MakeMyTrip's Mixed Q1
MakeMyTrip’s Q1 Revenue Grows 6% to $285.6 Million, But Profit Plummets on Finance Costs
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Key Points
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MakeMyTrip posted an adjusted EBITDA of $55.5 million for Q1 FY27, higher than $51.6 million in the prior year.
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Earnings per share for the quarter were $0.09, down from $0.22 in the prior year.
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Finance costs surged due to convertible senior notes due 2030, with costs around $28.3 million (versus about $4 million a year earlier).
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Segment-level performance showed Air Ticketing revenue down about 7.5% to roughly $55.6 million, while Hotels and Packages rose about 6.7% to $151.2 million and Bus Ticketing jumped about 15.9%.
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The company is pursuing creator-led marketing with its Creator Circle and rolling out hotel features such as early check-in and late check-out to enhance customer experience.
MakeMyTrip posted Q1 FY27 revenue of $285.6 million, up 16.1% year over year in constant currency terms, according to TipRanks. But net profit fell sharply — down 64.7% to just $9.1 million — as a surge in finance costs wiped out much of the company's operating gains.
The culprit was interest expense tied to convertible senior notes due in 2030. Finance costs jumped to roughly $28.3 million, up from about $4 million a year earlier, per Whalesbook. Earnings per share dropped to $0.09 from $0.22 in the prior year.
Convertible Notes Crush Profit Despite Revenue Strength
MakeMyTrip's adjusted EBITDA — a measure of operating profit before interest and taxes — actually rose to $55.5 million from $51.6 million a year ago. That shows the core travel business is healthy. But the convertible notes changed the picture fast. Finance costs rose more than seven times year over year, swallowing a big chunk of those gains, Whalesbook reported.
Gross bookings climbed 19.9% year over year to roughly $2.9 billion, according to TipRanks. In reported dollar terms, however, revenue growth looked far softer at about 6.2%. The reason: the Indian rupee fell more than 10% against the US dollar during the quarter, making India-earned revenue smaller when converted to dollars.
Hotels Surge While Air Travel Gets Dragged Down
Not every segment moved in the same direction. Hotels and Packages revenue rose 6.7% to $151.2 million. Bus Ticketing jumped 15.9%. Both segments showed solid momentum, driven by strong domestic travel demand inside India.
Air Ticketing told a different story. Revenue fell roughly 7.5% to about $55.6 million. The West Asia conflict kept international outbound travel from India weak. Fewer Indians flew abroad, especially to destinations in the Middle East. Management expects this to normalize once the geopolitical situation calms down, per Yahoo Finance.
AI Tools and Tier 2 Cities Power Growth Strategy
MakeMyTrip launched Myra 2.0, an AI-powered travel assistant, as part of a push to use technology to win more customers, according to TipRanks. The company is also building a Creator Circle — a program that uses content creators to market travel offerings across social media. These moves aim to reach younger, mobile-first travelers.
The company is also expanding into tier 2 and tier 3 cities — smaller Indian cities where travel demand is growing fast. New hotel features like early check-in and late check-out are being rolled out to improve the experience and boost loyalty. Management expressed long-term optimism, pointing to India's rising travel appetite and ongoing infrastructure investment as key tailwinds.
Stock Jumps as Investors Look Past Profit Drop
Despite the profit decline, markets reacted positively. MakeMyTrip shares surged about 3% after the results, Investing.com reported. Investors appeared to focus on the revenue beat and the strength in gross bookings rather than the profit miss driven by one-time financing costs.
The key question going forward is whether the company can manage its elevated debt costs while international travel recovers. If the West Asia conflict eases and the rupee stabilizes, the reported revenue numbers could look much stronger in coming quarters. For now, the core business is growing — the financing structure is the main drag to watch.
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