Target: ₹261
CMP: ₹189.05
In Q2 FY26, Yatra Online Ltd reported a Revenue Less Service Cost (RLSC) growth of about 34 per cent on a y-o-y basis and around 9 per cent on a q-o-q basis, driven by robust performance in corporate travel and meetings, incentives, conferences and events (MICE). The company’s B2B segment showed a notable improvement in gross booking value (GBV) at about 67-68 per cent, inching closer to its around 70 per cent target for the full year of FY26.
This change in GBV mix is visible in their Contribution Margins, which stood at around 5.5 per cent in Q2-FY26, reflecting a 78 bps improvement from Q2-FY25. EBITDA margins (as a per cent of RLSC) stood at around 19 per cent, highlighting the positive impact of MICE and the company’s focus on driving margin growth towards their near-term target of 23-25 per cent within the next 2-3 years.
With an increasing share of B2B in GBV and an improved mix of Hotels and Holiday packaging along with Air ticketing, from 22:78 in Q2 FY25 to 26:74 in Q2 FY26, the Company is on a clear path towards higher contribution margin bookings. In light of this trend and future expectations, we have revised our estimates and maintain a Buy rating, valuing the business at 35x core P/E on FY28E, implying an upside of around 39 per cent.