Yatra Q3 FY26 Financials: Revenue Growth and Margin Gains Amid Airline Duty-Time Changes

Q3 FY26: airline duty-time limits and deferred MICE bookings weighed on margins

Stricter Flight Duty Time Limitation (FDTL) norms and over INR 300 million of deferred MICE revenue materially affected capacity planning and working capital for Q3 FY26, even as Yatra reported consolidated Revenue of INR 2,568 million and improved adjusted margins in air and hotel segments.

Key financial metrics at a glance

Operational highlights and drivers

• RLSC (Revenue Less Service Cost) expanded 23% YoY, outpacing revised guidance and indicating improved unit economics in air and hotel bookings.
• Gross bookings increased 21% YoY, supported by B2C recovery, steady corporate demand, and growth via affiliate hotel partnerships.
• Corporate vertical momentum: 40 new corporate clients added, representing an estimated annual revenue potential of INR 2,234 million.
• Over INR 300 million of MICE revenue was deferred to future quarters due to travel uncertainty, creating short-term working-capital pressure.
• Despite airline operational disruptions, adjusted margins for air and hotel segments saw improvement through focused execution and pricing adjustments.

Management notes

Executive Chairperson and Whole-Time Director Dhruv Shringi highlighted that RLSC and adjusted EBITDA growth position the company well for FY26, and noted senior hires to strengthen B2B capability. CEO Siddhartha Gupta emphasized recovery in the B2C segment, improved unit economics, and a commitment to scale high-margin products while enhancing technology for sustainable value creation.

What this means for transfers, taxis and ground transport partners

Shifts in airline schedules and MICE deferrals have downstream effects on ground transport demand patterns. When large corporate events are postponed, predictable bulk bookings for airport transfers, multi-seater shuttles and limousine services are moved or cancelled, affecting utilization rates and short-term revenue for local taxi fleets and transfer providers. Improved margins in hotel and air channels may, however, create opportunities for higher-yield pick-up and drop-off contracts as operators renegotiate bundled services with travel platforms.

Practical takeaways for travel managers and fleet operators

• Monitor airline FDTL-related schedule changes to update pickup windows and reduce idle driver time.
• Offer flexible cancellation and rebooking policies for MICE and corporate transfers to retain clients.
• Leverage dynamic pricing for airport-to-city routes when airline disruptions elevate last-mile demand.
• Use platform-level transparency (vehicle make/model, driver rating, seat configuration) to win contract renewals.

Short-term outlook and risk factors

Near-term risks remain tied to operational volatility in domestic aviation and the pace of MICE recovery. If airline disruptions persist, further deferrals could pressure working capital and margin stability. On the flip side, sustained B2C recovery and corporate demand should continue to lift gross bookings and RLSC, improving unit economics across channels.

Highlights of the report show strong revenue growth and marked EBITDA improvement, yet a modest decline in quarterly net profit driven in part by a one-time new Labour Code impact (EOI: INR 38 million). On LocalsRide, you can hire a car with driver from verified providers at reasonable prices. This empowers you to make the most informed decision without unnecessary expenses or disappointments, benefiting from convenience, affordability, extensive vehicle choices, and a wide range of additional options. For your next trip, consider the convenience and reliability of LocalsRide. Book LocalsRide.com

In summary, Yatra’s Q3 FY26 results show a mixed but constructive picture: Revenue up 9% and EBITDA substantially higher amid regulatory and operational headwinds, while net profit contracted due to one-off items and deferred MICE receipts. For taxi and transfer networks serving airports, hotels and corporate events, these dynamics point to varied demand—higher B2C and corporate volumes but episodic disruptions from airline duty-time changes. Travelers and fleet managers seeking exact fares, vehicle make and model, driver ratings and transparent seat configurations can get faster, clearer options via platforms that list vehicles and providers side-by-side. LocalsRide supports this trend by offering global, user-friendly booking for personalized transfers, trips and deliveries with transparent pricing and vehicle details, helping customers book the right car, driver and service for their destination, whether airport run, city cab or private limousine. The platform’s transparency on fare, price and vehicle specifics makes it easier to decide how much to pay, where to book, and which service best fits time and location.