Yatra's Q1 profit was squeezed by low PBT and a high tax rate
Management said weaker international MICE volumes and delayed airline incentives hurt profitability, while the Q2 MICE pipeline is more than 50% higher than Q1.
Filed 12 Aug 2026, 22:28 IST · after market close · YATRA (YATRA)
Key takeaways
- Consolidated profit before tax was only Rs 0.78 cr after interest of Rs 4.62 cr and depreciation of Rs 11.16 cr.
- Other income of Rs 4.15 cr exceeded pre-tax profit, while the 56.43% tax rate further limited net profit to Rs 0.34 cr.
- Management said the Q2 MICE pipeline is more than 50% higher than Q1, with an improved margin profile.
Interest and depreciation left little profit
Yatra reported a consolidated operating profit of Rs 12.42 cr, but interest of Rs 4.62 cr and depreciation of Rs 11.16 cr reduced profit before tax to Rs 0.78 cr. Net profit was Rs 0.34 cr, with EPS at Rs 0.02. The company filed the results after market close.
Other income and tax made profit quality weak
Other income of Rs 4.15 cr exceeded reported pre-tax profit of Rs 0.78 cr, so the quarter's earnings were not driven solely by operations. The 56.43% tax rate further reduced the conversion of pre-tax profit into net profit. Management said weaker international MICE volumes and margins, delayed regional-airline incentives and higher ticket prices affecting corporate travel spending pressured profitability.
Bookings and hotel growth continued despite pressure
Management said gross bookings grew 16.5% year on year to INR 21,007 Mn, with continued market-share gains, while hotel room nights grew approximately 30% year on year as supply expanded. It also said Yatra added 53 corporate customers with annual billable potential of INR 2,223 Mn, and that the RECAP expense-management product had reached 20 customers.
Management points to a better Q2 MICE setup
Management said the Q2 MICE pipeline is more than 50% higher than Q1 and carries an improved margin profile. The company also said corporate travel spending is expected to rebound in Q2 and improve as the year progresses, while ongoing airline incentive discussions are expected to have a positive outcome in Q2. Separately, management said Yatra has begun international expansion through a seven-year partnership with Kanoo Travel.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹188 cr |
| Other income | ₹4 cr |
| Expenses | ₹175 cr |
| Operating profit | ₹12 cr |
| Operating margin (%) | 6.61% |
| Interest | ₹5 cr |
| Depreciation | ₹11 cr |
| Profit before tax | ₹1 cr |
| Tax | ₹0 cr |
| Net profit | ₹0 cr |
| EPS (₹) | ₹0.02 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Hotel room nights grew approximately 30% year on year, supported by continued expansion of hotel supply.
- Yatra added 53 new corporate customers with annual billable potential of INR 2,223 million, while the MSME team added more than 30 logos.
Guidance & outlook
- The Q2 MICE pipeline is expected to be more than 50% higher than Q1, with an improved margin profile.
- Yatra expects a positive outcome in Q2 from ongoing commercial discussions with regional airlines on incentives.
- Corporate travel spending is expected to rebound in Q2 and improve further as the year progresses.
Expansion
- Yatra has begun international expansion through a seven-year partnership with Kanoo Travel.
- Hotel supply continued to expand during the quarter, supporting room-night growth.
New initiatives
- Yatra’s AI-powered RECAP expense management solution reached a customer base of 20.
Competition
- Yatra reported continued market share gains despite a challenging operating environment.
Problems & risks
- Profitability was affected by external headwinds, with EBITDA declining 45.6% year on year.
- Weaker international MICE volumes and margins affected profitability.
- Regional airlines delayed finalizing incentives because of the uncertain business environment, reducing airline-related income.
- Higher ticket prices muted corporate travel spending year on year.
What to watch
- Whether the Q2 MICE pipeline is more than 50% higher than Q1 and delivers the improved margin profile cited by management.
- Whether airline incentive discussions produce the positive Q2 outcome described by management.
- Whether net profit improves from Rs 0.34 cr despite the 56.43% tax rate and Rs 4.62 cr of interest.