Yatra Online: A High-Growth Travel Play in India's Corporate and MICE Markets

In an era where global travel markets grapple with macroeconomic volatility and shifting consumer behavior, Yatra Online, Inc. (NASDAQ: YTRA) has emerged as a standout performer. The company's recent financial results—marked by a staggering 214.4% year-over-year (YoY) surge in Adjusted EBITDA to INR 206.2 million (USD 2.4 million) for the quarter ending June 30, 2025—underscore its ability to outperform headwinds through strategic diversification and disciplined cost management. For investors seeking exposure to a high-growth, underserved niche, Yatra's accelerating profitability and dominance in India's corporate and MICE (Meetings, Incentives, Conferences, Exhibitions) travel markets present a compelling case.

Decoding Yatra's Financial Resilience: RLSC and EBITDA Momentum

Yatra's financial strength lies in its proprietary metric, Revenue Less Service Cost (RLSC), which strips out variable expenses like airline commissions and hotel booking fees to reveal core operating performance. For the same quarter, RLSC hit INR 1,156.3 million (USD 13.5 million), a 36.6% YoY increase. This metric is critical for understanding Yatra's resilience: while B2C air ticketing—a historically volatile segment—faces margin pressures, the company's corporate and MICE verticals have become profit engines.

The full-year fiscal 2025 results further validate this trend. Adjusted EBITDA rose 28.3% YoY to INR 343.8 million (USD 4.0 million), with management projecting 20% RLSC growth and 30% Adjusted EBITDA growth in FY26. These figures are not just numbers—they reflect a business model that prioritizes high-margin, recurring revenue streams.

Strategic Dominance: The Globe Travels Acquisition as a Game Changer

Yatra's transformative acquisition of Globe Travels in 2024 has been a cornerstone of its strategic dominance. Priced at INR 1.28 billion ($15.25 million), the deal added 360 corporate clients and $90 million in annual gross bookings, directly aligning with Yatra's pivot to the more profitable corporate travel segment. The integration has unlocked synergies in supplier consolidation, technology adoption, and cross-selling, enabling Yatra to offer seamless, tech-driven solutions to its expanding client base.

The results? In Q1 2025 alone, Yatra onboarded 34 new corporate clients, expanding its annual billing potential by INR 2,010 million (USD 23.4 million). With over 1,300 large corporate clients and 58,983 registered SME customers, Yatra now commands a dominant position in India's corporate travel market. The acquisition also diversified revenue streams, mitigating risks tied to B2C fluctuations and positioning the company to capitalize on the $12 billion Indian corporate travel market, which is growing at a 15% CAGR.

Outperforming Macro Headwinds: Diversification and Cost Discipline

Yatra's ability to thrive amid macroeconomic challenges stems from two pillars: diversification into high-margin segments and rigorous cost management. While B2C air ticketing remains cyclical, the corporate and MICE segments—driven by India's robust economic growth and a surge in business travel—offer stable, recurring revenue.

Moreover, Yatra's cost discipline is evident in its operational efficiency metrics. The company has leveraged automation and AI-driven tools to reduce service costs, while supplier negotiations and the Globe Travels integration have further optimized expenses. This disciplined approach has translated into a 214.4% YoY Adjusted EBITDA jump, a figure that dwarfs industry averages and signals a business that is not just surviving but thriving.

Investment Thesis: A Long-Term Play in a High-Growth Niche

For investors, Yatra's story is one of strategic foresight and execution. The company is not merely adapting to market shifts—it is redefining them. By focusing on corporate and MICE travel, Yatra is tapping into a niche with limited competition and strong tailwinds, including India's rising middle class, digital adoption, and a growing emphasis on business travel.

The acquisition of Globe Travels has further entrenched Yatra's leadership, while its RLSC and EBITDA growth metrics demonstrate a business model that is both scalable and resilient. With management guiding for 20% RLSC and 30% Adjusted EBITDA growth in FY26, the company is well-positioned to deliver shareholder value over the long term.

Conclusion: A Buy for Patient Capital

Yatra Online's accelerating profitability, strategic dominance in corporate and MICE travel, and disciplined cost management make it a standout in the travel sector. While macroeconomic risks persist, Yatra's focus on high-margin verticals and its ability to execute transformative acquisitions like Globe Travels provide a strong buffer. For investors with a 3–5 year horizon, YTRA offers a compelling opportunity to participate in India's travel revolution—a market where Yatra is not just a player but a leader.