Yatra Online Considers Selling Controlling Stake Amid Market Consolidation
Yatra founders explore stake sale as consolidation buzz swirls in online travel
Image: The Economic Times
Yatra Online's founders are exploring the sale of a controlling stake, reaching out to potential buyers including Makemytrip and Paytm Travel. Despite reported record profits, CEO Dhruv Shringi downplayed the rumors, asserting that the timing is not right for such a move in the travel industry.
- 01Yatra Online is in discussions to sell a controlling stake to various competitors and private equity funds.
- 02Potential buyers include Makemytrip, Paytm Travel, and Ixigo, with non-binding term sheets expected next week.
- 03Yatra reported a total income from operations of ₹199.3 crore for Q4 FY26, down from ₹228.5 crore the previous year.
- 04The company achieved a net profit of ₹47 crore for FY26, despite geopolitical disruptions affecting travel demand.
- 05Yatra's CEO indicated that the travel industry is not currently conducive for a stake sale, citing recent record profits.
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Yatra Online's founders, including Dhruv Shringi, are reportedly in talks to sell a controlling stake in the company, with interest from competitors such as Makemytrip and Paytm Travel. The discussions are at an early stage, with potential buyers expected to submit non-binding term sheets soon. Despite this, Shringi has publicly stated that the company has no plans to sell, especially after reporting record profits for the year. Yatra's financial performance showed a total income of ₹199.3 crore for the fourth quarter ending March 31, 2026, a decrease from ₹228.5 crore in the previous year, while its annual income reached ₹1,032 crore. The company faced challenges due to geopolitical tensions impacting international travel, particularly in the MICE sector. As the online travel market becomes increasingly competitive, consolidation appears likely, according to industry analysts.
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The potential stake sale could reshape the competitive landscape of India's online travel market, affecting pricing and service offerings for consumers.
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