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Date
Tuesday, May 19, 2026 at 7:30 a.m. ET
Call participants
- Co-Founder & Group CEO — Rajesh Magow
- Group Chief Financial Officer — Mohit Kabra
- Group Chief Financial Officer (Data, Reporting) — Dipak Kumar Bohra
- Vice President, Investor Relations — Vipul Garg
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Risks
- Management cited the ongoing West Asia conflict as a source of demand pressure, with explicit impact on westbound international travel and elevated domestic airfares due to rising fuel costs.
- Dipak Kumar Bohra reported a “$17.7 million” translation-related foreign currency loss due to “the sharp depreciation of INR by 4.45% over the last quarter.”
- Mohit Kabra stated, “The decline in the international passenger traffic was even higher at 6% year-on-year.” He added that the company continues to grow in line with the industry while maintaining its leading market share in the air ticketing business.
- Management emphasized that Q1 could be further impacted: we do believe, yes, there will be impact on the impact on the on the growth trajectory. However, we should just keep in mind that this is also a seasonally better quarter on travel. And therefore, we are trying to kind of, you know, make as much as possible by dialing up domestic travel offerings providing increasing, you know, variety of travel options to customers on the domestic front. To try and capture the demand or move the demand from international to domestic to the best extent possible.
Takeaways
- Gross Bookings — $10.4 billion reported for the full year, reflecting a 34% compound annual growth rate over four years and record platform activity.
- IFRS Revenue Growth — 10.7% year over year in constant currency for the full year, demonstrating continued topline expansion.
- Operating Activities Result (EBIT) — $156 million for the year, an increase of 30.1% year over year.
- Adjusted Operating Profit Margin — 1.82% of gross bookings, up from 1.71% in the prior year, indicating improved operating leverage.
- Air Ticketing Adjusted Margin — $99.3 million for the quarter, up 10.7% year over year in constant currency, even as volumes declined due to disruptions.
- Hotels and Packages Volume Growth — 15.2% year over year for the quarter, with standalone hotels growing 15.5% year over year amid flat industry occupancy.
- Bus Ticketing Volume Growth — 27.6% year over year for the quarter and 32.9% for the full year, led by expanded supply and technology enhancements.
- Bus Ticketing Adjusted Margin — $41.1 million for the quarter, a 17.1% increase year over year in constant currency, despite a one-time demand boost in the previous year.
- Other Segment Adjusted Margin — $25.4 million for the quarter, up 27.1% year over year in constant currency; $95 million for the year, up 37.1%.
- Cash Generated from Operating Activities — $182.5 million for the year, with 97% conversion from adjusted operating profit.
- Share Buyback — 900,000 ordinary shares repurchased for $50.3 million in the quarter; $96.4 million utilized under the $100 million program for the year, including convertible bond buybacks.
- Strategic Investments — $22 million deployed in Flamingo Transport acquisition and minority stake in Atlas, broadening holiday and visa processing capabilities.
- Cash and Cash Equivalents — Over $782 million at quarter-end, underscoring robust liquidity.
- AI Initiatives — Myra, the conversational AI interface, exceeded 80,000 daily consumer conversations by period end, with 45% usage in tier 2 and smaller cities; AI-enabled customer support now resolves 55% of flight and hotel queries digitally.
- India Listing Preparation — Internal restructuring completed with the merger of Red Bus India into MakeMyTrip India to prepare for a potential India listing, as disclosed.
Summary
MakeMyTrip (MMYT +3.76%) presented record gross bookings and double-digit adjusted margin growth, accompanied by high-margin expansion in its accommodation and bus ticketing businesses. The company rapidly scaled its proprietary AI initiatives, with Myra and automation now central to the consumer journey and support cost structure. Management confirmed robust cash flow generation and concluded major buybacks and strategic investments in the quarter. Internal restructuring was finalized to support a future India listing. Currency depreciation and geopolitical tensions, particularly the West Asia conflict and fuel price increases, produced quantifiable financial headwinds and are expected by management to dampen near-term international growth.
- Standalone hotel segment outpaced overall accommodation growth, supported by sustained volume increases even as “overall occupancy has actually remained flattish or might even go negative” according to Mohit Kabra.
- New bookings reached a single-day record of 200,000 room nights for domestic hotels on the Jan. 24 weekend.
- Corporate travel active customer counts on myBiz and Quest2Travel rose to 76,800 and 548, respectively, broadening business travel exposure.
- Myra users exhibited 10% higher conversion rates than those using traditional booking flows, quantifying an early uplift from AI deployment.
- Adjusted net profit reached $33.8 million for the quarter, while reported PAT was $24.3 million, with the difference including non-cash bond-related adjustments and currency losses.
- Buyback program utilization approached its $100 million cap, highlighting ongoing capital return, while concluding the year with over $782 million in liquidity.
Industry glossary
- Gross Booking Value (GBV): Total value of all travel transactions booked on the platform before deducting cancellations or refunds.
- Adjusted Margin: Margin metric adjusted to exclude certain non-operating or non-cash items for segmental performance measurement.
- PAT: Profit After Tax; bottom-line net income reported under IFRS.
- Myra: The company’s AI-powered conversational interface for end-to-end travel discovery, booking, and support.
Full Conference Call Transcript
Rajesh Magow: Thank you, Vipul. Welcome, everyone, to our fourth quarter and full year call. Fiscal 26. 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.
The world opened in 2022, the rebound that initially looked to be pent up demand soon formed a new baseline. coming out of the quiet phase due to pandemic, This robust shift in demand is reflected in our reported numbers where gross bookings went from approximately 3.2 billion fiscal year 22 to 6.6 billion in fiscal year 23 and a record 10.4 billion in fiscal year 26. Compounding at 34% over 4 years. This was a good combination of post-pandemic recovery behavior shift among Indian travelers. Well supported by some key structural macro changes in the Indian economy. Major reasons for this robust demand shift up first is rising in aspirational middle class. As per a study.
Middle income household with annual income between $4.5 thousand to $35 thousand 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 5 years. Tier 2 and tier 3 cities are now major growth drivers, a traveler, Indore or Coimbatore today has the same aspiration and increasingly the same purchasing power as 1 from or Delhi. 5 years ago. It is a massive multiyear 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. No longer saving up for 1 big annual holiday. They are taking multiple trips a year. 3 to 6 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 1 with the longest consumption runway ahead. As per collagen, International’s 2024 research Indian millennials annual travel spend was at $6 thousand. Making travel their single largest discretionary expense 34% of annual spending. These millennials are not yet in their peak earning years.
These millennials are not yet in their 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, new routes, expressways, premium rent, train corridors, the government’s infrastructure investment is creating to meet this demand. Every new airport is a new market for us. Every new direct international route is a new booking India is 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 2027. Providing a multi decade opportunity. India’s highway network has expanded sharply with national highways rising from 91.3 thousand km in 2014 to about 146 thousand km in 2024. While construction speed increased to 33.8 kilometer per day in 2023-2024. Similarly, listed hotel companies are projected to add over 70 thousand keys to India’s hotel sector by fiscal year 30 according to CBRE.
Majority of new additions are being built into undersupplied 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. Location rentals and boutique home sales are capturing out growth because they align with experiential itineraries that favor local immersion over standardized services. The physical infrastructure story only is half the job done today’s digital age. Unless the digital infrastructure has kept pace with it. India has come a long way on digital infrastructure development as well with Internet penetration touching about a billion people with high quality bandwidth affordable with data costs falling from ₹269 per GB in 2014.
To about ₹9 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 25. Combined effect is that checkout friction, historically 1 of the largest causes of bookings abandonment has largely been addressed. A traveler in a tier 3 city with a mid range Android device can now search, compare, book, and pay in under 5 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 the interesting part was that the travel demand remained and robust during the unimpacted months of the year. Reflecting the continued strength of underlying consumer sentiment and destruction.
Operator: Here at MMYT continue to outpace industry growth despite disruptions with healthy momentum across segments. While I think Raj, you might just need to come a little closer because they are fading out at times.
Rajesh Magow: Sure, sure. Sorry. Is it fine now? Is it fine now?
Operator: Yes. Much better.
Rajesh Magow: Alright. 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, 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 twenties during normal periods. And when external headwinds arise, we rely on the strength and resilience of our platform, 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 MakeMyTrip, 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 GenAI all through the consumer journey, leveraging our own proprietary data launching Myra, our conversational interface. Continuing with the journey, we launched an up and more powerful and intelligent version of Myra where a traveler can now complete consumer journey right from planning to making payments within Myra. Using multilingual voice feature. Also now enables seamless natural interactions across flights, hotels, buses, trains, cabs, and end to end itinerary planning. Positioning itself as a true travel companion.
Makes India uniquely exciting in the AI era is also the diversity and scale of consumer behavior. AI allows us to bridge language, trust, discovery barriers in ways that were previously impossible. Over the last quarter, Myra has scaled to over 50 thousand+ conversations every day and is now embedded in 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 thousand conversations per day. For Myra, 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 Henglish 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. Myra has now expanded to 7 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 Myra across discovery, support, booking stages demonstrate 10% higher conversion rates.
Compared to traditional filter led journeys. By making discovery more intuitive and personalized, Myra is reducing friction and accelerating decision making. During the quarter, Myra is assisted over 200 thousand bookings directly. Customers engaged with our AI agent, got their queries resolved, and completed their booking. 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, family stay near Baga Beach with Jain food or Rooftop Pool Hotel in Jaipur with spa access.
Through this, feature, customers now receive and contextually precise explainable results this feature delivers much higher conversion versus traditional filter based journeys. Clearly demonstrating that understanding intent outperforms matching keywords. We have also enabled user reviews through voice. With this feature, we are 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 out the AI chatbot ray in the prebooking user journey as well. Adoption has scaled meaningfully. Regional language use 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 MakeMyTrip an AI native org. With engineering, customer support, supply onboarding, content generation, and market 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 instance, about 60-70% 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 1 of the most underpenetrated travel markets globally, relative to its population and income trajectory, Over the next decade, we believe India could become 1 of the largest travel markets in the world.
Online travel is a multibillion dollar structural growth opportunity and MakeMyTrip intends to play a central role in enabling their journey. As we look ahead, our priorities remain clear. Driving an AI and proprietary data led transformational transformation change in the org to drive the future growth at MMYT. Deep 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 1 stop shop for all travel needs both for our retail and corporate customers. Leverage unique positioning of our 3 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: Thanks, Raj, and hello, everyone. Reported financial year presented a challenging operating environment with several external factors impacting travel demand across quarters. The reported quarter was also marked by the West Asia conflict which has impacted westbound international travel and with increasing fuel cost, 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, Raj, and Kashmir, we are now actively promoting the relatively underexplored destinations of, say, 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 done 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 thousand daily schedules during the reported quarter. The channel needed supply of routes to higher demand categories. We have revamped the root 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 best 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 variety of customers. We were able to deliver strong volume growth of 15.2% in our accommodation business, which includes hotels, home stays, and holiday packages.
It might be relevant to call out that as per HVS and our research, the occupancy in the accommodation industry during the reported quarter is likely to be slightly negative a year on year basis. This year on year growth of 15.2% is also notable as it has come in a quarter which has been impacted by the high base of Qum related 1 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 20 fourth January weekend crossing 200 thousand room nights on a single day for the first time. 1 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 Ayodhya 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 the 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, 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 thousand accommodation options available on the platform covering more than 2,050 cities in the country. During the last year, we sold room nights for over 12 thousand new properties for the first time on our platforms. In the home stay 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 states.
We believe this remains an important long term opportunity, and we are focused on strengthening the value proposition of both travelers as well as our supply partners. We launched quick commerce and food delivery servicity status on relevant property page details of 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 on-site support information across these listings. Clearer disclosure of presence, availability, and responsibilities helps the guest better assess the stay experience and on the ground. and provide on-ground assistance. Our holiday packages business and home stays business continue to scale well.
During the quarter, we completed our acquisition of the majority stake in Flamingo Transport. A regional group holiday packages business based out of Gujarat in India. Flamingo has a strong presence in the state of Gujarat, Maharashtra, Raj, and Madhya Pradesh, curated group tours known for regional focus. Customized experiences, and servicing of international travelers. This is expected to add to our strength of the holidays business particularly on the international side. Coming to our ticketing business, this was impacted by a combination of supply side and geopolitical factors. During the first 3 quarters, the domestic aviation market was affected by geopolitical issues and capacity constraints. which limited growth despite underlying demand remaining healthy.
In the fourth quarter, the West Asia conflict has created uncertainty and impacted westbound traffic from India, has impacted both international air ticketing as well as international accommodation business for us. Some of this 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 to 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 my page is now over 76.8 thousand corporates compared to 64 thousand 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 2 platforms, we now service 1.5 thousand large corporate customers Lastly, we made a strategic minority investment and a visa servicing agreement with Atlas 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. Before I hand over the call to Deep, 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 investment in product innovation, personalization, supply 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 cost, 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 Deep. For financial highlights of the quarter.
Dipak Kumar Bohra: 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 Qum 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 FY 2026, witnessing a strong growth of 30.1% YoY.
Even in an impacted year, we continued 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 f y 2026 compared to 1.71% in f y 2025. 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 our disciplined cost management. Moving on to our segment results, for the quarter, our air ticketing adjusted margins $99.3 million registering a Y o Y 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 attach and better unit economics. For the Hotels and Packages segment, we recorded strong volume growth of 15.2% YoY with stand alone 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 mix shift between the hotel segment by GST reduction leading to a lower ASP in line with this shift, our gross booking growth was at 10.8% YoY in constant currency.
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 $41.1 million registering a Y o Y growth of 17.1% in constant currency terms This is a little lower than the trend due to the impact of onetime comb related demand in Q4 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 the attach of ancillary business.
As a result, adjusted margin from other segment came in at 25.4 million in 2026, witnessing a strong growth of 27.1% YoY in constant currency. For the full year FY 2026, adjusted margin from others was $95 million witnessing a growth of 37.1% YoY in constant currency. Moving on to the expense side. Most expenses came in line Marketing and sales promotion expense for the quarter was at 5.2% of gross booking compared to 5.6% in the previous high season quarter. As a result, our adjusting operating profit for the quarter was at $46.5 million, a margin at 1.82% of gross booking.
The noncash interest cost on our zero coupon convertible bonds for the quarter in the P&L was $27.6 million and also a 1 time gain of $30.6 million due to the change in carrying value of 2028 convertible bonds. And we had a translation related foreign currency loss of $17.7 million which has been significant due to the sharp depreciation of INR by 4.45% over the last quarter. Consequently, reported PAT for the quarter was $24.3 million The adjusted net profit came in at $33.8 million.
We have a strong balance sheet, and our cash flow generation continues to be robust For the full year of FY 2026, we generated $182.5 million in cash operating activities We were able to convert 97% of our adjusted operating profit into cash flow from operating activities As part of our capital allocation strategy during the quarter, we repurchased 900 thousand ordinary shares for an aggregate amount of approximately $50.3 million during this quarter. Total utilization for buyback program, including buyback of convertible bonds during the full year was $96.4 million out of the $100 million plan allocated for buybacks. This was our highest in the market buyback in a single year.
Another $22 million deployment was made for the investment made in Flamingo, and a minority stake in Atlas. Ended the quarter with a cash and cash equivalent of over $782 million As outlined in our March announcement, we completed our internal restructuring to combine all our key brands operating in India under a single entity with the merger of Red Bus India into MakeMyTrip India, These steps were undertaken to enable the company to evaluate a potential listing of the overall India business at the appropriate stage which will strengthen our brand further in India. And allow access to a differentiated and new pool of capital across and retail investors.
A potential listing requires several customary work streams to be completed including regulatory, financial, legal, tax, audit, governance, disclosure, and market readiness preparation. We are working on each of these with our advisers and shall keep periodically update shared with the, market. With that, I would like to turn the call to Vipul for Q&A.
Vipul Garg: Thanks, Deep. Any participant who wish to ask a question can click on the raise hand button on their screen, and we will take the questions 1 by 1.
Operator: The first question is from the line of Manish Adukia of Goldman Sachs. Manish, you may please ask your question now.
Manish Adukia: Thank you, Vipul. Just checking you are able to hear me okay. Right?
Operator: Yes. Please go ahead.
Manish Adukia: Perfect. Thank you. Hi. Good evening, team, and thank you for taking my questions. A few questions. Firstly, thanks for the elaborate color on the overall environment right now. Given the headwinds have persisted in the June as well and given the West Asia conflict, only started in the month of March, is it like fair to assume that things will probably get worse in the near term from a numbers perspective, whether it is GBV or revenue growth, at least in the June quarter. Before they start getting better. And a related question to that, this disruption in demand to outbound travel, particularly westbound travel, is that does that have, like, a negative impact on margins?
Or on margins, the impact is not material? that is my first question, please.
Mohit Kabra: Hi, Manish. Maybe I can take the second question first. So as far as margins are concerned, as you would have seen even in the reported quarter, we have not seen any impact you know, across segments. So we have largely maintained similar kind of, you know, margin levels across our across our segments, and we expect that will continue even towards the upcoming quarter On the on the first 1, in the best issue crisis kind of has to impact us. Right? And we are almost like you know, more than halfway into the into the into the first quarter of the next fiscal year as well.
So we do believe, yes, there will be impact on the impact on the on the growth trajectory. However, we should just keep in mind that this is also a seasonally better quarter on travel. And therefore, we are trying to kind of, you know, make as much as possible by dialing up domestic travel offerings providing increasing, you know, variety of travel options to customers on the domestic front. To try and capture the demand or move the demand from international to domestic to the best extent possible.
Manish Adukia: Thanks, Mohit. And maybe just a quick follow-up on that. I am sorry if I missed if you already disclosed it. If you can just remind us for this quarter, what was the growth in your overall outbound portfolio versus domestic, maybe at a revenue or GBV level? If I recall correctly, outbound out is about 27-28% of your overall revenue. So you can just maybe give us the mix or of growth between domestic and outbound, that will be helpful.
Mohit Kabra: Yeah. Actually, the even considering that, you know, because of the West Asia crisis, international has been significantly impacted. The mix has not moved. You know, or gotten any better during this quarter. So it is largely kind of, you know, remained stable. Therefore, like I was saying, large part of growth has been domestically.
Rajesh Magow: Maybe, Manish, I can just add to the first question a little bit more color for you because, see, while there is and there is obviously Middle East crisis and that is continuing, I think what is different from what it was in March and what it is now is that in March when it started, it was a general overall sentiment drop. You know, there were a lot of cancellations happening and a lot of flights not operating and so on. And now what the situation is, that actually a lot of the flights are back operational now. So it is not that about 65-70% in the GCC region, the flights are operational.
Now it has moved from, like, a complete disruption to you know, inflationary led you know, inflationary led issues. Given the oil and energy prices crisis leading to ATF prices going on going up. So what this particular thing does is that the essential travel and the leisure and the discretionary drops. So to that extent, there will be some travel happening, and we can see that even on our platform, some bookings happening. So that will be a nuance difference between March and what is happening now. We will see how it sort of goes.
And the second very important thing that we are seeing is that particularly in the May onwards, we started seeing, as Mohit was alluding to, the seasonality kicking in, which effectively means that, you know, historically, we have also seen that when people see there is a problem in a particular destination, they quickly change their plans to the other alternative destinations. And because of which, on international, we have seen Southeast Asia and Far East bookings going up and the shift happening on the booking on the domestic travel side. So I think that it is going to be a bit of a mixed bag. And we see overall, you know, be a bit subdued.
But it is not completely a doomsday scenario is what I wanted to highlight.
Manish Adukia: Very clear. Thank you. My second question is on your press release from the month of March, where you did talk about you are evaluating a potential listing in India. 1 is there, like, a timeline that you have in mind? Like, 6 months, 12 months, is there, like, an outer limit within which you want to list? And second, you were to list and make my trip India, any early thoughts and color on how you are thinking about the potential fungibility of MakeMyTrip India versus MakeMyTrip Limited and shareholders of MakeMyTrip Limited currently. How do they participate in that? So any early I know it might be too early, but any thoughts you can share?
Mohit Kabra: Yeah. To be to be honest, you know, I am a little too early in the process. Like, they called out you know, the India listing is more you know, a long term kind of any strategy kind of, you know, priority. Considering that, you know, we might have scored businesses in the India market. Right? So we are kind of, you know, like Deep has called out you know, this involves multiple streams to be kind of worked upon. And that work is ongoing. But we do we have a clear indicative timeline? Probably not yet. But we keep, you know, keep we will keep you posted we kind of, you know, keep getting closer to it.
Also, in terms of the existing listing and the potential their listing, Clearly, India does not allow dual listing as such. Right? And therefore, know, to begin with, there will be there will be multiple listings that we will have within the group. And that is that is very, very likely. Over longer term, we kind of aim towards moving a to a singular fungible structure you know, subject to the regulatory and you know, kind of, you know, rules and regulations. From a point of view of making sure that the stakeholder valuation is optimized. Right? So we will keep that in mind. But we will share more color as we as we get closer to the process.
Manish Adukia: Very clear. Just last question if I can sneak in. Raj, thank you so much for all the color on AI and initiatives there. Any anything that you can maybe share on the last few months, all the development around agent ecommerce, and you talked about your own Myra where you can also complete payments. But do you think there are any advantages that frontier models bring where maybe there is possibility that, you know, online travel traffic could shift to them if agentic commerce evolves to a place where consumers may not come to OTA. So maybe your thoughts on in what scenario could agentic commerce be negative for MakeMyTrip or for the OTA industry in general?
That would be helpful. Thank you.
Rajesh Magow: Yeah. So, you know, let’s see how it evolves. Manish. But our view right now is and we have studied it very, very deep. And we continue to as you saw. And that is what I was just trying to sort of give a lot more sort of deep color and the way we are looking at AI from an opportunity standpoint as well. But to answer you the specific question, you know, I think we should keep in mind specific to the OTA model.
There are few fundamental modes that it brings to the to the table, which is which is going to be I mean, never say never. it is not going to be an impossible task to disrupt where it is going to be really highly challenging task. And that is and those sort of 4 big modes are you know, fragmented supply underneath. I mean, you know, imagine the supply that is you know, in the hotel and accommodation space, including the home stays. it is really, really fragmented. And there is a lot of heavy lifting that we need to do as OHEAs, and we have been doing it over the years.
For it to, you know, come on online you know, to sort of leverage the power of online platform. And then there is fulfillment and experience on the post sale side terms of just handholding the customer in case of any needs that after he completes or she completes the transaction that they might have, and there is so much of disruption that takes place in the travel space in general. You know? And I think there is another sort of very deep work that has happened where OTAs have done a in the OTA, you know, there is a deep funnel work that has happened in the model, especially in the emerging markets.
Is the payment side where it is kind of underestimated the number of options and the number of you know, sort of promotional activities that goes on with the commercial alignment and arrangements with multiple sort of partners at the on the payments front. And last but not the least, we is more specific to make my trip, and then maybe the rest of know, the players in the market, is that we have also consciously built capabilities to make our platform like, super comprehensive. With the potentially, every single service being offered and tightly sort of coupled and decoupled at the same time. You know, add as the need be from a consumer point of view.
Now when you bring in all of these elements together, you know, it is it is hard to sort of imagine that for a desired result for the customer, it is going to be an easy thing for an involved sort of buying experience like travel for just do a quick-and-dirty job on agentic e-commerce and bringing know, both the supply and the demand side at the same place, without, you know, any friction. So I guess it is not going to be an easy thing to do. it is going to take a lot. And, you know, relatives, hey. Can you Do we see any of the horizontal players sort of entering into it at this point in time?
In fact, they have already stated that want to probably focus a lot more on the on the planning and the discovery step of the overall journey and not necessarily go deep. it is not easy and probably not the DNA to go really deep in the funnel. Having said this, you know, we on makemotrip, will leave no stone unturned. it is the kind of sort of positioning and direction that I was trying to call out as part of my section in the script. To ensure that you know, leveraging this technology whatever it takes, that we continue to be the first place of choice for all the new user users for travel.
And when they come online as well as for the existing users to make sure that we end up sort of providing a stellar experience. Even in the in the sort of new transformational phase, if you will. So I guess, you know so we have got our strategies in place on both sides, watching the space very carefully and see you know, how we sort of react to it or partner in this in the in that scenario if we need to be. But also keep building your building our own capabilities with the a lot of sort of investment and focus on it. Very clear. Thank you. Back to you.
Vipul Garg: Thanks, Manish.
Operator: The next question is from the line of Sachin Salgaonkar of America. Sachin, you may please ask your question.
Sachin Salgaonkar: Thanks, Vipul, and congrats management on a great set of numbers in terms of, you know, how good was turning out to be a very difficult quarter. I have 3 questions. First question is, you know, to some of the comments what management said in terms of travel moving from, let’s say, west of India to east of India. I presume the ticket size for Southeast Asia versus Europe is a bit low. So in that context, you know, we should expect a bit of an impact. And, again, the domestic traffic does indicate that the month of April is turning out to be soft as compared to what we historically saw.
So the question out here is, you know, is this led by a higher price increase? And if so, then, you know, should we see a bit of an impact on overall usage as fuel price continues to increase? Raj, Mohit, would be great to get a sense at what happened last time when fuel price increased in terms of impact from a demand point of view. that is the first question. Let me pause here.
Rajesh Magow: Yeah. Sure, Sachin. Actually, both the observations are not off, Sachin, I must say. You know? So your first observation saying from west movement to east, and I highlighted that and that is happening. But is the ticket price is going to be lower relatively? The answer is yes. Some part of that gets you know, sometimes compensated because you extend the stay. Depending upon your budget option. But relative to the western side, which is like a mid haul to long haul kind of a holiday versus, you know, relatively shorter day holiday or even if the same duration the ticket size is going to be lower.
So to that extent and as I was saying that, know, not necessarily that we are saying that there is not going to be any impact. There is going to be some impact, but part of it is getting mitigated by this shift number 1, and number 2, on the domestic market. So now coming to your second part of the question, off late now, you know, as I was saying it earlier, in March, it was more sentiment driven, you know, and the real disruption. The flights were not flying. You know, at all. And then some impact of the sentiment was there starting with March and spilled over in April.
And therefore, your observation that April was also relatively slower is also correct. But and that is what I was mentioning earlier. That starting May, we started to see seasonality kick in. We have started to see that momentum coming back, and now I attribute that to that, again, I was just trying to lead you through in our in our script as well that we have seen the bounce back happening very, very quickly as well. Now imagine if there was a sentiment which was quite bad in March and April, there was a bit of a you know, sort of it continued in April.
But starting May, we have started to seeing that sort of general sentiment improving and people starting to book and travel. You know, like, anecdotally, yesterday was the highest booking count for hotels for us on the on our platform. Just very anecdotally. [Inaudible] Now to what extent will it be impacted? International, definitely relatively higher than the domestic market. But on an overall basis, we are hoping that some, you know, in impact will get mitigated. Mitigated with some of these positive trends that we are seeing.
Now, historically, just the last question that you asked, that actually, we have seen, when the fuel prices had gone up, if I recall well, to $90 to even closer to $100 of barrel depending upon which airline you talk about. I think the they were able to sustain it, historically, with some increase in and, you know, absorbing some of the cost and some of the some of it get you know, passing it on to the consumer. And demand was not terribly impacted. But I think the key point here is not necessarily you know, going up for a week and coming down significantly.
If it is stays at that level for a little longer period, that is when the impact starts to sort of clearly become more visible as anecdotally you would have seen Air India announcing that from June onwards, they would be reducing number of flights. So this April, May, June quarter, because it is a high season quarter, I think they are generally directionally going to run the same number of flights, but, you know, come June, June onwards, there is going to be some reductions, Vistara has reduced some flights, but Indigo has not. Right? So it is also a function of how, you know, strong is a particular airline that is operating in the market.
But you know, historically, we have seen you know, if the demand sentiment continues, then even up to as high as about $90 a barrel kind of a number. 90 to $100 was not necessarily, leading to a huge impact. Like I said, the key is going to be how long it kind of stays at that at that level.
Mohit Kabra: Correct. If I may just add sorry. So I think I may just add, you know, for the budget conscious customer, like I had mentioned, you know, we are also trying to make sure that we provide enough and more transport options. So, you know, those who are finding you know, flight prices to be kind of a lot more expensive. And what they would have preferred it to be, We are kind of trying to dial up, you know, AC bus options or say, you know, cab options for them. So as to just make sure that, you know, the overall travel budget is not impacted. The travel demand is not impacted.
And similarly, finding you know, more pocket friendly options on eastbound kind of international travel versus westbound. Thanks, Mohit.
Sachin Salgaonkar: Very clear. And very quickly, my second and third questions. You guys have not changed your EBITDA guidance at adjusted EBIT as a percentage of GMV. I presume that indicates you know, for a foreseeable future, it could be in the range of 1.8-2%. And this is despite, you know, the mix shift happening in favor of high margin hotel. And it is understandable given where things are. So just wanted to confirm. And you are a more love to get your thoughts on how to think about a medium term margin out there. And third question is more a clarification on some of the earlier comments So from what I understand, you know, there will be 2 listings.
US listed and India listed for some point. And eventually, at some point in future, The US entity might be delisted, subject to regulations. Is that, what you guys meant? I just wanted to clarify on that. Thanks.
Mohit Kabra: Yeah. Sure. On the first 1, you are right, Sachin, in view of the current you know, volatility in the travel demand. I think we kind of want to kind of remain in the 1.8 to 2% kind of a you know, margin guidance. And it will be good to kind of, you know, remain there. Because I think we will need a little more you know, stability in the in the in the travel environment. We kind of revisit this guidance. So we are we are we are kind of absolutely right on that. Secondly, yes, on the on the potential India listing. Like I have said, you know, India does not offer dual listing. Right?
And therefore, in a manner of sorts, you know, the currently listed you know, entity of Mauritius will also remain on the US bourses while we kind of take the India duty to India capital markets. Over a longer term period, are a variety of ways for which, you know, fungibility can be created. And we will try to put a place and structure that kind of facilitates that. But beyond that, if you really vet it, even from an investor’s point of view, you know, a large part of our investor base actually has the ability to invest both in India as well as in US.
And therefore, to a large extent, fungibility in some form and shape exists even today. Got it.
Sachin Salgaonkar: Thank you, and all the best.
Vipul Garg: Thanks, Sachin.
Rajesh Magow: Thank you.
Mohit Kabra: Thanks, Sachin.
Operator: The next question is from the line of Vijit Jayan of Citi. Vijit, you may please ask your question now.
Vijit Jain: Yeah. Thanks. Can you hear me?
Operator: Yes. Yes. Please.
Vijit Jain: Yeah. Thank you. So just, you know, double clicking on your comments on trends since May. So, a, you know, I am mindful that at your last year, from May, you know, macro had started to go south. And so to your comment, also, on yesterday being the highest GBV number for hotels ever, I guess 2 questions. 1, does it mean, broadly speaking, there is a more accelerated shift in mix to hotels from air? And second question related to that, in the comment on, you know, traffic shifting from west to east, Is there enough capacity on the east you know, kind of support some kind of a surge there if it continues to persist for some time?
Mohit Kabra: Relatively, if you see, you know, the capacity is not kind of as constrained on the eastern side. You know, for eastbound travel, and therefore we are leveraging that. On the overall kind of, you know, you know, transfer for the current quarter that we are in, know, you are right that, you know, last year, May and June was subdued because of macro events. We continue to see that you know, kind of relatively subdued impact continuing on international. Domestic is something that we are kind of, you know, continuing to dial up on.
And like I had kind of kind mentioned during my call out, we have been able to drive our spread of demand on the domestic side through a variety of things, which is kind of, you know, going much deeper and wider in terms of accommodation options across the length and breadth of the country. Opening up lot more kind of leisure destinations, pilgrimage destinations, you know, to offer greater variety to customers dialing up a lot of short duration you know, you know, drive down kind of, you know, opportunities on the travel side.
Also kind of making sure that you know, in many routes, which are not very long in terms of travel by distance, providing kind of, you know, cabs and buses as an alternative to flights. Just to kind of meet the budget kind of aspirations of the various travelers. So these are all things that we are kind of using to dial up the domestic demand. And we hope we will continue to kind of, you know, keep delivering demand much ahead of industry growth in the accommodation segment.
So if you look at it just as an indication, even in Q4, which is the reported quarter, the overall occupancy has actually remained flattish or might even go negative. as per estimates. And therefore, you know, overall growth for the accommodation industry has been almost flattish. We have posted almost, like, you know, 15%+ growth you know, during the in the reported quarter. So we hope to kind of continue to you know, kind of, you know, be on that trajectory. keep delivering much better growth on the domestic side, international continues to be under pressure.
I mean, you might just see that you know, until about some time back or until about 5 or 6 quarters back, international was kind of, you know, leading the growth charter for us. And that is kind of, you know, turnaround a little bit. But I think that is the advantage of you know, being present across kind of, you know, travel options. As well as transport options. That we can dial up 1 versus the other based on based on prevailing conditions.
Vijit Jain: But so with just a little clarification on that. So in general, for you guys, air has been always a pretty important kind of funnel into your hotel’s business. Right? And to what you mentioned, hotels have done well in 4 q and are continuing to do well this all the various headwinds we see on the air side. Right? So is there you know, if you can give me a color of you know, how your overall funnel has changed over time? You know, what is your overall mix of, you know, people directly coming onto your platform to book hotels first and foremost and those kinds of things. That will be super helpful to understand.
And then I will just have a follow-up question on AI if I can.
Mohit Kabra: On that, Vijit, you know, considering the paucity of time, maybe I will just suggest that we should look at the overall transport options and then kind of look at that opposite the accommodation kind of, you know, opportunity. Rather than look at purely the flight segments. Right? So that is the reason I was calling out that we should look at probably entire set of transport options, including buses and cabs. And there, you would see that the overall growth on transport continues to be healthy. it is just that air kind of, you know, growth in air or flights is lagging. So that is helping us, you know, do much better. Got it.
Rajesh Magow: And, so, Vijit, sorry. Sorry. Just a just a point of response to what you were saying, and it is very important. Is that and the question that whether AIR is critical for us, AIR funnel is very important for us is absolutely yes. It continues to be. It is just the market situation what Mohit is trying to highlight from a consumer point of view. Mhmm. For a certain segment of consumers, if it is expensive, they will move to an alternative mode of transport. And we are seeing that happening on our platform, and therefore, you will see rest of the segments growing.
The, you know, the growth rate is pretty robust whether you see quarter or you see it for the full year. And by the way, you know, despite all these headwinds and we did not really call that out that number out this time around in the script, but our market share on domestic aviation market despite everything, given that we are growing we always end up doing better than the industry. Is at 30.8%. So, in this quarter, we have actually gained 0.2 percentage points as well. So it continues to be very important. it is just the mid- to long-term view.
And, you know, as I was highlighting as part of the infrastructure development, airport infrastructure development is also happening at a very robust pace. Right? So and that is going to be 1 of the sort of nodal transports to drive growth for the country. If you start to look at it from a mid- to long term standpoint. it is just, you know, sort of Correct. countries. Headwinds that we have right now. So in that context, the consumers tend to shift. Got it.
Vijit Jain: Raj, my next question my last question is on AI stuff that you guys discussed, including Myra. Now, you know, when we look at the developments on this, term increasingly being used as a harness on it. And I have seen some you know, reports suggesting that when you build a harness around AI and use your own proprietary data, the in terms of quality of responses is much better in other use cases. Right? So I am just wondering, is it measurable for you guys? You know, you now have launched Myra. It is front and center on the main app. When you are you, A, fully combined? All of your first party and proprietary data in that already?
And can you measure the responses versus what I would get out of a generic, say, ChatGPT query. And then if I can sandwich another related question, is it possible to quantify the cost efficiencies that you could get in the customer support and engineering?
Operator: In interest of time, this will be the last question.
Rajesh Magow: Yeah. Yeah of course. Yeah. Yeah. Sorry. So very quickly very quickly, which is very good question. You know, the answer to the first question, are we using proprietary data? In fact, I had mentioned that very clearly as well along with the LLMs. And marrying the 2 because and just to ensure that there is a harness layer on top of it to make sure that the results or the responses on Myra are relevant and more accurate. The answer is a 100% yes. We have been doing that. Otherwise and that is what you know, this new launch was. In fact, and I guess the second part of your question is about measurement. Yes.
We were able to measure that. We have, you know, clear metrics defined on measurement, specifically on quality of con conversation. Something called, you know, good conversation versus not good conversation that has a clear quality metric attached to it. And we have seen and some of those sort of data points have tried to sort of highlight as well. And, you know, for example, the fact that the conversion on query starting at Myra to the normal funnel, is better than better because it is deeply engaged and you are able to find all the answers, etcetera, in 1 go.
Is better by 10 percentage points clearly indicates that, you know, know, while it is a journey, but, but the quality has been improving, And we will continue to keep sort of progressing well on this journey and keep you all updated on that. And on the cost side, you will you will see this reflecting slowly and gradually. There are a few things that we have already given a highlight, know, like, whether it is you know, productivity improvement on consumer service side, also on the new code development, All of the all of this is going to eventually reflect somewhere. Now on the P&L.
And it is just going to be a bit of a lag effect because there is you know, it is going to be journey where there is going to be AI tooling cost, then there is going to be efficiency kicking in. At some point in time, efficiency is going to you know, sort of show bigger impact than the than the additional cost that is coming from the AI tools. Right? So I think we need to be a little bit patient to see the results, but we are super confident the results will start to reflect, in the in the near future. Thank you, and best of luck.
Vijit Jain: Thank you. Thank you. Thank you.
Mohit Kabra: Thank you, Vijit.
Operator: This was our last question. Over to you, Raj, for your closing remarks.
Rajesh Magow: Thank you, Vipul, and thank you, everyone. Thank you, everyone, for set of questions and your patience for listening in. I know it was a little longish as the 3 of us were presenting, but, thanks again for your patience, and look forward to see you again in the next quarter.
Operator: Thank you, Raj. The call is now over. You may please disconnect. Thank you.
