Cleartrip’s Financial Performance in FY26: Losses and Challenges
Cleartrip, owned by Flipkart, experienced a significant increase in losses, rising by 28% year-on-year to Rs 805 crore in FY26. This decline is attributed to substantial spending on cashbacks and discounts, which escalated by 47.6% to Rs 897.5 crore in the fiscal year. Following a robust 70% growth in FY25, Cleartrip’s net operating revenue growth decelerated to 20.8% in FY26, amounting to Rs 198.3 crore, compared to Rs 164.1 crore in the previous fiscal year, according to its annual filings with the Registrar of Companies (RoC).
Overview of Cleartrip
Established in 2006, Cleartrip functions as an online travel booking platform, enabling users to reserve flights, hotels, buses, and holiday packages. The platform generates revenue through service charges, commissions, and incentives from its travel partners, while providing cashbacks and discounts to entice customers.
Revenue Breakdown
Cleartrip’s revenue comprises service charges, commissions, and incentives, adjusted for cashbacks and discounts offered to clients. Service charges rose by 37.5% to Rs 702.2 crore in FY26, while commission and incentives saw a rise of 52.3% to Rs 378.4 crore. However, cashbacks and discounts increased by 47.6% year-on-year, reaching Rs 897.5 crore, up from Rs 608.2 crore in FY25. This continued growth in cashbacks and discounts impacted net revenue, which amounted to Rs 198.3 crore after factoring in these customer incentives and additional operating income. The firm also garnered Rs 58 crore from other operating and non-operating sources, elevating its total income to Rs 241.2 crore for the last fiscal year.
Cleartrip’s Expenditure Analysis for FY26
In FY26, Cleartrip allocated a significant portion of its expenditure to employee benefits, which increased by 7.8% year-on-year to Rs 258 crore. This amount includes Rs 68 crore in ESOP expenses, while the employee benefit expense, excluding ESOPs, was Rs 190 crore. The finance costs experienced a surge of 44.4%, totaling Rs 203.4 crore, while commission and brokerage expenses rose by 33.2% to Rs 171.5 crore.
Advertising and Miscellaneous Expenses
The company spent Rs 133.8 crore on advertising, reflecting a 31% year-on-year increase. Payment gateway fees also rose by 39.8%, amounting to Rs 110 crore. Furthermore, Rs 334 crore was categorized under miscellaneous expenses, with further details not provided. Overall, Cleartrip’s total expenses escalated by 21.9% to Rs 1,045.9 crore in FY26 from Rs 858.2 crore in FY25.
Impact on Cleartrip’s Financial Health
High finance costs, increased payment gateway fees, escalating commission expenses, and substantial expenditure on cashbacks and discounts pressured Cleartrip’s bottom line. Consequently, the company’s losses expanded by 28% year-on-year to Rs 804.7 crore in FY26, up from Rs 628.8 crore in FY25, despite growth in service charges and commissions.
Performance Metrics
Cleartrip reported an EBITDA loss of Rs 640.3 crore in FY26, resulting in an EBITDA margin of -322.9%. The expense-to-earning ratio also climbed to Rs 5.27 in FY26 from Rs 5.23 in FY25. As of March 2026, the company held current assets of Rs 743 crore, including Rs 38 crore in cash and bank balances.
Overall Business Context
The parent company, Flipkart Group, recorded revenue of Rs 1.46 lakh crore in FY26, alongside losses amounting to Rs 8,468 crore during the same period. Although Cleartrip’s losses appear disproportionate to its revenue contribution to the parent firm, some responsibility may lie with the parent itself. Once known for its outstanding UI and service standards, Cleartrip’s identity has seemingly diminished, as it now faces the challenge of competing for traffic that flows toward Flipkart. The integration under Flipkart, while retaining its independent site, has not yielded the expected benefits. Cleartrip must focus on profitable segments like Holidays, which demand dedicated effort. The anticipated synergies from Flipkart have not materialised, leading to uncertainty regarding Cleartrip’s future growth trajectory amidst significant losses.