MakeMyTrip reported a sharp 64.7% year-on-year decline in net profit for the first quarter of FY27 as geopolitical tensions in West Asia disrupted international travel demand and significantly increased financing costs. Despite the earnings decline, the online travel platform delivered resilient operational performance, with strong growth in domestic travel helping offset weakness in outbound international travel. Revenue rose 6.2% to $285.6 million, while gross bookings increased 9.4% to $2.85 billion, reflecting continued demand for hotels, holiday packages, and bus ticketing.
The company attributed the slowdown in its international travel business to the ongoing conflict in West Asia, which affected outbound travel from India. However, management remained optimistic about the long-term outlook for India’s travel sector, citing infrastructure development and rising consumer demand for leisure and business travel.
MakeMyTrip Q1 FY27 Financial Performance
For the quarter ended June 30, 2026:
- Revenue: $285.6 million, up 6.2% year-on-year.
- Revenue (constant currency): Up 16.1%.
- Gross bookings: $2.85 billion, up 9.4%.
- Gross bookings (constant currency): Up 19.9%.
- Net profit: $9.1 million, down 64.7% from $25.8 million a year earlier.
- Adjusted EBITDA: $55.5 million, up 7.5%.
- Adjusted operating profit: $51.4 million, compared with $47.3 million last year.
Q1 FY27 Snapshot
| Metric | Q1 FY27 | YoY Change |
|---|---|---|
| Revenue | $285.6 million | +6.2% |
| Gross Bookings | $2.85 billion | +9.4% |
| Net Profit | $9.1 million | -64.7% |
| Adjusted EBITDA | $55.5 million | +7.5% |
| Adjusted Operating Profit | $51.4 million | +8.7% |
Why Profit Fell Despite Revenue Growth
Travel and aviation companies globally have faced similar cost pressures, as seen when Korean Air’s Q2 profit fell 34% on higher fuel costs despite record revenue.
Although revenue and bookings continued to expand, reported earnings came under pressure due to higher financing expenses and currency movements.
Key reasons included:
- Net finance costs surged to $28.3 million from $4 million a year earlier.
- Higher interest expenses on the company’s convertible senior notes due 2030.
- A depreciation of the Indian rupee of more than 10% against the U.S. dollar during the quarter.
- Weaker international travel demand because of geopolitical tensions in West Asia.
The company noted that, on a constant-currency basis, its financial performance was significantly stronger than reported figures suggest.
Domestic Travel Cushions International Slowdown
While outbound international travel weakened, domestic travel remained robust.
Hotels and Packages
The company’s largest business segment delivered solid growth:
- Revenue increased 6.7% to $151.2 million.
- Hotel room nights booked rose 19.9%.
- Gross bookings grew 8.5%.
- Adjusted margin improved to 18%.
Bus Ticketing Emerges as Fastest-Growing Segment
Bus travel continued to outperform other businesses.
- Revenue rose 15.9% to $44.9 million.
- Gross bookings increased 20.8%.
- Bus ticket volumes climbed 23.9%.
- Adjusted margin grew 21.7%.
Air Ticketing Faces Pressure
The international travel slowdown was most visible in the air ticketing business.
- Revenue declined 7.5% to $55.6 million.
- On a constant-currency basis, revenue still grew 1.1%.
- Gross bookings increased 7.6%, indicating continued demand despite pricing and currency headwinds.
Higher Spending Supports Long-Term Growth
MakeMyTrip also increased investments in marketing and customer acquisition during the quarter.
Major expense increases included:
- Service costs: Up 10.4% to $82.7 million.
- Marketing and sales promotion: Up 11.1% to $48.8 million.
- Customer inducement costs: Increased to $106.8 million from $89.1 million, reflecting higher spending on promotions, incentives, and brand-building initiatives.
Strong Liquidity Despite Headwinds
MakeMyTrip’s results add to a mixed Q1 earnings season, which also saw ITC post a 27% profit decline to ₹3,579 crore.
Despite lower reported profits, MakeMyTrip maintained a healthy balance sheet.
At the end of the quarter, the company held:
- Cash and cash equivalents: $370.7 million.
- Term deposits: $423.6 million.
This liquidity provides financial flexibility as the company navigates geopolitical uncertainty and continues investing in growth initiatives.
Management Remains Optimistic
Group CEO Rajesh Magow said that although international travel was affected by macroeconomic and geopolitical disruptions, travelers increasingly chose domestic destinations and alternative leisure options, supporting overall performance.
The company also said it remains positive about the long-term outlook for India’s travel and tourism industry, driven by expanding infrastructure, improving connectivity, and rising consumer propensity to travel despite short-term volatility caused by the West Asia conflict and higher oil prices.
Looking Ahead
MakeMyTrip’s first-quarter results highlight the resilience of India’s domestic travel market even as international travel faces temporary geopolitical headwinds. While reported net profit declined sharply because of higher financing costs, currency depreciation, and weaker outbound travel demand, the company’s underlying operations remained strong, with healthy growth in revenue, bookings, adjusted profitability, hotels, and bus ticketing. The performance underscores the benefits of MakeMyTrip’s diversified travel portfolio, which helped offset pressure in its international air travel business.
Looking ahead, the company expects domestic travel demand to remain robust, supported by infrastructure expansion and rising tourism activity across India. However, the pace of recovery in international travel will likely depend on easing geopolitical tensions in West Asia, stabilizing fuel prices, and improving currency conditions. With a strong cash position and continued investments in technology, customer engagement, and AI-driven services, MakeMyTrip appears well positioned to capitalize on India’s long-term travel growth despite near-term uncertainties.
Frequently Asked Questions
How much did MakeMyTrip’s Q1 FY27 profit fall?
MakeMyTrip’s net profit fell 64.7% year-on-year in the first quarter of FY27.
Why did MakeMyTrip’s profit decline despite revenue growth?
Geopolitical tensions in West Asia disrupted international travel demand and significantly increased financing costs, even as revenue rose 6.2% to $285.6 million.
How did domestic travel perform for MakeMyTrip?
Strong growth in domestic travel helped offset weakness in outbound international travel, with gross bookings rising 9.4% to $2.85 billion.
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