Key Highlights

  • MakeMyTrip (NASDAQ:MMYT) reported fiscal second-quarter gross bookings of USD 2.7 billion on October 26, 2026, up 20.9% in constant currency, with revenue of USD 235.2 million, up 11.2% in constant currency.
  • Adjusted profit before tax rose 27% to USD 46.2 million from USD 36.4 million, and the company reported a net profit of USD 1.8 million against a loss of USD 5.7 million a year earlier.
  • Reported revenue rose only 2.5% from USD 229.3 million and missed a market expectation of USD 267.4 million, while adjusted EPS of USD 0.47 matched consensus.
  • Non-air bookings rose to 63.2% of the mix from 61.5% as hotels grew 20.2%, bus 29.0% and air 14.3%, offsetting higher fares and fewer flown passengers.

A Quarter of Two Speeds

MakeMyTrip, India's largest online travel company, grew gross bookings to USD 2,724.7 million in the September quarter. Hotels and packages rose 20.2%, with standalone hotel room nights up 18.6% and domestic hotels up 20.4%. Bus ticketing rose 29.0% on volume growth of 24.7%, and other services such as intercity cabs rose 29.8%. Air ticketing still grew 14.3%, as management said it held its domestic share and outperformed the market in international routes. Non-air business now makes up 63.2% of the mix, compared with 61.5% a year earlier, which reduces the company's dependence on airline pricing. The company said air demand was weighed down by the West Asia conflict, high aviation fuel prices and a weaker rupee, which fell about 10% against the dollar in the quarter.

Why Margins Stayed Thin

Airfares rose roughly 25% to 30% and flown passengers fell, so travelers shifted to domestic leisure, short-haul international trips, pilgrimages and buses. Management said each booking became more expensive to process without a matching rise in revenue per ticket, which squeezed margins at MakeMyTrip (NASDAQ:MMYT): adjusted operating profit was 1.7% of gross bookings against 1.8% a year earlier. Group CEO Rajesh Magow said the company delivered strong growth in a challenging travel environment, and highlighted its Myra AI assistant, with users converting at about 1.7 times the rate of non-users and about 2.1 times in smaller cities. Marketing spending was 5.4% of gross bookings against 5.2% a year earlier. Cash was USD 815 million and buybacks were USD 17.2 million.

Outlook, Risks and Catalysts

The company gave no numeric guidance. It expects the gap between air revenue and processing costs to narrow as fares and volumes normalize, and it expects bus demand to continue through the festive season. The company also bought back 2.23 million shares cumulatively, equal to about 37% of the shares expected from its 2028 convertible bonds. The planned initial public offering of MakeMyTrip India Limited remains subject to regulatory approval and market conditions. Risks include prolonged high fuel prices, further rupee weakness, a longer West Asia disruption and a revenue line that trailed expectations by a wide margin. The share price rose about 4.8% on October 26, 2026 as reported in published market data, but that move can reverse. Investors will watch the festive quarter, airfares and the India listing, since costly aviation can cap bookings growth.

Where Things Stand

The answer is that gross bookings jumped 20.9% because hotels, buses and ancillary services grew faster than air travel shrank, shifting the mix to 63.2% non-air. Revenue growth of 2.5% as reported and a miss against a USD 267.4 million expectation show the profit pool is still thin, and MakeMyTrip (NASDAQ:MMYT) swung to a USD 1.8 million net profit. The next catalysts are the festive season and the India listing. This is not investment advice.