Breaking Down Yatra Online, Inc. (YTRA) Financial Health: Key Insights for Investors

You're looking at Yatra Online, Inc. (YTRA) and trying to figure out if the recent growth is a flash in the pan or a real structural shift, and honestly, the Q2 2026 numbers-which cover the period ending September 30, 2025-show a company that's defintely executing on its pivot to high-margin segments. The headline is that revenue jumped a massive 48.5% year-over-year to $39.5 million, but the real story is the operational leverage: Adjusted EBITDA surged an incredible 217.7%, swinging the profit for the period to $1.1 million from a prior-year loss. Here's the quick math: the corporate segment is a powerhouse, adding 34 new clients in the quarter with an annual billing potential of $29.5 million, even while the B2C air ticketing business faces margin pressure, so the question isn't just about top-line growth, but whether this shift in the revenue mix is sustainable enough to justify the consensus Moderate Buy rating and the $3.00 average price target analysts are putting on the stock.

Revenue Analysis

You need to know where the money is coming from, and for Yatra Online, Inc. (YTRA), Fiscal Year 2025 (FY25) was a story of massive top-line growth driven by a strategic pivot. The company reported total revenue of USD 93.1 million (INR 7,957.3 million), registering an impressive year-over-year (YoY) increase of 89.9%. That's a huge jump, but the quality of that revenue matters more than the raw number.

The core of Yatra Online's revenue is shifting, which is defintely the most important takeaway for investors. While they are known for air ticketing, the real momentum is now in the higher-margin, less-volatile corporate travel segments. This is a classic move to build a more resilient business model.

The Shifting Mix of Primary Revenue Streams

Yatra Online's revenue is primarily generated from three areas: Air Ticketing, Hotels and Packages, and Other Services. We look at 'Adjusted Margin' here because for an online travel agency (OTA), that figure-Revenue Less Service Cost (RLSC)-gives you a cleaner view of what the company actually keeps after paying suppliers. For FY25, the total RLSC was USD 45.8 million (INR 3,915.9 million), up 17.8% YoY. That's a solid margin growth, but it's not as explosive as the total revenue growth, which tells you the cost of goods sold is rising with scale.

The segment performance clearly shows where management is focusing its energy and capital, and honestly, it's a smart play. The Meetings, Incentives, Conferences, and Exhibitions (MICE) business, a key part of Corporate Travel, was a standout performer, and the inorganic contribution from the Globe Travels acquisition really fueled the fire.

Analysis of Significant Revenue Changes

The big story is the trade-off. You can see the pain point in the Air Ticketing segment, where the Adjusted Margin dropped by 20.3% YoY. This wasn't an accident; management made strategic discount adjustments to navigate intense price competition in the B2C (Business-to-Consumer) market. They chose to protect the bottom line over chasing low-margin volume, which is a sign of disciplined execution.

The Hotels and Packages segment, which includes the high-growth MICE business, picked up the slack, increasing its Adjusted Margin by 29.2%. This is a higher-margin segment, and the growth here is what drove the overall profitability improvement. Plus, the integration of Globe Travels added an inorganic boost, expanding their capabilities in the corporate space. This diversification is crucial.

You can dig deeper into who is driving this demand and the valuation implications of this strategic shift by Exploring Yatra Online, Inc. (YTRA) Investor Profile: Who's Buying and Why?

• Corporate Travel is the new growth engine.
• MICE business showed significant margin expansion.
• B2C air ticketing margins were intentionally pressured.
• Acquisitions like Globe Travels added immediate revenue.

Profitability Metrics

You're looking at Yatra Online, Inc. (YTRA) because you see the massive potential in the Indian travel market, but the core question is: can they consistently turn that volume into profit? The short answer is yes, they are making a significant turn, but they still have a long way to go to catch their established global peers.

For the fiscal year ended March 31, 2025 (FY25), Yatra Online, Inc. delivered a critical swing to profitability. The most telling number is the net profit margin, which soared to 4.6% for FY25, a massive improvement from a -1.1% net loss margin in the prior year. That's a defintely positive trajectory, translating to a net profit of approximately Rs 366 million.

Here's the quick math on their core margins for FY25:

• Net Profit Margin: 4.6% (FY25) vs. -1.1% (FY24).
• Operating Profit Margin: 5.6% (FY25) vs. 3.5% (FY24).

This turnaround shows disciplined execution. The company's Revenue Less Service Cost (RLSC), which is their non-IFRS measure for gross margin, hit $45.8 million for FY25, marking a 17.8% year-over-year increase. This metric is a better internal barometer for their business health, as it strips out direct costs like supplier fees.

Operational Efficiency and Margin Trends

The trend in profitability is one of strategic re-focusing. Yatra Online, Inc. is actively shifting its revenue mix away from low-margin B2C air ticketing toward higher-margin segments. This strategic pivot is the single biggest driver of their improving profitability.

The evidence is clear in the most recent quarter: for the three months ended September 30, 2025 (Q2 FY26), the company's Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) surged by a staggering 217.7% year-over-year. This isn't just growth; it's a reflection of disciplined cost management and the successful scaling of their premium offerings.

• Hotels & Packages: This segment, along with MICE (Meetings, Incentives, Conferences, and Exhibitions), is the margin engine. The Adjusted Margin for Hotels and Packages grew by 28.6% in Q2 FY26.
• Corporate Travel: Their corporate segment remains a cornerstone, onboarding 34 new clients in Q2 FY26, expanding the annual billing potential by $29.5 million.

Industry Comparison: A Realist's View

To be fair, Yatra Online, Inc.'s profitability ratios are still playing catch-up to the broader Online Travel Agency (OTA) industry. The average operating margin (Trailing Twelve Months) for the industry hovers around 16.21% for a large sample of travel companies. Furthermore, an established travel agency often targets a net profit margin between 8% and 15%.

Yatra Online, Inc.'s FY25 Net Profit Margin of 4.6% is below this industry target range. This gap highlights a key risk: sustaining the current cost management discipline while navigating intense competition, especially in the B2C air ticketing space where they face margin pressures. The competitive landscape forces companies to lower prices, which shrinks margins for everyone. Still, the rapid growth in their high-margin segments shows they have a clear path to closing this gap. You can read more about the full financial breakdown in Breaking Down Yatra Online, Inc. (YTRA) Financial Health: Key Insights for Investors.

The next concrete step for you is to monitor the Q3 FY26 earnings release, specifically looking for continued margin expansion in the Hotels & Packages and MICE segments. If the Net Profit Margin climbs above the 6.5% mark, it signals a deeper structural improvement in their business model.

Debt vs. Equity Structure

Yatra Online, Inc. (YTRA) has a defintely conservative approach to financing its growth, relying overwhelmingly on equity and internal resources rather than debt. This strategy maps directly to a low-risk balance sheet, which is a significant advantage in the competitive, capital-intensive online travel space.

The company's debt profile for the fiscal year ended March 31, 2025, shows a minimal reliance on external borrowing. Total debt stood at approximately $9.17 million USD, a very small figure relative to their overall operations and assets. Critically, Yatra Online, Inc. has been actively de-leveraging: long-term debt decreased by a massive 81.9% year-over-year, falling to just Rs 21 million (INR) by the end of FY25. That's a huge debt reduction.

Here's the quick math on the debt breakdown:

• Total Debt (March 31, 2025): $9.17 million USD.
• Long-Term Debt (March 31, 2025): Rs 21 million (INR).
• Current Liabilities (March 31, 2025): Rs 5 billion (INR).

The majority of the company's liabilities are operational current liabilities (like payables), not interest-bearing debt, which is a much healthier position. This focus on internal funding and debt repayment is why their finance costs decreased by 54.1% year-over-year in FY25, freeing up cash flow for core operations.

The balance between debt financing and equity funding is best captured by the Debt-to-Equity (D/E) ratio (Total Debt / Shareholder's Equity). For Yatra Online, Inc., the consolidated D/E ratio as of March 2025 was a remarkably low 0.07, or 7%.

To be fair, this is an incredibly low number and signals a very low financial risk. A D/E ratio below 1.0 is generally considered healthy, but the online travel agency (OTA) industry can be volatile. For comparison, a key competitor like MakeMyTrip Limited (MMYT) reported a D/E ratio of around 19.7% (0.197) at the end of their March 2025 fiscal year, though this ratio has been volatile and recently spiked higher. Yatra Online, Inc.'s ratio is significantly lower, which gives them substantial headroom to borrow if a major, high-return acquisition or capital expenditure opportunity arises. They are not capital constrained by debt. For a deeper look at the company's strategic direction, check out the Mission Statement, Vision, & Core Values of Yatra Online, Inc. (YTRA).

What this estimate hides is that a D/E ratio of 0.07 can also mean the company is not fully utilizing the tax shield benefits of debt, but in a high-growth, competitive industry, financial flexibility is often more valuable than a small tax break. Their strategy is to minimize interest expense and maximize balance sheet stability.

Here is a quick comparison of the leverage ratios:

The company has not had any significant debt issuances or credit rating changes recently, which makes sense given their minimal debt load. The focus remains on organic growth, supported by cash flow and equity, rather than aggressive debt-fueled expansion. This is a very safe financial profile.

Liquidity and Solvency

You need to know if Yatra Online, Inc. (YTRA) can cover its near-term bills, and honestly, the picture is mixed. The company's liquidity position remains solid, but a deeper look at the trends and cash flow shows some areas that defintely warrant investor attention. The good news is the company has more than enough current assets to cover current liabilities, but the direction of those metrics is what matters most.

Let's look at the core ratios for the fiscal year ended March 31, 2025, to get a precise read on their short-term financial health.

• Current Ratio: The Current Ratio for Yatra Online, Inc. was a healthy 1.93 as of March 2025. This means the company holds $1.93 in current assets for every dollar of current liabilities. A ratio above 1.0 is good; this is well above that.
• Quick Ratio (Acid-Test Ratio): This ratio, which strips out less-liquid inventory, was 1.64 for March 2025. This is still strong, suggesting the company can meet its immediate obligations even without selling off any inventory. That's a strong buffer.

Here's the quick math: A Current Ratio of 1.93 is strong, but it's down from 2.33 in the prior year, a drop of 17.3%. This tells you the liquidity buffer is shrinking, even if it remains at a comfortable level.

Working Capital and Debtor Trends

The company's working capital-Current Assets minus Current Liabilities-was positive at approximately Rs 5 billion in FY 2025 (Current Assets of Rs 10 billion minus Current Liabilities of Rs 5 billion). However, the composition of this capital is changing in a less favorable way. Current Assets fell by 6% year-over-year, while Current Liabilities jumped by 14.2%. This is the core reason for the ratio decline.

The biggest red flag here is the working capital cycle. The company's working capital days have nearly doubled, increasing from 87.9 days to a concerning 167 days. This is a massive slowdown in converting sales into cash. Plus, the company has high debtors (accounts receivable) sitting at 251 days. That's a long time to wait for payment, and it ties up capital that could be used elsewhere.

Cash Flow Statements Overview

The cash flow statement for the full fiscal year 2025 shows the real challenge, which is why you need to look beyond just the balance sheet ratios.

The most critical takeaway is the negative Cash Flow from Operating Activities (CFO) of Rs -887 million. This means Yatra Online, Inc.'s day-to-day business isn't generating enough cash to sustain itself. They ended the year with a net cash outflow of Rs -906 million, a sharp reversal from the prior year's positive net cash flow.

Near-Term Liquidity Concerns and Strengths

The strength is the company's starting position: they had cash and cash equivalents and term deposits of approximately USD 23 million (INR 1,960 million) as of March 31, 2025, and a low debt-to-equity ratio of 0.07. They are not burdened by long-term debt.

But the risk is clear: negative operating cash flow combined with a significant increase in working capital days and a slowdown in collecting from debtors. If the corporate travel segment's strong revenue growth (up 89.9% for FY 2025) doesn't translate into positive operating cash flow soon, the company will have to rely on its cash reserves or external financing to fund operations. The market is already noting these cash flow challenges. You can dig deeper into the company's business model and growth drivers by Exploring Yatra Online, Inc. (YTRA) Investor Profile: Who's Buying and Why? to see if the revenue will catch up.

Valuation Analysis

You're trying to figure out if Yatra Online, Inc. (YTRA) is a bargain or a bit rich right now. It's a fair question, especially with the stock showing some volatility over the last year. The quick takeaway is that while the trailing Price-to-Earnings (P/E) ratio looks extremely high, the forward-looking metrics and analyst consensus suggest the stock is undervalued with significant upside, betting on a big jump in future earnings.

Here's the quick math on where Yatra Online, Inc. stands as of November 2025. We look at three core valuation multiples to get a full picture: P/E, Price-to-Book (P/B), and Enterprise Value-to-EBITDA (EV/EBITDA). These ratios help translate the company's financial health into a clear price signal.

• Price-to-Earnings (P/E): The trailing P/E ratio is a huge 79.04, which tells you the market is paying a lot for every dollar of past earnings. But, look forward: the estimated forward P/E for the 2025 fiscal year drops to a much more reasonable 17.48. This suggests analysts are defintely expecting a massive earnings recovery or surge.
• Price-to-Book (P/B): The current P/B ratio is 1.62. This means the stock trades at 1.62 times its book value (assets minus liabilities), which is not overly expensive for a technology-driven travel business.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio, which compares the company's total value (Enterprise Value) to its core operating profit (Earnings Before Interest, Taxes, Depreciation, and Amortization), sits at 29.36. This is a high multiple, indicating that the market is valuing the company's operational cash flow aggressively, likely due to anticipated growth in the travel sector.

The high trailing P/E and EV/EBITDA are a sign of a growth stock that is just starting to turn a corner on profitability. You're buying into the future earnings, not the past ones. That's a risk, but it's where the opportunity lies.

Stock Price Trends and Analyst View

Over the last 12 months, the stock has been a wild ride. The share price has traded between a 52-week low of $0.58 and a 52-week high of $2.00. As of mid-November 2025, the stock is trading around $1.54, showing a 4.760% gain over the past year. This volatility is typical for a company in a high-growth, post-pandemic recovery market like online travel.

One simple fact to note: Yatra Online, Inc. does not currently pay a dividend. The dividend yield and payout ratio are 0.00%. This is not a stock for income investors; it's a pure growth play where all earnings are reinvested back into the business.

Wall Street analysts have a clear view on this: the consensus rating is a Moderate Buy. The average 12-month price target is a strong $3.00. This target suggests a potential upside of about 93.55% from the current price. That's a powerful signal that the market professionals believe the current valuation is too low, especially considering the expected jump in earnings that drives the low forward P/E.

For a deeper dive into the risks and opportunities that underpin this valuation, you should check out the full post: Breaking Down Yatra Online, Inc. (YTRA) Financial Health: Key Insights for Investors.

Risk Factors

You're looking at Yatra Online, Inc. (YTRA) and seeing strong revenue growth, but as a seasoned analyst, I always map the near-term risks before getting too excited. The core takeaway here is that while the company is executing a smart pivot to high-margin corporate travel, significant external and competitive pressures could still derail its path to sustainable profitability.

The company's full fiscal year 2025 (FY2025) performance, with total revenue of INR 7,957.3 million (USD 93.1 million), shows momentum, but it also highlights the fault lines in the business model, particularly the intense competition in the Indian online travel market. You need to understand the three main buckets of risk: external market forces, internal financial pressures, and strategic execution.

External and Market Risks

Yatra Online, Inc. (YTRA) operates in a volatile region and a fiercely competitive industry. The biggest threats are outside their control, but they hit the bottom line hard.

• Geopolitical and Travel Disruption: Events like the 'cross-border tension and the unfortunate air crash in June 2025' directly impacted travel demand in India, proving how vulnerable the business is to sudden, localized shocks.
• Intense Competition: The rapidly growing digital booking platform market means constant price wars. This competition is the primary driver behind the margin compression in the B2C segment.
• Macroeconomic Headwinds: Broader macroeconomic pressures, both in India and globally, can quickly affect consumer and corporate travel budgets. If the economy slows, travel is one of the first discretionary expenses to get cut.
• Regulatory Changes: As an online travel agent (OTA), Yatra is subject to changes in Indian and international laws, which can introduce unforeseen compliance costs or operational restrictions.

Honestly, every travel company deals with this stuff. The question is how well Yatra can absorb the shocks.

Operational and Financial Risks

The most pressing internal risk is the struggle for consistent profitability, despite strong top-line growth. For the full FY2025, Yatra Online, Inc. (YTRA) reported an annual revenue of $93.1 million, an increase of 89.9% year-over-year. Still, the company is on the cusp of breakeven, with analysts expecting a final loss in 2025 before a potential profit in 2026. This is the tightrope walk.

Here's the quick math on the operational strain:

• B2C Air Ticketing Margin Pressure: The Adjusted Margin from Air Ticketing for the full FY2025 was $42.0 million, a decrease of 20.3% year-over-year. This segment is a volume driver, but it's defintely not a profit engine right now.
• Cash Flow and Valuation: Recent analysis pointed to weak valuation metrics and underlying cash flow challenges, which is a major red flag for a growth-focused company, even as it approaches profitability.
• M&A Execution Risk: The strategic push into the MICE (Meetings, Incentives, Conferences, and Exhibitions) segment involves potential mergers and acquisitions. Integrating new companies, like the recent Globe Travels acquisition, always carries execution risk-you have to make sure the synergies actually materialize.

Mitigation Strategies and Clear Actions

To be fair, management isn't just sitting still; they are actively working to build a more resilient business. Their strategy is a clear pivot away from the low-margin B2C air ticketing toward higher-margin corporate services.

The core mitigation strategy is diversification and cost discipline. This is how they're trying to insulate the business:

• Focus on High-Margin Segments: The Corporate Travel segment remains a growth cornerstone, onboarding 34 new clients in Q2 FY2026 (ending September 30, 2025) and expanding annual billing potential by INR 2,615.0 million (USD 29.5 million). This focus is what drove the Adjusted EBITDA surge of 217.7% in that quarter.
• Cost Management and Efficiency: They are committed to disciplined cost management, which is reflected in the strong Adjusted EBITDA growth. Plus, they significantly reduced their gross debt, paying down working capital debt to just INR 32.5 million (USD 0.38 million) as of December 31, 2024.
• Corporate Restructuring: The company is progressing on efforts to simplify its complex multi-jurisdictional corporate structure. This is a crucial step to reduce administrative overhead and, ultimately, unlock shareholder value.

The execution of this restructuring is key. It's an internal project that should reduce future operating costs and streamline their path to profitability. You can read more about the strategic direction in the Mission Statement, Vision, & Core Values of Yatra Online, Inc. (YTRA).

Growth Opportunities

You're looking at Yatra Online, Inc. (YTRA) and wondering if the recent surge in performance is sustainable, and honestly, the answer is yes, but you need to focus on their strategic shift. The company is defintely moving away from the competitive, low-margin fight in B2C air ticketing and doubling down on its high-margin, sticky corporate travel business.

This pivot is already showing up in the numbers. For the full fiscal year 2025, Yatra Online, Inc. reported total revenue of $93.1 million, an increase of 89.9% year-over-year. That's a huge jump, and it's not just noise; it's driven by two clear growth engines.

Analysis of Key Growth Drivers

The core of Yatra Online, Inc.'s future lies in its dominance in India's corporate travel sector and its aggressive expansion into the Meetings, Incentives, Conferences, and Exhibitions (MICE) segment. This is where the operating leverage kicks in.

• Corporate Travel Leadership: They are the market leader, with a customer base of over 1,200 large corporates. In just the first quarter of fiscal year 2026 (ended June 30, 2025), they onboarded 34 new corporate clients, which adds an annual billing potential of approximately $23.4 million.
• MICE Expansion: The MICE business is a standout performer, delivering significant revenue growth and margin expansion. The acquisition of Globe All India Services Limited (GAISL) in September 2024 was a crucial move, providing an inorganic boost and enhancing capabilities in this high-margin vertical.
• Product Innovation: They are launching a co-branded credit card aimed at corporate customers. Management believes this could potentially generate as much as one-third of the company's income, which is a massive, untapped revenue stream.

Future Revenue and Earnings Estimates

The momentum is clear when you look at the recent quarterly results, which are much closer to today, November 2025. In the second quarter of fiscal year 2026 (ended September 30, 2025), Adjusted EBITDA surged by a remarkable 217.7% year-over-year. Here's the quick math on what analysts are projecting for the near-term:

What this estimate hides is the potential for earnings to grow much faster than revenue, with some long-term forecasts suggesting earnings growth of 142.8% per annum. That's the power of scaling high-margin segments like MICE and corporate travel management.

Competitive Advantages and Actionable Insights

Yatra Online, Inc.'s primary competitive advantage is its deep integration into the corporate ecosystem in India. They have a sticky business model driven by deep technology integration, which makes it costly and difficult for a corporate client to switch providers. Plus, their multi-channel approach gives them a strong position in the emerging Indian market.

If you're an investor, your focus should be on how well they execute the integration of the Globe Travels acquisition and the rollout of the co-branded credit card. These are the two clearest catalysts for the stock. Keep an eye on the Revenue Less Service Cost (RLSC) margin, which grew 17.8% in FY2025 to $45.8 million. Continued expansion here confirms the success of the high-margin strategy. For a deeper dive into the valuation, check out Breaking Down Yatra Online, Inc. (YTRA) Financial Health: Key Insights for Investors.