MakeMyTrip has reversed last year's losses to report a $1.8 million net profit in Q2 FY27, fueled by a 17% increase in bus ticketing revenue, while facing headwinds from rupee depreciation and subdued outbound air travel demand.
- Bus ticketing revenues increased 17% year-on-year
- Air ticketing revenue declined by 7% amid weak outbound demand
- AI assistant Myra drives higher booking conversions in smaller cities
What happened
MakeMyTrip reported a consolidated net profit of $1.8 million in Q2 FY27, marking a turnaround from a $5.7 million loss in the same quarter a year earlier. Total revenue from operations rose 2.5% year-over-year to $235.2 million. The company experienced notable growth in its bus ticketing business, with revenue increasing by 17% to $39 million and gross bookings up 20% to $435.3 million, boosted by a 25% rise in bus tickets sold. Meanwhile, air ticketing revenue fell by 7% to $56.7 million despite an 11% increase in gross bookings for air tickets.
The company cited several factors impacting its results, including a 10% depreciation of the Indian rupee against the US dollar year-on-year, which weighed on reported revenue and growth rates. Elevated fuel prices and the weaker rupee contributed to suppressed international outbound travel demand from India, further pressuring air ticketing revenues. Despite these challenges, domestic travel demand remained strong, partially offsetting the negative macroeconomic effects.
Why it matters
MakeMyTrip’s return to profitability highlights the resilience of its diversified travel offerings amid a challenging macroeconomic environment. The strong performance of the bus ticketing segment underscores growing consumer preference for cost-effective travel options within India, an area where the company appears to be gaining significant market share. This segment’s growth also signals shifting travel patterns that could reshape future company strategy and product focus.
The decline in air ticketing revenue reflects broader challenges facing the Indian outbound travel market, including currency volatility and rising travel costs due to global fuel prices. These factors may continue to influence customer behavior and demand patterns in the near term. Additionally, the adoption of AI-powered tools like Myra is proving instrumental in enhancing customer engagement and conversion rates, especially in emerging Tier II and III cities, positioning MakeMyTrip well for deeper market penetration across diverse demographics.
What to watch next
Investors and industry watchers will be closely monitoring the upcoming IPO filing by MakeMyTrip India Limited with the Securities and Exchange Board of India, as it could unlock new capital for growth and expansion. The company’s ability to sustain growth in its bus and ancillary travel services amid continued macroeconomic pressures will also be a key area of focus.
Another critical factor will be MakeMyTrip’s continued integration and scaling of AI capabilities through Myra, which already leads to higher booking conversions. The company’s success in leveraging AI for trip planning, customer service, and voice or chat-based payments could significantly enhance customer experience and operational efficiency. Finally, shifts in international travel demand and currency fluctuations will remain important variables affecting the company’s revenue streams in upcoming quarters.