Yatra's Q2 air gross margin rose 29%, hotel-package fell 34%

Yatra’s air gross margin rose 29% year on year to Rs 75.7 crore in Q2 FY27, while its hotel-and-package gross margin fell 34% to Rs 29.9 crore. The opposing movements left consolidated gross margin, defined as revenue less service cost, broadly unchanged at Rs 125.5 crore.

What drove Yatra’s Q2 segment margin divergence?

Yatra’s Q2 segment divergence reflected a Rs 17.2 crore increase in air gross margin and a Rs 15.7 crore decrease in hotel-and-package gross margin. Air gross margin rose from Rs 58.5 crore in Q2 FY26 to Rs 75.7 crore in Q2 FY27, whereas hotel and package gross margin declined from Rs 45.6 crore to Rs 29.9 crore over the same comparison.

The two movements occurred while total gross margin was broadly stable at Rs 125.5 crore, compared with Rs 125.9 crore a year earlier. In Yatra’s financial key performance indicators, air ticketing represented 79% of Q2 FY27 gross bookings, up from 72% in Q2 FY26, while hotel and package's share fell to 19% from 25%. The booking mix changed alongside the different segment margin outcomes.

How did Yatra’s air business improve in Q2 FY27?

Yatra’s air business reported higher monetisation despite lower passenger volumes, with its air gross-margin percentage increasing to 4.45% in Q2 FY27 from 3.95% in Q2 FY26. Gross air bookings increased 15% to Rs 1,700.6 crore, while the 29% air gross-margin increase outpaced booking growth. Yatra said growth and improved monetisation across its core air and hotel businesses supported consolidated gross margin.

Air passenger volumes declined 2% to 12.98 lakh in Q2 FY27 from 13.29 lakh a year earlier. Yatra said this compared with a 6% decline in domestic air traffic cited in its presentation. Gross air bookings rose by Rs 219.5 crore even as passenger volumes fell by 31,000, based on the reported Q2 figures.

For H1 FY27, air passenger volumes increased 1% to 25.61 lakh and gross air bookings grew 16% to Rs 3,358.5 crore. Air gross margin for the half year rose 18% to Rs 145.5 crore from Rs 123.1 crore, while the gross-margin percentage reached 4.33%, compared with 4.26% in H1 FY26. These half-year figures show that reported air margin expansion extended beyond Q2.

Why did Yatra’s hotel-and-package gross margin decline?

Yatra’s hotel-and-package gross margin declined as both gross bookings and the gross-margin percentage fell in Q2 FY27. Hotel-and-package gross bookings decreased 21% to Rs 405.4 crore from Rs 514.2 crore, while the segment gross-margin percentage declined to 7.37% from 8.86%. The reported gross margin therefore fell by Rs 15.7 crore to Rs 29.9 crore.

Hotel room nights fell 3% year on year to 4.90 lakh in Q2 FY27 from 5.04 lakh. This quarterly decline contrasts with H1 FY27, when room nights grew 12% to 10.38 lakh from 9.28 lakh. Yatra also reported that standalone hotel gross bookings increased 20% year on year, supported by hotel additions intended to expand its addressable market, but it did not disclose a standalone-hotel gross-margin figure.

The H1 FY27 hotel-and-package figures were less negative than the Q2 comparison, although they remained below the prior-year period. Gross bookings fell 8% to Rs 793 crore, gross margin declined 11% to Rs 68.4 crore, and the gross-margin percentage moved to 8.63% from 8.93%. The Q2 margin rate of 7.37% was 1.26 percentage points below the H1 FY27 rate.

How did segment mix affect Yatra’s consolidated earnings?

Yatra’s broadly stable Q2 gross margin coincided with lower earnings as revenue from operations fell and operating expenses increased. Revenue from operations declined 39.1% year on year to Rs 213.6 crore, while operating expenses rose 10.6% to Rs 111.9 crore. Adjusted earnings before interest, tax, depreciation and amortisation, or adjusted EBITDA, declined 41.2% to Rs 15 crore from Rs 25.5 crore.

Reported earnings before interest, tax, depreciation and amortisation, or EBITDA, fell 47.0% to Rs 13.2 crore, and EBITDA margin was 10%, compared with 20% in Q2 FY26. Finance cost rose 164.1% to Rs 5.7 crore, depreciation increased 24.9% to Rs 12.3 crore, and finance income declined 26.6% to Rs 3 crore. Yatra reported a profit after tax loss of Rs 70 lakh, against a Rs 14.3 crore profit a year earlier.

Corporate activity provided a separate growth indicator in the quarter. Yatra added 54 corporate customers with annual billable potential of Rs 203.5 crore, while corporate bookings grew 18% year on year and 10% quarter on quarter. Personal travel bookings by corporate employees increased 36% year on year, and Yatra reported a 37% quarter-on-quarter recovery in meetings, incentives, conferences and exhibitions bookings.

What does Yatra’s H1 FY27 performance show?

Yatra’s H1 FY27 results show gross-margin growth alongside lower profitability. Gross bookings increased 11% to Rs 4,266.1 crore and gross margin rose 3% to Rs 248.2 crore, even as revenue from operations declined 28.4% to Rs 401.5 crore. The consolidated gross-margin percentage declined to 5.82% from 6.26% in H1 FY26.

Adjusted EBITDA declined 40.3% to Rs 30.1 crore in H1 FY27, while EBITDA dropped 46.3% to Rs 26.3 crore. Profit after tax moved to a Rs 40 lakh loss from a Rs 30.3 crore profit in H1 FY26. As of September 30, 2026, Yatra reported cash, cash equivalents and term deposits of Rs 218 crore.

Air contributed Rs 145.5 crore of H1 FY27 gross margin, compared with Rs 68.4 crore from hotel and package. Air gross bookings increased 16% to Rs 3,358.5 crore, while hotel-and-package bookings declined 8% to Rs 793 crore. The two segment trends were consistent with air representing 79% of total H1 FY27 gross bookings and hotel and package representing 18%.

Conclusion

Yatra’s Q2 FY27 segment data show air taking a larger share of bookings and delivering higher gross margin, while hotel and package recorded lower bookings, room nights and gross-margin percentage. The Rs 17.2 crore gain in air gross margin largely offset the Rs 15.7 crore hotel-and-package reduction, leaving consolidated gross margin close to its prior-year level even as revenue, EBITDA and profit after tax declined.

The next disclosed indicators to watch are whether air monetisation remains above the 4.45% Q2 gross-margin rate, whether hotel and package recovers from its 7.37% margin rate, and whether the reported 37% sequential recovery in meetings, incentives, conferences and exhibitions bookings continues. Yatra’s addition of 54 corporate customers with Rs 203.5 crore of annual billable potential is another stated pipeline measure for subsequent periods.