MakeMyTrip, an online travel platform, reported mixed results for the first quarter of FY27, with revenue rising in single digits, while profits diminished by 65% to $9.1 million. This decline was primarily attributed to increased finance costs associated with its convertible notes. The company, which is listed on Nasdaq, achieved a year-on-year revenue growth of 6.2%, reaching $285.6 million for the quarter ending in June 2026, compared to $268.8 million from the same period last year. When adjusted for constant currency, revenue increased by 16.1%.
The difficulties during the quarter were magnified by a depreciation of more than 10% in the Indian rupee against the U.S. dollar, combined with a slowdown in international outbound travel due to the ongoing conflict in West Asia. Nevertheless, robust domestic travel demand provided some mitigation for these challenges.
Business Segment Performance
Hotels and packages constituted MakeMyTrip’s most significant revenue source, generating $151.2 million, which represents a 6.7% increase compared to the previous year. Bus ticketing revenue surged by 15.9% to $44.9 million. Conversely, revenue from the air ticketing segment declined by 7.5%, landing at $55.6 million, while other segments saw a notable growth of 19.6%, reaching $33.9 million.
Gross bookings rose by 9.4% to $2.85 billion, fuelled by growth in hotels, bus ticketing, and air travel. The hotel room nights increased by nearly 20% to 12.8 million, while bus ticket volumes experienced a significant rise of 23.9%, totalling 43.6 million.
Expense Analysis
On the expense side, service costs increased by 10.4% year-on-year to $82.7 million, driven by a surge in demand for packages and car bookings in India. Marketing and sales promotion expenses grew by 11.1%, amounting to $48.8 million, with other operating costs increasing marginally by 2.3% to $65.3 million. However, personnel expenses decreased by 3.4%, reaching $38.8 million.
Financial Highlights
Finance costs escalated sharply to $35 million in Q1 FY27, compared to $10.8 million a year prior. This rise was mainly due to heightened interest expenses on convertible senior notes. Consequently, net finance costs soared to $28.3 million, up from $4 million in the same quarter of the previous year.
As a result of these pressures, the Gurugram-based company recorded a substantial profit decline of 64.7%, settling at $9.1 million during the quarter, as the increased finance costs significantly impacted the bottom line. The Adjusted EBITDA reported during this quarter stood at $55.5 million.
As of June 30, 2026, MakeMyTrip had $370.7 million in cash and cash equivalents, alongside $423.6 million in term deposits.