MakeMyTrip Uses an Air Travel Dip to Reach Beyond Flights

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 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.

MakeMyTrip (MMYT) reported Q2 fiscal 2027 earnings per share of $0.47, meeting estimates, but revenue of $235.2M missed forecasts. Adjusted operating profit rose 4.5% to $46.2M. Shares gained 4.8% on the news. Revenue grew 2.5% YoY, or 11.2% in constant currency, impacted by currency fluctuations and lower international travel demand.