MakeMyTrip's Q1 FY27: 65% Profit Drop Amid Macroeconomic Headwinds
MakeMyTrip's consolidated net profit plunged 65% in Q1 FY27. Learn about the macroeconomic headwinds affecting the travel tech giant in 2026.
LazyFounders
30 SEC SUMMARY
MakeMyTrip's consolidated net profit for Q1 FY27 plunged 65% to $9.1 Mn, despite a 6% YoY revenue growth. The company attributes the profit drop to macroeconomic factors like rupee depreciation and West Asia conflict, although domestic travel demand remained strong.
TABLE OF CONTENTS
KEY HIGHLIGHTS
- MakeMyTrip's net profit dropped 65% in Q1 FY27
- Revenue grew 6% YoY and 6% QoQ
- Macroeconomic factors like rupee depreciation and West Asia conflict impacted the company
- Domestic travel demand remained strong
INTRODUCTION
In 2026, MakeMyTrip, a leading travel tech company, reported a significant drop in its consolidated net profit for the first quarter of FY27. This article delves into the financial performance, macroeconomic factors, and segment-wise analysis that contributed to this decline.
FINANCIAL PERFORMANCE
MakeMyTrip's consolidated net profit for the three months ended June 30, 2026, plunged 65% to $9.1 Mn from $25.8 Mn in the same period last year. Despite this, the company's revenue grew 6% year-on-year (YoY) to $285.6 Mn and 6% quarter-on-quarter (QoQ) from $268.9 Mn. Including other income of $269K, total income for the quarter stood at $285.9 Mn.
MACROECONOMIC HEADWINDS
The company attributed its performance to multiple macroeconomic headwinds. The depreciation of the Indian rupee against the US dollar by more than 10% YoY weighed on its reported revenue growth, while the ongoing West Asia conflict dampened international outbound travel demand from India. However, strong seasonal demand and healthy domestic travel activity partially offset these pressures.
SEGMENT-WISE ANALYSIS
Air Ticketing: Revenue from the air ticketing business declined 7.5% YoY to $55.6 Mn amid weaker international travel demand.
Hotels and Packages: This segment, the company’s largest revenue contributor, grew 6.7% to $151.2 Mn.
Bus Ticketing: Bus ticketing revenue jumped 15.9% to $44.9 Mn.
Others: Revenue from the “others” segment rose 19.6% to $33.9 Mn.
Despite the subdued reported revenue growth, MakeMyTrip’s gross bookings increased 19.9% YoY in constant currency to $2.85 Bn, led by growth across air ticketing, hotels and packages, and bus ticketing.
CEO STATEMENT
“Despite macroeconomic disruptions, particularly in international travel, travelers made alternative choices for their leisure travel this quarter. As a result, we delivered a strong performance, underscoring the strength of our diversified range of travel products and services available on our platform,” CEO Rajesh Magow said.
COST ANALYSIS
On the cost front, service costs increased 10.4% YoY to $82.7 Mn, while marketing and sales promotion expenses rose 11.1% to $48.8 Mn. Personnel expenses, however, declined 3.4% to $38.8 Mn. Net finance costs surged to $28.3 Mn from $4 Mn a year earlier, primarily due to higher interest expenses on the company’s convertible senior notes due 2030.
CONCLUSION
MakeMyTrip's Q1 FY27 financial results highlight the impact of macroeconomic factors on the travel tech industry. Despite revenue growth, the company faced significant challenges that led to a substantial drop in net profit. Understanding these dynamics is crucial for investors and stakeholders navigating the complexities of the startup ecosystem in 2026.
For more insights into India's startup economy, visit blogy.in.
Sources
- inc42.com · 2026-08-03
MakeMyTrip Q1: Profit Slides 65% YoY To $9.1 Mn
This story is an original summary and analysis written by LazyFounders from the reporting listed above. Facts are attributed to their original publishers; sections marked as analysis are LazyFounders's opinion. Where a source is in another language, facts were machine-translated and quotations are reported, not reproduced. Read the original coverage via the links.
