Something unusual is happening inside EaseMyTrip’s numbers: the hotel business has quietly overtaken the flight business. Hotels now bring in more than half of the online travel aggregator’s revenue, even as air ticketing shrinks. That shift is the real story of the company’s Q1 FY27 results.
EaseMyTrip’s operating revenue grew 18.5% year-on-year to Rs 134.7 crore in Q1 FY27, from Rs 113.7 crore in Q1 FY26, according to consolidated financial statements filed with the NSE. Sequentially, however, revenue declined over 11%.
Hotels: the new growth engine
Hotel packages emerged as the largest revenue contributor, accounting for over 50% of operating revenue. Revenue from the segment more than doubled to Rs 67.6 crore in Q1 FY27, from Rs 32.5 crore a year ago. Hotel room night bookings rose 95.4% YoY to 6.47 lakh, averaging around 7,000 bookings per day.
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Air ticketing, the business EaseMyTrip started with, declined 4% YoY to Rs 54.7 crore, following a 14% decline in the previous quarter.
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Why the company slipped into the red
Expenses grew faster than revenue. Total expenses rose 30% year-on-year to Rs 152.6 crore in Q1 FY27. Service cost remained the largest expense at Rs 39.2 crore, more than doubling from the year-ago period, while employee benefit expenses stood at Rs 32.75 crore. Advertisement and sales promotion expenses increased to Rs 18.5 crore, and payment gateway charges stood at Rs 16.4 crore.
The rise in service costs and other operating expenses, coupled with slower revenue growth, pushed EaseMyTrip into the red. The company reported a net loss of Rs 11.7 crore in Q1 FY27, against a profit of Rs 44 lakh in the same quarter last year. Including other services and non-operating income, total income rose to Rs 141.2 crore from Rs 119.6 crore.
What the market says
Shares of EaseMyTrip closed at Rs 6.43 on Friday, giving it a total market capitalisation of Rs 2,562 crore (about $270 million).
The quarter tells a clear story: EaseMyTrip is betting big on hotels while the airline business matures. The challenge now is to convert that hotel-led growth into profit, before the higher service costs start hurting more than they help.