Yatra H1 FY27 EBITDA falls 46% as profit turns to loss

Yatra’s H1 FY27 EBITDA fell 46.3% year on year to Rs 26.3 crore, and profit after tax changed from Rs 30.3 crore in H1 FY26 to a Rs 40 lakh loss. Revenue less service cost rose 2.8% to Rs 248.2 crore, but higher operating, ESOP, finance and depreciation costs outweighed that gain.

How did Yatra's H1 FY27 earnings change?

Yatra’s profitability declined through the H1 FY27 earnings bridge, with earnings before interest, tax, depreciation and amortisation, or EBITDA, falling from Rs 49 crore in H1 FY26 to Rs 26.3 crore. Adjusted EBITDA, which excludes employee stock option plan, or ESOP, cost, declined 40.3% to Rs 30.1 crore from Rs 50.4 crore, and its reported margin on revenue less service cost fell to 12% from 20%.

Revenue from operations declined 28.4% to Rs 401.5 crore in H1 FY27 from Rs 560.7 crore a year earlier. Revenue less service cost nevertheless increased to Rs 248.2 crore from Rs 241.4 crore, a gain of Rs 6.8 crore. This improvement did not offset a Rs 27.2 crore increase in operating expenses and a Rs 2.4 crore increase in ESOP cost.

Yatra’s profit before tax moved from a Rs 34 crore profit to a Rs 1.1 crore loss. Tax changed from a Rs 3.7 crore expense to a Rs 70 lakh credit, but profit after tax, or PAT, still moved to a Rs 40 lakh loss. The reported PAT margin was negative 0.2%, compared with 13% in H1 FY26, while diluted earnings per share changed from Rs 1.93 to negative Rs 0.03.

Which costs offset Yatra's higher revenue less service cost?

Yatra’s higher cost base offset the Rs 6.8 crore increase in revenue less service cost in H1 FY27. Operating expenses rose 14.1% to Rs 220.2 crore from Rs 193 crore, while other income increased only Rs 10 lakh to Rs 2.1 crore. As a result, adjusted EBITDA reduced by Rs 20.3 crore despite the increase in revenue less service cost.

ESOP cost rose 163.6% to Rs 3.8 crore from Rs 1.4 crore. Yatra states that this expense is non-dilutive to YOL shareholding, but it is deducted after adjusted EBITDA to calculate reported EBITDA. Reported EBITDA margin consequently fell to 11% from 20%, while adjusted EBITDA margin declined to 12% from 20%.

Below EBITDA, finance cost increased 124.8% to Rs 10.4 crore from Rs 4.6 crore, and depreciation rose 23.5% to Rs 23.5 crore from Rs 19 crore. Finance income partly offset these costs but fell 25.4% to Rs 6.4 crore from Rs 8.6 crore. These movements took the company from Rs 49 crore of EBITDA to a pre-tax loss in the half year.

The Q2 FY27 result reflected similar pressure. Adjusted EBITDA fell 41.2% year on year to Rs 15 crore, while EBITDA declined 47% to Rs 13.2 crore and PAT was a Rs 70 lakh loss, against a Rs 14.3 crore profit in Q2 FY26. Q2 finance cost was Rs 5.7 crore and depreciation was Rs 12.3 crore.

Which segments drove Yatra's H1 gross-margin movement?

Yatra’s air ticketing business drove the H1 FY27 increase in gross margin, with air gross margin rising 18% to Rs 145.5 crore from Rs 123.1 crore. Gross air bookings increased 16% to Rs 3,358.5 crore, while air passenger volumes rose 1% to 2.561 million from 2.535 million. The air gross-margin percentage improved to 4.33% from 4.26%.

Hotel and package, or H&P, moved in the opposite direction during H1 FY27. Gross H&P bookings fell 8% to Rs 793 crore, while hotel room nights rose 12% to 1.038 million. H&P gross margin declined 11% to Rs 68.4 crore, and its gross-margin percentage fell to 8.63% from 8.93%.

Air accounted for 79% of H1 FY27 gross bookings of Rs 4,266.1 crore, compared with 77% in FY26. H&P represented 18% of H1 gross bookings, down from 21% in FY26, while other services accounted for 3%. Air’s Rs 145.5 crore gross margin exceeded H&P’s Rs 68.4 crore by Rs 77.1 crore in H1 FY27.

Yatra’s consolidated gross-margin percentage was 5.8% in H1 FY27, compared with 6% in FY26 and 5.5% in FY25. H1 gross margin of Rs 248.2 crore represented slightly more than half of FY26 gross margin of Rs 482.3 crore. H1 gross bookings of Rs 4,266.1 crore were also slightly more than half of FY26 gross bookings of Rs 8,051.2 crore.

How did Yatra's second quarter compare with the first quarter?

Yatra’s Q2 FY27 revenue less service cost increased 2.2% sequentially to Rs 125.5 crore from Rs 122.7 crore in Q1 FY27, but EBITDA was unchanged at Rs 13.2 crore. Adjusted EBITDA eased from Rs 15.1 crore to Rs 15 crore as operating expenses increased 3.2% to Rs 111.9 crore. Other income rose from Rs 70 lakh in Q1 to Rs 1.4 crore in Q2.

The quarterly PAT loss widened from Rs 30 lakh in Q1 FY27 to Rs 70 lakh in Q2 FY27. Finance cost increased from Rs 4.6 crore to Rs 5.7 crore, depreciation rose from Rs 11.2 crore to Rs 12.3 crore and finance income declined from Rs 3.4 crore to Rs 3 crore. Profit before tax therefore changed from a Rs 80 lakh profit in Q1 to a Rs 1.9 crore loss in Q2.

Segment trends also diverged quarter on quarter. Air gross margin increased from Rs 69.9 crore in Q1 FY27 to Rs 75.7 crore in Q2 as gross air bookings rose from Rs 1,657.9 crore to Rs 1,700.6 crore. H&P gross margin fell from Rs 38.6 crore to Rs 29.9 crore, although H&P gross bookings increased from Rs 387.6 crore to Rs 405.4 crore.

Yatra’s balance sheet reported cash and cash equivalents of Rs 73.1 crore at H1 FY27, compared with Rs 72.4 crore at FY26-end. Its cash-flow statement recorded Rs 23.4 crore of closing cash and cash equivalents and Rs 145 crore of term deposits, totalling Rs 218 crore. Cash used in operations was Rs 14.7 crore after a Rs 48.8 crore working-capital deployment.

Conclusion

Yatra’s H1 FY27 results show that a Rs 6.8 crore increase in revenue less service cost did not preserve profitability as operating expenses rose by Rs 27.2 crore, ESOP cost increased by Rs 2.4 crore and finance and depreciation movements became less favourable. Air ticketing added Rs 22.4 crore of gross margin, while H&P gross margin declined by Rs 8.2 crore.

The unresolved issue for the next reported period is whether revenue less service cost can grow faster than operating expenses and below-EBITDA charges. Q2 showed gross margin rising sequentially to Rs 125.5 crore while EBITDA remained at Rs 13.2 crore, and the presentation provides no earnings target or scheduled operational milestone.