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1. Company Snapshot

1.a. Company Description

MakeMyTrip Limited, an online travel company, sells travel products and solutions in India, the United States, Singapore, Malaysia, Thailand, the United Arab Emirates, Peru, Colombia, Vietnam, and Indonesia.The company operates through three segments: Air Ticketing, Hotels and Packages, and Bus Ticketing.Its services and products include air tickets; hotels; packages; rail tickets; bus tickets; and car hire, as well as ancillary travel requirements, such as visa processing and facilitating access to travel insurance.


The company allows travelers to research, plan, book, and purchase travel services and products through its websites, such as makemytrip.com, goibibo.com, redbus.in, makemytrip.com.sg, and makemytrip.ae; and other technology-enhanced distribution channels, such as call centers, travel stores, and travel agents' network, as well as mobile service platform.As of March 31, 2022, it had approximately 125 franchisee-owned travel stores.The company serves leisure and corporate travelers.


MakeMyTrip Limited was incorporated in 2000 and is based in Gurugram, India.

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1.b. Last Insights on MMYT

MakeMyTrip Limited faced challenges in recent months. The company's Q2 earnings missed estimates, with quarterly earnings of $0.37 per share, below the Zacks Consensus Estimate of $0.45 per share. This underperformance was likely a negative driver. Additionally, the company's medical care costs and competitive pressures may have impacted its profitability. Despite a fundamentally sound and diversified model, MakeMyTrip's international segment faces growth challenges. Its execution and non-air business growth are strong, however.

1.c. Company Highlights

2. MakeMyTrip's Q2 FY26 Earnings: A Strong Rebound in Travel Demand

MakeMyTrip's fiscal '26 second quarter earnings showcased a strong rebound in travel demand, with adjusted operating profit reaching $44.2 million, up 18% year-on-year. The company's diversified product portfolio helped deliver this performance. Revenue growth was driven by the international business, with international air ticketing revenue growing by 29.6% year-on-year, and international hotels revenue growing by 42% year-on-year. The actual EPS came out at $0.42, slightly lower than estimates of $0.45.

Publication Date: Oct -29

📋 Highlights
  • Rebound in Q2 Performance:: Adjusted operating profit rose 18% YoY to $44.2 million, driven by diversified product portfolio and recovering travel demand post Q1 disruptions.
  • International Business Growth:: International air ticketing revenue grew 29.6% YoY, and hotel revenue surged 42% YoY, contributing 28% of total revenue (up from 25% in 2023).
  • AI-Driven Engagement:: Myra, the AI travel assistant, handled 25,000+ daily conversations, with 35% of users engaging up to 90 days pre-trip, enhancing user retention.
  • Bus Ticketing Expansion:: Bus ticketing business grew 20%+ YoY in all regions due to inventory additions, contributing $37.7 million in adjusted margins (44.1% YoY growth).

Segment-wise Performance

In the air segment, international outbound travel from India presents a significant growth opportunity. The domestic air passenger growth declined by 3% year-on-year due to supply constraints. However, the accommodation business delivered strong 18% volume growth year-on-year. The bus ticketing business witnessed strong growth, led by inventory addition, with all regions growing 20% plus year-on-year. The corporate travel business is also witnessing strong growth, with active corporate customer counts on myBiz and Quest2Travel increasing.

Margin Expansion and Cash Flow

The company's adjusted operating margin improved from 1.66% of gross booking value during the same quarter last year to 1.8%. The adjusted margin growth in the hotels business was 23.1% in the current quarter, contributing to the overall margin expansion. Cash and cash equivalents stood at $835 million, an increase of $31 million over the previous quarter.

Growth Outlook and Valuation

The company expects to grow in the 20s for the full fiscal year and has a positive growth outlook for the medium to long term. MakeMyTrip aims to be the default search engine for travel and is leveraging AI in various areas. With a P/E Ratio of 92.96 and an EV/EBITDA of 51.13, the market is pricing in high growth expectations. The company's ROE stands at 11.98%, indicating a decent return on equity.

Strategic Initiatives

The company has extended its buyback program up to fiscal year 2030, with an increased limit of $200 million. MakeMyTrip is also focusing on driving growth across segments and has been aggressively driving online penetration, adding new segments and travel services. The launch of its AI-powered conversational travel assistant, Myra, has been encouraging, with over 25,000 conversations daily.

3. NewsRoom

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MakeMyTrip (MMYT) Beats Stock Market Upswing: What Investors Need to Know

Dec -04

Source:

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MakeMyTrip Limited $MMYT Shares Sold by Fisher Asset Management LLC

Dec -04

Source: defenseworld.net

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MakeMyTrip (MMYT) Exceeds Market Returns: Some Facts to Consider

Nov -28

Source:

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MakeMyTrip: Business Fundamentals Keep Getting Structurally Better

Oct -31

Source: seekingalpha.com

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Best Travel Stocks To Watch Now – October 28th

Oct -30

Source: defenseworld.net

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MakeMyTrip Limited (MMYT) Q2 2026 Earnings Call Transcript

Oct -28

Source: seekingalpha.com

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Here's What Key Metrics Tell Us About MakeMyTrip (MMYT) Q2 Earnings

Oct -28

Source: zacks.com

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MakeMyTrip (MMYT) Q2 Earnings and Revenues Miss Estimates

Oct -28

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.00%)

6. Segments

Hotels & Packages

Expected Growth: 9.0%

Hotels & Packages is expected to grow at 9.0% due to increasing demand for travel and accommodation services. The segment's growth is driven by MakeMyTrip's strong brand presence, user-friendly platform, and expanding inventory of hotels and packages.

Air Ticketing

Expected Growth: 7.5%

Air Ticketing is expected to grow at 7.5% due to steady demand for air travel. The segment's growth is driven by MakeMyTrip's strong relationships with airlines, competitive pricing, and convenient booking platform.

Bus Ticketing

Expected Growth: 8.5%

Bus Ticketing is expected to grow at 8.5% due to increasing demand for affordable and convenient bus travel. The segment's growth is driven by MakeMyTrip's extensive network of bus operators, user-friendly platform, and competitive pricing.

All Other

Expected Growth: 10.0%

All Other is expected to grow at 10.0% due to increasing demand for ancillary travel services. The segment's growth is driven by MakeMyTrip's strategy to expand its offerings and increase customer engagement through value-added services.

7. Detailed Products

Flight Bookings

MakeMyTrip offers online flight bookings for domestic and international flights, allowing customers to search, compare, and book flights with various airlines.

Hotel Bookings

MakeMyTrip provides online hotel bookings for over 25,000 hotels across India and the world, offering a range of options from budget-friendly to luxury stays.

Bus Bookings

MakeMyTrip offers online bus bookings for over 12,000 routes across India, partnering with leading bus operators to provide a convenient travel experience.

Holiday Packages

MakeMyTrip offers customized holiday packages for domestic and international destinations, including flights, hotels, and activities.

Train Bookings

MakeMyTrip provides online train bookings for Indian Railways, allowing customers to search, book, and cancel train tickets online.

Cab Bookings

MakeMyTrip offers online cab bookings for outstation and local travel, partnering with leading cab operators to provide a convenient travel experience.

8. MakeMyTrip Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

MakeMyTrip Limited faces moderate threat from substitutes as customers have alternative options for booking travel and accommodations, but the company's strong brand recognition and loyalty programs help to mitigate this threat.

Bargaining Power Of Customers

MakeMyTrip Limited faces high bargaining power from customers as they have multiple options for booking travel and accommodations, and the company needs to offer competitive prices and services to retain customers.

Bargaining Power Of Suppliers

MakeMyTrip Limited has low bargaining power from suppliers as it has established relationships with a large network of hotels, airlines, and other travel service providers, giving it negotiating power to secure competitive rates.

Threat Of New Entrants

MakeMyTrip Limited faces moderate threat from new entrants as the online travel agency market is relatively easy to enter, but the company's established brand and large customer base provide a barrier to entry for new competitors.

Intensity Of Rivalry

MakeMyTrip Limited operates in a highly competitive market with many established players, leading to high intensity of rivalry as companies compete for market share and customers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 16.63%
Debt Cost 3.95%
Equity Weight 83.37%
Equity Cost 10.25%
WACC 9.20%
Leverage 19.95%

11. Quality Control: MakeMyTrip Limited passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Haier Smart Home

A-Score: 7.2/10

Value: 5.2

Growth: 5.9

Quality: 7.9

Yield: 7.5

Momentum: 7.0

Volatility: 10.0

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A-Score: 6.3/10

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Growth: 8.7

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Yield: 1.0

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Value: 0.8

Growth: 8.6

Quality: 5.5

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Growth: 6.0

Quality: 6.2

Yield: 1.7

Momentum: 5.0

Volatility: 10.0

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MakeMyTrip

A-Score: 5.3/10

Value: 2.2

Growth: 8.4

Quality: 6.9

Yield: 0.0

Momentum: 5.0

Volatility: 9.0

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Growth: 9.2

Quality: 8.4

Yield: 0.0

Momentum: 4.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

73.69$

Current Price

73.69$

Potential

-0.00%

Expected Cash-Flows