💰 Financial Performance

Revenue Growth by Segment

Consolidated Revenue from operations reached INR 587.32 Cr in FY25, a slight decline of 0.55% from INR 590.58 Cr in FY24. However, the Hotel and Holiday packages segment saw explosive growth of 110%, reaching INR 116.25 Cr in FY24-25 compared to INR 55.35 Cr in FY23-24. Air ticketing remains the dominant segment but faces concentration risk. In Q2 FY26, revenue was INR 118.34 Cr, down from INR 144.67 Cr in Q2 FY25.

Geographic Revenue Split

The company is aggressively expanding internationally, with offices in 10 countries including the UAE, UK, USA, and Singapore. The Dubai office achieved a Gross Booking Revenue (GBR) of INR 701.37 Cr in FY25, representing a massive 242.2% growth from INR 204.97 Cr in FY24. International operations now represent a significant growth lever to offset domestic saturation.

Profitability Margins

Net Profit Margin stood at 18.01% in FY25, down from 25.89% in FY24. Operating Profit Margin also declined to 26.73% in FY25 from 37.47% in FY24. The compression is due to increased investments in marketing, employee costs (up 25.2%), and expansion into new verticals. Despite the dip, the company remains one of the only consistently profitable OTAs in India.

EBITDA Margin

EBITDA margin was 26.7% in FY25 (INR 161.22 Cr), a significant decrease from 37.5% (INR 228.19 Cr) in FY24. This 1,080 bps drop reflects higher operational expenses and investments in the 'EaseMyTrip 2.0' phase. For Q2 FY26, EBITDA was INR 12.1 Cr with a margin of 10.2%, impacted by seasonal variations and marketing spend.

Capital Expenditure

The company operates an asset-light model, keeping CAPEX low. Growth is primarily funded through internal accruals. Cash and cash equivalents stood at INR 156.16 Cr as of March 31, 2025, up from INR 100.89 Cr the previous year. Significant investments are directed toward technology upgrades and strategic acquisitions like Spree Hospitality and YoloBus.

Credit Rating & Borrowing

The company maintains a very low Debt-Equity Ratio of 0.05x in FY25, up slightly from 0.02x in FY24. Interest Coverage Ratio remains strong at 25.80x, though it declined from 37.05x YoY due to lower EBIT. Specific credit ratings and interest rate percentages were not disclosed in the provided documents.

⚙️ Operational Drivers

Raw Materials

As a digital service platform, 'raw materials' consist of service costs related to procurement of travel inventory (7.7% of total expenses) and cost of materials consumed (INR 3.29 Cr, 0.05% of revenue). The primary inputs are airline seats, hotel rooms, and bus/train inventory sourced via aggregators and direct contracts.

Import Sources

Inventory is sourced globally, with a heavy concentration in India for domestic travel. International inventory is sourced through global distribution systems (GDS) and local aggregators in markets like Dubai, Singapore, Thailand, and the UK.

Key Suppliers

Suppliers include over 400 international and domestic airlines, 2.9 million+ hotels worldwide, and Indian Railways (IRCTC). Key partners include hotel aggregators and direct hospitality brands like Spree Hotels.

Capacity Expansion

Current capacity is defined by a network of 72,000+ registered travel agents and a user base of 30 million+ customers. Expansion is focused on non-air verticals (hotels, buses, rail) where online adoption is currently below 20%, providing a large headroom for digital penetration.

Raw Material Costs

Service costs (inventory procurement) were INR 61.57 Cr in FY25, up 24.1% from INR 49.63 Cr in FY24. The company uses an asset-light model to avoid inventory risk, meaning they do not prepay for hotel rooms or flight blocks, protecting them from unsold inventory losses.

Manufacturing Efficiency

Efficiency is measured by the lean team size; for example, the hotel segment is managed by a small team of just 71 people despite handling 2.9 million listings, achieved through high automation and aggregator partnerships.

Logistics & Distribution

Distribution is entirely digital via websites, mobile apps, and a network of 72,000+ agents. Advertising and sales promotion expenses, which drive this distribution, were INR 95.42 Cr in FY25, representing 16.2% of revenue.

📈 Strategic Growth

Expected Growth Rate

43.50%

Growth Strategy

Growth will be driven by the 'EaseMyTrip 2.0' strategy, focusing on diversifying revenue beyond air tickets into hotels (currently 19.8% of net revenue) and international markets like Dubai (242% growth). The company is leveraging its 94% repeat transaction rate to cross-sell holiday packages and insurance. Strategic acquisitions like Spree Hospitality and YoloBus allow entry into high-growth mobility and hospitality sectors without heavy capital investment.

Products & Services

Airline tickets, hotel bookings, holiday packages, rail tickets, bus tickets, air charter services, taxi rentals, travel insurance, visa processing, and activities/attractions tickets.

Brand Portfolio

EaseMyTrip, Spree Hospitality, YoloBus, ScanMyTrip, EMTDesk, EMTMate, Easy Green Mobility.

New Products/Services

ScanMyTrip (ONDC-integrated marketplace), EMTDesk (corporate travel management), and EMTMate (agent enablement platform). These tech-led initiatives aim to capture underserved segments like MICE, weddings, and sports tourism.

Market Expansion

Targeting Tier II and III Indian cities through franchise stores (25 currently) and expanding the international footprint in Saudi Arabia, Brazil, and New Zealand to capture inbound and outbound global travel.

Market Share & Ranking

EaseMyTrip is one of India's largest online travel-tech platforms and the second-largest in terms of air ticket bookings as per industry reports.

Strategic Alliances

Integration with the ONDC network via ScanMyTrip and partnerships with major travel aggregators to provide access to 2.9 million hotels without owning the assets.

🌍 External Factors

Industry Trends

The industry is shifting toward 'full-service' travel ecosystems. While air ticketing is mature, hotel and bus online penetration is <20%, offering a high-growth runway. EaseMyTrip is positioning itself as a one-stop-shop to capture this shift.

Competitive Landscape

Competes with other major OTAs in India. EaseMyTrip differentiates through its 'bootstrapped and profitable' status and the absence of convenience fees, which appeals to price-sensitive Indian consumers.

Competitive Moat

The moat is built on a 94% repeat transaction rate and a 'Zero Convenience Fee' model, which creates high customer loyalty and lower acquisition costs. This is sustainable because of the company's industry-leading lean cost structure (asset-light), which competitors with higher overheads struggle to match.

Macro Economic Sensitivity

Highly sensitive to GDP growth and consumer sentiment. A contraction in the Indian economy would lead to a direct reduction in travel volumes, particularly in the premium and holiday segments.

Consumer Behavior

Rising use of discount coupons and a shift toward mobile-app-based bookings (WhatsApp-based bookings and AI chat support) are key trends the company is capitalizing on.

Geopolitical Risks

International expansion into markets like the Middle East and USA makes the company susceptible to visa policy changes, regional conflicts, and trade barriers that could disrupt international flight routes.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to Ministry of Civil Aviation norms, IRCTC regulations for rail ticketing, and local tourism laws in international jurisdictions like Dubai and Singapore.

Environmental Compliance

The company has entered the electric mobility space through 'Easy Green Mobility,' signaling a shift toward supporting sustainable travel options.

Taxation Policy Impact

The effective tax rate for FY25 was approximately 24% (Tax expense of INR 34.33 Cr on PBT of INR 142.98 Cr).

Legal Contingencies

The company manages standard business litigation; however, no specific high-value pending court cases or labor disputes with INR values were disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

Seasonality is a major risk; revenue peaks in Q1 (summer) and Q3 (winter), leading to potential inconsistency in quarterly earnings. Technological obsolescence is also a risk if the company fails to keep pace with AI and digital booking trends.

Geographic Concentration Risk

While expanding, the company still derives the majority of its revenue from the Indian market. Within India, it is now focusing on Tier II and III cities to reduce metropolitan concentration.

Third Party Dependencies

High dependency on GDS providers and airline carriers. Any technical failure in these third-party systems would halt the company's ability to process bookings.

Technology Obsolescence Risk

The company mitigates this through a dedicated in-house tech team and innovations like ScanMyTrip (ONDC) and AI-powered chat support to ensure the platform remains competitive.

Credit & Counterparty Risk

Receivables quality is generally high as most B2C transactions are prepaid. B2B2C and B2E segments carry some credit risk, managed through agent deposits and corporate credit limits.