Whalesbook
AI Drives Profit Surge
MakeMyTrip concluded fiscal year 2026 with a significant 13% rise in adjusted operating profit, reaching $188.8 million. This growth, up from $167.3 million the previous year, was bolstered by a 10.4% increase in gross bookings, which surpassed $10 billion to $10,390.8 million.
The company credits its strategic use of artificial intelligence, especially its 'Myra' assistant, for this performance. 'Myra' has helped attract new customers from emerging Tier-2 cities and improved efficiency by handling over 55% of post-booking queries in the fourth quarter of FY26.
Strong Growth Across Verticals
Despite a competitive market, MakeMyTrip achieved robust double-digit growth in its main service areas. Bus ticketing led with over 29% growth, followed by hotels and packages at 15%, and air ticketing at more than 13%. CEO Rajesh Magow highlighted the company's success in navigating market conditions.
Competitive Landscape and Valuation
MakeMyTrip's market capitalization stands at $3.5 billion, suggesting a forward P/E ratio of about 16.5x based on its FY26 adjusted operating profit. This valuation places it in a crowded space. Competitors such as EaseMyTrip are employing aggressive pricing, while Booking.com and Agoda continue to compete strongly in the hotel and package segments.
While AI integration is a key advantage for customer acquisition and issue resolution, sustained growth in market share will require expanding its user base and diversifying offerings. Travel stocks generally react to economic downturns, which can affect investor sentiment and growth rates.
Potential Risks Ahead
Despite profit gains, MakeMyTrip faces potential challenges. The travel industry is vulnerable to economic slowdowns and global instability, which can quickly affect bookings. The ongoing costs of developing advanced AI and significant marketing expenses to acquire users in a competitive market could pressure future profit margins.
Additionally, scaling services during peak seasons has presented challenges historically, which could be amplified by ambitious growth plans. Investors will be closely watching how MakeMyTrip maintains its growth and profitability amid shifting consumer preferences and intense competition.