MakeMyTrip Limited (MMYT) slips after deep earnings beat
MakeMyTrip Limited (MMYT) beat EPS by a wide margin, but revenue missed and the stock slipped after an early pop. Our deep dive unpacks the mixed quarter, gross bookings strength, hotel-led growth, air-travel pressure, and what the results mean for the India travel thesis.
MakeMyTrip Limited (NASDAQ: MMYT) posted a sharp earnings beat, with EPS of $0.47 versus a $0.03559 consensus, but revenue of $235.16 million missed expectations. The stock initially rallied before reversing lower as investors weighed strong profitability, 20.9% constant-currency gross bookings growth, and continued pressure in air travel. The quarter suggests MMYT is still executing well on mix and margins, but near-term revenue growth remains uneven.
MakeMyTrip Limited (MMYT) slips after earnings beat
MakeMyTrip Limited (NASDAQ: MMYT) delivered EPS of $0.47, well above the $0.03559 consensus estimate, while revenue of $235.16M missed the $269.09M forecast. After an initial intraday gain of roughly 4% to 5%, MMYT slips 2.72% to $40.945 in regular trading on October 26, with volume below its average.
Key Takeaways
EPS was $0.47 versus the $0.03559 estimate, a sharp beat. Revenue was $235.16M versus the $269.09M consensus, creating a mixed top-line result.
Gross bookings rose 20.9% year over year in constant currency to $2.7B, while adjusted operating profit reached $46.2M.
Hotels, packages, and ground transport carried the quarter. Hotel room nights rose 18.6%, with domestic room nights up 20.4%.
Non-air businesses reached 63.2% of the mix, up from 61.5% a year earlier, helping offset pressure in air travel.
CEO Rajesh Magow described the near-term environment as difficult but kept the long-term India travel thesis intact, with continued investment in hotels, buses, cabs, and AI.
The analyst consensus remains Buy, with eight Buy ratings and three Hold ratings. Bank of America kept its Buy rating but cut its price target to $60 from $71.
The central tension in this MMYT earnings report is simple: profitability beat sharply, but reported revenue fell short. EPS of $0.47 exceeded the $0.03559 estimate by a wide margin. Revenue of $235.16M, however, came in below the $269.09M consensus.
Gross bookings provide the stronger operating signal. The company generated $2.7B of gross bookings, up 20.9% year over year in constant currency. Adjusted operating profit reached $46.2M. That combination shows the platform is converting travel demand into profit even as airfare conditions pressure the reported revenue line.
The earnings history also puts the quarter in perspective. Recent EPS figures were $0.47, $0.09, $0.25, $0.0742, and -$0.055 across the five reported periods. The current $0.47 is the strongest result in that sequence, although the history also shows meaningful quarter-to-quarter volatility.
Hotels and packages remained the largest operating engine. The segment represents about 40% of the business mix and delivered adjusted margin of $116.8M, up 20.2% year over year in constant currency. Standalone hotel room nights increased 18.6%, supported by 20.4% growth in domestic hotels. International room nights still grew at a mid-single-digit rate despite weaker outbound travel.
The latest detailed segment revenue breakdown, for the quarter ended March 31, 2026, shows Hotels and Packages at $533.063M, Air Ticketing at $239.948M, and Bus Ticketing at $145.271M. A year earlier, the figures were $520.411M, $241.529M, and $119.361M, respectively. That mix reinforces the current pattern: hotel and bus activity is expanding, while air remains the laggard.
Air travel faced several direct headwinds. Management cited the West Asia conflict, inflation, high aviation turbine fuel prices, and a weaker rupee. The company held its domestic air market share and performed better than the market in international air travel, but air ticketing did not provide the same growth lift as hotels and ground transport.
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The first market response favored the earnings beat. MMYT rose roughly 4% to 5% intraday after the results, according to post-earnings market coverage. By 3:30 p.m. ET, the stock had reversed to $40.945, down 2.72%. Volume stood at 638,509 shares, below the 851,664 average.
That reversal reflects the market's divided reading of the quarter. The EPS beat and $46.2M adjusted operating profit show strong cost and mix control. The revenue miss, alongside weaker air demand, makes the growth profile less clean. In short, investors rewarded the profit outcome first, then focused on the quality and durability of the revenue growth.
Bank of America provided the clearest target change. The firm lowered its MMYT price target to $60 from $71 while maintaining a Buy rating. Its earlier view called for a soft quarter because of domestic airline supply problems and high fuel prices. BofA also modeled stronger hotel and bus growth than air growth.
The broader analyst stance remains constructive. Eight analysts rate MMYT Buy, while three rate it Hold. There are no Sell or Strong Sell ratings in the stated consensus. The split between a lower target and a retained Buy captures the current debate: near-term estimates face pressure, but the platform's long-term position in Indian online travel still attracts support.
Management Commentary: India Travel and AI Strategy
“The near-term environment calls for careful execution alongside continued investment in the market with substantial long-term potential.” - Rajesh Magow, CEO, MakeMyTrip, earnings call
Magow's strategic message was that air weakness does not define the whole travel market. Domestic trips, short-haul international travel, business travel within India, hotels, buses, and cabs helped the company shift demand toward categories with better momentum. He pointed to more than 105,000 domestic accommodation options across over 2,000 cities and more than 50,000 daily bus schedules.
“The ability to drive strong operational results, even in a seasonally weaker quarter for leisure travel despite the de-growth in air ticketing industry, shows the resilience we have built in our overall business.” - Mohit Kabra, CFO, MakeMyTrip, earnings call
Kabra's financial message centered on mix and execution. The company redirected attention toward accommodation, ground transport, and ancillary services while keeping air market share. The result was 20.9% constant-currency gross booking growth and adjusted operating profit of $46.2M, even during a weaker leisure travel quarter.
AI is becoming part of that growth plan. Myra handled more than 90,000 daily conversations and assisted with over 3,000 bookings per day. Customers using Myra converted at about 1.7 times the rate of other customers, rising above 2.1 times in tier 2 and tier 3 cities. AI-powered semantic search represented about 10% of hotel searches, with conversion roughly 24% higher than filter-led search.
Management's argument is practical rather than futuristic. A travel platform controls live inventory, payment, amendments, refunds, and customer support. Those functions matter when flights change or a hotel fails to match its listing. MakeMyTrip is positioning its data, supplier network, and service systems as a moat that becomes more valuable as AI changes how customers search.
The sharpest pressure came from Sachin Salgaonkar of Bank of America. He asked whether the December quarter could be softer than usual, given recent DGCA traffic trends and higher oil prices. He also asked whether customer inducements could push marketing spending to 5.5% or more of gross booking value.
“Overall growth for the platform” remains more robust than flight ticketing, management said in response to Salgaonkar's concern about the December quarter. - Mohit Kabra, CFO, MakeMyTrip, earnings call
That response defended diversification but did not dismiss the air problem. Kabra said flight growth remains weak, while the broader platform continues to grow through hotels, buses, cabs, and other travel categories. He also said the company is investing selectively where online penetration remains low, rather than treating every category as equally attractive.
“Should the December quarter be softer than usual?” - Sachin Salgaonkar, Bank of America, earnings call
The exchange exposed the main risk to the MMYT earnings story. Strong hotel and bus growth can cushion airline weakness, but it cannot erase the effect of a prolonged air downturn. The revenue miss and BofA's target cut show that analysts are testing whether non-air growth can remain strong enough to support the valuation.
Bottom Line
MakeMyTrip's earnings beat shows real profit resilience, but the revenue miss and sharp air travel headwinds keep the stock from earning a clean victory. For investors, the durable case rests on hotels, buses, cabs, AI-assisted conversion, and India's long-term shift toward online travel, while the near-term test remains the pace of air recovery and the company's ability to sustain profitable mix improvement.
+Why did MakeMyTrip stock fall after beating earnings?
MakeMyTrip beat EPS by a wide margin, but revenue missed consensus, which shifted investor focus to the weaker top line. The stock reversed from an early 4% to 5% gain and ended down 2.72% as traders reacted to the mixed report.
+How much did MakeMyTrip beat EPS by in the latest quarter?
MakeMyTrip reported EPS of $0.47, far above the $0.03559 analyst estimate. That was the strongest EPS result in the company’s recent five-quarter sequence.
+Did MakeMyTrip's bookings and profitability improve this quarter?
Yes, gross bookings rose 20.9% year over year in constant currency to $2.7 billion. Adjusted operating profit also reached $46.2 million, showing the business converted demand into stronger earnings.
+What is the analyst outlook for MakeMyTrip stock after earnings?
The consensus remains constructive, with eight Buy ratings and three Hold ratings and no Sell ratings. Bank of America kept a Buy rating but cut its price target to $60 from $71, reflecting caution on near-term growth while staying positive on the long-term story.
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