Yatra Online Ltd Management Discussions

GLOBAL ECONOMIC OVERVIEW

In CY 2024, the global economy delivered modest yet resilient growth against a backdrop of heightened uncertainty and evolving geopolitical dynamics. According to estimates from the International Monetary Fund (IMF), global GDP grew by 3.3%, a slight moderation from 3.5% in 2023. This performance was supported by resilient labour markets and a gradual easing of inflationary pressures across major economies.

Despite this stability, several structural risks remained most notably, elevated sovereign debt levels and ongoing geopolitical tensions in key regions. These factors continued to pose headwinds to sustained global economic momentum.

Emerging Markets and Developing Economies (EMDEs) outpaced the global average, registering 4.3% growth, driven primarily by strong momentum in India and Southeast Asia. In contrast, advanced economies expanded at a more modest pace of 1.8%, constrained by lingering supply chain disruptions and persistent inflationary pressures.

The U.S. economy remained resilient, supported by robust consumer spending and a tight labor market. However, the Eurozone continued to face headwinds, including energy supply limitations and subdued industrial activity. Chinas recovery remained uneven, with the property sector acting as a significant drag on broader economic revival.

Looking ahead to CY 2025, the global growth forecast has been revised downward to 2.8%. This expected slowdown is primarily due to intensifying trade tensions, particularly the imposition of historically high U.S. tariffs, which are disrupting global supply chains and weakening investor sentiment.

INDIAN ECONOMIC OVERVIEW

India continues to chart a strong growth trajectory and remains among the most dynamic large economies globally. Its economic resilience is underpinned by a diversified base anchored by a robust services sector, expanding industrial activity, and steady agricultural output even amid evolving global and domestic headwinds.

As per the Second Advance Estimates, GDP growth for FY 2024-25 is projected at 6.5%, a moderation from the 9.2% growth recorded in

FY 2023-24. This deceleration reflects multiple internal challenges, including weakness in manufacturing, persistent food inflation, soft urban demand, a widening trade deficit, and sluggish private sector investment.

Indias external sector is undergoing structural shifts. Merchandise exports have continued to grow, with the government targeting USD

1 Trillion in exports by 2027. While the trade deficit remains elevated, policy interventions such as the ‘Make in India initiative and the signing of new Free Trade Agreements (FTAs), are expected to strengthen outbound trade and help manage the balance of payments.

Despite the positive momentum, several macroeconomic challenges persist. These include:

Global uncertainties, impacting capital flow and investor sentiment.

Inflationary pressures, especially in food and energy

Infrastructural gaps that constrain logistics and rural connectivity

Climate risk which threatens agricultural productivity and overall economic stability.

Moving forward the focus must remain on sustained structural reforms, capital expenditure in infrastructure and climate resilient growth. Continued emphasis on employment generation, supply-side reforms, and fiscal prudence will be key to supporting inclusive and balanced development.

In conclusion, while near-term challenges remain, Indias medium-term outlook remains fundamentally strong. With the right policy mix and strategic execution, the economy is well-positioned to progress toward its USD 5 trillion GDP milestone, supported by digitalization, global trade integration, and a resilient domestic demand base.

Indian GDP Growth Rate (in %)

Source: *MOSPI Report dated 28^th February 2025, #Reserve Bank of India (RBI) Monetary Policy Committee (MPC) report dated 9^th April 2025 Source: RBI, Second Advance Estimates of Statistics and Programme Implementation (MOSPI)

INDUSTRY OVERVIEW

Indian Travel & Tourism Industry

Indias travel and tourism sector is undergoing a structural transformation, propelled by a young, digitally connected population and rising disposable incomes. With approximately 65% of the population under the age of 35, Indias demographic advantage is fueling a surge in both domestic and international travel. This age group is not only travel-inclined but also experience-driven, seeking cultural immersion, wellness retreats, adventure sports, and urban exploration.

In 2023, the direct contribution of the tourism and hospitality industry to Indias GDP was reported at over USD 231 Bn. According to projections, this figure is expected to more than double to USD 523 Bn by 2034, reflecting a CAGR of over 7.5%. This exponential growth trajectory positions India as the second largest tourism economy in the Asia-Pacific region, underlining the effectiveness of coordinated efforts across government, private enterprises and infrastructure development.

According to data from Statista, the tourism and hospitality sectors contribution to Indias GDP has been substantial. The post-COVID environment has facilitated a variety of travel experiences, ranging from urban exploration and wellness retreats to major events, cultural activities, and culinary journeys. It is anticipated that the Indian travel economy will rank among the largest tourism and hospitality sectors globally, driven by technological advancements, enhanced connectivity, and increasing disposable incomes. Indias goal is to transition into a USD 3 Tn tourism economy by 2047.

India has made significant strides in the World Economic Forums Travel and Tourism Development Index, improving its position from 54^th in 2021 to 39^th in 2024, a testament to sustained policy focus and ecosystem collaboration. Looking ahead India is poised to become the worlds largest outbound tourism market by 2027, fueled by increased passport penetration, airline capacity, and global travel aspirations. The governments long-term vision is to develop a USD 3 trillion tourism economy by 2047, aligning with broader economic goals under "Viksit Bharat @ 2047".

The Economic Times Great Indian Traveller, EY report

The Travel & Tourism market in India is projected to generate approximately USD 25.01 Bn in revenue by 2025, with an expected compound annual growth rate (CAGR) of 8%, leading to an estimated market size of USD 34 Bn by 2029. The Package Holidays sector is forecasted to lead the market with an expected volume of USD 11.23 Bn in 2025. Moreover, by 2029, user participation in the Package Holidays market is anticipated to reach approximately 118.12 Mn users. In 2025, user penetration is projected at around 8%, increasing to 11.8% by 2029. The focus of Indias tourism industry is increasingly directed towards promoting sustainable and eco-friendly travel options to attract conscientious travellers.

GROWTH DRIVERS

Indias Travel & Tourism market continues to demonstrate robust growth, supported by a favorable macroeconomic environment, rising consumer aspirations, and proactive policy measures. Several structural and behavioral shifts are contributing to this sustained momentum:

1. Evolving Customer Preferences

Indian travellers are increasingly gravitating towards unique and authentic experiences, fuelling demand for off-the-beaten-path destinations and opportunities for cultural immersion. Additionally, there is a rising preference for sustainable and eco-friendly travel options among Indian tourists.

2. Emergence of digital channels

The emergence of digital platforms and online booking services has enhanced accessibility and convenience for consumers in the Indian Travel & Tourism sector. Furthermore, adventure tourism and wellness retreats have gained traction, catering to the evolving preferences of todays travellers.

3. Diversity

Indias rich cultural heritage, historic landmarks, and scenic landscapes render it an attractive destination for both domestic and international tourists. The vibrancy of the countrys festivals, bustling markets, and diverse culinary offerings further enhances its appeal.

4. Macroeconomic Influences

The rise of the middle class in India, accompanied by increasing disposable incomes, has significantly intensified the demand for travel and tourism services. Government initiatives aimed at promoting tourism, improving infrastructure, and streamlining visa processes are also crucial in driving industry growth. Additionally, the expansion of air, road, and rail networks has enhanced connectivity, rendering travel within India more convenient and affordable.

Source:Travel & Tourism - India : Statista Market Forecast Revolution in the Indian Aviation sector fuelling growth Tour and travel industry

The Indian aviation sector has experienced significant driven by legislative reforms, infrastructure enhancements, and a commitment to improving connectivity, safety, and sustainability. This evolution has positioned India among the worlds leading aviation markets.

Rising travel demand and increased capacity deployment have helped in the growth of domestic air passenger traffic. Following a stupendous growth of 60% for two years in a row, the traffic has grown by 13% in FY24 and is expected to grow by 10% in FY25 to reach 165-170 Mn.

Government Initiatives Supporting Aviation Growth

The Government of India has introduced a series of strategic policy and infrastructure measures aimed at strengthening the civil aviation sector and enhancing its long-term attractiveness to investors. These initiatives are expected to accelerate connectivity, improve operational efficiency, and foster sustainable growth within the industry.

The Protection of Interest in Aircraft Objects Act, 2025

This Act aims to align Indias aircraft leasing and financing ecosystem with global standards and marks a critical step in deepening investor confidence in Indias rapidly growing aviation market. The intended impact of this legislation includes reduced risk premiums, lower interest rates, and lease costs for passengers and shippers.

Expansion of Terminal Infrastructure transformation,

The government is actively and capacity enhancement of major airport terminals. These upgrades are targeted at decongesting high-traffic hubs, improving passenger experience, and supporting increases in air travel demand.

DevelopmentofGreenfield

As part of the national connectivity strategy, the government plans to operationalize approximately 50 new greenfield airports over the next five years. These facilities are expected to improve regional access to nearly 120 currently underserved locations, boosting tourism, trade, and inclusive regional development.

Emerging segments & Government Initiatives

• Rural Tourism

Rural tourism in India is gaining strategic prominence as a vehicle for inclusive development, livelihood generation, and heritage preservation. Spearheaded by the Swadesh Darshan 2.0 initiative, the focus is on promoting sustainable and responsible tourism models that celebrate Indias rural and tribal diversity.

A notable example is the development of 1,000 tribal homestays under the Pradhan Mantri Janjatiya Unnat Gram Abhiyan, with financialsupport of up to 5 lakh per unit. These homestays are aimed at boosting local entrepreneurship and enriching visitor experiences through authentic cultural immersion.

States are actively integrating rural tourism into their economic strategies:

Uttar Pradesh is advancing eco-tourism circuits tied rural landscapes.

Andhra Pradesh is promoting heritage homestays to preserve regional architecture and crafts.

Such efforts not only diversify Indias tourism offerings but also create long-term value chains rooted in community participation.

• Spiritual tourism

Spiritual tourism in India is witnessing accelerated growth supported by government-backed infrastructure upgrades and global interest in holistic well-being. The market is projected to reach USD 59 billion by 2028, with the potential to create up to 100 million jobs, directly and indirectly. Key initiatives include the development of a 165 Crore Buddhist meditation center in Bodh Gaya under the Swadesh Darshan 2.0 scheme, a multimedia upgrade at Devipatan Temple in Uttar Pradesh, and the beautification of gurdwaras in Prayagraj.

The successful hosting of Global Spirituality Mahotsav 2024 further underlines Indias commitment to enhancing its spiritual tourism infrastructure.

• Eco-tourism

Eco-tourism in India is rapidly evolving, with the sector projected to reach USD 15.5 billion by 2025. The Swadesh Darshan 2.0 scheme places significant emphasis on eco-circuits, carbon-neutral festivals, and community-led conservation tourism. The Ministry of Tourisms Swadesh Darshan 2.0 emphasizes in the modernization eco-circuits and community-based tourism. Recent efforts include Tamil Nadus eco-tourism spots in the Eastern Ghats, Uttar Pradeshs ‘Buffer Mein Safar scheme promoting safaris in tiger reserve buffer zones, and Maharashtras plan to install EV charging stations at 49 MTDC resorts. Additionally, Gujarats

Jal Utsav, Indias first carbon-neutral festival, focuses on water conservation and sustainable practices.

• Adventure Tourism

Adventure tourism in India is poised for exponential growth, expected to reach USD 46.7 billion by 2030, driven by rising demand for experiential travel and government efforts to formalize the sector. The industry is growing at a projected CAGR of 19.1% from 2025 onward.

Recent initiatives include Keralas 75 Lakh investment in the International Mountain Biking Challenge, Odishas Adventure Tourism Guidelines-2025, introducing activities like rafting and hot air ballooning, and Gujarats 45-day Dharoi Adventure Fest featuring parasailing and trekking. Additionally, the Nandi Hills ropeway project in Karnataka aims to enhance accessibility and boost adventure tourism.

• Medical Tourism

Indias medical tourism sector continues to demonstrate strong momentum, underpinned by its reputation for delivering high-quality, cost-effective healthcare. The market is projected to grow from USD 18.2 billion in 2025 to USD 58.2 billion by 2035, reflecting a compound annual growth rate (CAGR) of 12.3%.

Key growth drivers include:

• Competitive treatment costs compared to developed markets

• Globally accredited hospitals and technologically advanced medical infrastructure

• A large pool of skilled doctors and multilingual support staff

• Shorter wait times for procedures

Recognizing its strategic potential, the Government of India has introduced targeted initiatives to further accelerate the sectors expansion:

• "Heal in India" Campaign (Union Budget 2025–26): This flagship program aims to position India as a preferred global destination for medical and wellness tourism. The initiative emphasizes collaboration with private healthcare providers to build capacity, enhance service standards, and improve international outreach.

• Policy Support: Reforms include streamlined medical visa issuance, fast-track clearances, and expanded visa categories to cover caregivers and follow-up visits.

In addition to clinical services, India is also promoting integrated offerings that combine wellness tourism, Ayurveda, and holistic healing, catering to a rising global demand for preventive and alternative therapies.

With these enablers in place, India is poised to solidify its position as a leading medical tourism destination, contributing meaningfully to economic growth, healthcare innovation, and soft power diplomacy.

• Heritage Tourism

Indias heritage tourism sector is poised for significant growth, with projections estimating revenues of USD 47.5 Bn by 2030, driven by a compound annual growth rate (CAGR) of 6.8% from 2025 onwards.

Recent initiatives include the inauguration of the Vadnagar Archaeological Experiential Museum in Gujarat, offering immersive insights into ancient civilizations. In Odisha, the Shree Jagannath Heritage Corridor in Puri enhances pilgrim experiences around the iconic temple. The Union Budget 2025-26 allocates 2,541 Crore to develop 50 top tourist destinations, emphasizing heritage conservation and infrastructure enhancement.

The National Maritime Heritage Complex near Lothal, Gujarat, also aims to showcase Indias rich maritime history. These efforts, combined with the inclusion of the Moidams of the Ahom Dynasty in Assam as Indias 43^rd UNESCO World Heritage Site, underscore the countrys commitment to preserving and promoting its cultural legacy.

• Lighthouse tourism

Lighthouse tourism is emerging as a unique niche within Indias coastal tourism strategy, aligning with broader efforts to promote sustainable and heritage-driven travel. Under the Sagarmala initiative, the Government of India has identified 75 lighthouses across key coastal states for integrated tourism development.

These lighthouses many with colonial-era architectural significance are being transformed into tourism hubs offering panoramic sea views, maritime heritage exhibitions, and eco-tourism experiences. Planned interventions include the development of interpretation centers, walkways, cafes, and basic tourist amenities, aimed at enriching visitor engagement while preserving the historical character of each site.

• Wellness Tourism

Indias wellness tourism sector is experiencing robust growth, projected to reach USD 39.85 Bn by 2034, driven by a 6.5% CAGR. This expansion is fueled by the global demand for holistic health solutions and Indias rich traditions in Ayurveda, yoga, and meditation. Additionally, Andhra Pradeshs "YogAndhra-2025" campaign seeks to train 1 Mn individuals in yoga, promoting wellness practices across the state. The Ministry of Tourism has also extended its Market Development Assistance scheme to accredited wellness centers, supporting the growth of quality wellness services nationwide.

• Cruises

Indias cruise tourism is rapidly growing, driven by the Cruise Bharat Mission launched in 2024. It aims to attract 1 Mn passengers by 2029 through developing modern cruise terminals, marinas, and river cruises. The initiative emphasizes sustainability, digital integration, and regional cruise alliances to position India as a global cruise hub. Source: Ministry of Tourism, The Times of India, Press Information Bureau, Grand View Research, IBEF

COMPANY OVERVIEW

Yatra Online Limited (hereafter referred to as ‘the Company or ‘Yatra), popularly known by its consumer brand name Yatra.com, stands as one of Indias premier online travel companies. Established in 2005 by industry veterans Mr. Dhruv Shringi, Mr. Manish Amin, and Ms.

Sabina Chopra, the Company was built on the vision of simplifying travel for Indian consumers. With its headquarters in Gurugram, Haryana, the Company has successfully created a wide-reaching digital ecosystem that caters to a diverse customer base comprising individual travellers, families, and corporate clients.

Over the years, the Company has earned a strong reputation for reliability, innovation, and customer-centric services. The Companys digital offerings are accessible via its website, mobile apps, and through a vast network of travel agents, giving it a multi-channel presence. In addition to a widespread network in India, the Company also serves clients in countries like the United States and the United Kingdom.

Key Facts & Figures:

• Scaled to USD Bn+ TTV within 10 years of founding

• 1,300+ large corporate clients (Indias largest corporate travel player)

• ~58,000 SME customers

• ~55,000 travel agents

• ~15.6 Mn Registered Customers

• ~106 Mn Total Consumer Visits

~81% Direct & Organic traffic

• ~21 Mn Mobile app downloads

• ~80,000 hotel listings – Largest among Indian OTAs

PRODUCT & SERVICE PORTFOLIO

Yatra offers a comprehensive suite of travel solutions tailored for both leisure and business travellers. These offerings are integrated within its easy-to-use platforms and supported by advanced technology solutions.

• Flight Reservations: Domestic and international bookings across all major airlines, offering competitive pricing, flexible cancellation, and 24/7 support.

• Hotel Bookings: Access to over 80,000 hotels in India and more than 2 million properties globally, with options across price points and segments.

• Holiday Packages: Curated packages for domestic and international travel, combining flights, stays, sightseeing, and activities.

• Train & Bus Tickets: Integration with IRCTC and multiple bus operators to offer seamless multi-modal travel.

• Cab & Car Rentals: Local and intercity transport services with real-time availability and dynamic pricing.

• Cruise Holidays: Bookings for both domestic and international cruise experiences.

• Travel Insurance & Visa Services: End-to-end support for secure travel, including documentation and policy coverage.

• Experiences & Activities: On-platform booking for events, local attractions, and curated travel experiences.

CORPORATE BUSINESS

Yatra has emerged as the largest Corporate travel services provider in India, with solutions designed for enterprises of all sizes including small businesses, mid-sized firms, and large enterprises.

Under the Corporate business umbrella, the Companys platform delivers compelling value to customers & suppliers:

	Customers	Suppliers
Offerings	• Fully integrated travel and expenses management platform	• Wide access to a different customer base
	• Complete & customized travel experience	• Higher yields and sticky business
	• Savings through exclusive deals	• Extension of supplier teams
Revenue Streams	• Convenience Fee	• Fees, Incentives and Extra
	• Management Fees	• GDS Revenue
	• Product & Service Revenue	• Marketing & Other Revenue

The Companys Gen AI-powered expense management platform ‘RECAP supports businesses to manage employee tax benefits and expenses in one place. The benefits to clients include 7x faster processing of expenses, 96% reduction in paperwork, Full visibility and control over expenditure, >50% increase in employee productivity, and full digitization of expenses.

Yatra for Business: This platform caters to small and medium enterprises (SMEs), offering benefits such as customized fare deals, GST-compliant invoicing, and real-time booking and reporting tools.

• Travel Elite: Designed for large organizations, Travel Elite offers premium services including policy compliance tools, integration with human resource management systems (HRMS), and dedicated travel desks for comprehensive management.

The Company has strengthened its foothold in corporate travel with the acquisition of Globe Travel Services, a premier Corporate Travel Services company. Through this acquisition, the Company will gain Globe Travels portfolio of approximately 360 corporate customers.

This move has significantly bolstered the Companys client portfolio and operational capabilities in the enterprise segment. Globe Travels is recognized for its robust capabilities in Meetings, Incentives, Conferences, and Exhibitions (MICE). Adding Globe Travels strong capabilities to the Companys recent organic MICE expansion will make the Company one of the largest players in India in this fast-growing segment.

CONSUMER BUSINESS

Yatra remains one of Indias most trusted travel brands. In FY25, YouGov ranked Yatra as Indias Biggest Brand Mover, driven by improvements in awareness, brand equity, and user loyalty. With over direct and organic sources, the Company 81%oftraffic has built a loyal user base exceeding 15.6 million B2C customers.

Yatras commitment to innovation is evident in its digital-first approach, leveraging technology to enhance user experience across various channels. Cumulatively, Yatra has served over ~15 Mn B2C users.

KEY STRENGTHS & STRATEGIES

1. Established Market Presence: The Companys long-standing presence in the Indian travel industry and its brand equity have made it a trusted name among travellers. Its reputation for consistent service and innovation gives it a significant edge over competitors.

2. Comprehensive Offerings: One of the Companys strongest advantages is its end-to-end service range. By integrating flights, hotels, trains, buses, holiday packages, activities, cruises, and corporate solutions into a single platform, the Company provides unmatched convenience for travellers.

3. Leadership in Corporate Travel: With a growing base of over 1,300 corporate clients, the Company has become a leader in the business travel space. Its solutions offer automation, compliance, and cost-saving benefits that are highly valued by enterprise clients.

4. Technological Excellence: The Company continuously invests in upgrading its technology platforms. Features like AI-powered recommendations, intelligent pricing algorithms, mobile-first user interfaces, and robust back-end systems ensure high levels of efficiency and user satisfaction

5. Omni-Channel Distribution: While being a digital-first Company,

The Company also leverages its network of over 55,000 travel agents across India. This hybrid model allows it to tap into Tier-II and Tier-III markets that are still developing digitally.

6. Strategic Collaborations: The Company has forged partnerships with a variety of stakeholders, including airlines, hotel chains, payment gateways, and tourism boards. These alliances enhance its service capabilities and provide competitive advantages.

7. Customer Retention and Loyalty: With offerings like the e-Cash rewards program, robust customer service, and user-generated reviews and ratings, the Company fosters customer loyalty and repeat business. Its engagement strategies have led to a strong base of returning users.

8. Scalability and Expansion Potential: Indias travel sector is growing rapidly, and the Company is well-positioned to scale. With digital penetration increasing and more people choosing to travel, the Companys model is built for both expansion and resilience.

9. Operational Efficiency: The Company operates on an asset-light model, which keeps fixed costs low. Its reliance on digital platforms and efficienc automationenhancesoperational

10. Visionary Leadership: The Companys founders & senior management team bring decades of experience in the travel and technology sectors. With the support of the management team and the entire workforce, the Company continues to innovate and explore new growth avenues while staying attuned to industry shifts.

FINANCIAL OVERVIEW

Consolidated Financial Performance FY 2024 – 25

( in Mn except per share data)

Particulars	FY 2024-25	FY 2023-24	YoY
Revenue from Operations	7,914	4,223	87%
Total Expense	7,881	4,496	75%
EBIDTA	558	273	104%
Profit Before Taxes (PBT)	351	(13)	2,800%
Tax	(15)	32	(147%)
Profit after Tax (PAT)	366	(45)	913%
PAT Margin (%)	5%	(1%)	-
Total Comprehensive Income	363	(51)	812%
Diluted EPS ()	2.33	(0.33)	806%

Details of key consolidated ratios

Particulars	FY 2024-25	FY 2023-24	% change	Explanation
Operating Profit Margin (%)	2.8%	1.8%	56%	Due to increase in revenue from operations (due to acquisition of Globe All India Services Limited w.e.f. 11 September 2024)
Net Profit Margin (%)	4.6%	(1.1%)	532%	Due to increase in revenue from operations (due to acquisition of Globe All India Services Limited w.e.f. 11 September 2024)
Debtors Turnover Ratio (times)	13.0	16.9	(23%)	Primarily due to increase in trade receivables March 31, 2025 INR 5,453 Mn (March 31, 2024 INR 4,502 Mn).
Current Ratio (times)	1.9	2.3	(17%)	Primarily due to decrease cash & cash equivalents on account of utilisation IPO fund
Interest Coverage Ratio (times)	5.03	0.46	990%	Primarily due to increase in EBIT and also lower interest cost during the year
Debt Equity Ratio (times)	0.1	0.1	(18%)	Primarily due to decrease in debt during the year
Return on Net Worth (%)	4.7%	(0.6%)	873%	Primarily due to increase in PAT during the year

* Inventory Turnover ratio is not applicable to our business

Revenue Mix

Segments	FY 2024-25	FY 2023-24
Air Ticketing	25.72%	48.82%
Hotel & Packages (including MICE)	69.97%	46.74%
Others	4.31%	4.44%

Risk & Mitigation are essential functions at Yatra Online Limited. It helps in ensuring business continuity, safeguarding assets, and Risk maintaining stakeholder trust. It also helps anticipate potential threats, minimize losses, and enable informed decision-making. For the Company, proactive risk management enhances resilience, supports growth, and ensures a competitive edge in a dynamic business environment.

Risk Category	Risk Identification	Mitigation Strategies
Competition Risk	Intense competition from domestic players and global OTAs may affect pricing, market share, customer loyalty, and profitability	- Expand into corporate travel, and other related activities
		- Invest in technology and mobile UX- Offer loyalty programs (eCash, referrals)
		- Build strategic partnerships with airlines and hotel chains
Concentration Risk	High dependency on air ticketing and a few large clients or geographies increases vulnerability to demand fluctuations.	- Diversify into hotels, holiday packages, and B2B services
		- Expand into Tier-II/III cities and international markets
		- Broaden B2B client base across industries and Company sizes
Third-Party Risk	Dependence on external vendors like airlines, hotels, and transport operators can cause service disruptions or quality issues.	- Strict partner selection and performance monitoring
		- Contracts with SLAs and penalties- Maintain alternative vendors for redundancy
		- Monitor service quality in real time through automation and customer feedback
Economic Risk	Macroeconomic factors (inflation, pandemics, currency volatility) can reduce discretionary travel and affect revenues.	- Asset-light model for flexible scaling
		- Emphasis on corporate and domestic travel
		- Cost control through automation
		- Promote low-cost staycations, local travel during economic downturns
Seasonal Risk	Travel demand peaks during holidays, causing fluctuations in revenue and profitability during off-seasons.	- Off-season deals and flash sales
		- Promote business and pilgrimage travel (less seasonal)
		- Leverage events and festivals to drive off-season bookings
		- Use dynamic pricing and forecasting to manage margins
Technology Risk	The Companys operations are highly vulnerable to cyber threats, outages, data breaches, and platform obsolescence due to its digital-first model.	- Advanced cybersecurity tools and firewalls
		- 24/7 IT monitoring and rapid response
		- Regular platform updates for performance and security
		- Disaster recovery and business continuity plans in place

HUMAN RESOURCE

Human Resource Management (HRM) at Yatra is an integral to the Companys operational success and strategic goals within the competitive travel and tourism sector. As a prominent online travel agency in India, the Company understands that the effectiveness of its human capital directly influences customer experience and overall performance.

The Company employs diverse recruitment strategies, including partnerships with educational institutions and the utilization of online job portals, to ensure a robust pool of candidates. The organization offers comprehensive training programs that enhance employees skills and knowledge, thereby fostering a culture of continuous improvement. This commitment to professional growth cultivates employee expertise and improves overall productivity and job satisfaction.

Moreover, the Company actively promotes employee engagement through various initiatives, including regular surveys to assess job satisfaction and wellness programs designed to support work-life balance. This focus on engagement has proven to be effective in reducing turnover rates and enhancing employee loyalty. As on March 31, 2025, the Company had a dedicated team of 1477 full-time employees, inclusive of all subsidiaries.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has in place proper and adequate internal financial control system, commensurate with the size of its business operations, which is constantly assessed and strengthened with new/revised standard operating procedures (SOP) and time-bound action plans to improve efficiency at all levels.

The Company has in place adequate procedures for ensuring orderly and effective control of its business. Assurance on the effectiveness of internal financial controls is ensured through management reviews, controlled self-assessment and independent testing by the internal auditor.

During the year under review, except as reported by the statutory auditors in the Auditors Report on Standalone and Consolidated Financial Statements, no other reportable weakness in the operations and accounting procedures were observed.

Barring the above, adequate internal financial controls with reference to its financial statements are ensured by the Company.

CAUTIONARY STATEMENT

The Management Discussion and Analysis may contain some statements describing the Companys views of the industry, objectives, projections, estimates or expectations, which may be ‘forward-looking statements within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied due to external and internal factors, various risks, and uncertainties. These risks and uncertainties include demand and supply conditions, changes in government regulations, exchange rates, tax laws, monsoon, natural hazards, national and global economic developments, and other statutes and incidental factors. The Company does not undertake any obligation to publicly amend, modify, or revise these forward-looking statements based on subsequent developments, information, or events.