MakeMyTrip Q2 Earnings Call Highlights

Key Points

• Gross bookings rose 20.9% year over year to $2.7 billion on a constant-currency basis, while adjusted operating profit increased 13.8% to $46.2 million despite pressure from geopolitical risks, higher fuel costs, rupee depreciation and constrained airline capacity.
• Non-air businesses drove performance as their share of the mix grew to 63.2%. Hotels and packages, buses and other services posted strong growth, while air departures declined and fares rose 25%–30%.
• MakeMyTrip highlighted expanding AI adoption and a strong balance sheet, with its Myra assistant supporting more than 3,000 daily bookings and the company holding $815 million in cash. It also continues to pursue an IPO for its Indian subsidiary, subject to approvals and market conditions.

MakeMyTrip NASDAQ: MMYT reported 20.9% year-over-year growth in second-quarter fiscal 2027 gross bookings on a constant-currency basis, reaching $2.7 billion, as growth in hotels, ground transportation and ancillary services helped offset pressure on air travel.

Co-Founder and Group CEO Rajesh Magow said the travel company delivered its results amid a challenging environment for India’s travel industry. He cited the West Asia conflict, higher aviation turbine fuel prices, rupee depreciation and constrained airline capacity as factors that weighed on both domestic and international air-travel demand.

“Our strong Q2 performance in a low leisure travel season quarter was led by domestic travel and short-haul international destinations for leisure purpose,” Magow said, adding that corporate travel within India remained resilient.

Adjusted operating profit was $46.2 million, up 13.8% from a year earlier in constant currency. Adjusted net profit before tax also rose 27% to $46.2 million. The company said rupee depreciation reduced reported year-over-year growth rates by roughly 10 percentage points because of translation effects.

Non-Air Mix Expands as Air Demand Declines

MakeMyTrip said its non-air business represented 63.2% of total business mix in the quarter, compared with 61.5% a year earlier. The company maintained a more than 30% share of India’s domestic air-ticketing market, according to management, while outperforming the market in international air ticketing.

However, air travel remained under pressure. Group COO Mohit Kabra said domestic departures declined 7% year over year, while international departures fell 4%, as higher fares and limited airline capacity reduced passenger volumes. Air fares increased about 25% to 30% year over year, according to Group CFO Dipak Bohra.

Air-ticketing adjusted margin increased 14.3% in constant currency to $108.6 million. Bohra said the company benefited from ancillary-product attachment and improved unit economics, though the rise in fares also increased payment-processing costs because those charges are linked to booking value while air-ticket revenue is tied largely to ticket volumes.

Adjusted operating margin was 1.7% of gross bookings, compared with 1.8% a year earlier. Bohra said the company expects the gap between revenue and payment-processing costs to narrow as fares and passenger volumes normalize.

Hotels, Buses and Other Services Drive Growth

The hotels and packages segment, which represented 40% of MakeMyTrip’s business mix, generated adjusted margin of $116.8 million, up 20.2% in constant currency. Hotel and package gross bookings grew 19.7%, while standalone hotel room nights rose 18.6%.

Domestic hotel room nights increased 20.4%, supported by demand for short-duration trips, drive-down holidays, pilgrimage travel and celebrations, management said. International hotel room nights rose at a mid-single-digit rate despite weakness in Middle East and long-haul travel demand.

The company’s domestic accommodation portfolio exceeded 105,000 properties across 2,080 Indian cities at quarter-end. Its directly contracted international hotel portfolio reached 40,000 accommodations, up 30% from a year earlier, spanning about 110 global destinations after the company added 45 cities over the past year.

MakeMyTrip said an AI-enabled recommendation system deployed across its apps increased visitor conversion by more than 2.5%, with nearly 6% gains for super-premium stays such as villas. In the homestay category, the company sold more than 29,400 unique properties across 1,185 cities during the quarter.

Bus ticketing, led by the redBus platform, posted 24.7% volume growth, 29.4% growth in gross bookings and 29% adjusted-margin growth in constant currency. Bus adjusted margin totaled $45.1 million. Kabra said nearly half of the segment’s growth came from inventory additions, particularly on overnight and pilgrimage routes, with the balance coming from market-share gains.

The company’s other segment, including intercity cabs, rail, insurance, foreign exchange, tours, activities and related services, recorded adjusted margin of $24.4 million, up 29.8% in constant currency. Magow said the intercity cab business is growing more than 40% year over year, albeit from a small base.

Company Highlights AI Adoption and Corporate Growth

Management emphasized its investment in artificial intelligence, arguing that travel platforms with bookable supply, transaction capabilities and customer-service infrastructure are positioned to benefit as AI changes travel discovery and planning.

MakeMyTrip said its AI travel assistant, Myra, handles more than 90,000 daily conversations and assists with more than 3,000 bookings each day. Customers who engage with Myra convert at roughly 1.7 times the rate of those who do not, while the conversion multiple exceeds 2.1 times in tier-two and tier-three cities, which account for about 55% of Myra conversations.

Myra resolved more than 53% of post-booking flight and hotel queries autonomously, the company said. AI-powered semantic search accounted for about 10% of hotel searches and delivered conversion rates approximately 24% higher than filter-led searches.

On the corporate side, MakeMyTrip’s myBiz platform served about 84,600 active corporate customers at quarter-end, up from about 75,500 a year earlier. Quest2Travel served 568 large customers, compared with 527 in the prior-year period. The company’s myPartner travel-agent platform added more than 26,000 unique agents transacting for the first time during the quarter.

Balance Sheet and India IPO Plans

MakeMyTrip ended the quarter with $815 million in cash and cash equivalents. It deployed $17.2 million toward its share-buyback program and said it has cumulatively repurchased 2.23 million shares, covering 37% of the share capital expected to be issued in connection with its 2028 convertible bonds.

The company also said it continues to pursue a proposed initial public offering for wholly owned subsidiary MakeMyTrip India Ltd. after making a confidential filing. Management said the timing will depend on regulatory approvals and market conditions, while noting that the confidential filing remains valid for roughly 18 months.

Looking ahead, Magow said the company remains cautious about geopolitical and macroeconomic conditions but continues to see long-term potential in India’s travel market, particularly in hotels, alternative accommodations, buses, cabs, tours and experiences where supply remains fragmented and online penetration is relatively low.

About MakeMyTrip (NASDAQ:MMYT)

MakeMyTrip Limited is an online travel company serving consumers in India and international travelers booking trips to and from the country. Founded in 2000 by Deep Kalra, the company operates through a portfolio of travel brands, including MakeMyTrip, Goibibo and redBus.

The company provides online and mobile booking services for domestic and international flights, hotels and other accommodations, holiday packages, trains, buses, car rentals and airport transfers. Through redBus, it also offers bus ticketing services across India and selected international markets.

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