MakeMyTrip NASDAQ: MMYT reported fiscal 2027 first-quarter growth in its hotels, packages and ground transportation businesses, helping offset softer air-ticketing trends amid geopolitical disruptions, higher fuel costs and elevated airfare levels.
Group Chief Executive Officer Rajesh Magow said the quarter began with the continuing effects of the West Asia conflict, which disrupted flight operations and made travelers more cautious about international travel, particularly on westbound routes. As flight operations resumed, higher fuel and aviation turbine fuel costs contributed to higher fares and short-term airline capacity reductions.
Magow said leisure travel demand remained resilient during the peak summer period, although international leisure travelers shifted some demand toward eastern and Far East destinations. Domestic leisure demand also included travel to popular destinations as well as shorter road-based getaways. Essential and business travel remained largely uninterrupted, except for long-haul westbound business trips, he said.
Financial results and segment performance
Chief Financial Officer Dipak Bohra said gross bookings grew 19.9% year over year in constant-currency terms, while IFRS revenue increased 16.1% on the same basis to $285.6 million. Adjusted operating profit was $51.4 million, with adjusted operating profit margin maintained at 1.8% of gross bookings.
Bohra noted that MakeMyTrip reports in U.S. dollars but operates primarily in Indian rupees. Currency translation reduced reported year-over-year growth figures by about 10 percentage points during the quarter, he said, making constant-currency metrics a more representative measure of operating performance.
- Air-ticketing adjusted margin totaled $98.5 million, up 10.8% year over year in constant currency. Flight volumes declined marginally, but the company cited stronger ancillary product attachment and improved unit economics.
- Hotels and packages adjusted margin rose 21.3% in constant currency to $134.5 million. Segment gross bookings increased 19.6%, while volume rose 19.9% and standalone hotel booking volumes grew 20.2%.
- Bus-ticketing adjusted margin increased 32.4% in constant currency to $51.8 million, supported by 23.9% volume growth.
- Adjusted margin in the company’s other segment, including ancillary offerings, rose 27.2% in constant currency to $24.9 million.
Reported profit after tax was $9.1 million, after including $29.3 million of non-cash interest expense on zero-coupon convertible bonds and a $5.1 million translation-related foreign-currency loss. Adjusted net profit before tax was $52.2 million.
The company ended the quarter with $794 million in cash and cash equivalents and deployed $7.8 million toward its share-buyback program.
Hotels, ground transport and new products
Group Chief Operating Officer Mohit Kabra said MakeMyTrip benefited from travelers choosing domestic stays, shorter holidays, pilgrimage-oriented trips and more affordable ground transportation alternatives. The company now offers more than 101,000 accommodation options across over 2,070 Indian cities, he said.
During the quarter, the company introduced features intended to help travelers identify multi-bedroom properties and understand room layouts. It also launched a paid guaranteed early check-in or late check-out feature, which allows travelers to secure room access aligned with their schedules at the time of booking.
MakeMyTrip also launched One Circle, a cross-network hotel rewards program initially covering more than 13,000 properties in India and international destinations. The program is intended to allow travelers to earn and redeem rewards across hotels, homestays and villas, while giving participating accommodation providers access to a wider base of customers, Kabra said.
In homestays, the company launched its Star Host program to identify hosts meeting specified standards for guest ratings, responsiveness, booking performance and content quality. In tours and activities, MakeMyTrip said its international experiences catalog spans more than 250,000 offerings across 1,100 cities and 139 countries. It also launched domestic experiences across more than 50 Indian cities, with more than 3,000 products.
Kabra said group tours expanded to more than 15 destinations, with about 90 departures during the quarter across destinations including Vietnam, Singapore, Georgia and Almaty. About one-fourth of the company’s tours and activities are purchased while travelers are already on a trip, he said.
The company renewed its partnership with PhonePe for bus ticketing and reintroduced a native Goibibo-powered flight-booking experience within the PhonePe app after a roughly two-year hiatus. MakeMyTrip also introduced a customer-generated “Comfort Score” for bus seats and sleepers, along with a flight “Price Drop Protection” product and destination-specific Visa Guide.
AI initiatives and operating efficiency
Magow said MakeMyTrip is pursuing an “AI-first” strategy across discovery, planning, booking, payments, service and loyalty. The company launched Myra 2.0, an updated AI travel assistant that supports conversational booking through text, voice or a combination of both across eight Indian languages.
Myra handled more than 8 million conversations during the quarter, including more than 3 million in June, according to Magow. More than 45% of usage came from tier 2 and smaller cities. The company also launched AI-powered natural-language filters for hotel and flight listings.
Management said AI now generates more than 75% of the company’s code, while its AI customer-support bot independently resolves more than 50% of customer calls. Magow said the support automation is reducing outsourcing costs and that the company believes the automated resolution rate could rise to 65% to 70% without substantial additional development work.
Marketing and sales-promotion expense was 5.4% of gross bookings, compared with 5.2% in the preceding quarter, a change Bohra attributed to normal seasonality. Management said initial AI-led efficiency gains in personnel and general and administrative expenses helped offset higher marketing intensity.
India listing plans and outlook
MakeMyTrip India Ltd., a wholly owned subsidiary, confidentially filed a pre-filed draft red herring prospectus with India’s Securities and Exchange Board and stock exchanges on July 17 for a proposed initial public offering and listing. Bohra said the Indian unit would remain a subsidiary and continue to be included in MakeMyTrip’s consolidated financial statements after the offering.
The company said proceeds received by MakeMyTrip Mauritius from the sale of shares in the Indian subsidiary are expected to support long-term growth, strategic acquisitions and repurchases of securities, including convertible securities. Management also said it may consider future alternatives that could enable investors to participate more seamlessly between securities listed in India and the U.S., subject to regulatory conditions.
Looking ahead, Magow said higher oil prices and rupee weakness remain important variables for travel inflation. The company said it would remain cautious about near-term conditions while continuing to emphasize growth opportunities in non-air-ticketing categories and calibrating marketing investments to market conditions.
About MakeMyTrip (NASDAQ:MMYT)
MakeMyTrip Inc is an online travel company that provides a comprehensive suite of travel products and services through its website and mobile app platform. The company's offerings include air ticketing, hotel reservations, holiday packages, rail and bus ticket bookings, ancillary travel services such as travel insurance and visa assistance, and corporate travel management solutions. By leveraging technology-driven platforms, MakeMyTrip aims to deliver convenience, competitive pricing, and a seamless booking experience for both retail and business customers.
Founded in June 2000 by Deep Kalra, MakeMyTrip has grown to become one of India's leading travel technology firms.
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