MakeMyTrip Reports Mixed Q3 FY26 Results: Strong Revenue & Adjusted Profit Growth Offset by 73% IFRS Net Profit Decline

summarizeSummary

MakeMyTrip reported strong Q3 FY26 revenue and adjusted profit growth, but IFRS net profit declined significantly due to increased finance costs, alongside a notable share repurchase.

check_boxKey Events

• Strong Revenue Growth

  Total revenue increased by 10.6% year-over-year to $295.7 million, or 15.4% in constant currency, driven by robust travel demand in India.

• Adjusted Profitability Improves

  Adjusted Operating Profit rose 10.2% to $50.7 million, and Adjusted Net Profit increased 14.4% to $51.4 million, reflecting strong operational performance.

• Significant IFRS Net Profit Decline

  IFRS profit for the period decreased by 73.1% to $7.3 million, with diluted earnings per share falling to $0.07 from $0.23 in the prior year.

• Increased Finance Costs Impact Bottom Line

  Net finance costs surged from $4.8 million to $27.7 million, primarily due to higher interest expense on convertible senior notes, which was the main driver for the IFRS profit decline.

auto_awesomeAnalysis

MakeMyTrip reported a mixed third quarter, demonstrating robust operational growth across key segments while experiencing a significant decline in IFRS net profit. The company's revenue increased by 15.4% year-over-year in constant currency, driven by strong performance in Hotels and Packages, Bus Ticketing, and Other services. Adjusted Operating Profit and Adjusted Net Profit also saw healthy double-digit growth, indicating underlying business strength. However, IFRS profit for the period plummeted by 73.1% and diluted EPS by 73.9%, primarily due to a substantial increase in net finance costs, largely from interest expense on convertible senior notes. Investors should note the divergence between IFRS and non-IFRS profitability, with the latter reflecting the core operational performance. The company's share repurchase activity also signals management confidence.