MMYT — MakeMyTrip Limited

Summary of MakeMyTrip Limited (MMYT) Q4 2026 Earnings Call

1. Key Financial Results and Metrics

• Gross Bookings: Reached a record $10.4 billion for FY 2026, up from $6.6 billion in FY 2023, reflecting a compound annual growth rate (CAGR) of approximately 34% over four years.
• Revenue Growth: IFRS revenue grew by 10.7% year-over-year in constant currency.
• Operating Profit: EBIT was $156 million, up 30.1% year-over-year, with an adjusted operating profit margin of 1.82%, an increase from 1.71% in FY 2025.
• Net Profit: Reported PAT for the quarter was $24.3 million; adjusted net profit was $33.8 million.
• Cash Flow: Generated $182.5 million in cash from operating activities for FY 2026, converting 97% of adjusted operating profit into cash flow.
• Buyback Program: Completed repurchase of $50.3 million in shares during the quarter, totaling $96.4 million for the year.

2. Strategic Updates and Business Highlights

• Market Dynamics: The company highlighted a shift in travel behavior post-COVID, with increased demand from Tier 2 and Tier 3 cities and a growing middle class.
• AI Integration: Launched an upgraded AI-driven interface, Myra, which facilitates the entire travel journey from planning to payment. Myra is now handling over 80,000 conversations daily, significantly improving customer engagement and conversion rates.
• Domestic Travel Focus: In response to geopolitical tensions affecting international travel, MMYT is promoting domestic travel and alternative transport options, leading to a 15.2% growth in accommodation bookings.
• Acquisition: Completed acquisition of a majority stake in Flamingo Transworld, enhancing its group holiday packages business.

3. Forward Guidance and Outlook

• Revenue Growth: Management remains confident in achieving revenue growth in the 20% range during normal periods, despite current headwinds.
• Margin Guidance: Expected to maintain adjusted operating profit margins between 1.8% to 2% in the near term due to ongoing market volatility.
• India Listing: Evaluating a potential listing of MakeMyTrip India, with no definitive timeline yet, but aiming for a structure that optimizes shareholder value.

4. Bad News, Challenges, or Points of Concern

• Geopolitical Headwinds: The ongoing conflict in West Asia has negatively impacted outbound travel, particularly to Europe, leading to a decline in international air ticketing and accommodation.
• Rising Costs: Increased fuel prices are affecting domestic airfares, which may deter budget-conscious travelers.
• Market Volatility: The company is facing a challenging operating environment with external factors impacting travel demand, particularly in the first quarter of FY 2027.

5. Notable Q&A Insights

• Impact of West Asia Crisis: Management acknowledged that the crisis has led to a decline in international travel demand but noted that essential travel continues.
• Domestic vs. International Growth: The mix of revenue has shifted towards domestic travel, which is expected to remain strong despite the challenges in international markets.
• AI and Efficiency Gains: The integration of AI is expected to yield long-term efficiencies in customer support and operational processes, although immediate impacts may take time to reflect in financial results.
• Investor Sentiment: Management reassured investors about maintaining margins and navigating through current challenges by leveraging domestic travel opportunities and AI advancements.

Overall, MakeMyTrip is navigating a complex landscape with a focus on domestic growth and technological innovation, while also addressing the challenges posed by geopolitical tensions and rising operational costs.