Nasdaq-listed travel platform MakeMyTrip reported a consolidated net profit of $1.8 million in the second quarter ended September 2026 (Q2 FY27), reversing from a loss of $5.7 million in the year-ago quarter. The turnaround came on the back of strong growth in its bus ticketing business.
Revenue from operations rose 2.5% year-on-year to $235.2 million from $229.3 million. The company attributed the slow growth to subdued outbound travel demand from India and depreciation of the rupee. In its earnings release, MakeMyTrip said:
Our overall results and growth for the quarter ended September 30, 2026 were impacted by several factors. While the Group reports its financial results in US dollars (USD), the functional currency of its material subsidiaries is the Indian Rupee (INR). During the quarter ended September 30, 2026, the INR depreciated against the USD by approximately 10% year-on-year compared to the quarter ended September 30, 2025. The continued depreciation impacted our reported revenues and year-on-year growth rates.
On the demand side, international long-haul outbound travel from India remained subdued, as elevated fuel prices led to higher airfares and the depreciation of the INR increased the overall cost of international trips for our customers in India. These factors affected the growth of our international travel offerings and our results for the quarter ended September 30, 2026.
The company’s gross bookings increased to $2.7 billion in Q2 FY27 from $2.4 billion a year earlier.
“Nevertheless, strong domestic travel demand during the quarter partially offset these factors and supported our overall performance,” MMT said.
Notably, the company’s India entity, MakeMyTrip India Limited, has filed a confidential draft red herring prospectus with the Securities and Exchange Board of India (SEBI) to raise money through an initial public offering. The size of the issue is still under wraps.
Bus ticketing biz shines
While the hotels and packages segment remained MakeMyTrip’s largest revenue contributor at $107.1 million, its revenue declined 1% from $108.2 million in Q2 FY26. Gross bookings in the hotels and packages segment increased nearly 10% year-on-year to $640.4 million.
Air ticketing revenue was down 7% to $56.7 million, compared with $61 million in the year-ago quarter. MakeMyTrip said gross bookings in its air ticketing business rose 11% YoY to $1.6 billion.
However, revenue from the bus ticketing business surged 17% to $39 million in Q2 FY27 from $33.5 million a year earlier. Gross bookings increased 20% YoY to $435.3 million, aided by a 25% jump in the number of bus tickets sold.
Additionally, MakeMyTrip generated revenue of $36.7 million from its “Others” business, which mainly includes ancillary travel services, financial services and car booking services.
How is MakeMyTrip building on its AI initiatives?
(i) Expanding adoption: In a separate regulatory filing with the US SEC, MakeMyTrip said its AI assistant Myra engaged in over 90,000 daily conversations in Q2 FY27, of which more than 55% originated from Tier II and Tier III cities in India.
Myra resolved over 53% of post-booking queries in relation to flights and hotels. According to the company, Myra is capable of end-to-end trip planning, voice interactions and in-chat payments and assisted with an average of more than 3,000 completed bookings per day during the quarter.
(ii) Higher conversion: Customers engaging with Myra completed roughly 1.7 times as many bookings compared with non-Myra users in Q2 FY27, MakeMyTrip said. In addition, customers from Tier II and Tier III cities in India engaging with Myra completed approximately 2.1 times more bookings compared with non-Myra users in the September quarter.
Where did MMT spend in Q2?
Here’s a breakdown of MakeMyTrip’s expenses for the quarter ended September 2026.
- Service costs: On the cost front, service costs decreased by 5% to $49.2 million, primarily due to depreciation of the INR against the USD, partially offset by higher costs associated with strong demand for its car booking services in India.
- Marketing and sales promotion expenses: These expenses rose approximately 3% to $38.9 million from $37.9 million a year earlier, primarily due to an increase in variable costs and discretionary expenditures such as expenses on events and brand-building initiatives.
- Personnel expenses: Declined 5% year-on-year to $38.4 million, primarily due to the impact of foreign currency translation, particularly the depreciation of the Indian rupee against the US dollar during the period, and lower ESOP costs.
- Other operating expenses: Increased 9% to $63.7 million in Q2 FY27 from $58.3 million in Q2 FY26, primarily due to an increase in operating expenses, including distribution costs, website hosting charges and payment gateway charges linked to an increase in gross bookings, which was partially offset by a decrease in outsourcing expense.
Also read:
- Six strategic takeaways from MakeMyTrip’s Q1 FY27 earnings call
- Will AI agents drive customers away from travel platforms and its impact on ixigo
The post MakeMyTrip swings to profit in Q2, bus ticketing revenue jumps 16% despite macro headwinds appeared first on MEDIANAMA.