Online travel company Yatra Online reported a sharp decline in revenue and profitability during the first quarter of FY27, despite continued growth in its overall booking volumes. The company’s profit after tax (PAT) plunged 98% year-on-year to ₹34 lakh, compared with ₹16 crore in Q1 FY26.
The weak bottom-line performance came alongside a decline in operating revenue and higher employee, finance, depreciation, and other operating expenses. However, the company continued to see healthy growth in gross bookings during the quarter.
How Did Yatra Online’s Revenue Perform in Q1 FY27?
Yatra Online’s revenue from operations declined 10.4% year-on-year to ₹187.9 crore in Q1 FY27, compared with ₹209.8 crore during the corresponding quarter last year.
Including other income, the company’s total income stood at ₹192 crore, down from ₹215.4 crore in Q1 FY26.
The decline reflects pressure across parts of the company’s travel business despite continued demand for its booking services.
Why Did Yatra’s Profit Fall 98%?
Yatra’s profitability came under significant pressure as expenses remained elevated during the quarter.
The company incurred ₹65.2 crore in service costs, while employee benefit expenses increased to ₹45.6 crore from ₹39.6 crore a year earlier.
Other expenses also increased to ₹47.3 crore, compared with ₹37.2 crore in Q1 FY26. Meanwhile, finance costs almost doubled to ₹4.6 crore from ₹2.4 crore.
Depreciation and amortisation expenses rose 22% to ₹11.2 crore, further affecting the company’s bottom line.
As expenses remained high while revenue declined, Yatra’s PAT fell sharply to just ₹34 lakh during the quarter.
Did Yatra’s Bookings Continue to Grow?
Despite the decline in revenue and profit, Yatra recorded strong growth in its overall booking volumes.
The company’s gross bookings increased 17% year-on-year to around ₹2,101 crore in Q1 FY27.
Its adjusted EBITDA also increased marginally to ₹21.6 crore, compared with ₹20.6 crore in the year-ago quarter, according to the company’s investor presentation.
The growth in bookings indicates that customer demand remained relatively resilient even as the company faced challenges in converting higher transaction volumes into stronger reported profitability.
What Impacted Yatra’s EBITDA Performance?
Yatra said several short-term factors affected its profitability during the quarter.
The company’s EBITDA declined 45.6% year-on-year to ₹13.2 crore, primarily due to weaker international MICE business and lower airline incentives.
The MICE segment, which covers meetings, incentives, conferences, and exhibitions, was affected by geopolitical disruptions, particularly those impacting travel through the Middle East.
Higher airfares also kept corporate travel spending relatively subdued during the quarter.
Which Segments Is Yatra Focusing On?
Yatra has been focusing on relatively higher-margin segments, including corporate travel, hotels, and holiday packages, as it seeks to improve its overall business mix.
Corporate travel remains an important growth area for the company, although elevated airfares have weighed on spending in the segment.
The company expects corporate travel demand to improve from Q2 FY27, which could provide some support to its financial performance in the coming quarters.
What Is Yatra’s Outlook for FY27?
Yatra’s Q1 FY27 performance presents a mixed picture. While the company continues to record healthy booking growth, declining revenue and significantly weaker profitability highlight the challenges facing its business.
The company will look to improve margins by increasing its presence in higher-value travel segments, rebuilding its international MICE business, and benefiting from a potential recovery in corporate travel.
The ability to convert booking growth into sustainable revenue and profitability will remain a key focus for Yatra as it moves through FY27.
