MakeMyTrip (NASDAQ:MMYT) reported a surge in adjusted profitability for its fiscal third quarter, as the Gurgaon-based travel leader successfully leveraged its diversified portfolio to navigate a cooling domestic aviation market.
The company posted net income of $7.2 million, or $0.07 per diluted share, for the period ended Dec. 31, 2025.
On an adjusted basis—excluding non-recurring costs and stock-based compensation—earnings jumped to $0.52 per share, handily beating the analyst consensus of $0.43 as the company's "Travel Ka Mahurat Sale" and AI-driven efficiency gains bore fruit.
While domestic air travel showed signs of sluggishness, MakeMyTrip's broader ecosystem picked up the slack.
Total revenue rose 15.4% on a constant-currency basis to $295.7 million, fueled by a 20.3% increase in hotel room-night volumes and explosive 45.5% growth in ancillary "Other" services.
Gross bookings for the quarter reached $2.78 billion, up 11.8% year-over-year.
CEO Rajesh Magow noted that the company’s ability to capture demand across bus ticketing and alternative accommodations has shielded margins, with adjusted operating profit climbing 17.9% to $40.9 million.
The results highlight a growing divide between MakeMyTrip’s GAAP and non-GAAP performance, a gap that investors are watching closely as the company balances aggressive marketing spend with long-term profitability.
Despite the reported profit dip due to non-cash charges, the firm’s liquidity remains a fortress with $2.35 billion in cash on the balance sheet.
Looking toward 2026, the company is doubling down on its AI integration to further personalize the booking experience for the Indian traveler, positioning itself to capture a larger wallet share of the projected 170 million cross-border trips expected from the region by next year.