MakeMyTrip swings to $1.8M profit in Q2 FY27 on domestic demand

Online travel giant MakeMyTrip reported a consolidated net profit of $1.8 million in the September quarter of FY27, reversing a $5.7 million loss from the same period a year earlier. Revenue rose 2.5% year-on-year to $235.2 million, though the company said a weaker rupee and higher airfares made growth look smaller in dollar terms.

The Nasdaq-listed company, which operates mostly in India, said strong demand for domestic travel helped turn things around, making up for declines in its hotels and packages segment and slower international bookings. Gross bookings climbed 11.3% to $2.72 billion, with a 20.9% increase when adjusted for currency changes, showing the real growth was higher than the reported numbers. The rupee fell about 10% against the dollar compared to last year, which dragged down MakeMyTrip’s reported revenue since its main businesses run in rupees.

Bus ticketing did well, with revenue up 16.6% to $39.1 million, thanks to a 24.7% jump in ticket sales. Gross bookings in that segment rose 20% to $435.3 million. Meanwhile, hotels and packages, usually MakeMyTrip’s biggest revenue source, dropped 1% to $107.1 million. The company said fewer people were booking long-haul international trips because fuel prices and a weaker rupee made overseas travel more expensive.

MakeMyTrip’s results fit with what’s happening in India’s online travel market. Just days earlier, ixigo reported its first profitable quarter, with a ₹63.4 crore net profit on 13% revenue growth. That shows travel demand is picking up, but not evenly across all types of bookings. The difference between the two companies shows how they’re dealing with the same challenges—currency changes, rising costs, and shifting customer habits—in different ways.

The company’s focus on domestic travel marks a change. International trips have usually been a big growth area for MakeMyTrip, but right now, domestic bookings make more sense because they’re less affected by currency swings and airfare changes. This matches what’s happening across the industry, where Indian travelers seem more interested in shorter, cheaper trips within the country. But it’s not clear yet if this is a long-term shift or just a temporary response to current conditions.

For investors and others watching, MakeMyTrip’s results raise a question: can it stay profitable if international travel stays slow? The answer might depend on whether it can grow other parts of its business beyond hotels and packages, which still make up nearly half its revenue. Bus ticketing’s strong numbers suggest there’s room to expand in other areas, but doing that without hurting existing bookings won’t be easy.

What to watch next: MakeMyTrip’s next quarter will show if this profit is here to stay or just a short-term boost from seasonal domestic demand. Investors will also look for signs that international bookings are recovering, especially if fuel prices drop and the rupee gets stronger. For now, the company’s focus on controlling costs and growing domestic travel seems to be working—but whether that can keep profits steady in a changing market is still unclear.

Sources: inc42.com · yourstory.com