Introduction
EaseMyTrip, a key player in India’s online travel sector, recently reported its Q3 FY25 financial results. While revenue continues to grow, declining profitability and changes in promoter holdings have raised investor concerns. Let’s break down the numbers, key insights, and whether the stock is worth considering for short-term or long-term investment.
1. Key Financial Highlights (Q3 FY25 vs. Q3 FY24)
Performance Overview (₹ in Crores)
| Metric | Q3 FY25 | Q3 FY24 | Change |
|---|---|---|---|
| Gross Booking Revenue (GBR) | 2,148.9 | 2,026.0 | +6% |
| Revenue from Operations | 150.6 | 160.8 | -6.3% |
| EBITDA | 51.0 | Not specified | – |
| Profit After Tax (PAT) | 34.0 | 45.7 | -25.6% |
| EBITDA Margin | 25.0% | 45.6% | Significant decline |
Key Takeaways:
- Revenue from operations fell by 6.3% YoY, reflecting potential business challenges.
- PAT declined by 25.6%, signaling rising costs or operational inefficiencies.
- GBR grew by 6% YoY, indicating steady but slow booking growth.
- EBITDA margin dropped sharply, suggesting cost pressures.
2. Shift in Shareholding Patterns
| Shareholder | March 2023 | Dec 2024 | Change |
| Promoters | 74.9% | 36.2% | -38.7% |
| Retail Investors | 20.1% | 44.1% | +24.0% |
Observations:
- Promoters significantly reduced their stake, leading to market uncertainty.
- Retail investors increased their holding, indicating interest but also volatility concerns.
- Institutional investor data remains neutral, requiring further monitoring.
3. Business Growth & Challenges
Strategic Initiatives:
- International Expansion: Strong growth in Dubai operations with a 226.9% YoY increase in bookings.
- Partnerships & Brand Visibility: Collaborations with key brands in sports and automotive sectors.
- Retail Network Growth: Expansion of franchise stores across major cities.
- Cost Optimization: Focus on operational efficiencies and marketing effectiveness.
Challenges & Risks:
- Declining profit margins despite revenue growth.
- Heavy discounting affecting earnings.
- Increasing competition from established travel platforms.
- Stock volatility due to reduced promoter confidence.
4. Investment Outlook
Short-Term (Next 6 Months)
- Sentiment: Neutral to Negative
- Key Concern: Falling profitability & promoter exits
- Action: Avoid or hold, pending Q4 results
Long-Term (1-3 Years)
- Sentiment: Moderately Positive
- Growth Drivers: International expansion, retail presence, partnerships
- Action: Invest cautiously, with a focus on profitability trends
Stock Levels to Watch:
- Support: ₹40-45
- Resistance: ₹55-60
5. Final Verdict – Should You Invest?
| Investment Horizon | Recommendation |
| Short-Term (6 months – 1 year) | Hold/Avoid – Uncertainty due to falling profits & promoter exits. |
| Long-Term (1-3 years) | Invest with Caution – Growth potential but needs margin recovery. |
Next Steps for Investors:
- Monitor Q4 results & financial trends.
- Track promoter and institutional investor activity.
- Look for margin improvements before increasing exposure.
Conclusion
EaseMyTrip is a well-positioned OTA with a growing market presence. However, declining profitability and a major promoter stake reduction create near-term challenges. Investors should adopt a wait-and-watch approach for now and look for signs of operational efficiency before making significant long-term commitments.
Would you like a deeper valuation analysis or a peer comparison? Let me know in the comments! 😊
Disclaimer: This list is for educational purposes only and should not be considered investment advice. I am not a SEBI-registered analyst. Please conduct your own research before making any financial decisions.
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