Target: ₹261
Current Market Price (CMP): ₹189.05
In the second quarter of fiscal year 2026, Yatra Online Ltd reported a year-over-year Revenue Less Service Cost (RLSC) growth of approximately 34% and a quarter-over-quarter growth of around 9%. This growth is primarily attributed to the company’s strong performance in corporate travel as well as meetings, incentives, conferences, and events (MICE). The business-to-business (B2B) segment demonstrated significant improvement, achieving a gross booking value (GBV) growth of about 67-68%, moving closer to its full-year target of approximately 70% for FY26.
The shift in GBV mix is also evident in the company’s Contribution Margins, which stood at around 5.5% for Q2 FY26, reflecting an improvement of 78 basis points compared to Q2 FY25. The EBITDA margins, as a percentage of RLSC, were approximately 19%, emphasizing the positive influence of MICE and Yatra’s commitment to enhancing margin growth, with an aim to reach a target of 23-25% over the next two to three years.
As the B2B segment continues to gain a larger share of GBV, the mix of Hotel and Holiday packages alongside Air ticketing has improved from a ratio of 22:78 in Q2 FY25 to 26:74 in Q2 FY26. This shift indicates the company’s trajectory towards higher contribution margin bookings. Given these encouraging trends and future projections, analysts have revised estimates and maintained a Buy rating, valuing the business at 35 times the core P/E for FY28 estimates, suggesting a potential upside of around 39%.
Published on November 17, 2025
