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India’s travel boom: 3 stocks, 3 strategies, and one clear winner? – Stock Insights News
Post-pandemic, what began as revenge travel shows no signs of easing, with tourism demand fuelling strong growth across hotels, airlines, tour operators, and online travel platforms. Packed airports in an underpenetrated Indian market, sold-out hotels where demand is outpacing room supply, and record-high bookings tell the story of a tourism boom in full swing.
Rising disposable incomes, better connectivity, and a growing appetite for experiences are sending more people on the road and into the skies. For investors, this revival has sparked sharp rallies in Online Travel Agencies (OTA) stocks.
Here’s a look at three names riding the wave.
#1 Le Travenues: Dominating the ‘Next Billion’ Users
Le Travenues is a technology company focused on enabling Indian travellers to plan, book and manage their travel. The company provides ticketing services for flights, hotels, trains, and buses.
Strong user base in smaller towns
It operates through well-known brands like ixigo, Abhibus, and ConfirmTicket. The company is the number one player in trains with over 60% market share, and second in the bus segment.
The company is a leading OTA for the next billion users with 544.4 million annual active users and 83.6 million monthly active users as of March 31, 2025. The company apps have recorded 681.7 million lifetime downloads, with 93.9% penetration in Tier II and Tier III places.
Revenue growth led by higher transaction volumes
On the financial front, in FY25, revenue rose 39% year-on-year (YoY) to ₹9.1 billion, driven by a 46% surge in gross transaction value to ₹149.7 billion. In the revenue mix, the rail segment remains the largest contributor, accounting for 50.2% of total revenue. The segment revenue rose 23.4% to ₹4.5 billion.
Le Travenues Financial Snapshot (FY25)
| Segment | Revenue | Contrbution | Margin |
| Flight | ₹2.5 billion | 27.8% | 45.5% |
| Train | ₹4.5 billion | 50.2% | 33.4% |
| Bus | ₹1.9 billion | 21.6% | 65.9% |
Source: Le Travenues Presentation (FY25)
Flight segment revenue rose 73% to ₹2.5 billion, contributing 27.8% of total revenue. While bus segment revenue increased 49.4% to ₹1.9 billion, making up another 21.6%. Backed by strong revenue growth, contribution margin (net ticketing revenue+other operating revenue-direct expenses) increased 37% to ₹4.0 billion.
Under contribution margin, the bus segment has a margin of 65.9%, flight (45.5%), and train (33.4%). EBITDA (earnings before interest, tax, depreciation and amortisation) grew 86.3% to ₹988.8 million, while margin rose by 263 basis points (bps) to 10.6%.
Profit after tax (PAT), however, decreased by 17.5% to ₹602.5 million, due to higher tax outgo. Excluding the tax effect, profit before tax (PBT) rose 33.8% to ₹817.2 million. This strong financial performance has been driven by robust demand across segments and operating leverage driven by the network effect.
Focus on monetisation and the corporate segment.
Looking ahead, the company aims to increase monetisation through cross-selling and up-selling. For this, the company plans to strengthen engagement with existing users to increase transaction volumes, apart from attracting new users.
The company also plans to introduce more value-added and business-to-business segments to meet corporate demand.
Valuation at Premium
From a valuation viewpoint, the company trades at a price-to-earnings (P/E) multiple of 155x. It is a recent listing, so there is limited historical data available. However, relatively, it trades well-above the P/E of Easy Trip (29x) and Yatra (48x).
Le Travenues Share Surged 43% year-to-date (YTD).
#2 Yatra: The Corporate Travel King with a Consumer Edge
Yatra’s business spans the entire value chain of travel and hospitality services, covering business-to-consumer and business-to-business segments. Its multi-channel approach is a competitive advantage in the emerging Indian market.
Broad reach across travel and hospitality
It’s the largest corporate travel service provider. The company has a diversified customer base of over 1,300 corporations with an addressable employee base of over 9 million employees. Yatra boasts a corporate customer retention rate of 97%, indicating a high level of customer loyalty.
The company is also the largest OTA, with 80,000 domestic hotels and homestays in 1,497 cities across Tier I and Tier II areas. The platform has 15.6 million registered customers, with 59% of business coming from repeat users.
Strong financial rebound in FY25
On the financial front, revenue rose 87% YoY to ₹7.9 billion in FY25. In the revenue mix, flights contribute 67%, followed by hotels at 26%, and the remaining contribution comes from other services such as taxis, rail, and advertising.
PAT rose massively 912% to ₹366 million, albeit from a low base. EBITDA also grew massively by 105% to ₹558 million, with a margin of 14%. Yatra continued to expand its corporate client base and closed 35 new corporate accounts, with potential annual billing of ₹1.4 billion.
Strong growth outlook
Looking ahead, the company expects 20% revenue growth (excluding service cost) and 30% growth in EBITDA in FY26. Owing to a well-established business model with operational efficiencies, the company expects a steady improvement in its profitability in the coming years.
The company is also focused on growing the corporate side at a rate of over 25% over the next 2-3 years. This will help it build a defensive business profile with demand predictability and high free cash flow.
Yatra trades at a P/E multiple of 48x. It’s also a recent listing, so there is limited historical data available. However, relatively, it trades at a discount to Le Travenues (155x), and a premium to Easy Trip (29x).
#3 Easy Trip: A Risky Detour from Travel to Manufacturing?
Easy Trip is a leading online travel platform that offers flight, hotel, holiday, package, rail, bus and cab booking services. The company works with over 400 international and domestic airlines and a list of 2.9 million hotels across 10 countries. It boasts 94% repeat transactions.
Earnings pressure from higher costs
The company’s revenue declined by 0.7% YoY to ₹5.8 billion in FY25. EBITDA margin declined by 1080 basis points to 26.7% due to an increase in employee benefit expenses and other expenses. Nevertheless, the PAT margin remained stable at 18%, up by 100 basis points, leading to 5.8% growth in PAT to ₹1.0 billion.
Unrelated Diversification
However, unrelated diversification into green mobility and premium intercity mobility beyond the OTA business has been a cause of concern for shareholders. The company acquired premium intercity mobility, Yolobus, and also expanded into electric vehicles (bus manufacturing).
The company plans to invest ₹2 billion over 2-3 years for research and development and setting up a manufacturing plant. The plant is expected to have a capacity of 4,000-5,000 buses in the initial phase. It aims to operate over 2,000 electric buses by FY28.
To increase profitability, the company plans to reduce discounts, even if it means a reduction in gross booking revenue compared to competitors. The company also plans to expand non-air verticals. The company also plans to grow its corporate business from the current very minimal contribution to double digits.
The company has also partnered with OLX India and CARS24 to increase its digital footprint and customer engagement.
Valuation at a discount
Easy Trip trades at a P/E multiple of 29x, well below its 4-year median of 58x. Relatively, it trades at a discount to Le Travenues (155x) and Yatra (48x).
Easy Trip share is down 43% YTD
The Verdict: Picking Your Ticket in the Travel Race
The post-pandemic surge in travel has created a favourable backdrop for India’s online travel agencies, with each platform carving out its own niche. Le Travenues is riding strong user growth in smaller towns and expanding monetisation through multiple segments, albeit at a premium valuation.
Yatra combines scale in both consumer and corporate travel with a robust financial rebound, offering steady growth prospects. Easy Trip, while facing cost pressures, is betting on diversification and strategic partnerships to drive future profitability. For investors, the recovery in travel demand is clear, but each stock carries its mix of opportunity and risk, with valuations reflecting differing growth and strategic trajectories.
Disclaimer
Note: Throughout this article, we have relied on data from and the company’s investor presentation. Only in cases where the data was not available have we used an alternate but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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