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MakeMyTrip returned to profitability in Q2 FY27 as growth in hotels, bus ticketing and ancillary services offset pressure on air travel. The Nasdaq-listed company reported a net profit of $1.8 million for the quarter ended September 2026, compared with a loss of $5.7 million a year earlier, while gross bookings rose 20.9% year-on-year in constant currency to $2.72 billion. Revenue increased 2.5% to $235.2 million from $229.3 million, although growth stood at 11.2% after adjusting for currency movements. The Indian rupee depreciated approximately 10% against the US dollar during the quarter, affecting reported revenue growth. MakeMyTrip also cited elevated airfares and subdued international long-haul travel, partly offset by strong domestic demand. Adjusted operating profit rose to $46.2 million from $44.2 million, while adjusted net profit before tax increased 26.9% to $46.2 million. Adjusted EBITDA stood at $51.5 million, up 6.4% year-on-year. However, the return to a small reported net profit came alongside slower growth in reported revenue than in gross bookings. Hotels and packages remained the largest contributor to adjusted margin, which rose 20.2% in constant currency to $116.8 million. Standalone hotel room nights grew 18.6%, supported by domestic hotel bookings that increased more than 20%. The company said demand for domestic leisure trips, shorter holidays and pilgrimage travel supported the segment. Air ticketing adjusted margin increased 14.3% to $108.6 million in constant currency, despite a 7.2% decline in reported revenue from the segment to $56.7 million. Management attributed the pressure to higher fares and constrained airline capacity. It said the business maintained market share and improved unit economics through ancillary services. Bus ticketing was another growth area. Its adjusted margin rose 29% to $45.1 million, while revenue increased 16.6% in reported terms to $19.4 million. Revenue from other businesses, including ancillary services, grew 21.6% to $21.2 million. MakeMyTrip is also expanding its AI assistant, Myra. It handled more than 90,000 conversations daily during the quarter, resolved over 53% of post-booking flight and hotel queries, and assisted with more than 3,000 completed bookings per day. Customers using Myra completed around 1.7 times more bookings than non-users, according to the company. Despite the quarterly turnaround, first-half net profit fell 45.8% to $10.9 million, while free cash flow declined 19.8% to $67.1 million. The figures suggest that the recovery in quarterly earnings has yet to translate into stronger year-to-date profitability.
document fetched 2026-10-28 02:53