Online travel agency EaseMyTrip reported a 15% year-on-year decline in revenue for the fourth quarter of the financial year 2024–25 (Q4 FY25), highlighting challenges in its core air ticketing business. However, the company’s diversification into hotels and holidays appears to be paying off, as it posted a return to profitability.
Quarterly Revenue and Profit Snapshot
EaseMyTrip’s operating revenue dropped to ₹139.5 crore in Q4 FY25, down from ₹164 crore in the same quarter last year, as per its consolidated financial results filed with the National Stock Exchange (NSE).
Despite this decline, the company swung back to profitability with a Profit Before Tax (PBT) of ₹12 crore, a significant improvement from a loss of ₹17 crore in Q4 FY24.
Air Ticketing Takes a Hit
The air ticketing segment, which accounts for most of EaseMyTrip’s revenue, experienced significant decline. This vertical revenue fell 28% year-on-year to ₹94 crore, compared to year-ago revenue of ₹132 crore in Q4 FY24. Air ticketing as a portion of company revenue was responsible for 68% of total revenue in the quarter.
The decline is attributed to increased competition in the online travel aggregator market and periodic seasonality impacts on travel demand.
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Hotels and Holidays Segment on the Rise
In stark contrast, the Hotels and Holidays segment experienced a major surge in growth. Revenue from this vertical jumped 189% year-on-year in Q4 FY25, with the company reporting 2.8 lakh hotel night bookings, up 101.3% from the previous year (Times of India).
This diversification appears to be a key strategy for EaseMyTrip as it reduces dependency on air travel and expands into higher-margin offerings.
Full-Year Financial Performance Stable
For the full financial year ending March 31, 2025, EaseMyTrip’s operating revenue stood at ₹587 crore, remaining mostly stable compared to ₹590 crore in FY24.
The company’s Gross Booking Revenue (GBR) for FY25 reached ₹8,691.6 crore, with Q4 contributing ₹2,192.7 crore. Its EBITDA for the year stood at ₹161.2 crore, with a margin of 26.7%, and Total Comprehensive Income was reported at ₹117.1 crore (TOI).
Rising Operating Costs
Operating expenses increased by 12% in Q4 FY25 to ₹131 crore, up from ₹117 crore a year earlier. Key cost components included:
- Service costs
- Payment gateway charges
- Employee benefits
- Marketing and advertising expenses
For the entire fiscal year, total expenses rose to ₹460 crore, indicating an increased push for growth and brand visibility.
Stock Market Movement
EaseMyTrip’s share closed at ₹11.22 on May 30, 2025, reflecting a 0.71% daily gain. However, the company has witnessed a 48.18% year-on-year drop in stock value, and its current market capitalization stands at ₹3,976 crore (ICICI Direct).
This decline in market valuation reflects investor caution amid stagnating revenue growth in its primary segment.
Strategic Outlook and International Expansion
EaseMyTrip is aggressively pursuing international expansion, especially in markets like Dubai, and is investing in tech upgrades to improve customer experience.
Co-founders Nishant and Rikant Pitti have reiterated their focus on long-term growth through diversification, global expansion, and strategic partnerships with hotels and travel service providers.
With the hotel and holiday business gaining traction, the company appears well-positioned to stabilize and grow in FY26.
Conclusion
The revenue drop in Q4 is an indication of ongoing challenges in a competitive OTA environment. However, EaseMyTrip is beginning to see early signs of promise and delivery based on their strategic shift to fast-growing markets like hotels and international holidays. The positive momentum to profitability indicates that the company has a chance to build on this momentum in future quarters based on past correction activities.
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