MakeMyTrip Earns $286 Mn in Q1 FY27; Higher Costs Weigh on Bottom Line

The online travel kingpin MakeMyTrip has begun fiscal year 27 with a good rise in revenue, announcing $285.6 million in its first quarter. However, its profitability got squeezed by the increase in financial expenses and currency losses that cut down net profit.

The numbers show the quarter where the rising demand for travel was still able to push bookings but rising financial expenses made the bottom line suffer significantly.

Revenue Up

In the quarter ending 30th June 2026, MakeMyTrip posted revenue of $285.6 million which is 6.2% higher than in the same quarter last year. In constant currency terms, revenue increased by over 16%, confirming that the travel businesses of the company continue to do well.

The company stated gross bookings of $2.85 billion or nearly 20% greater than that in the previous year. The growth was achieved due to good demand in the hotel, holiday package, and ticketing businesses.

Profit Decrease of 65%

While revenue has increased by 65%, net profit declined by 65% to $9.1 million, compared to around $25.8 million in Q1 FY26 due to several factors:

• Increased finance costs due to convertible notes,
• Foreign exchange losses,
• Increased interest expenses,
• Operating cost pressures experienced during the quarter.

All these costs exceeded the profits arising from increased bookings and higher revenues.

Hotel and Holidays Drive Growth

During the quarter, hotels and holidays continued to be the main contributors in terms of revenue, as consumers, despite the rising costs, continue to spend money on leisure travel.

In addition:

• bus ticketing grew at a healthy pace,
• ancillary services in travel expanded,
• air travel booking remained relatively soft, which is in line with trends of the changing nature of travel demand and pricing dynamics.

The company’s diverse portfolio backed the decrease of problem segments.

Outlook

The travel industry in India has continued to exhibit a strong level of demand owing to the rise in disposable incomes and an uptick in domestic tourism activities.

This trend and a positive view for the company have meant that MakeMyTrip is expected to engage in efforts to enhance its bottom line through cost management and higher operational efficiency in the upcoming quarters.

Shareholders will be observing in Q1 FY27 whether this improvement in bookings can result in stronger profits.

Final Thoughts

In summarizing the recent Q1 FY27 performance, MakeMyTrip appears to have been able to improve its presence in a fast-growing industry even if short-term profit has been sacrificed. High booking numbers and revenue growth create the impression of a very strong customer demand in the travel industry but excessive costs in finance and foreign currency operations heavily impacted the profit line in the recent quarter.

Should the company manage to control costs while continuing with growth in bookings, it can expect achieving a nice balance between growth and profitability in the coming periods.

Disclaimer:

This article is based on publicly available information and media reports available at the time of publication. The information is intended for general news and informational purposes only. Kalpway does not independently verify all claims, figures, or statements made by the companies mentioned. Readers are encouraged to refer to official company announcements and regulatory filings for the most accurate and up-to-date information.