Due to an increase in costs, the leading online travel aggregator (OTA) MakeMyTrip experienced a deficit in the September quarter (Q2 FY26).

The Nasdaq-listed business recorded a $5.7 million loss for the reviewed quarter compared to a $17.9 million net profit for the same period last year.  In the first quarter of FY26, the company reported a profit of $25.8 million.

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From $211 million in the same quarter last year to $229.3 million in Q2, its operational revenue increased by 9%.  On a sequential basis, however, the top line decreased by 15% from $268.9 million.

Due to an increase of $24.3 million in interest expenditure on financial liabilities assessed at amortized cost and an increase of $11.2 million in foreign currency losses, MakeMyTrip’s net finance cost for the quarter shot up to $35.9 million from $500K in the same time last year.

The business blamed the quarter’s loss on accounting implications from its $3.1 billion capital issue, which was made up of a combination of ordinary shares and zero-coupon convertible notes that matured in 2030 and were fully utilized to cancel and repurchase 34.4 million Class B shares in July 2025.

In June, MakeMyTrip raised $3.1 billion to repurchase shares from Trip Group, a Chinese investor.  Of this, $1.4 billion was raised through the 2030 convertible notes, with $4 million in recurrent costs from the 2028 notes and about $319 million recognized as notional interest costs over three years, starting with $24.3 million this quarter.  Additionally, the company reported a foreign exchange loss of $14.3 million as a result of the depreciation of the rupee.

In a post-earnings call, Mohit Kabra, Group COO of MMT, stated, “The interest cost recognized is purely notional – there is no cash outflow and it doesn’t affect our operating profitability.”  He said that despite the reported loss, adjusted operating profit increased 17.9% year over year to $44.2 million, indicating ongoing company strength.

During the reviewed quarter, the OTA major reported growth in all of its business segments.  sales from corporate ticketing increased 35% YoY to $26.6 Mn, while its core business of hotels and packages recorded a 5% YoY increase in sales to $108.2 Mn.

Revenue from airline tickets were constant at $61 million.  Despite short-term supply challenges in the domestic market, the vertical demonstrated sustained performance in absolute terms, according to the business.

Due to short-term supply challenges, domestic air travel recovered slowly, although the majority of our segments had robust increase.  MakeMyTrip CEO Rajesh Magow stated, “We delivered strong growth, particularly in international travel as well as non-flight segments within domestic travel.”

In terms of expenditures, the company’s marketing, personnel, and service costs increased during the reviewed quarter in addition to the previously indicated net finance cost.

In the quarter under review, other operational expenses—which include website hosting fees, payment gateway fees, and technology and maintenance costs associated with a rise in bookings—rose by 9% year over year to $58.3 million.  Service costs rose 3.5% YoY to $51.5 Mn, while marketing and sales promotion expenses jumped 6% YoY to $37.9 Mn.