Yatra Online reported a sharp jump in results for the quarter ending September 30, 2025, saying on November 12 that Q3 2025 revenue rose 48.5% year over year to INR 3,508.7 million (USD 39.5 million).
The company also posted a surge in profitability, with adjusted EBITDA up 217.7%, a pace that far outstripped sales growth and pointed to tighter cost control and better scale. This performance stood out because it landed during a tough stretch for India’s aviation market, where airlines face weak cash positions, grounded aircraft, and higher fuel costs that continue to pressure margins and schedules.
Drivers of the quarter’s performance
Management credited the gains to several key factors:
- Steady demand from companies using Yatra Online’s managed travel services, with corporate travel remaining the engine of the business in Q3 2025.
- Stronger activity in hotels and holiday packages, broadening revenue beyond air tickets and creating more upsell opportunities.
- The platform added 35 new enterprise clients during the quarter, expanding annual billing potential by INR 1,430.0 million (USD 16.7 million).
- The onboarding of new clients helped drive operating leverage, and ongoing cost discipline boosted adjusted EBITDA at a faster clip than sales.
- The full-quarter contribution from Globe Travels (acquired September 2024) contributed to better supplier terms, smoother tech rollouts, and new cross-selling opportunities across air, hotel, and packages.
Management noted that the Globe Travels integration outperformed internal targets in Q3 2025, supporting the strategy to grow corporate accounts while nudging travelers into higher-margin lodging and add-on services.
Industry backdrop and risks
The broader aviation sector remained fragile:
- Industry tracker ICRA expects Indian airlines to post net losses of Rs 95–105 billion in FY2026, compared with roughly Rs 55 billion loss in FY2025.
- Drivers of stress include:
- Higher operating costs
- Slower passenger traffic growth
- Elevated aviation turbine fuel (ATF) prices — ATF climbed 3.3% month over month in October 2025
- Grounded aircraft — about 133 planes (roughly 15–17% of the national fleet as of March 2025), largely tied to Pratt & Whitney engine issues
- Pilot shortages and higher lease rates
These pressures constrain capacity and can limit volume growth for travel intermediaries tied to airline schedules and pricing.
Important: If grounded aircraft keep capacity tight and fares stay firm, Yatra could benefit from stable pricing but face limits on volume growth. If fuel costs rise further, airlines may pass on increases that dampen discretionary leisure trips even while corporate travel holds up.
How Yatra is mitigating sector pressures
Management highlighted several defensive moves:
- Corporate demand has been more stable than leisure traffic, with large clients prioritizing managed travel programs for cost control and duty-of-care reasons.
- Tighter contracts and technology upgrades helped defend margins despite higher supplier costs.
- Focus on multi-product bundles (air + hotel + packages) broadened the revenue mix and produced stickier client relationships.
- Technology upgrades streamline approvals, expense tracking, and traveler support — reducing churn risk and improving compliance for large clients.
- Globe Travels added local supplier depth and a larger sales pipeline, enabling a combined platform for end-to-end control.
According to analysis by VisaVerge.com, firms that blend corporate travel contracts with scalable hotel content and simple booking tech tend to protect margins better when airlines adjust capacity or pricing.
Financial and investor takeaways
Key financial takeaways from Q3 2025:
- Revenue: +48.5% YoY to INR 3,508.7 million (USD 39.5 million)
- Adjusted EBITDA: +217.7%
- 35 new enterprise clients, adding INR 1,430.0 million (USD 16.7 million) in annual billing potential
Analyst reaction was guarded:
- Most recent rating: Hold with a $2.00 price target — reflecting improved execution but continued market and cash-flow risks.
- TipRanks’ AI Analyst, Spark, labeled the stock Neutral, noting strong earnings-call tone and technical signals but weaker valuation metrics and cash flow concerns.
These views summarize the trade-off: strong Q3 2025 momentum and client wins vs. the challenge of converting that momentum into steady free cash flow amid aviation headwinds.
Operational focus going forward
Near-term priorities for sustaining investor confidence:
- Convert bookings into cash and manage working capital tied to corporate settlements.
- Keep operating costs aligned with scale benefits to sustain adjusted EBITDA.
- Continue pushing hotel bookings and packages to offset air-cycle volatility, since lodging margins often run higher.
Warning: Analysts continue to watch quarter-to-quarter free cash flow. The sharp jump in adjusted EBITDA in Q3 2025 indicates cost moves and scale are working, but consistent cash conversion is required before sentiment can turn decisively positive.
Regulatory and capacity considerations
Regulatory and operational developments can materially affect outlook:
- Airline oversight, safety directives, maintenance checks, and fleet return timelines will shape capacity and schedules.
- For official aviation guidance in India, see the Directorate General of Civil Aviation: https://dgca.gov.in
Potential scenarios:
- If fleet constraints ease and ATF stabilizes, intermediaries may have more room to grow volumes without sacrificing margins.
- If capacity returns faster than expected, pricing could soften, testing how well Yatra maintains the shift toward hotels and services.
Conclusion
For now, the headline remains:
- Yatra Online posted 48.5% higher revenue and 217.7% growth in adjusted EBITDA in Q3 2025.
- The company added 35 enterprise clients, lifting long-term billing potential, while the Globe Travels deal broadened reach.
- The quarter demonstrates how a travel platform can push forward despite tight airline capacity, higher costs, and supply issues.
How well Yatra Online converts this momentum into consistent free cash flow through the remainder of the fiscal year will likely determine whether cautious analyst views shift from Hold/Neutral toward a more positive stance.
This Article in a Nutshell
Yatra Online’s Q3 2025 results showed 48.5% revenue growth to INR 3,508.7 million and a 217.7% increase in adjusted EBITDA. Management attributed gains to resilient corporate travel, stronger hotel and package sales, 35 new enterprise clients adding INR 1,430.0 million in annual billing potential, and the full-quarter contribution from Globe Travels. Despite these gains, industry pressures — grounded aircraft, rising ATF prices, pilot shortages, and airline losses — constrain volume growth. The key test is converting improved EBITDA into consistent free cash flow.
