Techno- Funda Analysis – Yatra Online Limited 

About Company

Yatra Online Limited (“Yatra” or “the Company”) is India’s largest corporate travel service provider and a leading consumer travel company. Yatra provides a “full suite of leisure and corporate offerings” through its website (www.yatra.com), mobile apps, corporate SaaS platforms, and other associated platforms. 

These services include Domestic and international air tickets, Hotels (1,08,000) and homestays (1500 Cities), Holiday packages, Bus tickets, rail tickets, activities, and ancillary services, Corporate travel services (850), Freight forwarding business.

Yatra emphasizes its “multi-channel approach, which lends us a competitive advantage in the emerging Indian market” and a “comprehensive and scalable tech platform, providing seamless customer experience.“

The business is built on a “common technology platform that serves our customers through multiple mobile applications as well as our website.

Revenue

• Air Ticketing: 78%,
• Hotel & Package: 18%,
• Other services : 3% (such as Cabs, rail, advertisement income, etc.)

Multiple Revenue Streams:

a) Customers: Convenience fee, Management fee, Product and services revenue

b) Suppliers: Fees, incentives, and extras, GDS revenue, Marketing, and other revenue

Key Metrics (During FY25 & Q1FY26)

• Gross Booking :Rs. 70,733 Mn & 18,038 Mn
• Total Transactions :69.32 Lac & 16.3 Lac
• Corporate Client Wins :148 & 34
• Air Pax  :52.69 Lac & 12.06 Lac

Key Risk

01.B2B Business Dependence: A significant portion of Adjusted Margin from B2B business. Changes in traveler preferences (e.g., increased use of telepresence equipment reducing business travel) could negatively impact this segment.

02. Intense Competition: The Indian online travel industry is extremely intense with competitors having significantly greater financial, marketing, personnel and other resources.

03. Seasonality: Quarterly results may fluctuate due to seasonality in the leisure travel industry, with higher revenues typically in the second and fourth calendar quarters.

04. Geopolitical and Economic Risks: Exposure to risks associated with Indian businesses, including local civil disturbances, economic slowdowns, inflation, and changes in government policies and laws.

Key Point from Q1FY26

01. Gross Booking Growth: After a period of rebalancing, gross bookings grew 9% YoY in Q1 FY ’26. The company expects ~15% gross booking growth for FY ’26 and closer to ~20% from FY ’27 onwards.

02. Capex Stability: Heavy lifting on tech capex has largely been done over the last two years. Future tech capex is expected to be closer to maintenance levels, with “stability in this number” from next year onwards (current levels, plus/minus 10%).

03. Seasonality: Q2 and Q4 are typically the strongest quarters for corporate business and MICE. Q3 is generally the weakest due to holiday breaks (Christmas, New Year, Diwali, Dussehra).

04. Organic Growth: Excluding the Globe acquisition, Yatra’s organic growth in EBITDA would have been upwards of 70-80%, and revenue less service cost would have grown upwards of 30% YoY.

05. B2C bookings declined marginally YoY due to “macro events of the quarter“. However, recovery is underway, and B2C is expected to see healthy momentum.

Key Investment Rational

01. Shift Towards High-Margin Corporate and MICE Business Strategic Rebalancing: Yatra has deliberately rebalanced its business mix to prioritize higher-value corporate and MICE bookings over lower-volume B2C transactions which replace effectively lower volume B2C bookings with high-value corporate bookings. The margins and the absolute realization on corporate travel are significantly higher than on B2C part of it.

02. Corporate Market Leadership: Yatra is positioned as India’s leading B2B corporate travel platform. For FY25, the corporate and B2B business is expected to contribute between 65% to 70% of our overall gross bookings.

03. Strong Client Acquisition: In Q4, 35 new corporate accounts were added, with an expected annual business volume of INR 1,430 million. For the full FY25, 148 new clients were secured, contributing INR 7,475 million in expected annual business.

04. High Retention: The corporate business boasts a “97% corporate customer retention rate,” with “73% of Top 100 Customers with tenure > 5 years.”

05. MICE Segment Dominance: MICE has emerged as a significant growth driver. The Globe acquisition (September 11, 2024) “strengthens Yatra’s capabilities in Meetings, Incentives, Conferences, and Exhibitions (MICE) and makes the combined entity one of the leading players in MICE by volume of business.“

06. Higher Realization: Corporate travel yields higher realizations due to last-minute bookings, bundled fares, and a higher mix of business and first-class travel. “The average realization on corporate for an air ticket and the same would hold true for hotels is about 1.5x to B2C realization.” 

07. Amalgamation Scheme: A Composite Scheme of Amalgamation with six wholly-owned subsidiaries aims to “simplify management, operational, and corporate structures, thereby enhancing efficiencies and generating synergies.” Expected completion by August 2025, leading to quarterly tax savings of INR 4-5 million.

08. Cross-Selling Opportunities: Hotels & Packages: Strong potential to cross-sell to the existing corporate client base. The hotel mix in corporate travel is expected to grow significantly, with hotels projected to grow “closer to 25% plus” compared to air growth of “closer to 15%.”The goal is a “50-50 mix… between air and hotels and packages” in the next 3 years.

09. SaaS Opportunity (International Expansion): Proprietary corporate platform (CPP) program, with partnerships in the Middle East and Africa, projected to contribute $1.5 million to $2 million in profitability in 3 years.

Technical: Yatra Online Ltd

1. Trend Structure and Price Stages: The weekly chart displays a completed Stage 4 (downtrend), followed by a Stage 1 (base formation) lasting several months before a clear upside breakout. Currently, the stock is in Stage 2 (uptrend) with higher highs and higher lows, confirmed by strong price momentum and high volume on breakout.

2. Volume and Breakout Confirmation: The recent breakout from the base is accompanied by a significant spike in volumes, supporting the validity of the uptrend. Sustained weekly closes above former resistance levels (~₹100) reinforce bullish sentiment.

3. Moving Average Signal: The price is trading well above the short-term moving averages (seen curling upwards), providing additional confirmation of trend reversal. Both moving averages act as dynamic support in the rising phase.

4. Momentum and Overbought Signal: On both weekly and daily charts, RSI stands near or above 70, signaling overbought conditions and the possibility of short-term consolidation or a minor pullback. Despite overbought readings, trend strength remains intact as price consolidates above breakout zones.

5. Intraday/Daily Pattern: The daily chart indicates a tight flag/pennant formation post-breakout, suggesting strength in the consolidation near ₹150–₹160 levels. Anchored VWAP from breakout level (₹142.68) now acts as a key support.

6. Key Support and Resistance: Immediate support: ₹142–₹145 (anchored VWAP, recent breakout area). Next resistance: ₹160–₹180 zone, previous swing highs from prior downtrend.

Conclusion: Yatra Ltd. shows a clear transition from downtrend to uptrend, with volume-backed breakout and bullish structure on all timeframes. Near-term consolidation possible due to overbought momentum, but bias remains positive above ₹142 support.