MakeMyTrip (MMYT) Q2 Earnings Face Lofty P E Expectations

MakeMyTrip inched 0.4% higher to US$41.36 into Monday trading, a modest move for a stock that has fallen about 28% over the past three months. The market reaction looks muted compared with the latest Q2 2027 print, where gross bookings reached US$2.7b and adjusted operating profit came in at US$46.2m. Short term traders are treating this as a routine quarter. Long term holders are more focused on whether this level of profitability can support a P/E above 90 and a valuation that already reflects ambitious expectations for travel growth in India.

Love MakeMyTrip’s scale in gross bookings but uneasy about paying a P/E above 90 for it? Take a look at our screener of travel and consumer internet peers with stronger balance sheets and steadier earnings power through the list of solid balance sheet and fundamentals stocks (24 results).

Q2 2027 Earnings Summary

• Total Revenue (Q2 2027 vs Q2 2026): US$235.16m vs. US$229.34m (up about 2.5%)
• Net Income (Excl. Extra Items, Q2 2027 vs Q2 2026): profit of US$1.84m vs. loss of US$5.62m (returned to profitability)
• Basic EPS (Q2 2027 vs Q2 2026): US$0.019 vs. loss of US$0.057 per share (swung back into the black)
• Gross Bookings (Q2 2027 vs Q2 2026): US$2.7b vs. the prior-year period (up 20.9% year on year in constant currency, highlighting MakeMyTrip’s volume scale)

MakeMyTrip says Myra is lifting conversions and automating support. Ask Charlie what MakeMyTrip’s AI assistant really changed this quarter.

AI Ambition At MakeMyTrip Meets Early Usage Milestones

Optimists argue MakeMyTrip’s AI push should materially lift conversion and lower costs over time.

"MakeMyTrip’s AI first transformation, including the launch of Myra 2.0 for end to end conversational booking and wider use of AI in customer support, engineering and operations, is intended to lift conversion, reduce support and development costs and, over time, support higher net margins and earnings."

Q2 shows early proof points rather than a full payoff. Myra handles about 90,000 daily conversations and 3,000 bookings per day. Users engaging with Myra convert 1.7x overall and 2.1x in Tier 2 and 3 cities, and semantic hotel search carries 24% higher conversion. Adjusted operating profit of US$46.2m suggests efficiency gains are starting to register.

Mix-Shift Hopes Tested Against Air-Travel Weakness

On the risk side, the thesis assumes non air growth can cushion air softness without straining profitability.

"Expansion of higher margin, non air segments such as hotels and packages, bus ticketing, intercity cabs and tours and activities, which have been growing faster than air and now contribute a larger share of adjusted margin, is expected to support blended margin improvement and adjusted operating profit."

This quarter backs that idea but with caveats. Non air categories reached about 63.2% of mix compared with 61.5% a year earlier. Hotels and packages bookings rose 19.7% and bus bookings 29.4% in constant currency. These segments, along with ancillaries, offset weak air volumes and helped keep adjusted operating profit growing, even as industry air departures declined.

Not everyone reads the same price the same way. → See the higher figure this Narrative lands on, and how it gets there.

Hunt For Mispriced Earnings Power

MakeMyTrip just showed that strong headline numbers can accompany a weak share price reaction. The potential focus is on stocks that could be undervalued before awareness of their earnings power broadens.

• Company 1 - 34% below our estimate - uses expanding engine demand and fresh capacity investment to rebalance its power solutions portfolio.
• Company 2 - 18% below our estimate - builds optical modules for AI data centers as clients migrate toward higher value photonics and advanced packaging work.
• Company 3 - 42% below our estimate - pushes coconut-based beverages into mainstream channels using branded offerings alongside private label manufacturing contracts.

Three companies from the same screener. Open the full list of 29 companies trading below our fair value estimates →

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com