Makemytrip (MMYT) 2026Q3 Earnings Preview: Downside Risk Amid Price Target Cut and Mixed Institutional Activity

Forward-Looking Analysis

Analysts and institutional investors have shown mixed signals ahead of Makemytrip’s Q3 2026 earnings. Bank of America cut its price target to $113 from $115, reflecting cautious sentiment, while a “Moderate Buy” consensus remains among analysts. Institutional activity is split: Helios Capital Management and Allspring Global Investments added shares, while Ninety One UK Ltd and Amundi reduced holdings. The company’s recent expansion into European travel experiences (e.g., Alpine trains, London Eye) could drive long-term growth but may not immediately offset near-term margin pressures. With Q2 2026 net losses ($5.74M) despite revenue growth ($202.75M), investors will scrutinize Q3’s ability to narrow losses and demonstrate operational efficiency. A key focus will be whether gross profit ($177.83M in Q2) translates to improved net income.

Historical Performance Review

In Q2 2026, Makemytrip reported revenue of $202.75 million, up from prior periods, but net income remained negative at -$5.74 million ($0.06 loss per share). Gross profit improved to $177.83 million, indicating better cost management, though operating expenses and market competition continued to weigh on profitability. The company’s focus on expanding its platform to include international travel offerings suggests a strategic shift toward higher-margin services, though execution risks persist.

Additional News

Recent institutional activity highlights divergent views: Helios Capital Management and Allspring Global Investments purchased shares, while Ninety One UK Ltd and Amundi reduced stakes. Bank of America’s price target cut to $113 signals tempered optimism. Makemytrip also expanded its platform to include curated European travel experiences, targeting Indian travelers. Institutional investors like Fullerton Fund Management and Norges Bank hold significant stakes, reflecting ongoing interest despite mixed market sentiment.

Summary & Outlook

Makemytrip’s Q3 2026 earnings will test its ability to narrow losses amid strategic investments in international travel. While Q2 revenue growth ($202.75M) and gross profit ($177.83M) highlight operational resilience, persistent net losses ($5.74M) underscore margin challenges. The European expansion could drive long-term growth but may delay profitability. With a lowered price target and mixed institutional activity, near-term risks are elevated. A bullish outlook hinges on Q3 showing improved net income and execution on international offerings, while a bearish scenario involves widening losses or underwhelming demand for new services. Investors should brace for volatility as the company balances growth and profitability.