Yatra Online Limited Just Beat EPS By 89%: Here's What Analysts Think Will Happen Next

Shareholders will be ecstatic, with their stake up 39% over the past week following Yatra Online Limited's (NSE:YATRA) latest first-quarter results. Revenues of ₹2.1b fell slightly short of expectations, but earnings were a definite bright spot, with statutory per-share profits of ₹1.02 an impressive 89% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the most recent consensus for Yatra Online from five analysts is for revenues of ₹9.35b in 2026. If met, it would imply a modest 3.9% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 15% to ₹3.57. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹9.91b and earnings per share (EPS) of ₹3.23 in 2026. Although the analysts have lowered their revenue forecasts, they've also made a nice increase in their earnings per share estimates, which implies there's been something of an uptick in sentiment following the latest results.

See our latest analysis for Yatra Online

The average price target increased 12% to ₹146, with the analysts signalling that the improved earnings outlook is more important to the company's valuation than its revenue. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Yatra Online at ₹175 per share, while the most bearish prices it at ₹110. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Yatra Online's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Yatra Online's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.2% growth on an annualised basis. This is compared to a historical growth rate of 38% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 19% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Yatra Online.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Yatra Online following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, earnings are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Yatra Online. Long-term earnings power is much more important than next year's profits. We have forecasts for Yatra Online going out to 2028, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Yatra Online that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.