EaseMyTrip’s net profit in Q1 FY26 crashed 98%, falling to a mere ₹44 lakh, highlighting the challenging landscape for online travel agencies amid declining revenues and escalating expenses.
Profit and Revenue Take a Hit
- EaseMyTrip reported a staggering 98.7% drop in profit after tax (PAT), from ₹34 crore in Q1 FY25 to just ₹44 lakh in Q1 FY26
- Operating revenue fell sharply by 25.5%, down to ₹114 crore from ₹153 crore year-on-year. Total income—including miscellaneous revenue—declined to ₹120 crore from ₹156 crore
Segment-Wise Breakdown
- Air ticketing, typically the company’s largest revenue driver, plunged 47% year-on-year, contributing ₹57 crore versus ₹107 crore in the previous year
- Hotel packages too weakened, generating ₹32.5 crore and making up 28.5% of total revenue
Costs Remain Elevated Despite Shrinking Revenue
- Total expenses rose 8%, from ₹109 crore to ₹118 crore year-on-year Entrackr.
- The result was a worrying cost structure: spending ₹1.04 for every ₹1 of operating revenue, yielding just ₹6.2 crore in EBITDA
Market Reaction & Strategic Moves
- Following the results, EaseMyTrip’s share price gained about 4%, closing around ₹9.22, with a market capitalization of approximately ₹3,353 crore
- Meanwhile, the company is pursuing growth through acquisitions—approving investments totalling ₹370 crore across three deals:
- ₹175 crore for a 50% stake in Three Falcons Notting Hill Ltd,
- ₹194.4 crore for full acquisition of AB Finance Pvt Ltd,
- Additional investments in Vashu Bhagnani Industries Ltd
