MakeMyTrip's Booking Growth Outruns Its Dollar Revenue

MakeMyTrip's fiscal second quarter showed a travel business growing much faster in India than its dollar revenue suggests. Gross bookings reached $2.72 billion, up 11.3% as reported and 20.9% at constant exchange rates, while IFRS revenue increased only 2.5% to $235.2 million. The gap matters because the Indian rupee weakened by about 10% from a year earlier, reducing the dollar value of locally earned revenue.

The quarter ended September 30 also exposed a split in demand. MakeMyTrip said elevated fuel prices pushed up airfares and the weaker rupee made overseas trips more expensive for Indian travelers, leaving long-haul outbound demand subdued. Strong domestic travel partly offset that pressure. The source report said the shares rose about 4.8% after the results, suggesting investors focused on the underlying booking growth and improved profit rather than the modest reported revenue increase.

Domestic categories carried the quarter

Bus ticketing produced the fastest reported growth among the main segments. Its revenue rose 16.6% to $39.1 million, while adjusted margin increased 19.5% to $45.1 million. The company sold 24.7% more bus tickets, and bus gross bookings increased 20.0%.

Hotels and packages showed the currency effect clearly. Reported revenue slipped 1.0% to $107.1 million, but rose 7.4% at constant currency. Adjusted margin grew 10.4% to $116.8 million, supported by an 18.5% increase in hotel room nights. Air ticketing revenue fell 7.2% to $56.7 million, yet it edged up 0.6% at constant currency, while adjusted margin rose 5.6% to $108.6 million. Other businesses, including ancillary services and car bookings, increased revenue 21.6% to $32.3 million.

These adjusted-margin figures are not the same as IFRS revenue or operating profit. MakeMyTrip adds back customer inducement costs that are recorded as a reduction of revenue and, in some segments, subtracts service costs. That definition is useful for comparing the value retained across travel categories, but it should not be treated as a conventional profit margin.

Profit improved, but the bridge remains important

IFRS profit was $1.8 million, reversing a $5.7 million loss a year earlier. Results from operating activities rose 6.5% to $36.7 million. Adjusted operating profit increased 4.7% to $46.2 million, adjusted EBITDA rose 6.4% to $51.5 million, and adjusted diluted earnings per share climbed to $0.47 from $0.37. Free cash flow increased 3.2% to $47.1 million.

The difference between reported and adjusted profit remains material. Net finance costs were $29.8 million, down from $35.9 million largely because the net foreign-exchange loss declined by $8.3 million. That improvement helped turn the bottom line positive, but currency can move in both directions.

Liquidity provides room to absorb volatility. At September 30, MakeMyTrip held $427.9 million of cash and cash equivalents, including $3.7 million of restricted cash, plus $388.6 million of term deposits, including $9.8 million subject to liens. Excluding those specifically restricted amounts, BTI calculates about $803.0 million of cash and term deposits without the identified restrictions. The company also repurchased 345,158 shares for $17.2 million during the quarter and had $78.6 million of remaining authority across shares and convertible notes, including a $75.0 million fiscal 2027 sublimit. The authorization does not obligate further purchases.

MakeMyTrip did not provide new full-year guidance. The next test is whether domestic volume can continue to offset expensive international travel and whether constant-currency growth translates into stronger reported profit and cash flow. For investors, gross bookings and adjusted margin show operating momentum, while the rupee, fuel-driven airfare pressure and the gap between IFRS and adjusted measures define the risk.