Whalesbook
MakeMyTrip's latest financial report highlights a company achieving significant revenue growth while facing profitability challenges. This situation reflects the ongoing effort to balance expansion with rising operational and financial expenses in the competitive online travel market.
Revenue Hits Record High
For fiscal year 2026, MakeMyTrip reported a record $1.04 billion in revenue, a 10.7% increase from the previous year. Gross bookings also climbed to $10.4 billion, up 10.4% in constant currency, signaling strong customer demand. The company's operating results saw a substantial 30.1% jump to $156 million, indicating better operational efficiency and business growth.
Growth Amid Profit Pressure
MakeMyTrip saw healthy growth across its business segments, with adjusted margins increasing. Air ticketing rose 13.4%, hotels and packages 15.7%, and bus ticketing 29.3%. Despite strong revenue growth in the fourth quarter, profit declined 16.8% to $24.3 million. Annual profit dropped 45.8% to $51.7 million. This profit contraction was mainly caused by finance costs more than doubling to $16.6 million from $7.5 million a year ago.
AI Boost and Valuation Concerns
The company is advancing its AI travel assistant, Myra, which managed over 54,000 daily conversations in Q4, with many from smaller cities. Myra also resolved about 55% of post-booking queries autonomously. However, MakeMyTrip's P/E ratio stands high at 86.6, significantly above competitors like Expedia Group (20.8) and TripAdvisor (67.6). This high valuation, combined with increased finance costs, poses a challenge. Analysts have a mixed sentiment, with a consensus 'Strong Buy' rating and an average price target of $101.00, though some, like Citigroup, have lowered their targets. Potential regulatory scrutiny and competition from direct booking platforms also remain concerns.
What's Next
MakeMyTrip is scheduled to release its FY2026 fourth-quarter and full-year financial results on May 19, 2026. Investors and analysts will be watching closely to see how the company manages its rising finance costs, continues its growth, and progresses with its AI investments, which are key to its future performance.