MakeMyTrip Achieves Profitability in Q2 FY27

MakeMyTrip showcased profitability in Q2 FY27, with growth in hotels, bus ticketing, and ancillary services compensating for challenges in air travel. The Nasdaq-listed company announced a net profit of $1.8 million for the quarter concluding in September 2026, a significant improvement from a loss of $5.7 million a year prior. Gross bookings demonstrated a 20.9% year-on-year increase in constant currency, reaching $2.72 billion.

Revenue Growth Factors

Revenue exhibited a rise of 2.5%, increasing from $229.3 million to $235.2 million. When accounting for currency fluctuations, the growth rate stands at 11.2%. The Indian rupee’s depreciation of approximately 10% against the US dollar during the quarter impacted reported revenue growth. MakeMyTrip also noted higher airfares and a slowdown in international long-haul travel, although robust domestic demand somewhat mitigated these challenges.

Operational Performance Highlights

Adjusted operating profit rose to $46.2 million, up from $44.2 million, while adjusted net profit before tax saw a 26.9% increase, also reaching $46.2 million. Adjusted EBITDA was recorded at $51.5 million, reflecting a 6.4% year-on-year growth. Nevertheless, the return to a modest reported net profit coincided with slower year-on-year growth in reported revenue compared to gross bookings.

Contributions from Various Segments

Hotels and packages emerged as the primary contributors to the adjusted margin, which increased by 20.2% in constant currency to $116.8 million. Standalone hotel room nights saw an 18.6% growth, powered by domestic hotel bookings that surged by over 20%. The company mentioned that demand for domestic leisure travel, shorter vacations, and pilgrimage trips bolstered this segment.

Air Ticketing and Bus Ticketing Growth

In the air ticketing segment, the adjusted margin rose by 14.3% to $108.6 million in constant currency, despite a 7.2% drop in reported revenue from this segment, amounting to $56.7 million. Management linked the challenges to increased fares and limited airline capacity but expressed confidence in market share retention and enhanced unit economics through ancillary services.

Bus ticketing also represented a growth area, with its adjusted margin climbing by 29% to $45.1 million, while revenue reported a 16.6% increase to $19.4 million. Additionally, revenue from various other businesses, including ancillary services, rose by 21.6% to $21.2 million.

Expansion of Myra AI Assistant

MakeMyTrip is further enhancing its AI assistant, Myra. During the quarter, it managed over 90,000 conversations each day, successfully addressing more than 53% of post-booking flight and hotel inquiries, and assisting with over 3,000 completed bookings on a daily basis. Customers utilising Myra reportedly completed about 1.7 times more bookings compared to those who did not use the service.

First Half Performance Overview

Despite the positive turnaround in quarterly results, the net profit for the first half fell by 45.8% to $10.9 million, while free cash flow diminished by 19.8% to $67.1 million. These figures indicate that the recovery in quarterly earnings has yet to lead to improved year-to-date profitability.