MakeMyTrip Q4 FY26 earnings call MMYT

India's travel market is experiencing fundamental structural changes post-COVID, driven by a rising aspirational middle class (projected to grow 50% in 10 years to 300 million by 2032), a shift from occasional to habitual travel (3-6 trips/year), and significant infrastructure development. Operational airports doubled from 74 to 157 between 2014-2024, with 400 expected by 2027, alongside a sharply expanding highway network. Digital infrastructure, including internet penetration and affordable data, has also reduced booking friction, making travel more accessible across Tier 2 and Tier 3 cities.

MakeMyTrip is embedding GenAI across the consumer journey, launching an upgraded Myra conversational interface that now supports planning, booking, and payments with multilingual voice features. Myra handles over 80,000 conversations daily, with 45% usage from Tier 2 cities and 70% of queries in Hinglish. Users interacting with Myra show 10% higher conversion rates and it assisted over 200,000 direct bookings. AI is also enhancing smart search, voice reviews, and driving efficiencies in customer support (33% efficiency in RedBus chatbots) and code development (60-70% of new code is AI-driven).

Despite external headwinds^🌐, the domestic business remains strong, with the company actively promoting underexplored destinations, pilgrimage tourism, and short-duration drive-down holidays. The accommodation business volume grew 15.2% YoY in Q4 FY26, significantly outperforming the industry. MakeMyTrip is expanding its supply, now offering over 100,000 accommodation options and selling room nights for over 12,000 new properties. The company is also dialing up ground transport options like AC buses and intercity cabs, which saw over 20% growth, to cater to budget-conscious travelers.

The West Asia conflict, elevated crude oil prices, and a depreciating rupee have significantly impacted international air ticketing and accommodation, leading to a 6% YoY decline in international passenger traffic in Q4 FY26. While the domestic aviation market also declined 1.5% YoY, the company is mitigating the impact by shifting demand towards Southeast Asia and Far East travel, and leveraging its diversified platform to focus on domestic opportunities. Corporate travel, via MyBiz and Quest Travel platforms, continues to show strong growth, servicing over 1,500 large corporate customers.

For FY26, IFRS revenue grew 10.7% YoY in constant currency, and results from operating activities (EBIT) increased 30.1% YoY to $156 million. Adjusted operating profit margin expanded to 1.82% of gross booking. The company generated $182.5 million in cash from operating activities in FY26, converting 97% of adjusted operating profit. MakeMyTrip repurchased 0.9 million shares for $50.3 million in Q4, utilizing $96.4 million of its $100 million buyback plan for the full year. Cash and cash equivalents stood at over $782 million at quarter-end.

MakeMyTrip completed an internal restructuring to combine Indian brands under a single entity, evaluating a potential listing of its India business. This aims to strengthen the brand and access new capital pools. The company also made strategic investments, acquiring a majority stake in Flamingo Transport, a regional group holiday packages business, and a minority stake in Atlas, a visa processing platform, to enhance its offerings and cross-selling opportunities.