EaseMyTrip Struggles with Profit Decline Despite Diversification Efforts
EaseMyTrip, known for its profitability, faces a significant decline in profits. The company is diversifying into EV buses, international hotels, and real estate, but these moves come with risks.
EasemytripProfitabilityDiversificationTravel IndustryInternational ExpansionReal EstateAug 19, 2025
The company’s revenue from operations also fell to Rs. 113.8 crore in Q1FY26, down from Rs. 152.6 crore in Q1FY25 and Rs. 139.5 crore in Q4FY25. Despite maintaining a high Gross Booking Revenue (GBR) of Rs. 20,658 crore, the significant drop in profitability is a cause for concern. Margins were squeezed as customer discounts remained elevated at Rs. 64.6 crore (3.1% of GBR). Employee costs rose to Rs. 31.5 crore from Rs. 23.9 crore a year ago, and other expenses increased, likely driven by tech investments, international expansion, and integration of acquisitions. These rising costs dragged pre-tax profit down to just Rs. 2 crore compared to Rs. 47.2 crore in Q1FY25.
Despite the profit collapse, EaseMyTrip has highlighted growth in its non-air businesses. Hotel and holiday package bookings increased 81.2% YoY, from 1.8 lakh room nights in Q1FY25 to 3.3 lakh in Q1FY26. Train, bus, and other bookings grew 41.4% YoY, from 3.1 lakh to 4.3 lakh transactions. The company’s international business also continued its upward trajectory, with Dubai operations marking a 151% increase in gross booking revenue to Rs. 318 crore compared to Rs. 127 crore in Q1FY25. EaseMyTrip has expanded subsidiaries and operations across the UAE, UK, USA, Singapore, Thailand, Philippines, New Zealand, Brazil, and Saudi Arabia, with plans to tailor offerings to regional markets and deepen penetration in international travel.
EaseMyTrip is also betting on technology to expand its travel ecosystem. It has rolled out AI-driven personalization, smart voice recognition, dynamic pricing engines, and AI chatbots to handle bookings and queries. The platform offers WhatsApp-based bookings, a lock-price-and-pay-later feature, and hotel bookings at zero upfront cost. The company has integrated with the Open Network for Digital Commerce (ONDC) to extend its reach to micro, small, and medium enterprises (MSMEs) and online travel agencies (OTAs).
Through its acquisition of Spree Hotels, EaseMyTrip is building a stronger hospitality portfolio. Spree manages 48 properties with 2,084 keys across India and plans to expand to 200 properties within five years. This positions EaseMyTrip to capture higher-margin growth in the hotel and holiday segment. The company has also entered the electric bus market through its new subsidiary, Easy Green Mobility, with plans to invest Rs. 200 crore over the next 2–3 years for R&D and to set up a plant with a capacity to manufacture 4,000–5,000 buses in the first phase. This initiative aligns with government EV policies, including FAME (Faster Adoption and Manufacturing of Electric Vehicles) and PLI (Production-Linked Incentive).
EaseMyTrip has also launched Explore Bharat, an inbound tourism vertical aimed at international travelers, offering curated cultural, heritage, and activity-based experiences to showcase India’s diversity. The company has approved three new strategic acquisitions, including a 50% stake in Three Falcons Notting Hill Limited, which owns London’s boutique hotel The Knight of Notting Hill, and a 100% stake in AB Finance Private Limited for a premium property on Golf Course Road, Gurugram. Additionally, there is an in-principle approval for a strategic alliance with Vashu Bhagnani Industries (VBIL), engaged in entertainment and real estate.
Commenting on these developments, Nishant Pitti, Chairman & Founder, EaseMyTrip, said, “Our growth strategy has always centered around long-term thinking, measured decisions, and brand-aligned diversification. The proposed acquisition of the London property will give us the opportunity to explore synergies in hospitality at a global destination, while the Gurgaon property will strengthen our operational backbone as we scale. With these strategic moves, we aim to create unique, engaging, and memorable experiences for travelers while building value for the future.”
Frequently Asked Questions
What caused EaseMyTrip's profit decline?
EaseMyTrip's profit decline was primarily due to increased costs, including higher customer discounts, rising employee costs, and increased expenses from tech investments, international expansion, and integration of acquisitions.
What are EaseMyTrip's diversification efforts?
EaseMyTrip is diversifying into various sectors, including EV buses, international hotels, real estate, and inbound tourism. The company has also made strategic acquisitions and integrated with platforms like ONDC.
How is EaseMyTrip performing in non-air businesses?
EaseMyTrip has seen significant growth in its non-air businesses, with hotel and holiday package bookings increasing 81.2% YoY and train, bus, and other bookings growing 41.4% YoY.
What new technology initiatives has EaseMyTrip launched?
EaseMyTrip has rolled out AI-driven personalization, smart voice recognition, dynamic pricing engines, AI chatbots, WhatsApp-based bookings, and hotel bookings at zero upfront cost.
What are EaseMyTrip's international expansion plans?
EaseMyTrip has expanded its operations across multiple countries, including the UAE, UK, USA, Singapore, Thailand, Philippines, New Zealand, Brazil, and Saudi Arabia, with a focus on tailoring offerings to regional markets.
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