MakeMyTrip reported a 65% decline in quarterly profit to $9.1 million as interest expenses on convertible notes rose. Despite the bottom-line pressure, total revenue grew 6.2% to $285.6 million, supported by steady demand in domestic hotels and bus ticketing segments.
MakeMyTrip reported a sharp 64.7% decline in net profit for the June quarter of fiscal 2027, with earnings falling to $9.1 million from $25.8 million in the same period last year. The primary driver for this dip was a significant rise in finance costs, which surged to $28.3 million compared to $4 million a year earlier. The increase in expenses was largely linked to interest payments on the company’s convertible senior notes maturing in 2030.
Operational Growth and Currency Impact
While profits fell, the company maintained growth in its core business operations. Total revenue reached $285.6 million, marking a 6.2% increase from the $268.8 million reported in the previous year's corresponding quarter. When measured on a constant-currency basis, revenue growth appeared more robust at 16.1%. The reported figures were tempered by the depreciation of the Indian rupee, which weakened by over 10% against the US dollar during the period.
International travel demand faced hurdles, particularly due to geopolitical instability in West Asia, which cooled outbound travel from India. However, the company found support in domestic travel activity and seasonal demand. Gross bookings rose by 9.4% to $2.85 billion, showing a 19.9% increase when excluding the impact of currency fluctuations.
Segment Highlights
Performance across business segments remained mixed. The hotels and packages segment, the company's largest contributor, recorded $151.2 million in revenue, a 6.7% rise. Bus ticketing also performed well, with revenue climbing 15.9% to $44.9 million, and the ancillary services category grew by 19.6% to $33.9 million. Conversely, air ticketing revenue declined by 7.5% to $55.6 million, reflecting the broader softness in international travel demand.
Operating costs also saw upward movement during the quarter. Service costs grew 10.4% to $82.7 million, driven by higher demand for holiday packages and car rental bookings, while marketing and sales expenses rose 11.1% to $48.8 million. On the positive side, personnel expenses declined by 3.4% to $38.8 million, aided by lower share-based compensation and currency translation effects.
Liquidity and Future Listing Plans
MakeMyTrip maintains a stable liquidity position, reporting $370.7 million in cash and cash equivalents alongside $423.6 million in term deposits as of June 30, 2026. Looking ahead, investors are tracking the company’s plans for a potential Indian IPO of its subsidiary, MakeMyTrip (India) Limited. The parent company has already confidentially filed a draft red-herring prospectus and intends to hold a majority stake following the proposed listing. The key monitorable for shareholders remains the company's ability to balance its interest obligations with operational growth in the competitive online travel market.