Yatra Online reported a mixed performance for the second quarter of financial year 2027, with gross bookings increasing 6% year-on-year even as revenue from operations declined 39.1%. The online travel company attributed the sharp revenue contraction primarily to weaker activity in its Meetings, Incentives, Conferences and Exhibitions (MICE) business, which had benefited from a stronger comparison quarter a year earlier.
For the quarter ended September 30, 2026, gross bookings reached ₹2,165.5 crore, while revenue from operations stood at ₹213.6 crore. The company reported a consolidated net loss of approximately ₹70 lakh, compared with a net profit in the corresponding quarter last year. However, its core air-ticketing and corporate travel businesses continued to show growth, providing some support amid a challenging travel environment.
Yatra Q2 FY27 Results: Key Financial Highlights
Yatra’s September-quarter results reflect the difference between the total value of travel services booked through its platform and the revenue it recognises from those transactions.
| Financial metric | Q2 FY27 | Year-on-year change |
|---|---|---|
| Gross bookings | ₹2,165.5 crore | +5.6% |
| Revenue from operations | ₹213.6 crore | -39.1% |
| Gross margin (revenue less service costs) | ₹125.5 crore | Broadly stable |
| Adjusted EBITDA | ₹15 crore | -41.2% |
| EBITDA | ₹13.2 crore | -47.0% |
| Consolidated net loss | Approximately ₹0.7 crore | Turned loss-making |
The figures show that booking activity expanded despite the decline in reported revenue. Yatra’s gross margin remained broadly stable at ₹125.5 crore, suggesting that the headline revenue decline did not translate into an equivalent reduction in its underlying margin contribution.
Adjusted EBITDA, however, fell to ₹15 crore from ₹25.5 crore in the year-ago quarter. The company said profitability was affected by the weaker MICE business and higher operating costs.
Why Did Yatra’s Revenue Fall 39%?
The main reason was the slowdown in Yatra’s Hotels and Packages business, particularly its MICE operations.
MICE travel involves organising trips and accommodation for corporate meetings, incentive programmes, conferences and exhibitions. These arrangements can involve large group bookings and substantial hotel and travel costs.
Yatra said corporate customers deferred or resized some programmes because of higher travel costs and uncertainty. Some companies shifted towards smaller group programmes instead of organising larger events.
The impact was significant because MICE revenue is recognised on a gross basis. When the value of these bookings falls, reported revenue can decline sharply, even when other parts of the travel business continue to expand.
Hotels and Packages revenue declined 56.4% year-on-year to approximately ₹118 crore. Its adjusted margin fell 25.9% to ₹38.1 crore.
However, management highlighted an improvement during the quarter. MICE bookings recovered 37% sequentially as some previously deferred programmes began to be rescheduled.
The recovery is an encouraging development, although it remains to be seen whether corporate travel demand will return to its earlier levels.
Air Ticketing Emerges as a Growth Driver
Yatra’s air-ticketing business delivered a stronger performance, helping offset weakness in hotels and packages.
Air-ticketing gross bookings increased approximately 14.8% year-on-year to ₹1,700.6 crore. Its adjusted margin rose 20.8% to ₹122.7 crore.
The company’s air-ticketing revenue increased 23.1% to approximately ₹75.7 crore. Yatra attributed the improvement in margins to better take rates across its consumer and corporate businesses, along with improved supplier arrangements and revenue realisation.
Air passenger volumes booked during the quarter declined 2.4% year-on-year to approximately 12.98 lakh. However, the company said it performed better than the broader domestic aviation market, which experienced an estimated 6% decline in passenger traffic.
This performance suggests that Yatra continued to gain business despite difficult conditions across the aviation industry.
Corporate Travel Business Continues to Expand
Corporate travel remains one of Yatra’s important growth areas. The company is attempting to increase its presence among large businesses while expanding into small and medium-sized enterprises.
During Q2 FY27, corporate gross bookings increased 18% year-on-year and 10% sequentially. Yatra added 54 new corporate customers during the quarter, with an estimated annual billable revenue potential of ₹203.5 crore.
The company also reported that 54% of its existing corporate customers increased their spending. Personal travel bookings made by employees of corporate clients grew 36% year-on-year.
These developments indicate that Yatra is seeking to generate more business from its existing customer relationships rather than relying exclusively on new customer additions.
Its expansion initiatives include:
- Travel Pro: A platform aimed at small and medium-sized businesses.
- RECAP: An expense-management offering for corporate customers.
- Hotel supply expansion: Building relationships with accommodation providers and increasing available inventory.
- Technology and automation: Using technology and artificial intelligence to improve operational efficiency and customer experience.
These initiatives are intended to broaden Yatra’s addressable market and strengthen its position in corporate travel.
H1 FY27 Performance Shows Booking Growth
Looking beyond the September quarter, Yatra’s first-half performance provides another indication of the company’s operating momentum.
For the six months ended September 30, 2026, gross bookings increased 11% year-on-year to ₹4,266.1 crore. Revenue from operations declined 28.4% to approximately ₹401.5 crore.
Gross margin increased 2.8% to ₹248.2 crore, while adjusted EBITDA reached ₹30.1 crore, down 40.3% year-on-year.
The figures suggest that booking growth has continued, but the company still faces pressure on profitability. A sustained improvement in MICE activity and operating efficiency will be important for its financial performance over the remaining quarters of FY27.
Travel Industry Headwinds Add to the Challenge
Yatra’s results came during a difficult period for the travel industry. The company cited geopolitical uncertainty, elevated fuel prices, higher airfares and airline capacity rationalisation as factors affecting travel demand.
According to management, domestic air traffic declined approximately 6% year-on-year and 16% sequentially during the quarter.
These conditions can influence both corporate and leisure travel decisions. Higher ticket prices and accommodation costs may encourage companies to postpone events, reduce group sizes or reconsider travel budgets.
For online travel companies, the challenge is to maintain booking volumes while protecting margins. Competition, promotional spending and supplier arrangements can also influence how much revenue and profit a platform generates from each booking.
Nasdaq Listing Issue Adds Another Development
Yatra’s US-listed parent, Yatra Online Inc., separately disclosed that it had received another minimum-bid-price deficiency notice from Nasdaq.
The notice, received on November 10, 2026, said the company’s ordinary shares had failed to maintain the exchange’s minimum closing bid price of $1 for the required period between September 29 and November 9.
Yatra Online Inc. has until May 10, 2027, to regain compliance by maintaining a closing bid price of at least $1 for 10 consecutive business days. The notice does not mean the shares will be immediately delisted.
This is a separate regulatory issue involving the US-listed entity and should not be confused with the operating performance of the Indian-listed Yatra Online business.
The Bigger Picture
Yatra’s Q2 FY27 results highlight how different business segments can produce contrasting outcomes for an online travel company. Air ticketing and corporate bookings delivered growth, while weaker MICE activity weighed heavily on reported revenue and profitability.
The relatively stable gross margin, despite the revenue contraction, offers some evidence of resilience in the underlying business. Nevertheless, the decline in adjusted EBITDA and the shift to a net loss show that booking growth alone is not enough. Yatra needs to convert higher transaction volumes into stronger margins and sustainable earnings.
Looking Ahead
The next few quarters will be important for determining whether Yatra can restore growth in its Hotels and Packages business. The 37% sequential recovery in MICE bookings is an early positive sign, but the company will need a sustained recovery in corporate event spending to reverse the pressure on revenue.
Investors will also watch the performance of air ticketing, new corporate customer additions and the company’s technology-led initiatives. If these businesses continue expanding while MICE activity normalises, Yatra could improve its financial performance in the second half of FY27. For now, the results present a mixed picture of growing bookings but continuing pressure on profitability.
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