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Q1 earnings event puts MakeMyTrip (MMYT) profitability in focus
MakeMyTrip (NasdaqGS:MMYT) reported first quarter 2026 results on 3 August, with sales of US$151.18 million and revenue of US$285.58 million. Net income declined to US$8.35 million, with diluted EPS at US$0.09.
See our latest analysis for MakeMyTrip.
Following the earnings release, MakeMyTrip's share price has been volatile, with a 1-day share price return that declined 1.88% but a 90-day share price return of 25.52%. Over a longer horizon, total shareholder return is mixed, with a decline of 37.16% over 1 year but gains of 64.79% over 3 years and 116.55% over 5 years, suggesting earlier momentum has faded more recently.
If this earnings reaction has you reassessing your watchlist, it may be a good moment to look at other travel and experience platforms through the 21 top founder-led companies
For MakeMyTrip, the combination of stronger top line figures and weaker earnings has left investors questioning whether the recent share price swings reflect business fundamentals or a shift in sentiment. How does the current valuation compare in that context?
Most Popular Narrative: 15.1% Undervalued
At a last close of $60.05, the most followed narrative for MakeMyTrip points to a fair value of about $70.73, which frames the recent share price swings in a different light.
Ongoing investment in product innovation, particularly in AI-powered personalization and user experience improvements, positions MakeMyTrip for higher conversion rates, better customer retention, and ultimately supports expanding net margins through improved operating leverage.
There is a detailed earnings roadmap behind that fair value. It leans on faster revenue growth, rising margins, and a richer profit profile than today. Curious which assumptions really move the needle.
Analysts behind this narrative apply a discount rate of about 12.36% and build in a multi year step up in profitability to arrive at that $70.73 figure. For investors tracking MakeMyTrip after Q1, the key question is whether those growth and margin assumptions still feel realistic in light of the latest softness in net income, or whether expectations need to be tempered from here.
Result: Fair Value of $70.73 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the MakeMyTrip narrative also faces pressure if competition pushes up customer acquisition costs or if regional shocks disrupt travel demand and squeeze margins.
Find out about the key risks to this MakeMyTrip narrative.
Another View on MakeMyTrip's Valuation
The fair value narrative puts MakeMyTrip at $70.73 and calls the stock undervalued at $60.05. Our DCF model tells a different story. It points to a future cash flow value of $30.79, which would make the current price look expensive instead. Which framework do you trust more when earnings are this sensitive to assumptions?
Look into how the SWS DCF model arrives at its fair value.
Next Steps
Mixed signals around MakeMyTrip can feel confusing, so it helps to look at the numbers yourself and move quickly to build your own view. A good next step is to weigh both the upside potential and the areas of concern by checking the 2 key rewards and 3 important warning signs
Looking for more investment ideas beyond MakeMyTrip?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include MMYT .
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