EaseMyTrip, one of India’s leading online travel aggregators (OTAs), reported a dramatic plunge in its financial performance for the first quarter of the financial year 2025-26 (Q1 FY26). The company’s consolidated net profit nosedived by nearly 99% year-on-year (YoY) to INR 44.3 lakh, compared to INR 33.9 crore in the corresponding quarter of the previous year. This significant decline in profitability reflects the challenges the company is facing amid weakening revenue and deteriorating margins.
On a sequential (quarter-on-quarter) basis, the company’s net profit also fell sharply, down 97% from INR 13.9 crore posted in Q4 FY25. The dismal performance in Q1 highlights mounting operational pressures and a slowdown in travel-related demand or competitive intensity in the OTA sector.
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Revenue Declines Over 25% YoY
EaseMyTrip’s operating revenue declined by over 25% YoY to INR 113.8 crore, down from INR 152.6 crore in the year-ago quarter. The company also recorded an 18% drop on a quarterly basis, underlining a consistent downward trend in earnings.
Even after accounting for other income of INR 5.9 crore, the company’s total income stood at INR 119.7 crore in Q1 FY26. This is considerably lower than its previous quarterly and yearly performance.
Expenses Rise Despite Revenue Decline
Interestingly, while revenue fell, EaseMyTrip’s total expenses rose by 8% YoY to INR 117.7 crore. This rise in expenses amid falling revenue directly impacted the company’s profitability and margins. The widening gap between earnings and spending suggests inefficiencies or increased costs in operations, marketing, or customer acquisition.
EBITDA Falls Sharply
EaseMyTrip’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also witnessed a sharp decline. The company reported an EBITDA of just INR 6.9 crore, marking an over 86% drop YoY. However, it is worth noting that the company did not provide comparative EBITDA figures for the same quarter last year in its official statement, making year-on-year analysis less transparent.
Gross Booking Revenue Contracts Over 10%
Another key metric, Gross Booking Revenue (GBR), fell by over 10% YoY to INR 2,065.8 crore during the quarter. GBR is a crucial indicator for OTAs, representing the total value of transactions processed through the platform. The drop suggests a decline in overall customer demand or a shift in user preferences to other travel platforms.
Outlook
EaseMyTrip’s Q1 FY26 performance raises concerns about the company’s short-term outlook. With declining revenues, increasing expenses, and shrinking margins, the company will need to reassess its growth strategies, cost structure, and operational efficiency. The online travel space in India remains highly competitive, and EaseMyTrip’s future will depend on how quickly it adapts to changing market dynamics and restores profitability.
Investors and stakeholders will be closely watching the upcoming quarters to see if EaseMyTrip can bounce back from this downturn and regain momentum in the rapidly evolving travel tech ecosystem.
