MakeMyTrip slips into loss in Q2 FY26 amid higher finance costs; revenue up 9% YoY

Nasdaq-listed online travel major MakeMyTrip (MMT) slipped into a loss in the September quarter (Q2 FY26), even as its operating revenue rose 9% year-on-year, driven by steady demand for leisure and international travel.

The company reported a net loss of $5.7 million for the quarter ended September 30, 2025, compared to a net profit of $17.9 million in the same period last year and $25.8 million in Q1 FY26. Operating revenue grew to $229.3 million, up from $211 million a year ago, though it declined 15% sequentially from $268.9 million in the previous quarter.

MakeMyTrip attributed the quarterly loss to accounting effects linked to its $3.1 billion capital restructuring completed earlier this year. The capital raise—comprising a mix of ordinary shares and zero-coupon convertible notes maturing in 2030—was used entirely to repurchase and cancel 34.4 million Class B shares from Chinese investor Trip Group in July 2025. Of this, $1.4 billion was raised through the 2030 convertible notes, with about $319 million recognised as notional interest cost over three years, beginning with $24.3 million this quarter.

The company also reported $14.3 million in foreign exchange losses due to rupee depreciation, taking total net finance costs to $35.9 million compared to just $500,000 a year ago.

“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, MakeMyTrip, in the post-earnings call. Despite the headline loss, the company’s adjusted operating profit rose 17.9% year-on-year to $44.2 million, reflecting healthy underlying performance.

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The OTA major reported steady growth across segments. Revenue from hotels and packages, its largest vertical, rose 5% year-on-year to $108.2 million, supported by a 17.8% increase in gross bookings and an 18% rise in hotel-room nights. Bus ticketing continued to outperform, growing 35% year-on-year to $26.6 million as ticket volumes surged. Air ticketing revenue remained stable at $61 million, with the company noting that domestic supply constraints weighed on short-term growth.

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

MakeMyTrip also reported a moderate rise in operating expenses. Marketing and sales promotion costs rose 6% year-on-year to $37.9 million, service costs increased 3.5% to $51.5 million, while other operating expenses — including website hosting, payment gateway, and technology maintenance — were up 9% to $58.3 million.

The company said it has extended and expanded its share and debt repurchase programme, effective until March 31, 2030. The board has authorised repurchases of up to $200 million worth of ordinary shares and convertible notes, with a $100 million annual sub-limit, through open-market or negotiated transactions. With cash reserves of $835.4 million as of September 30, 2025, MakeMyTrip said it remains well-capitalised and focused on long-term value creation.

“It was encouraging to see travel sentiments improve in Q2, especially in the leisure segment, following a muted Q1,” Magow added. “Our focus on expanding direct hotel partnerships and scaling bus and ancillary offerings continues to deliver results.”