MakeMyTrip Q4 Earnings Call Highlights

Key Points

• MakeMyTrip posted higher full-year revenue and profitability in fiscal 2026, with IFRS revenue up 10.7% in constant currency and EBIT-equivalent results rising 30.1% to $156 million. Gross bookings reached a record $10.4 billion, up from about $3.2 billion in fiscal 2022.
• Travel demand was pressured by the West Asia conflict, which hurt outbound and international travel in the fourth quarter and led to declines in domestic flown passengers of 1.5% and international traffic of 6% year over year. Management said the impact has shifted more toward higher oil and fuel costs and ongoing uncertainty.
• Domestic travel, hotels, buses and AI tools are key growth engines, with accommodations volumes up 15.2%, bus ticketing volumes up 27.6%, and Myra conversational AI driving higher conversion and more than 200,000 bookings in the quarter. The company also ended the year with over $782 million in cash and nearly completed its $100 million buyback plan.

MakeMyTrip NASDAQ: MMYT executives said the company delivered higher full-year revenue and profitability in fiscal 2026 despite repeated disruptions to travel demand, including the West Asia conflict that weighed on outbound and international travel late in the fiscal fourth quarter.

Co-Founder and Group Chief Executive Officer Rajesh Magow said gross bookings increased from approximately $3.2 billion in fiscal 2022 to a record $10.4 billion in fiscal 2026, compounding at roughly 34% over four years. He attributed the growth to a post-pandemic shift in Indian consumer behavior, rising middle-class travel demand, expanding infrastructure and improvements in digital payments.

“Travel has shifted from occasion to habit,” Magow said, adding that booking frequency per user is rising year over year and that three to six trips annually across leisure, religious and long-weekend categories is becoming more common among India’s connected earning class.

Full-Year Revenue and Profitability Improve

Group Chief Financial Officer Deepak Bohra said fiscal 2026 IFRS revenue grew 10.7% year over year in constant currency. Results from operating activities, which he described as equivalent to EBIT, rose 30.1% year over year to $156 million.

Adjusted operating profit margin expanded to 1.82% of gross bookings in fiscal 2026 from 1.71% in fiscal 2025. For the fourth quarter, adjusted operating profit was $46.5 million, also representing a margin of 1.82% of gross bookings.

Bohra said reported profit after tax for the quarter was $24.3 million, while adjusted net profit was $33.8 million. He also cited a $17.7 million translation-related foreign currency loss, driven by a 4.45% depreciation of the Indian rupee during the quarter.

For the full year, MakeMyTrip generated $182.5 million in cash from operating activities, converting 97% of adjusted operating profit into operating cash flow. The company ended the quarter with more than $782 million in cash and cash equivalents.

West Asia Conflict Weighs on International Travel

Executives said January started strongly across businesses, while February growth moderated due to a high comparison with Kumbh-related demand in the prior year. March was impacted by the West Asia conflict, which created uncertainty for westbound international travel.

Group Chief Operating Officer Mohit Kabra said the conflict affected international air ticketing and international accommodations, and that some uncertainty continued into the current quarter. He also pointed to elevated crude oil prices and a depreciating rupee as pressures on outbound travel demand and airline profitability.

During the reported quarter, domestic and international flight departures declined compared with the same period last year. Kabra said the domestic flown passenger market declined 1.5% year over year, while international passenger traffic fell 6%.

In response, the company promoted domestic travel, alternative ground transport and eastbound international destinations. During the Q&A session, Magow said the situation had changed since March, when there was a broader sentiment shock and flight cancellations. He said many flights in the Gulf region were operating again, and that the disruption had shifted more toward inflationary pressures tied to oil and aviation turbine fuel prices.

Hotels, Buses and Domestic Travel Support Growth

MakeMyTrip reported 15.2% year-over-year volume growth in its accommodations business, which includes hotels, homestays and holiday packages. Standalone hotels grew 15.5% year over year, according to Bohra. He said hotels and packages gross booking growth was 10.8% year over year in constant currency, while adjusted margin growth was 11.5% year over year in constant currency for the quarter.

Kabra said the company recorded its highest-ever domestic hotel check-ins on the Jan. 24 weekend, crossing 200,000 room nights in a single day for the first time. He said long weekends, drive-down holidays and spiritual and pilgrimage tourism are emerging as important growth drivers.

The company now offers more than 100,000 accommodation options across more than 2,050 cities in India. During the year, it sold room nights for more than 12,000 new properties for the first time on its platforms.

Bus ticketing also grew strongly. Kabra said MakeMyTrip increased private bus inventory to an average of 46,000 daily schedules during the quarter. Bus ticketing volumes rose 27.6% year over year for the quarter and 32.9% for the full year. The company’s intercity cabs business, which Kabra described as relatively new, grew more than 20%.

AI Becomes a Larger Focus

Magow said MakeMyTrip is working to become an “AI-native” organization and views artificial intelligence as a foundational layer across discovery, planning, booking, servicing and loyalty. He highlighted the company’s upgraded Myra conversational interface, which now allows users to plan and complete payments using multilingual voice features.

Myra has scaled to more than 50,000 conversations per day over the last quarter and more than 80,000 conversations per day in recent days, according to Magow. More than 45% of usage comes from tier 2 and smaller cities, and voice interactions are 50% higher in non-metro markets. Regional languages account for 10% of voice volume, and Myra has expanded to seven additional Indian languages.

Magow said users interacting with Myra across discovery, support and booking stages show 10% higher conversion rates compared with traditional filter-led journeys. During the quarter, Myra directly assisted more than 200,000 bookings.

The company also said AI is driving internal efficiency. Magow said about 60% to 70% of new code is now being written by AI tools, while about 55% of flight and hotel customer queries in call centers are being resolved by a digital voice agent.

Capital Allocation and Potential India Listing

Bohra said MakeMyTrip repurchased 0.9 million ordinary shares for approximately $50.3 million during the quarter. Total utilization under the buyback program, including convertible bond buybacks during the full year, was $96.4 million out of the $100 million plan. The company also deployed $22 million for investments in Flamingo Transworld and a minority stake in Atlys.

MakeMyTrip completed its acquisition of a majority stake in Flamingo Transworld, a Gujarat-based group holiday packages business, during the quarter. Kabra said Flamingo has a presence in Gujarat, Maharashtra, Rajasthan and Madhya Pradesh and will add to MakeMyTrip’s holidays business, particularly internationally. The company also made a strategic minority investment and visa servicing agreement with Atlys, a visa processing platform.

Bohra said the company completed an internal restructuring to combine key India brands under a single entity, including the merger of RedBus India into MakeMyTrip India. He said the move enables the company to evaluate a potential listing of the overall India business “at the appropriate stage.”

During the Q&A session, Kabra said the India listing remains a longer-term strategic priority and that there is not yet a clear timeline. He said India does not allow dual listing, so the current Mauritius-listed entity would remain on U.S. exchanges while an India entity could potentially be listed in Indian capital markets. Over the longer term, he said the company would aim toward a structure that creates fungibility, subject to regulations and valuation considerations.

Executives said they remain cautiously optimistic given ongoing geopolitical issues. Kabra said the company has built a playbook to manage demand volatility by optimizing costs in line with market conditions while relying on its diversified travel offerings, brand equity and customer relationships.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.