for the quarter versus the nine-month average of 65-35 in favor of B2B. Our corporate travel business continues its strong momentum. We onboarded 40 new corporate clients in this quarter, collectively adding an annual billing potential of INR 2.2 billion. As mentioned earlier, the disruption happened during the highly productive first two weeks of December when corporate travel usually peaks before holidays. We saw deferment of mice travel into Q4 and subsequently few of the groups moved to Q1 of the next financial year as a direct result of uncertainty in the travel during that period. This disruption not only adversely impacted our operating performance, but also led to incremental working capital deployment where advances had already been paid to vendors for MICE groups. These impacts were largely limited to the month of December, and the business is back on track. In the corporate business, there's more to share. The early response to our expense management solution has been very, very encouraging, and we have onboarded eight customers now on our expense management platform. Early traction proves that Yatra understands the pulse of what our corporate customers need This solution has not only become a door opener to get new accounts, but also gives us a huge upsell potential in our existing accounts. Few thoughts on what you can expect from Yatra in quarters ahead. Our consumer-focused line of business has returned to growth path while improving margins. This was a result of sharp execution coupled with successfully tapping into partnerships and affiliates for demand generation. In the near future, you should hear more on organic demand generation projects making impact. helping us further improve margins in this line of business. Our corporate value proposition still has a huge headroom for growth. Online penetration is around 23%, and we have laid a strong foundation for changing this potential. We've sharpened our go-to market by establishing separate teams to change large and small and medium enterprises. Demand generation is amplified by a new inside sales team now, which has started augmenting the efforts of the team on ground. Early signals are very promising. Beyond new customer acquisition, our farming team have won multi-year renewals from some of our largest customers this quarter, proving that corporates want trusted partners who can deliver value to them. Needless to say that our success is closely tied to the speed at which we can deliver tech innovation. Our early investments in adding talent to our product and tech team have started showing results. You can expect us to further add gap between us and what's available in the market. Hope that gives you a flavor of where we're headed. At this moment, I would have paused and handed over to Anuj Sethi, who is our CFO, to brief you on the financial performance for the quarter under review. He is caught up in a medical emergency, hence I'll take you through the financial performance as well, and then me and Dhruv will take the questions together. On the financial performance, for the third quarter of financial year 26, on a consolidated basis, our revenue from operations grew 10% year on year. to INR 2,577 million or approximately $29 million, driven by steady demand across our key segments with robust growth from air ticketing business. In terms of segmental performance, our air ticketing passenger volume grew 13% year-on-year to 1491,000. However, gross bookings grew 22% year-on-year to INR 16,931 million or $188 million. And air adjusted margins rose 40% year-on-year to INR 1,195 million or 13 million with adjusted margin percentage improving from 6.2% to 7.1%. Under hotels and packages segment, hotel room nights grew by 22% year-on-year to 508,000. Brought bookings increased 20% year-on-year to INR 4,306 million or close to $47 million. with adjusted margin expanded 15% year-on-year to INR 502 million or $6 million. On the liquidity front, cash and cash equivalent and term deposits stood at INR 2042 million or 23 million as of 31st December 2025. Gross debt has marginally increased from INR 546 million as of 31st March 2025 to INR 583 million or 6 million as of 31st December 2025. With this, I would like to hand back to the moderator and open up for question and answer session. Thank you.

Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If you would like to withdraw your question, please press star followed by two. When preparing to ask your question, please ensure your device is unmuted locally. First question comes from Scott Buck with HC Winwright. Your line is open. Please go ahead.