Yatra Online Reports Revenue Decline in FY27

Yatra Online, a prominent online travel company, experienced a drop in revenue and profitability in the first quarter of FY27, despite an increase in overall bookings. The company’s operational revenue decreased by 10.4% year-on-year to Rs 187.9 crore in Q1 FY27 from Rs 209.8 crore in the same quarter the previous year. The total income, comprising other income, was Rs 192 crore during this quarter, down from Rs 215.4 crore a year earlier.

Yatra’s profit after tax (PAT) saw a significant decline of 98%, dropping to Rs 34 lakhs from Rs 16 crore in Q1 FY26. The expenses for the company remained elevated during the quarter. Service costs amounted to Rs 65.2 crore, while employee benefit expenses rose to Rs 45.6 crore compared to Rs 39.6 crore a year ago. Additional expenses increased to Rs 47.3 crore from Rs 37.2 crore.

Finance costs nearly doubled, rising to Rs 4.6 crore from Rs 2.4 crore in the same quarter last year. Depreciation and amortisation expenses also saw a 22% increase to Rs 11.2 crore.

Growth in Bookings Amid Financial Challenges

In spite of these financial challenges, Yatra managed to maintain growth in its bookings. The gross bookings rose by 17% year-on-year to approximately Rs 2,101 crore in Q1 FY27. According to the investor presentation, the adjusted EBITDA also improved to Rs 21.6 crore from Rs 20.6 crore in the previous year’s quarter.

Profitability Pressures and Strategic Focus

This contrasting performance illustrates the pressure on Yatra’s reported profitability, even in the face of robust booking growth. The company has been concentrating on higher-margin areas like corporate travel, hotels, and package deals, though its MICE (Meetings, Incentives, Conferences, and Exhibitions) segment has encountered challenges due to geopolitical disruptions, particularly those affecting travel routes through the Middle East.

The company indicated that short-term challenges impacted profitability, with EBITDA decreasing by 45.6% year-on-year to Rs 13.2 crore due to a weaker international MICE sector and diminished airline incentives. Elevated airfares have also constrained corporate travel expenditure, although the company remains optimistic about a recovery starting from Q2.