MakeMyTrip Slips Into Red, Posts $5.7 Mn Loss In Q2

Online travel aggregator (OTA) major MakeMyTrip plunged into loss in the September quarter (Q2 FY26) due to rise in its expenses. 

The Nasdaq-listed company reported a loss of $5.7 Mn during the quarter under review as against a net profit of $17.9 Mn reported in the year-ago quarter. The company had reported a profit of $25.8 Mn in Q1 FY26. 

Its operating revenue grew 9% to $229.3 Mn in Q2 from $211 Mn in the year-ago quarter. However, on a sequential basis, the top line saw a 15% decline from $268.9 Mn. 

Meanwhile, MakeMyTrip’s net finance cost in the quarter zoomed to $35.9 Mn as against $500K in the year-ago period due to an increase of $24.3 Mn in interest expense on financial liabilities measured at amortised cost and an increase of $11.2 Mn in foreign exchange losses.

The company attributed the loss during the quarter to accounting effects arising from its $3.1 Bn capital raise, comprising a mix of ordinary shares and zero-coupon convertible notes maturing in 2030, used entirely to repurchase and cancel 34.4 Mn Class B shares in July 2025. 

MakeMyTrip had raised $3.1 Bn in June to buy back shares from Chinese investor Trip Group. Of this, $1.4 Bn was raised through the 2030 convertible notes, with around $319 Mn recognised as notional interest cost over three years, beginning with $24.3 Mn this quarter, alongside $4 Mn in recurring costs from the 2028 notes. The company also reported $14.3 Mn in foreign exchange loss due to rupee depreciation. 

“The interest cost recognised is purely notional — there’s no cash outflow, and it doesn’t affect our operating profitability,” said Mohit Kabra, Group COO of MMT in post-earnings call. Despite the reported loss, adjusted operating profit rose 17.9% YoY to $44.2 Mn, reflecting continued business strength, he added. 

Meanwhile, the company said that it has extended and expanded its share and debt repurchase programme to remain effective till March 31, 2030. 

“Furthermore, the board of directors has authorised the company to repurchase its convertible senior notes due 2028 and its convertible senior notes due 2030 from time to time through open market purchases, privately negotiated transactions with individual holders or otherwise… The aggregate amount of ordinary shares, 2028 Notes and 2030 Notes that may be repurchased by the company pursuant to this existing program shall not exceed $200 Mn, with a sub-limit of $100 Mn during each fiscal year,” it added.

A Closer Look At MMT’s Q2 Show

The OTA major noted an uptick across its business segments in the quarter under review. While its bread-and-butter hotels and packages business reported a 5% YoY uptick in revenue to $108.2 Mn, revenue from business ticketing grew 35% YoY to $26.6 Mn. 

Air ticketing revenue remained flat at $61 Mn. The company said that the vertical exhibited stable performance in absolute terms despite short-term supply constraints in the domestic market. 

“Most of our segments experienced strong growth, although recovery in domestic air travel remained slow due to short-term supply constraints. We delivered strong growth, particularly in international travel as well as non-flight segments within domestic travel,” said MakeMyTrip CEO Rajesh Magow. 

On the expenditure front, besides the aforementioned net finance cost, the company’s expenses for marketing, personnel and service cost also rose during the quarter under review. 

Other operating expenses, which account for website hosting charges, payment gateway charges and technology and maintenance expenses linked to an increase in bookings, increased by 9% YoY to $58.3 Mn in the quarter under review. While marketing and sales promotion expenses grew 6% YoY to $37.9 Mn, service cost increased 3.5% YoY to $51.5 Mn.