MakeMyTrip’s Bus and Hotel Growth Masks Air Travel Headwinds

Forward-Looking Analysis

Analysts project MakeMyTrip will report revenue of $292.5 million for the June quarter, representing a modest 3.4% year-over-year increase. Earnings per share are expected to stand at $0.22. This follows a strong prior quarter in May where the company beat earnings expectations by 14%, though it missed on revenue. All 10 analysts covering the stock maintain a Strong Buy rating, with a consensus price target of $71.90, implying 26% upside from the current price of $57.08. JPMorgan forecasts overall constant-currency revenue growth of 14%, highlighting bus segment growth of 20% and hotel expansion of 16%, while air travel is projected to grow just 6% due to geopolitical pressures. Goldman Sachs recently raised its price target to $84, anticipating revenue growth acceleration to 16% driven by strong hotel demand and higher airline yields. Despite these positive outlooks, EPS estimates have declined 10.5% over the past 60 days, reflecting concerns about jet fuel costs and Middle East conflict impacts. Analysts expect operating margins to remain under pressure, with JPMorgan forecasting EBIT margins flat at 1.8% of gross bookings. Dollar-reported revenue growth may decelerate due to rupee depreciation, although constant-currency growth is expected to remain healthy. The stock trades at a forward P/E of 27.5, down from a trailing multiple above 103, as analysts project significant EPS growth driven by improving profitability and operating leverage.

Historical Performance Review

MakeMyTrip delivered robust results in 2026Q4, generating revenue of $216.44 million and net income of $24.32 million. The company achieved an EPS of $0.25 and recorded a substantial gross profit of $190.53 million. These figures demonstrate strong operational efficiency and margin retention, setting a solid baseline for the current quarter despite broader macroeconomic headwinds in the travel sector.

Additional News

MakeMyTrip Limited, India’s leading online travel platform, operates under brands MakeMyTrip, Goibibo, and RedBus, providing air, hotel, holiday, rail, and bus tickets. The company currently holds a market capitalization of $4.43 billion and an enterprise value of $5.07 billion. Over the past 52 weeks, shares have traded between a low of $36.3 and a high of $103.21. Recently, the stock has experienced a 3-month drawdown of -23.44%, with investors holding the asset for an average of 9 days. Institutional ownership is high at 99.31 million shares, though holdings decreased by 3.78% quarter-over-quarter. Star investor Richard Pzena holds 59,510 shares. The company is valued at a P/E TTM of 112.10, with analysts rating it fairly valued within the Hotels & Entertainment Services industry. Recent technical indicators show mixed signals, with moving averages suggesting buy signals while the stock remains in a range-bound trading pattern. The sector faces broader risks, including concerns over $200 billion in AI data center debt raised in 2025, though this is an industry-wide trend rather than company-specific.

Summary & Outlook

MakeMyTrip exhibits strong financial health, supported by high gross profits and consistent revenue growth averaging 33.41% annually. The primary growth catalyst is the structural shift to online booking and rising middle-class incomes in India, offset by risks from geopolitical tensions impacting air travel and rising fuel costs. While near-term air travel faces headwinds, strong performance in the bus and hotel segments provides a buffer. Analysts remain bullish on the company's market leadership and operating leverage, projecting significant EPS growth. The consensus rating of Strong Buy and substantial upside potential in price targets indicate a positive outlook, provided the company can maintain margins amidst cost pressures. Investors should monitor segment divergence and currency fluctuations closely.