MakeMyTrip, ixigo and Yatra make AI central to Indian travel

MakeMyTrip reported Q2 FY27 results, showing strong growth in adjusted margins across all segments, with Air Ticketing up 14.3%, Hotels and Packages up 20.2%, and Bus Ticketing up 29.0% YoY in constant currency. The company's AI assistant, Myra, handled over 90,000 daily conversations and resolved 53% of post-booking queries, driving higher conversion rates. Gross Bookings increased 20.9% YoY to $2.7 billion, according to the company.

BofA Securities reduced its price target for MakeMyTrip (MMYT) to $55 from $60, citing higher expenses. The stock is down 55% over the past year. MMYT reported 10.5% revenue growth, beating estimates, but net income missed due to higher costs. Adjusted EBIT margins were 1.7%, down 10 basis points year-over-year. The company maintains a strong gross profit margin of 59%.

MakeMyTrip reported a 20.9% increase in gross bookings for Q2 2027, but faced challenges in air ticketing due to macro headwinds, with domestic and international departures down 7% and 4% respectively. Adjusted operating profit margin declined to 1.7% from 1.8% a year ago. The company's IPO plans in India remain uncertain. Management highlighted robust overall platform growth and improving business mix, despite air travel headwinds.

MakeMyTrip, India's largest online travel agency, reported $2.7B in gross bookings for Q2, up 21% YoY. Non-air businesses grew to 63.2% of bookings. Air travel demand declined, but hotels and packages now make up 40% of the business. The company aims to expand beyond flights.

MakeMyTrip reported 20.9% constant currency gross booking growth, driven by domestic leisure and ground transport. Non-air segments now make up 63.2% of its business. The company expanded its corporate travel footprint and invested in international hotel supply. Management expects margin expansion as air fares and volumes normalize. A $29.6 million non-cash interest charge was reported, and $17.2 million in share buybacks were executed.

MakeMyTrip reported Q2 earnings, with air travel under pressure due to higher fares and limited capacity, while hotels and other services drove growth. Air-ticketing adjusted margin rose 14.3% to $108.6M, but adjusted operating margin slightly decreased to 1.7%. Hotels and packages segment grew 20.2%, and bus ticketing saw 29% adjusted-margin growth. The company highlighted AI adoption and corporate growth, ending the quarter with $815M in cash.