Breakeven On The Horizon For Yatra Online, Inc. (NASDAQ:YTRA)

We feel now is a pretty good time to analyse Yatra Online, Inc.'s (NASDAQ:YTRA) business as it appears the company may be on the cusp of a considerable accomplishment. Yatra Online, Inc. operates as an online travel company in India and internationally. The US$49m market-cap company’s loss lessened since it announced a ₹351m loss in the full financial year, compared to the latest trailing-twelve-month loss of ₹65m, as it approaches breakeven. Many investors are wondering about the rate at which Yatra Online will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Yatra Online is bordering on breakeven, according to some American Hospitality analysts. They expect the company to post a final loss in 2025, before turning a profit of ₹195m in 2026. Therefore, the company is expected to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 94%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Yatra Online given that this is a high-level summary, though, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Check out our latest analysis for Yatra Online

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 0.4% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Yatra Online, so if you are interested in understanding the company at a deeper level, take a look at Yatra Online's company page on Simply Wall St. We've also compiled a list of essential factors you should further research:

1. Historical Track Record: What has Yatra Online's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Yatra Online's board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.