Online travel-booking player EaseMyTrip reported a net loss of approximately ₹36 crore for the quarter ended September 2025 (Q2 FY26).
What the Numbers Show
- The company’s operating revenue fell about 18% to ~₹118.3 crore from ~₹144.7 crore in the same quarter a year ago.
- The bottom line was hit by an exceptional item loss of around ₹51 crore in the quarter under review.
- In the year-ago quarter, the company had posted a net profit of ₹26.8 crore.
Why the Loss Has Occurred
- Revenue contraction: The decline in revenue signals weaker demand, higher competition, or both in the OTA (online travel aggregator) segment.
- Exceptional/one-time cost: The ₹51 crore exceptional item suggests there were non-recurring expenses or adjustments influencing the loss.
- Cost structure and margin pressure: Operating in travel means fixed costs (platform, technology, marketing) combined with fluctuating volumes make profitability volatile.
Implications & Key Considerations
- Investor sentiment: A loss in Q2 after past profitability may raise concerns among shareholders about the sustainability of business model in prevailing market conditions.
- Business model risk: Travel aggregators depend heavily on booking volumes, consumer travel behaviour, and macro factors (fuel prices, global travel issues, currency) — all of which may be under strain.
- Path to recovery: The company will need to show how it intends to turn around — via cost controls, diversification (e.g., hotels/holidays), or higher-margin services.
- Exceptional items transparency: Understanding what drove the ₹51 crore exceptional loss is critical for assessing recurring business health.
- Competitive pressure: The OTA space is crowded with both domestic and international players; margin compression and volume shifts could persist.
What to Watch Going Forward
- Q3 results: Will there be a return to profitability, or narrower losses, especially if travel demand improves?
- Breakdown of segments: How much of revenue is coming from flights vs hotels vs holiday packages, and which segments are underperforming?
- Cost trajectory: How effectively can the company reduce fixed costs, marketing spends and technology overheads?
- Exceptional items: Whether the ₹51 crore loss is truly one-off or indicative of deeper structural issues.
- Market conditions: Global travel trends, domestic shifts in holiday/transport behaviour, and macroeconomic factors.
Conclusion
With EaseMyTrip posting a ₹36 crore loss in Q2, the company faces a critical juncture. While the travel sector has tailwinds from pent-up demand, the drop in operating revenue and the large exceptional charge reflect underlying headwinds. The next few quarters will be key in determining whether EaseMyTrip can stabilize its business and return to profitability.
