MakeMyTrip Limited (NASDAQ:MMYT) reported second-quarter fiscal 2027 financial results that met analysts’ earnings expectations but fell short of revenue forecasts, as growth in domestic travel demand and improved profitability offset lower international travel activity.
The India-based online travel services provider reported adjusted earnings per share of $0.47, matching the analyst consensus estimate.
Quarterly revenue increased 2.5% year on year to $235.2 million, compared with $229.3 million in the corresponding period last year. However, the figure was below market expectations of $267.4 million.
On a constant currency basis, revenue increased 11.2%, reflecting the impact of foreign exchange movements on the company’s reported US dollar results.
MakeMyTrip shares advanced 4.78% on Monday following the announcement.
Adjusted Operating Profit Rises to $46.2 Million
MakeMyTrip reported adjusted operating profit of $46.2 million for the second quarter of fiscal 2027, compared with $44.2 million in the same period last year.
The increase represented year-on-year growth of approximately 4.5%.
Adjusted net profit before tax also reached $46.2 million, rising 27% from $36.4 million in the prior-year quarter.
The improvement in profitability occurred despite revenue falling below analysts’ forecasts.
The company’s financial performance reflected continued activity in domestic travel markets, alongside changes in international booking demand and currency exchange rates.
Adjusted earnings per share of $0.47 were in line with market expectations.
Revenue Increases 11.2% in Constant Currency Terms
MakeMyTrip generated quarterly revenue of $235.2 million, representing reported growth of 2.5% compared with the previous year.
The increase was considerably higher when measured at constant exchange rates, with revenue rising 11.2% on that basis.
The company reported that the Indian rupee depreciated approximately 10% against the US dollar during the quarter.
This currency movement reduced the value of rupee-denominated revenue when translated into US dollars for financial reporting purposes.
The difference between reported and constant currency growth illustrates the effect of exchange rate movements on the company’s results.
MakeMyTrip also identified reduced demand for international long-haul travel from India as a factor affecting its quarterly revenue.
International Travel Demand Affected by Fuel Prices and Currency Movements
MakeMyTrip reported subdued demand for international long-haul outbound travel from India during the quarter.
The company attributed the reduction in activity to higher travel costs associated with elevated fuel prices and the depreciation of the Indian rupee.
A weaker rupee increases the local currency cost of travel-related expenses denominated in foreign currencies, potentially affecting the affordability of international trips for Indian customers.
Higher fuel prices can also contribute to increased airline operating costs and ticket prices.
These factors affected international booking activity during the reporting period.
However, MakeMyTrip reported continued growth in domestic travel demand, which partly compensated for the reduction in international activity.
In its earnings announcement, the company stated:
“Strong domestic travel demand during the quarter partially offset these factors and supported our overall performance.”
The contrasting trends between domestic and international travel contributed to differences in performance across the company’s business segments.
Gross Bookings Increase 11.3% to $2.72 Billion
MakeMyTrip reported gross bookings of $2.72 billion for the second quarter of fiscal 2027.
The figure represented an increase of 11.3% compared with the corresponding period last year.
On a constant currency basis, gross bookings rose 20.9%.
Gross bookings represent the total value of travel services booked through the company’s platforms before adjustments associated with its revenue recognition arrangements.
The measure provides an indication of transaction activity across the company’s travel businesses.
The increase reflected higher booking activity, particularly in domestic travel categories.
The difference between reported and constant currency growth was influenced by the depreciation of the Indian rupee against the US dollar.
Hotels and Packages Segment Records Higher Room Night Volumes
MakeMyTrip’s hotels and packages business reported adjusted margin of $116.8 million, an increase of 10.4% year on year.
The improvement was supported by an 18.5% increase in hotel room nights booked during the quarter.
The increase in room nights indicates higher accommodation booking volumes through the company’s travel platforms.
The segment includes hotel reservations and travel packages offered to customers through MakeMyTrip’s services.
Higher booking activity contributed to the increase in adjusted margin, although the rate of margin growth was below the increase in room night volumes.
The results reflected continued demand for accommodation services during the quarter.
Bus Ticketing Adjusted Margin Rises 19.5%
The company’s bus ticketing business also reported growth in transaction volumes and adjusted margin.
Adjusted margin increased 19.5% year on year to $45.1 million.
The number of bus tickets sold rose 24.7% compared with the corresponding period last year.
The increase in ticket volumes contributed to the segment’s financial performance.
Bus ticketing forms part of MakeMyTrip’s domestic travel offering, providing customers with access to intercity transport bookings.
The reported figures indicate that transaction growth exceeded adjusted margin growth during the quarter.
The business contributed to the company’s overall increase in gross bookings and domestic travel activity.
Air Ticketing Margin Increases Despite Revenue Decline
MakeMyTrip’s air ticketing segment reported adjusted margin of $108.6 million, an increase of 5.6% year on year.
However, reported revenue from the segment declined 7.2% compared with the prior-year quarter.
The company attributed the difference in performance to domestic travel demand offsetting reduced international booking activity.
Domestic air travel continued to support the segment, while international long-haul bookings were affected by higher travel costs and currency depreciation.
The increase in adjusted margin despite lower reported revenue reflects differences between the company’s revenue and segment margin measures.
The company did not provide additional details in the supplied announcement regarding changes in airline ticket pricing or the contribution of individual geographic markets.
MakeMyTrip Financial Outlook
MakeMyTrip’s second-quarter fiscal 2027 results showed higher adjusted operating profit, adjusted net profit before tax and gross bookings compared with the previous year.
The company met analysts’ adjusted earnings per share expectations, although reported revenue of $235.2 million was below the consensus forecast of $267.4 million.
The depreciation of the Indian rupee affected reported US dollar revenue, while reduced demand for international long-haul travel weighed on parts of the business.
Domestic travel activity supported growth in hotel bookings, bus ticket sales and air ticketing adjusted margin.
Gross bookings increased 11.3% to $2.72 billion, with growth reaching 20.9% on a constant currency basis.
Future financial performance will depend on domestic and international travel demand, exchange rate movements, fuel prices and booking activity across the company’s operating segments.
The supplied earnings announcement did not include updated full-year financial guidance.