MakeMyTrip Q4 2026 Earnings Call: Complete Transcript

MakeMyTrip (NASDAQ:MMYT) reported fourth-quarter financial results on Tuesday. The transcript from the company's fourth-quarter earnings call has been provided below. Benzinga APIs provide real-time access to earnings call transcripts and financial data. Visit https://www.benzinga.com/apis/ to learn more. Access the full call at https://makemytrip.zoom.us/webinar/register/WN_L8DK2jS8RryIDsRsdEPkPQ Summary MakeMyTrip Ltd reported a strong growth in gross bookings, reaching a record $10.4 billion in fiscal year 2026, with a compound annual growth rate of roughly 34% over four years. The company highlighted significant demand from India's rising middle class and increased travel frequency, with tier 2 and tier 3 cities becoming major growth drivers. Strategically, MakeMyTrip has focused on integrating AI into its operations, including the launch of Myra, an AI-driven conversational interface, which has improved customer engagement and conversion rates. Despite geopolitical impacts such as the West Asia conflict, the company maintained strong domestic performance and expects continued revenue growth in the 20% range during stable periods. MakeMyTrip is leveraging improved infrastructure and digital advancements in India, including increased airport capacity and enhanced internet connectivity, to capture expanding travel opportunities. The company is investing in AI to improve efficiencies and enhance customer experiences, aiming to become an AI-native organization. Financially, the company reported a 10.7% year-over-year revenue growth in constant currency for FY26, with improved profitability and an operating profit margin expansion. Management remains cautiously optimistic about future growth, focusing on AI-driven transformation and disciplined cost management to navigate external challenges. Full Transcript OPERATOR Fiscal 2026 fourth quarter and full Year Earnings Webinar Today's event will be hosted by Companies Leadership team comprising Rajesh Mago, our Co Founder and Group Chief Executive Officer, Mohit Kabra, our Group Chief Operating Officer and Deepak Pora, our Group Chief Financial Officer of MakeMyTrip Ltd, our Group Chief Financial Officer. As a reminder, this live event is being recorded by the Company and will be made available for replay on our IR website shortly after the conclusion of today's event. At the end of these prepared remarks, we will also be hosting a Q&A session. Furthermore, certain statements made during today's event may be considered forward looking statements within the meaning of the Safe Harbor provision of the U.S. private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance, are subject to inherent uncertainties and actual results may differ materially. Any forward looking information relayed during this event speaks only as of this date and the Company undertakes no obligation to update the information to reflect changed circumstances. Additional information concerning these statements is contained in the Risk Factors and Forward Looking Statements section of the Company's Annual report on Form 20-F filed with the Securities and Exchange Commission (SEC) on June 16, 2025. Copies of these filings are available from the Securities and Exchange Commission (SEC) or from the Company's Investor Relations Department. I would like to now turn over the call to Rajesh. Over to you Rajesh. Rajesh Mago (Co Founder and Group Chief Executive Officer) Thank you Vipul. Welcome everyone to our fourth quarter and full year call for fiscal 2026. Before we take you all through the quarter details, I would like to step back a bit and remind everyone about some fundamental structural changes that have emerged post-COVID that has been shaping the travel market in India. When the world opened in 2022, the rebound that initially looked to be pent up demand coming out of the quiet phase due to pandemic soon formed a new baseline. This robust shift in demand is reflected in our reported numbers where gross bookings went from approximately 3.2 billion in fiscal year 22 to 6.6 billion in fiscal year 23 and a record 10.4 billion in fiscal year 26, compounding at roughly 34% over four years. This was a good combination of post pandemic recovery and behavior shift among Indian travelers, well supported by some key structural macro changes in the Indian economy. Major reasons for this robust demand shift are first is rising and aspirational middle-class. As per a Bain study, the middle-income household with annual income between $4,500 to $35,000 has been growing at a robust high single digit annual growth rate and is likely to further grow at an accelerated pace from 200 million in 2022 to 300 million in 2032, a growth of 50% in 10 years. India also added over 70 million passport holders in the last five years. Tier 2 and Tier 3 cities are now major growth drivers. A traveler from Indore or Coimbatore today has the same aspiration and increasingly the same purchasing power as one from Mumbai or Delhi five years ago. This is a massive multi year addressable market expansion and we are only in its early innings. Second, travel has shifted from occasion to habit. Our data shows booking frequency per user is rising year on year. Indians are no longer saving up for one big annual holiday. They are taking multiple trips a year. Three to six trips a year across leisure, religious and extended weekend categories is becoming the new normal for India's connected earning class. The experiential economy is real and is a big opportunity. The cohort driving this is also the one with the longest consumption Runway ahead. As per Colling's International 2024 research, Indian millennials annual travel spend was at about $6,000, making travel their single largest discretionary expense at 34% of annual spending. These millennials are not yet in their peak earning years. These millennials are not yet in their even peak earning years. The per trip wallet will only expand with time. Third, the growth of world class physical infrastructure. The demand story compounds if supply keeps pace. As we all know, new airports or routes, expressways, premium rail train corridors, the government's infrastructure investment is creating supply that meets this demand. Every new airport is a new market for us. Every new direct international route is a new booking opportunity. India's expanding highway network and airport capacity are making travel faster, easier and more reliable across the country. Better road and air connectivity is opening up smaller cities and tourist destinations, reducing travel time and helping unlock tourism, local spending and regional economic growth on aviation. Operational airports have doubled from 74 in 2014 to 157 in 2024, improving access beyond major metros and making travel more affordable and widespread especially for tier 2 and tier 3 cities. This is expected to further expand to 400 airports by 2047, providing a multi decade opportunity. India's highway network has expanded sharply with national highways rising from 91,287 km in 2014 to about 1 46,145 km in 2024, while construction speed increased to 33.8 km per day in 2324. Similarly listed hotel companies are projected to add over 70,000 keys to India's hotel sector by fiscal year 2030, according to CBRE. Majority of new additions are being built into under supplied tier 2 markets and spiritual tourism corridors, both of which are future growth opportunities. Homestays have emerged as a flexible scalable supply addition as well. Now actively supported by governments, vacation rentals and boutique home stays are capturing outsized growth because they align with experiential itineraries that favor local immersion over standardized services. The physical infrastructure story only is half the job done in today's digital age unless the digital infrastructure has kept pace with it. India has also come a long way in digital infrastructure development, with Internet penetration touching about a billion people with high quality bandwidth becoming affordable, with data costs falling from rupees 269 per GB in 2014 to about nine rupees per GB in 2024. On top of this is the payments infrastructure. UPI processed 640 million transactions daily in 2025, clearing over 16 billion transactions in a single month by late 2025. The combined effect is that checkout friction, historically one of the largest causes of bookings abandonment, has largely been addressed. A traveler in a tier three city with a mid range Android device can now search, compare, book and pay in under five minutes without a credit card. We have also witnessed Indian market showing resilience to bounce back fairly quickly as the disruption starts to go away. Last year was another such year as it was impacted by many disruptions pretty much every quarter. But interesting part was that the travel demand remained resilient and robust during the unimpacted months of the year, reflecting the continued strength of underlying consumer sentiment and the structural growth trajectory of India's travel market. We at MMIT continue to outpace industry growth despite disruptions with healthy momentum across segments. Sure, sure. Sorry. Is it fine now? Is it fine now? Yes, yes, much better. All right. While our international business started to get impacted in March due to Middle East conflict, the domestic business remains strong for the reported quarter. March was impacted due to West Asia conflict conflict. January and February witnessed strong year on year growth on steady state basis, encouraged by structural changes in the market and consumer behavior to spend more on travel. We remain confident of revenue growth in the 20s during normal periods and when external headwinds arise. We rely on the strength and resilience of our platform which offers multiple travel services, serves diverse demand segments to still deliver healthy growth compared to the industry. The other big transformational shift in the digital world is being caused by AI. At Ni' Kma Trip, we see AI not merely as a productivity tool, but as a foundational layer that can redefine travel discovery, planning, booking, servicing and loyalty. As shared earlier, we have been on our journey to embed Generative AI (GenAI) all through the consumer journey leveraging our own proprietary data. Besides launching Mira, a conversational interface, continuing with the journey, we launched an upgraded and more powerful and intelligent version of Mira where a traveler can now complete consumer journey right from planning to making payments within Mira using multilingual voice feature. It also now enables seamless natural interactions across flights, hotels, buses, trains, cabs and end to end itinerary planning provider positioning itself as a true travel companion what makes India uniquely exciting in the AI era is also the diversity and scale of consumer behavior. AI allows us to bridge language trust and discovery barriers in ways that were previously impossible. Over the last quarter, Mira has scaled to over 50,000 plus conversations every day and is now embedded across the entire customer journey from inspiration and discovery to booking and post sales support. Over the last few days this number has further scaled to over 80,000 conversations per day for Mira. Adoption is broad based. Over 45% of usage comes from tier 2 and smaller cities with voice emerging as a key interface. Voice interactions are 50% higher in non metro markets with 70% of queries in English and prompts that are 40% longer and more complex than text inputs. Highlighting deeper engagement and richer intent capture Regional languages are also gaining traction, contributing 10% of voice volume today. Mira has now expanded to seven additional Indian languages, significantly widening accessibility. Almost 15% of conversations now happen at the trip planning stage where users are still exploring destinations and options. This allows us to influence decision making much earlier and guide users towards more relevant higher value outcomes. This deeper engagement is translating into measurable business impact. Users interacting with Mira across discovery support and booking stages demonstrate 10% higher conversion rates compared to traditional filter led journeys. By making discovery more intuitive and personalized, Mira is reducing friction and accelerating decision making. During the quarter, myra assisted over 200,000 bookings directly. Customers engaged with our AI agent got their queries resolved and completed a transaction. We are also continuing to enhance our existing consumer journey flow with the use of AI. Our Smart Search feature is now enabling intent led discovery at scale. Smart Search is semantic free text search capability that lets customers describe what they want naturally. For example, families stay near Waga beach with Jain food or rooftop pool hotel in Jaipur with spa access. Through this feature, customers now receive contextually precise explainable results. This feature delivers much higher conversion versus traditional filter based learnings, clearly demonstrating that understanding intent outperforms matching keywords. We have also enabled user reviews through voice. With this feature we are seeing a fundamental shift in review quality. Voice reviews are generating lot more content per submission compared to typed reviews. Customers describe their stays naturally in detail in their own language. This richer signal feeds directly into our knowledge graph, improving the quality of AI generated summaries, safety scores and contextual recommendations for future travelers. Voice is becoming the default input for Indian customers increasingly and we are building our content infrastructure around that reality. We continue to drive AI based interventions in our Redbus brand too. Apart from customer support handling through AI chatbots which have scaled up and yielded about 33% efficiencies, we are now introducing voice bots to replace legacy IVR systems. We are witnessing an initial csat. Additionally, we have scaled up the AI chatbot Ray in the pre booking user journey as well. Adoption has scaled meaningfully. Regional language users show 2x engagement compared to English users, indicating clear resonance among high intent and regional audiences. Around 6% of total queries come via voice as input. Overall, Ray is emerging as an assist layer that improves decision confidence before booking and deepens engagement in core booking funnels. This is reflected in an overall strong growth in bus ticketing segment driven not just by top metros but the tier 2 cities across the country. Overall we are on our journey to make make my trip an AI native org with engineering, customer support, supply, onboarding, content generation and marketing functions leading the race. While other corporate functions are catching up on AI adoption real fast making the org more agile and efficient. We have started to see meaningful impact in certain areas as well for for instance, about 60 to 70% of the new code is being written by AI tools now. Similarly, AI is also driving meaningful efficiency gains on our customer service function. About 55% of our call center, flight and hotels customer queries are being now resolved by digital voice agent. AIM is to keep solving for the long tail and corner use cases as we go along to ultimately have minimal human intervention on customer service without compromise on quality of experience for the customer. India remains one of the most underpenetrated travel markets globally relative to its population and income trajectory. Over the next decade we believe India could become one of the largest travel opportunity markets in the world. Online travel is a multibillion dollar structural growth opportunity and MakeMyTrip Ltd intends to play a central role in enabling that journey. As we look ahead, our priorities remain clear driving an AI and proprietary data led transformation change in the org to drive the future growth at MMYT. Keep innovating to further strengthen the core offerings with supply side modes and scale our new offerings to the customers first choice to be the customer's first choice as one stop shop for all travel needs both for our retail and corporate customers. Leverage unique positioning of our three strong brands and other distribution channels to expand customer reach. Leverage AI tools to drive efficiencies across the org to help drive operating leverage with this, let me now hand over the call to Mohit for the business highlights of the quarter. Mohit Kabra (Group Chief Operating Officer) Thanks Rajesh and hello everyone. The reported financial year presented a challenging operating environment with several external factors impacting travel demand across quarters. The reported quarter was also marred by the West Asia conflict which has impacted westbound international travel and with increasing fuel costs has also led to an increase in domestic airfares. In a highly price conscious market, we were able to partially mitigate the impact of these headwinds by promoting domestic travel with a variety of transport options to suit the varying travel budgets of our customers and promoting eastbound travel within our international travel offerings. India continues to offer a deep and growing domestic travel opportunity supported by improving infrastructure which is helping open travel demand beyond the traditional destinations. While we are dialing up traditional leisure destinations like Goa, Kerala, Rajasthan and Kashmir, we are now actively promoting the relatively under explored destinations of for example, the Northeast. We are also tapping into the potential of pilgrimage plus pleasure trips, combining visits to pilgrimage destinations with activities or holiday options in or around those destinations. Short duration drive down holidays or breaks are also gaining popularity and we are curating more of such options for our customers across the length and breadth of the country. This is being done by curating relevant supply, strengthening partnerships and targeting customers with more contextual offerings as well as curating destinations and products where the travel confidence and affordability remains strong. For customers who are finding increasing airfares as a deterrent to travel, we have dialed up our ground transport offerings to retain or spur up domestic travel demand. We have added new supply to take the private bus inventory to an average of 46,000 daily schedules during the reported quarter. To channel new supply of routes to higher demand categories or sectors, we have revamped the route suggestions module for our suppliers of bus services. This enables them to figure out routes that have unmet demand and add more inventory on those routes. As a result, our bus ticketing volumes for the quarter grew by 27.6% year on year and for the full year grew by 32.9% year on year. And the intercity cabs business, which is a relatively new business, has also seen growth at over 20%. Demand on a variety of these routes was also aided by regional festivals during the quarter As a result of providing variety of transport options that suit the travel budgets of our varied customers, we were able to deliver strong volume growth of 15.2% in our accommodation business which includes hotels, homestays and holiday packages. It might be relevant to call that as per HPS analog research, the occupancy in the accommodation industry during the reported quarter is likely to or slightly negative on a year on year basis. This year on year growth of 15. 2.2% is also notable as it has come in in a quarter which has been impacted by the high base of Kumbh related one time demand in the same quarter of last year. Long weekends and drive down holidays are emerging as important growth drivers as more consumers or customers increasingly look for short haul, convenient and value oriented travel options. We recorded our highest ever domestic hotel check INS on the 24th of January weekend, crossing 200,000 room nights on a single day for the first time. One particularly notable trend is the rise of spiritual and pilgrimage tourism. Accommodation bookings for spiritual destinations have continued to demonstrate strong momentum even after the event of last year, highlighting the structural rise of pilgrimage and faith based tourism in India. Pilgrimage has always been embedded in India's culture. We are witnessing now a growing wave with more and more Indians across age groups actively choosing spiritual travel as part of their lives. This also reflects that travel in India is increasingly emotional, cultural and experience driven and not just transactional. We continue to differentiate ourselves through unmatched spread and selection, offering customers a breadth of inventory across destinations, price points as per their travel needs. This extensive choice combined with our strong platform experience allows us to serve a wide range of travel preferences more effectively. We now have over 100,000 accommodation options available on the platform covering more than 2050 cities and in the country. During the last year we sold room nights for over 12,000 new properties for the first time on our platforms. In the homestay segment we continue to invest in building the category and are enhancing our product proposition to improve customer experience and broaden the appeal of these kind of stays. We believe this remains an important long term opportunity and we are focused on on strengthening the value proposition for both travelers as well as our supply partners. We launched Quick Commerce and food delivery Serviceability status on relevant property page details for many of such accommodations. Surfacing availability of essentials and food delivery upfront improves trip planning convenience for our customers and reduces the pre booking anxiety. We also enhanced visibility of caretaker and on site support information across these listings. Clearer disclosure of presence, availability and responsibilities helps the guests better assess the stay experience and on the ground and provide on ground assistance. Our holiday packages business and homestays business continue to scale well during the quarter we completed our acquisition of the majority stake in Flamingo Transworld a regional group holiday packages business based out of Gujarat in India. Flamingo has a strong presence in the state of Gujarat, Maharashtra, Rajasthan and Uttar Pradesh with curated group tours known for regional focus, customized experiences and servicing of international travelers. This is going to add to our strength of the holidays business, particularly on the international side coming to our integrating business. This was impacted by a combination of supply side and geopolitical factors. During the first three quarters, the domestic aviation market was affected by geopolitical issues and capacity constraints leading to limited growth. Despite underlying demand remaining healthy in the fourth quarter, the West Asia conflict has created uncertainty and impacted westbound traffic from India. This has impacted both international air ticketing as well as international accommodation business for us. Some of this uncertainty is continuing in the current quarter as well. Elevated crude oil prices and a depreciating rupee are weighing on international travel, though both higher airfare and softer discretionary demand for outbound trips. This is also leading to profitability pressures for the airlines and some of the airlines have already curtailed their international capacity during the reported quarter. Both domestic and international flight departures witnessed degrowth as compared to the same quarter last year. While domestic flown passenger market for the quarter declined by 1.5% year on year, the decline in the international passenger traffic was even higher at 6% year on year. We continue to grow in line with the industry while maintaining our leading market share in the air ticketing business. Just as our booking of travel services including mobile, including multiple transport options is helping us meet the travel budgets of our varied retail customers, our differentiated demand segments are also helping us drive better than industry growth. While the West Asia crisis has had a higher impact on retail demand, corporate demand continues to remain strong. Our corporate travel businesses via Both our platforms, that is MyBiz and Quest2Travel saw not only growth from existing accounts but also new acquisition. Our active customer count on Mybiz is now over 76,800 corporates compared to 64,000 of them during the same quarter last year. Similarly for Q2T, the active customer count has now reached 548 large corporates compared to 507 such corporates during the same quarter last year. Across the two platforms, we now service over 1500 large corporate customers. Lastly, we made a strategic minority investment and visa servicing agreement with Atlas Visa, a visa processing platform. This investment will allow makemytrip travelers to benefit from a streamlined visa application process as well as create an opportunity for MakeMyTrip to cross sell its travel offerings to the customer base of Atlas Visae. Before I hand over the call to Deepak to present the financial summary, I would like to call out that we remain cautiously optimistic in view of the ongoing geopolitical issues. Just as Covid offered us a silver lining in terms of utilizing the team to invest in new platforms to tap into corporate and small travel agent demand, we are now investing in an AI first approach to build AI enabled platforms for the future. This will span across our investments in product innovation, personalization, supplier partnerships, service reliability and building platform native revenue streams to drive traffic monetization. It will also be important to call out that we have built a playbook to manage demand volatility with a disciplined approach on optimizing costs in line with market conditions and ensuring operating leverage in our business. This, along with our diversified business model, strong brand equity and deep customer relationships should keep us well positioned to capture the next phase of growth as demand conditions improve. With this, let me now hand over the call to Deepak for financial highlights of the quarter. Deepak Pora (Group Chief Financial Officer) Thanks Mohit and hello everyone. We started January on a strong note with healthy growth across the businesses. In February, our growth rate moderated and was broadly in line with our expectations given the higher base from cum related demand in the same period of last year. March was impacted by the conflict which created pressure on demand. Even so, overall growth for the quarter remained decent and demonstrated the resilience of our business. For the full year. IFRS revenue grew by 10.7% YoY in constant currency. Our results from operating activities, which is equivalent to EBIT, was at $156 million in FY26, witnessing a strong growth of 30.1% YoY even in an impacted year. We continue to improve our unit economics through better mix operating discipline and steady execution across the platform. As a result, overall profitability for the year improved meaningfully. Adjusted operating profit margin expanded to 1.82% of gross booking in FY26 compared to 1.71% in FY25. Importantly, even in a quarter that was impacted by external events, we were able to maintain profitability which reflects the strength of our business model and benefits of disciplined cost management. Moving on to our segment results for the quarter, our air ticketing adjusted margin stood at 99.3 million, registering a YoY growth of 10.7 YoY in constant currency while the volume declined due to disruption. We achieved robust growth in adjusted margin on the back of a strong ancillary attached and better unit economics. For the hotels and packages segment we recorded strong volume growth of 15.2% YoY with standalone hotels growing faster at 15.5% YoY on the back of a strong demand in domestic hotel segments. International hotel segment growth was impacted this quarter due to the conflict. Like International Air as explained last quarter we are witnessing a mixed shift between the hotel segment by GST reduction leading to a lower ASP (Average Selling Price). In line with this the shift our gross booking growth was at 10.8% YoY in constant currency and adjusted margin growth was at 11.5% YoY in constant currency for the full year. Hotel and packages adjusted margin growth was at 15.7% yoy in constant currency. In our bus ticketing business the adjusted margin stood at 41.1 million registering a YoY growth of 17.1% in constant currency terms. This is little lower than the trend due to the impact of one time Kumbh-related demand in quarter four of last year. Our ancillary business which is part of other segment is scaling up well. This is helping us get a larger share of wallet of our customers by building. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.