MakeMyTrip Limited Q2 FY2026 earnings call

• Travel demand rebounded in Q2 despite being a seasonally slow quarter, with diversified product portfolio helping deliver strong performance. - AI initiatives: Launched beta version of Myra AI-powered conversational travel assistant, which has seen encouraging initial response with over 25,000 conversations daily. Also launched GenAI-powered presales chatbot for cabs and GenAI voice agent for flights and hotels customers. - Business segments: Domestic air market had slow recovery but maintained over 30% market share; international air ticketing grew over 29.6% YOY in constant currency; hotels and packages had 18% volume growth; bus ticketing saw strong growth with all regions up 20%+ YOY; trains business launched food on train feature; corporate travel had strong growth with active corporate customer count on myBiz over 75,500 and on Quest2Travel reaching 527 corporates. - Leadership changes: Mohit elevated to Group Chief Operating Officer, Dipak Bohra joined as Group CFO.

Air ticketing adjusted margin was $102.8 million, registering a year-on-year growth of 10.6% in constant currency. Hotels and packages segment had an adjusted margin of $105.8 million, with a year-on-year growth of 21.6% in constant currency. Bus ticketing business had an adjusted margin of $37.7 million, showing a strong year-on-year growth of 44.1% in constant currency. The others category had an adjusted margin of $20.5 million, with a 29.7% year-on-year growth in constant currency. International business contributes 28% to overall revenue, up from 25% the previous year.

• Expect growth in the 20s medium to long term. - GST benefits and market dynamics are expected to support growth. - Hopeful that domestic air market supply constraints will lift soon, which could further accelerate growth.

Q: On air capacity issue and demand for December quarter?

A: Rajesh Magow said domestic air daily departures expected to get back to about 3,200 plus similar to last year, international air doing well. Early signs of GST benefits and more disposable income expected to boost travel demand.

Q: On marketing expenses and margin improvement?

A: Rajesh Magow said margins strengthened across segments, with improved mix and margins deployed appropriately. Mohit Kabra mentioned margin improvement is somewhat seasonal but expected to remain largely in line going forward.

Q: On buyback and net income?

A: Mohit Kabra said no buyback in current quarter, explained details of buyback program changes. Rajesh Magow clarified zero coupon bonds result in notional interest cost with no real interest payment, so net income may be negatively impacted optically but free cash flow unchanged.

Q: On overall growth profile and competition?

A: Rajesh Magow said company is a one-stop shop with ability to drive growth through other segments despite domestic air slowdown. Mohit Kabra said increasing industrial investments in travel industry are welcome, and company remains market leader with strong brand and continuous innovation.

Q: On guidance and hotels segment?

A: Mohit Kabra explained adjusted margin is the basis for guidance. Aditya Suresh asked about hotels segment trends, with Mohit Kabra noting adjusted margin growth in hotels was strong and held well.

Q: On AI assistant success metrics and profitability?

A: Rajesh Magow said Myra is in beta with encouraging insights, focus on fine-tuning and consumer adoption. Mohit Kabra discussed profitability benchmark, stating focus on growth in short term with potential for higher margins in longer term as mix improves.