Q4 2025 Yatra Online Inc Earnings Call
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Unknown Executive: Hello everyone and welcome to the Yatra 4Q25 and FY25 Earnings Conference Call. My name is Ezra and I will be your coordinator today. If you would like to ask a question, please press star followed by 1 on your telephone keypad now. And if you change your mind, please press star followed by 2.
Speaker Change: Hello, everyone and welcome to the Yatra for Q 'twenty five and that's why 25 earnings Conference call. My name is that's right and I will be your coordinator today. If you would like to ask a question. Please press star followed by one on your telephone keypad now and if you change your mind.
Speaker Change: Press Star followed by two.
Manish Hemrajani: I will now hand you over to your host, Manish Hemrajani, VP, Investor Relations to begin. Manish, please go ahead. Thank you.
Speaker Change: I will now hand, you over to your host many Hamburg, Germany, VP Investor Relations to begin finish. Please go ahead.
Speaker Change: Okay.
Speaker Change: Hey, good morning, everyone and welcome to.
Manish Hemrajani: Good morning, everyone, and welcome to our fourth quarter and full year FY25 earnings conference call. The period ended March 31st, 2025.
Our fourth quarter and full year FY.
Speaker Change: That's about 25 earnings conference call.
Speaker Change: For the period ended March 31st 2025.
Manish Hemrajani: I'm pleased to be joined on the call today by Yatra CEO and co-founder Dhruv Shringi and CFO Anuj Sethi. Before we begin, I would like to remind you that certain statements made on today's call may cost you a forward looking statement. These statements are based on management's current expectations and beliefs and are subject to various risks and uncertainties that could cause actual results to differ materially. for a detailed discussion of these risks.
Speaker Change: I'm pleased to meet joined on the call today by Us.
Speaker Change: Thank you.
Speaker Change: Vehicle safety.
Speaker Change: Before we begin I would like to remind you that certain statements made on today's call.
Speaker Change: Constitute forward looking statements.
Speaker Change: These statements are based on management's current expectations and beliefs.
And that's the.
Things that could cause actual results or to book to them.
Speaker Change: For a detailed discussion of these risks.
Manish Hemrajani: Please refer to our filings with the SEC and the press release we issued yesterday, which is available on the IR section of our website.
Speaker Change: Please refer to our filings with the SEC and the press release, we issued yesterday, which is available on the <unk>.
Speaker Change: Our section of our website.
Dhruv Shringi: With that, I'll turn the call over to Dhruv. Dhruv, go ahead. Thank you, Manish. Good morning, everyone, and welcome to our fourth quarter and full year fiscal 25 earnings conference call for the year ended March 31, 2025. I'm pleased to be joined on the call y'all.
Drew: With that I'll turn the call over to drew.
Drew: Right.
Speaker Change: Thank you have a niche.
Speaker Change: Good morning, everyone and welcome to our fourth quarter and so when you have fiscal 'twenty earnings conference call.
Speaker Change: And at March 31, 35.
Speaker Change: I'm pleased to be joined on the call.
Dhruv Shringi: with my colleague Anuj Sethi as well, who is our CEO. As we reflect on fiscal year 2025, I am thrilled to present a performance that demonstrates a story of resilience, strategic growth and unwavering momentum that solidifies Yatra's position as India's premier corporate travel service provider. For FY25, we are pleased to report annual revenues of INR 7.9 billion, which is approximately USD 93.1 million, up 90% year-over-year. Our full-year revenue reflects the momentum we have built across our corporate travel and nice businesses. These have been pivotal in navigating a competitive landscape. Notably, our profitability metrics underscore our disciplined execution, adjusted EBITDA for the year was up 28% and adjusted profit was up 106.5% year over year to INR 24 million.
Speaker Change: With my colleague Sam Zell, Google CFO.
Speaker Change: I see the takedown in fiscal year, 'twenty 25, I'm, sorry, 2% off of almost that demonstrates Australia resilience. So that you could draw down on their gain momentum.
Speaker Change: So I'll close by visualizing there has been a popular topic.
Speaker Change: Well, it's hard for anybody to get used to the board and other revenues.
Speaker Change: <unk> seven 9 billion, which is approximately USD $93 1 million up 90% year over year.
Speaker Change: On the other revenue reflects the momentum we have built across our corporate traveller nice businesses.
Speaker Change: Have been pivotal in navigating a competitive landscape.
Speaker Change: Yeah, I'll take the lead metrics underscore our disciplined execution.
Speaker Change: Yesterday, but also the euro goes up 28% and adjusted profit was up 100, and it takes like 5% year over year.
Speaker Change: $24 million.
Dhruv Shringi: On a quarterly basis for the March quarter, we reported revenues of INR 2.2 billion, which is approximately USD 25.7 million, up 114% year over year, driven by the growth in our mice business and the inorganic contribution from the globe travel acquisition. Our revenue less service costs for the quarter came in at INR $1.1 billion, approximately $12.8 million, up 34% year over year. Adjusted EBITDA of INR $90 million, approximately $1.1 million, was up 23% year over year.
Speaker Change: Quarterly basis for the March quarter, we reported revenues of one.
Speaker Change: I know, it's a 2.2 billion, which is approximately USD 25 7 million.
Speaker Change: 114% year over year, driven by the growth in our life business and the inorganic contributions from the travel acquisition.
Speaker Change: Are there new less service cost for the quarter came in at INR 1.1 billion, approximately $12 $8 million up 34% year over year.
Speaker Change: Adjusted EBITDA of 19 million approximately $1 1 million balance was up 23% year over year.
Dhruv Shringi: Now let's take a broader view of the landscape in India. India's travel industry is in a transformative INARC forecast corporate travel in India, which is currently at 42 billion, will hit 80 billion by 2033, given by globalization of business operations, which has encouraged multinational companies to expand their businesses in India. Add to that rising investments by public and private agencies for improving travel infrastructure and growing online penetration. Other factors include rapid digitization, the rising partnership between businesses and airlines, the increasing trend for business leisure travel, continuous improvement in the airline, hospitality and tourism industries, and the developing of meetings, incentives, conferences, and events segments.
Speaker Change: Now, let's take a broader view of the landscape in India, India Southern industries enough times.
Speaker Change: So all of them at this stage.
Speaker Change: I am a CFO cost go up with government of India, which is currently at 42 billion will hit 80 billion by <unk>, given by globalization of business operations, which I encourage multinational companies to expand their businesses in India.
Speaker Change: Exactly equal investments by public and private agencies, starting doing travelling transaction and going along with that operation.
Speaker Change: Other factors include rapid Digitization, but I do think partnership between the two.
Speaker Change: This is an airlines these things won't change for business leisure travel continues improvement in the airlines hospitality and tourism industries.
Speaker Change: We're developing all meetings incentive confluence of events segment.
Dhruv Shringi: These are all positive influences which are helping the Indian market grow exponentially. India's GDP also is valued at almost 4 trillion now, making it currently the fourth-largest economy, and it's on track to become the third-largest by 2028. This economic ascent is boosting individual prosperity, with GDP per capita reaching $2,700 in 2024, which is a six-fold increase over the past two decades. Our corporate travel business remains a key growth engine for us. In Q4, we added 25 new corporate clients contributing to INR 1.4 billion in expected annual volumes. For fiscal year 25, we secured 148 new clients contributing to INR 7.5 billion in expected annual volumes, reinforcing our market partnership.
Speaker Change: These are all positive influences.
Speaker Change: Is that helping the market grow exponentially.
Speaker Change: India's GDP onshore is valued at almost folks along now.
Speaker Change: The fourth largest economy and it's on track to become the third largest by 2020 it.
Joe: This is Joe I'll make offenders boosting individual prosthetic GDP per capita reaching $2700 intrinsic play sports, which is a six fold increase over the past two decades.
Speaker Change: I think in terms of unlocking new opportunities, which I believe is more than the insider guys leisure and business.
Speaker Change: Our corporate travel business remains a key growth engine for us.
Speaker Change: In Q4, we added 35, new corporate clients contributing to INR, one 4 billion in expected annual volumes for fiscal year 'twenty side, we secured a 148 new clients contributing to INR seven 5 billion in expected annual volumes reinforcing our market potential.
Dhruv Shringi: We continue to expand our corporate sales team across India targeting high growth sectors like IT, manufacturing, FMCG and consulting. This effort has quadrupled our sales pipeline, reflecting strong momentum. on my business has emerged as a standout performer. With significant growth and margin expansion in the fourth quarter, building on the strong foundation laid throughout fiscal year 2020. globe has long been recognized for its deep domain expertise and strong client relationships in the my By leveraging our expanded capabilities and globe's expertise, we've captured a larger share of this high margin segment, positioning Yatra as a dominant player in India's mindset.
Speaker Change: Continuing to expand our corporate sales team across India targeting hydro sectors like IP manufacturing FMC again consulting.
Speaker Change: This effort has quadrupled our sales pipeline, reflecting strong momentum.
Speaker Change: Our life business has a large as I started out the problem.
Speaker Change: With significant growth and margin expansion in the fourth quarter building on the solid foundation laid throughout fiscal year 2025.
Speaker Change: <unk> has long been recognized for its deep domain expertise and strong client relationships into my sector.
Speaker Change: Leveraging our expanded capabilities and global expertise, we've captured a larger share of this high margin segment.
Speaker Change: Yeah, I'll try as a dominant player in India as mice market.
Speaker Change: The Globe acquisition also expanded our reach into diverse and largely non overlapping client base in the Hudson Valley exposure across multiple industries.
Dhruv Shringi: The globe acquisition also expanded our reach into a diverse and largely non-overlapping client base, enhancing our exposure across multiple industries. This broader portfolio opens up meaningful cross-sale opportunities across our hotel inventory and extends management solutions, allowing us to deliver more integrated and customized travel programs to corporate clients. In just the last nine months of fiscal year 2025, our combined mice platform handled over 600 trips and sold more than 80,000 tablets, a testament to the growing demand and our ability to execute at scale. The Indian rice market is estimated at $3.3 billion in 2023 and is expected to grow to $10 billion by 2030, representing a CAGR of 18%.
Speaker Change: This broader portfolio comes up meaningful cross sell opportunities across all of them are then it went to an extent flattish like solutions, allowing us to deliver a more integrated and customized travel programs for corporate customers.
Speaker Change: And just the last nine months of fiscal year 2020 targets all combine lifestyle problem handled over 600 trips.
Speaker Change: More than 80000 to Atlas.
Speaker Change: Testament to the growing demand and our ability to execute at scale.
Speaker Change: The Indian life market is estimated at $3 $3 billion in 2023 and is expected to grow to 10 billion by 2030.
Speaker Change: Presenting a CAGR of 18%, we see a significant runway ahead of it.
Dhruv Shringi: We see a significant runway ahead and remain fully committed to aggressively expanding our presence in this high growth segment. When we set up our MyEats business about 15 months ago, we set ourselves the target of becoming one of the top three players over the next three years in this sector. I'm happy to share that I strongly believe that on current run rate, Globe and Yatra combined will become one of the top three players in the fast run segment in the current fiscal year. On the expense management side, our expense management platform, ReCap, continues to gain traction with multiple customers now live and actively using the solution.
Speaker Change: And fully committed to aggressively expanding our presence in this high growth segment.
Speaker Change: When we set up our lives or is this about 15 months ago, we set ourselves the target of becoming one of the top three players over the next two years in this segment I'm happy to share that I strongly believe that on current run rates globally outdoor combined will become one of the top three players in this fast growing segment in the current fiscal year itself.
Speaker Change: On the expense management side, he got expense management platform. The cloud continues to gain traction with multiple customers that are live and actively using the solution early feedback has been very encouraging validating recaps relevant physical inventory offerings to our old carriage services.
Dhruv Shringi: Early feedback has been very encouraging, validating ReCap's relevance as a contemporary offering to our core travel services. We see strong cross-sell potential within our existing client base and the broader opportunities in the expense management space remain significant, both in India and select international markets. As adoption scales, ReCap is poised to drive deeper customer engagement while building meaningfully to a margin goal. We are focused on accelerating this momentum and building ReCap into a core pillar of our enterprise offering over the coming years. I'm also pleased to share that in FY25, Yatra became one of the first travel management companies in India to integrate the new distribution capabilities that the airlines are offering.
Speaker Change: We see strong cross selling potential within our existing client base and the broader opportunities in the expense management space and the insignificant both in India and select international markets.
Speaker Change: Since scaled recap is poised to drive deeper customer engagement bodybuilding meaningfully to our margin, but yes.
Speaker Change: We are focused on accelerating this momentum and building, we tap into a call to let up on the enterprise offering over the coming years.
Speaker Change: I'm also pleased to share that in FY 'twenty five Yasser became one of the first travel management companies in India to integrate the new distribution capabilities.
Speaker Change: Airlines are offering this is a transformative technology developed in conjunction with either by the airlines.
Dhruv Shringi: This is a transformative technology developed in conjunction with IATA by the airlines. Some of the key benefits of this for corporate travelers is that it provides them more flight options and better pricing. You would all have seen a trend over the last few years that increasingly airlines are only sharing the cheapest fare on certain exclusive channels, including their own websites. The NDC is one such channel that allows you to access these special fares, which might otherwise not be available in traditional distribution platforms. The real-time seat availability and dynamic pricing of this is a key enabler for cost-saving for large corporate organizations.
Speaker Change: Some of the key benefits of this so called peer travelers is that it provides them more flight options and better pricing.
Speaker Change: <unk> has seen a trend over the last few years is increasingly and I are the only sharing the cheapest fare uncertainly exclusive channels, including their own websites. The M. D. C is one side channel that allows you to access these special status, which might otherwise not be available in traditional distribution platforms.
Speaker Change: The real time seat availability and demand dynamics I think of this is a key enabler for cost saving for large corporate organizations.
Dhruv Shringi: This also allows us to offer more personalized and richer content. and making sure that policy compliance is even tighter. This will include things like the seating, extra baggage or bundled offers being brought forward to the corporate travelers through our own technology community. This smoother and more transparent booking experience enhances Yatra's self booking tool and aims to provide a more seamless and transparent booking experience to our clients. Overall, Yatra has moved to integrate NVC with its self-booking tools for corporate travel, aims to enhance the booking experience, improve cost efficiency and streamline travel planning even further for our customers.
Speaker Change: This also allows us to offer more personalized and richer content.
Speaker Change: And making sure that policy compliance is even tighter.
Speaker Change: They include things like the seating extra baggage or bundled offers.
Speaker Change: <unk>.
Speaker Change: Look forward to the corporate travelers through our own technology solution.
Speaker Change: This smoother and more transparent booking experience enhancing self booking tool and aims to provide a more seamless and transport data and booking experience to our clients.
Speaker Change: Overall, our third move to integrate in D. C. With it says looking through it took off the traveling and should enhance the booking experience improved cost efficiency and streamline travel planning even further for our customers.
Dhruv Shringi: This reinforces our commitment to innovation and leadership in the corporate travel market, ensuring that we remain at the forefront of technology advances that benefit our customers.
Speaker Change: Reinforces our commitment to innovation and leadership in the corporate travel market, ensuring that we remain at the forefront of technology advances that benefit our customers.
Speaker Change: In our DTC business, we were able to address some of the decline in.
Dhruv Shringi: In our B2C Air business, we were able to arrest some of the decline in gross bookings. And in Q4, our gross bookings were only 6%. The silver lining is that we've seen stabilization in our B2C Air business now despite facing competitive headwinds. And the stabilization in Q4 has been achieved through optimization of our discounts, SEO improvements, and increased personal travel attach rates through our corporate... Based on the current trends, we expect to start seeing gradual growth in B2C starting in the second quarter of the current fiscal year. This would most likely have been the situation in the current quarter as well, had it not been for the disruption caused for about 10 to 15 days due to the war-like situation in India.
Speaker Change: Gross bookings.
Speaker Change: Q4, gross bookings fell only six seven the silver lining is that we've seen stabilization of our <unk> business now despite facing competitive headwinds.
Speaker Change: On the stabilization in Q4 has been achieved.
Speaker Change: Optimization of our discounts if you will.
Speaker Change: Improvements and increase.
Speaker Change: Travel attach it to our corporate channel.
Speaker Change: Based on the current trends, we expect to start seeing gradual growth in DTC, starting in the second quarter, but I wouldn't take studio.
Speaker Change: This would most likely have been the situation in the current quarter as I had it not been for the disruption costs were about 10 to 14 days due to the wall like situation in India frankly.
Dhruv Shringi: And things have normalized pretty quickly in business in that country.
Speaker Change: Frankly things have normalized quickly and business is back on track.
Dhruv Shringi: On the AI side as well, we continue to embrace AI, enhancing our customer experience, both on the corporate and on the consumer side. On the corporate front, last quarter, we introduced our AI-enabled no-fare finding, a smart post-booking fare optimization tool that underscores our continued investment in customer-centric innovation. This tool continuously scans for fair drops, even after a customer has completed their business. If a lower fare becomes available on the same flight up to six hours before departure, the system automatically alerts the traveler, giving them the option to rebook at a reduced This delivers tangible value to the customer while reinforcing trust in our platform.
Speaker Change: On the air side as well, we continue to embrace AI enhancing our customer experience both on the corporate on the consumer side.
Speaker Change: The Capex front last quarter, we introduced our AI enabled locally I find it a smart post booking fair optimization tool that underscores our continued investment in customer centric innovation.
Speaker Change: Using machine learning algorithms to continuously scan score drops even after a customer has completed their booking.
Speaker Change: If a north end becomes available on the same slide up to six hours before departure the system automatically alerts the traveler, giving them the option to rebook at a reduced price.
Speaker Change: There are tangible value to the customer while reinforcing trust in our platform.
Dhruv Shringi: By integrating real-time pricing intelligence into the post-purchase experience, we're not just helping users save, we're also using technology to redefine what proactive travel service can look like. We've also been building intelligent bots to automate customer service email queries and calls. These bots will continue to improve as the LLMs evolve at a rapid pace, and we will be able to significantly drive down the cost of servicing in the near term.
Speaker Change: By integrating real time pricing intelligence into the post purchase experience, they're not just helping users say, we're also using technology to redefine what proactive servicing look like.
Speaker Change: We've also been building intelligent box to automate customer service email queries and calls these blocks will continue to improve as the element that was at a rapid pace and we will be able to significantly drive down the cost of services in the near term.
Dhruv Shringi: I'm pleased to highlight a few recent accolades as well that Yatra has received from international airlines and our supply partners. This underscores the strength of the brand and the trust that we've built with them. Singapore Airlines recently acknowledged Yatra, or recognized Yatra as its top travel partner in India, an acknowledgement of our strong booking volume, efficient operations and alignment in the region. Air Canada honored Yatra with its Strategic Circle of Excellence Award, and we received similar accolades from Etihad Airways as well for being one of their top partners in the Asian region. These recognitions reflect our ongoing commitment to delivering value not only to our customers, but also to our partners.
Speaker Change: I'm pleased to highlight a few recent accolades as well that the outside has received from international Airlines and <unk>.
Speaker Change: Our supply partners.
Speaker Change: This underscores the strength of the brand and the trust that we built for them.
Speaker Change: Singapore Airlines recently acknowledged you asked about you all recognize yachts up I would stop travel partner in India.
Speaker Change: Knowledge length of our strong booking volumes of efficient operations and alignment in the region and Canada, Although the altra with its lets say this circle of Excellence Award and we received similar accolades from Etihad Airways as well for being one of their top partners in the Asian region.
Speaker Change: These recognitions reflect our ongoing commitment to delivering value not only to our customers, but also to our partners. They reinforce our position as a preferred travel platform in the eyes of leading global Airlines.
Dhruv Shringi: They reinforce our position as a preferred travel platform in the eyes of leading global airlines.
Dhruv Shringi: Now, let me update you on the convertibility of the share. We've made substantial progress on our path to convertibility into India shares. We've defined a structure that we believe works and allows for this convertibility. While there are still some hurdles to overcome, we are confident in the structure's viability. We've now focused on navigating the necessary process and procedures across multiple units.
Speaker Change: Now, let me update you on the convertibility of the shares.
Speaker Change: Made substantial progress on a box with mobility and doing that shows we have defined the structure that we believe works and allows for this can learn stability.
Speaker Change: While there are still some hurdles to overcome we are confident in the structured viability.
Speaker Change: We've now focused on navigating the necessary processes and procedures across multiple jurisdictions given the complexity involved we can commit to it.
Dhruv Shringi: Given the complexity involved, we can't commit to a specific timeline, but rest assured we are dedicating all our efforts to making this a reality. This transition is a critical step for Yatra and our shareholders, aligning us with the market and unlocking value. We'll provide updates as we continue to make progress. As we look ahead to fiscal 2026, we are encouraged by the momentum across our business. Long-term client acquisition, continued growth in our MySegment and ongoing investment in our proprietary technology platform, including AI-powered personalization and booking tools, position us well for the next phase of development.
Speaker Change: Right, but do you actually show that we are dedicating all our efforts in making this a reality.
Speaker Change: This transition is a critical step for you outside shareholders aligning us with the market and unlocking value.
Speaker Change: We'll provide updates as we continue to make progress.
Speaker Change: As we look ahead to fiscal 2026, we are encouraged by the momentum across our business.
Speaker Change: Signed acquisition continued growth in our life segment and ongoing investment in our proprietary technology platform, including AI powered personalization and booking tools position us well for the next phase of growth.
Dhruv Shringi: For FY26, we are introducing preliminary guidance of 20% growth in revenue-less service costs or gross margin and 30% adjusted EBITDA growth driven by three pillars, expansion in corporate travel, continued scaling of mice and hotels, and full-cost interviews from globe travel. I would just like to highlight that the MySpace moves fast at a certain amount of seasonality, with fiscal Q2 being the strongest quarter, followed by Q3. Q4 and then Q1. So the margins and the profit will get appropriately seasonalized as well.
Speaker Change: Well the fact that he thinks we are introducing guidance of 20% growth in revenue less service costs on gross margin and 30% adjusted EBITDA growth driven by three pillars expansion in corporate travel continued scaling of myself hotels.
Speaker Change: And full of cost synergies from globe traveling.
Speaker Change: I would just like to highlight the device business does have a certain amount of seasonality.
Speaker Change: Q2, being the strongest quarter followed by Q3.
Speaker Change: Q4, and then Q1.
Speaker Change: With the margins and the profit will get appropriately seasonal or is that as well.
Dhruv Shringi: But on the whole, we are confident of achieving the guidance that you're setting up.
Speaker Change: But on the whole we are confident of achieving the guidance that we're setting ourselves.
Dhruv Shringi: Before I close, I'd also like to provide a quick update on recent geopolitical developments that deeply impacted the travel demand in India. April began on a strong note for us, but following the unfortunate incident in Pahelgaon, one of India's key summer travel destinations, and the subsequent escalation of tensions between India and Pakistan, we experienced a temporary disruption in travel activity. This led to a short-term dip in both leisure and corporate travel, particularly in the northern part of India. During this period, we worked proactively with our airline and hotel partners to support customers through flexible cancellation and rebooking options.
Speaker Change: Before I close I'd also like to provide a quick update on recent geopolitical developments that deeply impacted the travel demand in India.
Speaker Change: It was a big analyst shy on a strong note for us, but following the unfortunate incident in Paris, Milan, India as key summer travel destinations and the subsequent escalation of tensions between India and Pakistan.
Speaker Change: We experienced a temporary disruption in travel activity.
Speaker Change: This led to a short term dip in both leisure and corporate travel, particularly in the northern part of India.
Speaker Change: During this period, we work proactively with our airline and hotel partners to support customers through flexible cancellation and Rebooking options.
Dhruv Shringi: I'm pleased to report that with the situation now stabilizing and a ceasefire in effect, we've seen a prompt recovery in booking volumes across the country, excluding the directly impacted areas where demand is gradually expected to normalize.
Speaker Change: I'm pleased to report that the situation now stabilizing in the east side and in fact, we've seen a contract already in booking volumes across the country. Excluding the directly impacted areas, where demand is largely expected to normalize.
Dhruv Shringi: In closing, we believe Yatra is well positioned for sustained success. Our emphasis is on high margin growth, operational excellence, and strategic innovation.
Speaker Change: In closing, we believe we address well positioned for sustained success.
Speaker Change: Conservatives on high margin growth.
Speaker Change: <unk> excellence and strategic elevation.
Anuj Sethi: Thank you for your support and I'll now request our CFO, Anuj, to brief you on the financial details. Anuj, over to you. Thank you Dhruv and good morning everyone. Let me brief you on our financial performance for the period under review. For the fourth quarter of financial year 2025, revenue from operations grew 114% year-on-year to INR 2192 million, approximately US$25.7 million, driven by a 54% increase in hotels and packages, growth in miles and inorganic globe contributions. More notably, our gross margins, revenue-less service costs, jumped 34% year-on-year to INR 1094 million, approximately USD 12.8 million, given by our focus on high margin areas like corporate travel and mines.
Speaker Change: Thank you for your support and I now request, our CFO announced review on the financial details and inch overdue.
Speaker Change: Thank you drew and good morning, everyone.
Speaker Change: But if you do.
Speaker Change: On our financial performance for the period under review.
Speaker Change: For the fourth quarter of financial year 2025.
Speaker Change: New from operations grew.
Speaker Change: 14% year on year to INR $182 million, approximately $35 $7 million driven.
Speaker Change: Driven by a 54% increase in hotels and packages growth in mice and inorganic contribution.
Speaker Change: Notably our gross margins revenue less service cost jumped 34% year on year.
Speaker Change: 109, 4 million approximately USD 12, 8 million driven by our focus on high margin areas like corporate governance mice.
Anuj Sethi: Adjusted EBITDA was up 28% year-on-year to INR 90 million, approximately USD 1.1 million, yielding an 8.2% adjusted EBITDA to gross margin. For the annual results of financial year 2025, revenue from operations grew by 90% year-on-year to INR 7,957 million, approximately USD 93.1 million, fueled by stellar growth in overall corporate travel business. The adjusted EBITDA rose 28% to INR 344 million, approximately USD 4 million and net profit turned positive to reaching INR 24 million, approximately 0.3 million USD, a 106.5% improvement from last year. Looking at liquidity, the cash and cash equivalent and term deposits stand at INR.
Speaker Change: Adjusted EBITDA was up 28% year on year to INR $90 million.
Speaker Change: Approximately USD, one 1 million, yielding an eight 2% just to return to gross margin.
Speaker Change: At the annual results for financial year, 'twenty 'twenty five revenue from operations grew by 90% year on year to INR 7770 $7 million.
Speaker Change: Approximately USD 90 people in 1 million fueled by its deliberate and overall corporate travel business.
Speaker Change: EBITDA was 28% to INR $344 million, approximately USD 4 million and net profit turned positive to reach reaching INR $24 million approximately 0.3.
Speaker Change: 3 million USD.
Speaker Change: There is six 5% improvement from last year.
Speaker Change: Looking at liquidity.
Speaker Change: Cash and cash and term deposit standard.
Speaker Change: One named <unk> 6 billion.
Speaker Change: 60 billion approximately USD 23 million at June 30, which vastly different if I might.
Speaker Change: Gross debt reduced from $638 million.
Speaker Change: Approximately USD seven 5 million as at 30, <unk> March 'twenty 'twenty four to 46 million approximately USD six 4 million as of 30 <unk> March 2025.
Anuj Sethi: This strong financial foundation provides us with ample flexibility to pursue growth initiatives and strategic investments.
Speaker Change: This strong financial foundation provides us with ample flexibility to pursue growth initiatives or strategic investment.
Speaker Change: [noise] drove handing over back to you.
Anuj Sethi: Dhruv Heningo, back to you. Thank you, Anuj.
Alex: Thank you Alex.
Unknown Executive: And we would now like to open the call for questions. Thank you very much. If you would like to ask a question, please press star followed by one on your telephone keypad now.
Alex: And we would now like to open the call for questions.
Speaker Change: Yeah.
Speaker Change: Thank you very much if you would like to ask a question. Please press star followed by one on your telephone keypad now when Patrick to ask a question. Please ensure your devices and you took locally and if you change your mind. Please press star two.
Unknown Executive: When prepping to ask your question, please ensure your device is unmuted locally. And if you change your mind, please press star followed by two.
Speaker Change: Our first question comes from Scott Buck with H C. Wain right. Scott. Your line is now open. Please go ahead.
Scott Buck: Our first question comes from Scott Buck with HC Wainwright, Scott, your line is now open. Please go ahead. Hi, good morning, guys. Thanks for taking my questions.
Scott Buck: Hi, Good morning, guys. Thanks for taking my questions drew if the situation were to further deteriorate along the Pakistan border how much of the business has historically been tied to that region.
Dhruv Shringi: Dhruv, if the situation were to further deteriorate along the Pakistan border, how much of the business has historically been tied to that region? Just thought about the northern part of India accounts for almost about 25 to 30% of our overall business volumes. But what ends up happening is when that might be the origination of the business. It's also be the travel endpoint for travelers coming into this region. So on an overall basis, I think, you know, it's safe to say that 30 plus percent of the business would get impacted. If something was to escalate a bit further.
Speaker Change: So Scott about.
Speaker Change: The northern part of India.
Speaker Change: For almost about.
Speaker Change: The 5% to 30% of our overall business volumes.
Speaker Change: What ends up happening is one that might be the origination of the business.
Speaker Change:
Speaker Change: It's also the.
Speaker Change: The travel endpoint for travelers coming into this region.
Speaker Change: So I mean overall basis I think it's.
Speaker Change: It's safe to say that 30 plus percent of the business will get impacted.
Speaker Change: If something were to escalate a bit further.
Scott Buck: Okay, that's that's helpful.
Speaker Change: Okay.
Speaker Change: That's helpful and then I understand it's a little early given your prepared remarks, but.
Dhruv Shringi: And then, you know, I understand it's a little early given your prepared remarks. But what can you tell us about the proposed corporate structure? And what does that? What does that mean for for share fungibility? As I put in the remarks that, you know, we've got, I think, a structure in place that now we think works. Given that the structure itself took a bit of time, given the multiple jurisdictions involved, I think that in itself is a key achievement that we have a structure that, according to all jurisdictions, seems to work. Now is the process of, you know, just going through and making sure that all the procedures are associated with that structure gets put in place over the course of the next couple of months.
Speaker Change: What can you tell us about the proposed corporate structure and what does that what does that mean for sure fungibility.
Speaker Change: And that's put in the remarks, we've got I think a structure in place that now we think works.
Speaker Change: Given that the structure itself took a bit of time.
Speaker Change: Given the multiple jurisdictions involved I think that in itself is a is a key achievement that we have a structure that according to all jurisdictions seems to work now is surplus of just going through and making sure that all the procedures.
Speaker Change: Associated with that structure.
Speaker Change: Put in place over the course of the next couple of months.
Speaker Change: Okay perfect I appreciate it and the positive outlook guidance that Lisa.
Dhruv Shringi: I think the good thing and the positive out of that is that at least... There is a defined structure in place.
Speaker Change: And there is a defined structure in place now.
Scott Buck: Yeah, okay. And we should get even more clarity over to over the next, you know, two, three, four months. That's right. Yeah, it sounds like. Yeah.
Speaker Change: Yeah, Okay, and we should get even more clarity over the over the next two.
Speaker Change: Two or three or four months, that's right yeah. It sounds like yeah, yeah perfect.
Scott Buck: Perfect. Appreciate that.
Speaker Change: Perfect I appreciate that and then on mice you guys have made some really nice progress there are there acquisition opportunities out there that could help you even accelerate that further.
Scott Buck: And then on mice, you guys have made some really nice progress there.
Dhruv Shringi: Are there acquisition opportunities out there that could help you even accelerate that further? Sure. So we continue to evaluate opportunities. We've done one about six months back, six, seven months now, and we're in the process of fully integrating that. I think that should get done in the current quarter itself. And that will then free us up to start looking at other opportunities going forward. Yeah, that's helpful.
Speaker Change: Sure. So we continue to evaluate opportunities we've done one about six months back six seven months now and you have in.
Speaker Change: In the process of fully integrating that I think that should get done in the in the current quarter itself.
Speaker Change: Eventually I talk to start looking at other opportunities going forward.
Speaker Change: Yeah. That's helpful and then last one for me.
Dhruv Shringi: And then last one for me, the Guide for Fiscal Year 26, you know, suggests some operating leverage, but how much capacity do you have for future revenue growth before you have to, you know, make some significant investments in the OPEX? I guess, you know, can you grow the business 50% from here without having to add meaningfully on the cost side? I think we can at least grow 30 to 40% without needing to change the cost structure significantly. That much growth we should be able to achieve. In the numbers that you see, the escalation in operating costs which is there is largely due to legal and professional fees, which is associated with the collapse of the structure that we are working on.
Speaker Change: The guide for fiscal year 'twenty six suggest some some operating leverage.
Speaker Change: How much capacity do you have for future revenue growth before you have to make some significant investments in the Opex I guess.
Speaker Change: Can you grow the business.
Speaker Change: 50% from here without having to add meaningfully on the cost side.
Speaker Change: And we think we can at least globally.
Speaker Change: And without needing to change the cost structure significantly.
Speaker Change: As much growth it should be able to achieve it.
Dhruv Shringi: And the numbers that you'll see the escalation in operating cost, which is that is largely due to legal and professional fees, which is associated with the collapse of the subset that would be a looking on.
Dhruv Shringi: Otherwise, you know, our cost structure has changed year over year only because of the addition of globe numbers for the first time in the full fiscal year. Yep. Perfect.
Speaker Change: Otherwise you know our cost structure has changed year over year only because of the addition of globe numbers for the first time.
Speaker Change: And the full fiscal year.
Speaker Change: Costa otherwise has remained fairly constant.
Speaker Change: Yep.
Scott Buck: Well, I appreciate the anti-caller, guys. It's very helpful. Thank you. Thank you very much.
Speaker Change: Perfect.
Speaker Change: Do you have any color guys, it's very helpful.
Speaker Change: Thank you.
Speaker Change: Thank you very much just as a reminder, if you would like to ask a question. Please press star one on your telephone keypad now.
Unknown Executive: Just as a reminder, if you would like to ask a question, please press star followed by one on your telephone keypad now.
Speaker Change: Yeah.
Speaker Change: Yeah.
Manish Hemrajani: We currently have no further questions, so I will hand back over to Manish for any closing remarks. Thank you, Ezra. Thank you, everyone, for joining the call today.
Speaker Change: We currently have no further questions. So I'll hand back over to the niche for any closing remarks.
Speaker Change: Thank you Ed.
Speaker Change: Thank you everyone for joining the call today.
Manish Hemrajani: As always, we are available for follow-up. Thank you.
Speaker Change: As always we are available for follow ups. Thank you.
Speaker Change: Thank you. Thank you.
Unknown Executive: Thank you very much, Manish, and thank you, Dhruv and Anuj, for being today's speakers.
Speaker Change: Thank you very much Denise and thank you Jeff for being today's speakers that concludes our conference call. We appreciate everyone for joining you may now disconnect your lines.
Unknown Executive: That concludes our conference call. We appreciate everyone for joining. You may now disconnect your lines.
Speaker Change: [music].