MakeMyTrip Limited Q1 FY2026 earnings call

Segment Performance

• Air ticketing maintained market share in domestic and saw strong growth in international. Hotels and packages had healthy growth despite domestic leisure impact. Bus ticketing grew strongly. Ground transport and ancillaries also showed growth.

Customer Experience Initiatives

• Launched new zero cancellation product for domestic flights, streamlined airport transfer booking for domestic, and expanded lounge offerings for international travelers.

Product Strategy

• Leveraged Gen AI for hotel booking experience, scaled food-related data coverage to over 21,000 properties, and prioritized wildlife tourism content.

Business Expansion

• International air ticketing revenue grew over 27% year-on-year, international hotels revenue over 45% year-on-year, with international business contributing 27% to total revenue.

Corporate Travel

• Active corporate customer count on myBiz was over 66,500+, and on Quest2Travel, over 515 large corporates.

Air Ticketing: Adjusted margin was $97 million, registering a 11.5% year-on-year growth in constant currency. Maintained market share in domestic air at over 30%. International air ticketing volumes grew over 21% year-on-year, with revenue mix reaching 42%. Hotels and Packages: Adjusted margin was $121.9 million, growing 16.3% year-on-year in constant currency. International mix in hotels and packages revenue was 25.2%. Bus Ticketing: Adjusted margin stood at $42.6 million, with a strong year-on-year growth of over 34.1% in constant currency. Ground Transport (Others): Gross bookings for the quarter were $71.8 million, witnessing a 31.6% year-on-year growth in constant currency. Ancillary services growth was strong, with adjusted margin from this category at $21.5 million, growing 47.4% year-on-year in constant currency.

Guidance

• Management expects full-year growth in the high teens to 20s despite Q1 headwinds. International segment growth is expected to continue, with 30%+ blended growth potential. Focus on operating cost efficiencies to maintain adjusted operating margin in the 1.8% to 2% range of gross bookings.

Risks

• Macro headwinds including operational disruptions and incidents impacting domestic demand.
• Seasonality and external events affecting consumer sentiment and travel demand.
• Competition dynamics and potential supply issues.

Q: Congrats on a good set of numbers in what was looking as a very difficult quarter. How should we think about the upcoming quarters in terms of full-year growth?

A: Expect that the next 3 quarters would drive growth to achieve the full-year target of 20% as the events of May and June brought down the overall number for the quarter but the rest of the segments are expected to perform better.

Q: Just wanted to gauge the consumer sentiment post one-off issues like Pahalgam incident, Air India plane crash. Are you seeing an improvement in sentiment?

A: Started seeing sentiment improving, with June numbers showing recovery. Daily flow numbers in domestic market and international flowing data indicate improvement, and consumer sentiment surveys also show recovery trend week on week.

Q: My first question is on international segment which did well. Do you think the runway of 30% plus growth on a blended basis is still long way to go?

A: It's a combination of underpenetrated online market, adding supply, and macro drivers like rising GDP and disposable income. These drivers are likely to continue, ensuring long-term growth in international segment.

Q: My question is on competition, particularly from airline direct and other OTAs. Any change in competition dynamics?

A: In domestic air, maintained over 30% market share. For other segments, competitive dynamics are generally in line with past, with focus on maintaining meaningful share of suppliers and long-term growth.