Ixigo revenue up 42% in Q3 yet profits halve amid escalating expenses and taxes

Indian online travel platform Ixigo saw its revenue increase in its third quarter, driven by strong demand across its flight, train, and bus booking segments. However, rising expenses and a sharp year-on-year profit decline underscored ongoing cost pressures.

Ixigo’s revenue operations jumped 41.76% year-on-year (YoY) to Rs 241.76 crore in Q3 FY25, with a 17.09% quarter-on-quarter (QoQ) increase from Q2’s Rs 206.47 crore.

However, net profit plummeted 49.28% YoY to Rs 15.54 crore, despite an 18.80% QoQ rise.

This was largely due to a deferred tax gain of Rs. 16.8 crore in Q3 FY24 as compared to a deferred tax expense of Rs. 5.9 crore this year in Q3 FY25.

The decline highlights mounting operational costs, with total expenses surging 42.83% YoY to Rs 223.67 crore, outpacing revenue growth. Employee benefit expenses rose 15.47% YoY, while other expenses—including technology and marketing—spiked 52.50% YoY.

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Flight revenue skyrocketed 72.29% YoY to Rs 68.52 crore, cementing its position as Ixigo’s fastest-growing vertical. Train and bus revenues also expanded, rising 25.90% and 51.11% YoY, respectively.

Profitability trends varied by segment. Flight profit margins stagnated QoQ, inching down 0.03% to Rs 27.28 crore, though YoY flight profit rose 41.86%.

Train profit grew modestly—up 6% QoQ and 19.02% YoY—to Rs 39.91 crore, while bus profit surged 31.82% QoQ and 47.86% YoY to Rs 34.26 crore, signaling improved efficiency in road travel operations.

The company’s aggressive expansion and marketing efforts drove up costs. Other expenses, including promotional spends and platform investments, hit Rs 179.83 crore in Q3, up 20% QoQ and 52.5% YoY. Employee costs also climbed, reaching Rs 40.59 crore in Q3, up 5% from Q2 and 15.47% YoY.

Commenting on the results, Rajnish Kumar, Group Co-CEO, ixigo and Aloke Bajpai, Group CEO, stated: "Q3 FY25 has been our best quarter ever! We hit new all-time high records for MAU, GTV, Revenue from Operations as well as EBITDA this quarter. For 9M FY25 vs 9M FY24 we have doubled our EBITDA from Rs.34 Crores to Rs.68 Crores while gaining market share in all our lines of business."