In a turbulent quarter for India’s online travel industry, EaseMyTrip reported a 15% year-on-year decline in operating revenue for the fourth quarter of FY25. While the company faced headwinds in its core air ticketing business, its bold diversification strategy into hotels and holidays has started showing early signs of payoff—helping it bounce back into profitability.
Let’s unpack what this means for the company’s future.
Credits: MSN
Revenue Dips, But Profit Returns
In Q4 FY25, EaseMyTrip’s operating revenue fell to ₹139.5 crore, down from ₹164 crore in Q4 FY24. This decline reflects the challenges plaguing the travel sector—namely intense competition, seasonal fluctuations, and a slowdown in air ticketing demand.
Yet, despite the revenue drop, the company managed to swing to a Profit Before Tax (PBT) of ₹12 crore, compared to a loss of ₹17 crore in the same quarter last year. That’s a sharp turnaround and signals the early impact of internal course corrections and cost controls.
Air Ticketing Loses Altitude
Once the cash cow of EaseMyTrip’s operations, the air ticketing segment saw a significant 28% YoY decline in revenue to ₹94 crore in Q4 FY25. This vertical still makes up about 68% of the company’s total revenue, underlining its legacy importance—but also its fragility.
The company attributes the drop to:
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Fierce pricing wars from rival OTAs.
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Seasonal drop in travel bookings.
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Higher customer acquisition costs eating into margins.
In an industry where discounts often outweigh loyalty, the air segment’s volatility is a major concern.
Hotels and Holidays Soar
If air ticketing was the cloudy patch, the Hotels and Holidays segment was the silver lining. Revenue from this vertical grew by a stunning 189% YoY in Q4 FY25, driven by strong demand for domestic and short-haul international vacations.
The company recorded 2.8 lakh hotel night bookings, a 101% increase over the same period last year. This growth underscores the potential for this segment to become a core revenue pillar, especially since it offers:
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Higher profit margins.
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Bundling opportunities with experiences and transportation.
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Less seasonal dependency compared to flights.
Clearly, customers are leaning more toward experiential and flexible travel—something EaseMyTrip is now better positioned to serve.
Full-Year Stability Despite Headwinds
For the full FY25, operating revenue stood at ₹587 crore, largely flat compared to ₹590 crore in FY24. Gross Booking Revenue (GBR) touched ₹8,691.6 crore, with Q4 contributing ₹2,192.7 crore. The company also posted an EBITDA of ₹161.2 crore with a healthy margin of 26.7%, and a total comprehensive income of ₹117.1 crore.
This stability, despite setbacks in the air segment, reflects solid execution on growth strategies in other verticals.
Rising Costs and Falling Stock
Operating expenses in Q4 increased 12% YoY to ₹131 crore. Growth-focused outlays in marketing, payment gateway fees, and employee benefits drove up costs, but also reflect EaseMyTrip’s intent to invest in the future.
However, the markets weren’t as optimistic. The stock closed at ₹11.22 on May 30, 2025—up 0.71% for the day, but down a steep 48% YoY, taking its market cap to ₹3,976 crore. This slide shows investor concerns over the slowdown in the company’s bread-and-butter business.
Global Ambitions and a Strategic Pivot
To mitigate risk and chase growth, EaseMyTrip is expanding aggressively into international markets, with Dubai as a key focus. At the same time, it’s investing in technology upgrades to enhance the customer experience—across booking, service, and support.
Co-founders Nishant and Rikant Pitti have reaffirmed their strategy: long-term growth through diversification, international expansion, and strong hotel and holiday partnerships.
Credits: caseology
Conclusion: A Cautious Comeback
While Q4 FY25 exposed vulnerabilities in EaseMyTrip’s core operations, it also highlighted the company’s resilience and adaptability. By tapping into high-margin verticals and going global, the brand is laying the foundation for more stable—and eventually scalable—growth in FY26 and beyond.
With the right moves, this could be the beginning of a new journey where the destination looks much brighter than the recent turbulence.
