MakeMyTrip reported a 64.7% decline in Q1 FY27 profit to $9.1 million as higher interest expenses weighed on its bottom line. While finance costs surged due to convertible notes, the travel platform maintained steady revenue growth driven by strong domestic travel demand. Investors should track how the company manages interest obligations against the ongoing international travel slowdown.
MakeMyTrip recorded a sharp 64.7% decline in profit for the first quarter of fiscal year 2027, with net earnings falling to $9.1 million from $25.8 million in the same period last year. The primary reason for this steep drop was a significant rise in finance costs, which reached $28.3 million compared to $4 million in the previous year. This increase is largely tied to interest expenses related to the company’s convertible senior notes due in 2030, an obligation that directly impacted the firm's bottom line.
Revenue Growth Amid Currency and Geopolitical Pressure
Despite the decline in profit, MakeMyTrip managed to grow its top-line figures. Total revenue for the quarter rose by 6.2% year-on-year to $285.6 million. When adjusting for the depreciation of the Indian rupee against the U.S. dollar, which saw a decline of more than 10%, revenue growth stood at a more resilient 16.1%. Gross bookings also reflected this trend, increasing by 9.4% to $2.85 billion, or 19.9% in constant currency terms.
Travel Segment Performance
The company’s performance across different travel segments showed mixed results due to shifting demand patterns. The ongoing conflict in West Asia negatively impacted international travel demand from India, leading to a 7.5% revenue decline in the Air Ticketing segment, which fell to $55.6 million. To counter this, the company relied on its Hotels and Packages segment, which saw revenue grow by 6.7% to $151.2 million. The bus ticketing business emerged as a strong performer, achieving a 15.9% revenue increase and a 20.8% rise in gross bookings, driven by a higher volume of ticket sales.
Operational Costs and Liquidity
Operating expenses rose during the quarter, with service costs increasing by 10.4% and marketing expenses climbing by 11.1%. These increased costs, combined with higher interest payments, put pressure on profit margins. However, the company maintains a solid liquidity position to support its operations, reporting $370.7 million in cash and cash equivalents along with $423.6 million in term deposits.
The next important update for investors will be the company’s ability to manage its interest expenses and maintain revenue momentum if the international travel slowdown persists. Monitoring the performance of the domestic hotels and bus segments will remain key, as these areas continue to provide a buffer against the challenges faced in international markets.