MediaNama’s Take: EaseMyTrip has built its reputation on being India’s “only profitable OTA,” but the near-total profit collapse this quarter puts that positioning under strain. The company is now leaning heavily on diversification, from EV buses to international hotels to ONDC integration, yet these are all long-gestation bets. By contrast, MakeMyTrip reported a 21% YoY rise in adjusted operating profit in the same quarter, suggesting that profitability pressures are not uniform across the industry and that EaseMyTrip’s challenges may be more company-specific.
Looking at the numbers, the contradiction becomes sharper. EaseMyTrip built its brand on being “asset-light and profitable,” yet it is now moving into capital-heavy areas such as EV bus manufacturing and real estate. These bets may help the company build a broader travel-tech ecosystem, but they also risk diluting its core advantage of profitability at a time when competitors are showing that travel demand, particularly in hotels and international segments, can still support margin growth.
What’s the news
EaseMyTrip reported a sharp decline in profitability for the quarter ended June 30, 2025 (Q1FY26). Profit after tax (PAT) stood at just Rs. 0.44 crore, a 98.7% year-on-year (YoY) drop from Rs. 33.9 crore in Q1FY25, and also down from Rs. 13.9 crore in Q4FY25.
Revenue from operations fell to Rs. 113.8 crore in Q1FY26, compared to Rs. 152.6 crore in the same period last year and Rs. 139.5 crore in Q4FY25. Gross Booking Revenue (GBR) stayed high at Rs. 20,658 crore, only slightly lower than Rs. 22,744.7 crore in Q1FY25.
The paradox is that high booking volumes did not translate into profits. Margins were squeezed as discounts to customers remained elevated at Rs. 64.6 crore (3.1% of GBR). At the same time, employee costs rose to Rs. 31.5 crore from Rs. 23.9 crore a year ago, and other expenses also increased. These rising costs likely driven by tech investments, international expansion and integration of acquisitions, dragged pre-tax profit down to just Rs. 2 crore compared to Rs. 47.2 crore in Q1FY25.
Non-Air and International Growth
Despite the profit collapse, EaseMyTrip highlighted growth in its non-air businesses. Hotel and holiday package bookings increased 81.2% YoY, from 1.8 lakh room nights in Q1FY25 to 3.3 lakh in Q1FY26. Train, bus, and other bookings grew 41.4% YoY, from 3.1 lakh to 4.3 lakh transactions.
The company’s international business also continued its upward trajectory. Dubai operations were a standout, with gross booking revenue of Rs. 318 crore, marking a 151% increase compared to Rs. 127 crore in Q1FY25. Beyond Dubai, EaseMyTrip has expanded subsidiaries and operations across the UAE, UK, USA, Singapore, Thailand, Philippines, New Zealand, Brazil, and Saudi Arabia, with plans to tailor offerings to regional markets and deepen penetration in international travel.
However, the company has not disclosed whether these…
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