MakeMyTrip Posts $1.8M Profit in Q2 FY27 Despite Industry Challenges

MakeMyTrip, the Nasdaq-listed travel services provider, announced a turnaround in its financial performance for the second quarter of fiscal year 2026-27, reporting a consolidated net profit of $1.8 million. This marks a significant shift from the $5.7 million net loss recorded during the same period last year.

The company’s recent earnings reveal resilience amid ongoing macroeconomic pressures affecting the travel sector. Air ticketing, a core segment for MakeMyTrip, faced notable challenges due to elevated airfare prices and limited flight capacity. These factors contributed to a 4 percent year-on-year decline in domestic departures, as explained by Mohit Kabra, the group chief operating officer, during the post-results earnings call.

"The air ticketing business was impacted by external economic factors," Kabra stated. "Market supply constraints and higher fares led to reduced demand, resulting in fewer passengers flying compared with the previous year." Despite these headwinds, MakeMyTrip's overall business showed positive momentum, driven by growth in other travel services.

On the financial front, the company recorded gross bookings of $2.7 billion for the quarter, rising 20.9 percent on a constant currency basis compared to $2.45 billion in Q2 FY26. This growth occurred even as the global economic environment remained uncertain, highlighting the company’s ability to attract customers across its diversified offerings.

Revenue under IFRS standards increased to $235.2 million, up 11.2 percent year-over-year on a constant currency basis from $229.3 million. These figures reflect MakeMyTrip’s expanding footprint in hotel bookings and ground transportation services, which have helped offset the softness in air travel.

Rajesh Magow, MakeMyTrip’s group chief executive officer, emphasized the company's adaptability: "We achieved strong growth despite a tough travel market, with gross bookings climbing nearly 21 percent year-on-year. The advances in hotel and ground transport bookings demonstrate the strength of our diversified portfolio and our capacity to meet changing traveler preferences."

Adjusted net profit before tax also improved substantially, reaching $46.2 million compared with $36.4 million in the previous year’s quarter. The company reported expanded adjusted margins across multiple segments, including a 14.3 percent increase in air ticketing margins, 20.2 percent in hotels and packages, 29 percent in bus ticketing, and 29.8 percent in other areas.

Looking ahead, MakeMyTrip plans to continue investing in its hotel supply, particularly in international markets. Kabra noted that geopolitical tensions have impacted near-term outbound travel demand, but the company views international tourism as a significant long-term growth opportunity.

"Despite current geopolitical challenges, we remain committed to expanding our international hotel inventory," Kabra said. "Outbound travel presents a promising avenue for future growth, and our investments reflect that strategic focus."

In addition, the company is progressing with plans for an initial public offering (IPO) of its wholly owned subsidiary, MakeMyTrip India Limited. Group chief financial officer Dipak Bohra shared that the company has submitted a confidential filing and is working with regulatory bodies and stock exchanges to secure necessary approvals. The timing of the IPO will depend on market conditions and regulatory clearances.

MakeMyTrip operates in a highly competitive and dynamic travel market that has been navigating recovery from the pandemic’s impact. The firm’s ability to pivot towards segments like hotels and ground transportation while managing challenges in air travel demonstrates its strategic flexibility.

With a diversified service portfolio and focus on expanding international offerings, MakeMyTrip appears positioned to capitalize on the rebound in global travel demand as economic conditions stabilize. Investors and industry observers will likely watch the company’s upcoming IPO and continued quarterly performance for further insights into its long-term growth trajectory.