Are marketing spends expected to be higher as a percentage of GMV due to disruptions, or will AI-led benefits keep them under control?

No significant change in marketing spend trending. Small changes may occur due to mix shift towards higher-margin categories. AI's focus is on personalization and curation, not sharply reducing customer acquisition cost, though productivity benefits are seen in other areas. “On the marketing side, Sachin, no significant change from what the trending has been over the last few quarters. And there will be small kind of changes coming in from the shift in mix, particularly as the airline mix goes down, as you know, the spending is slightly higher on the higher margin categories.”

What kind of fungibility is being considered between the India and US listings, and what is the timeline for this to happen after the India IPO?

The process for fungibility can only start after the India IPO. Options include ADRs, inverting the structure, or a merger, subject to regulatory environment changes. The intent is to allow investors seamless participation between the two listed options. Timeline is hard to predict due to regulatory variables, but could be short if regulatory changes occur. “Clearly, a few options that are kind of available. One of the options is to kind of look at a potential kind of an ADR or say there are also options inverting of the structure or a merger of the structure is possible, whether with the NCLT route with the RBI route.”

Why was cash from operations down due to working capital impacts? What market share is the company seeing in volume terms for hotels and bus ticketing given strong growth?

Working capital deployment increased due to rapid growth in the B2B corporate business (myBiz) and seasonality (lower advances in Q1). For hotels and ground transport, market share is difficult to quantify precisely due to lack of public market data, but the company's strong growth (20%+ in hotels, 24%+ in bus) suggests significant market share improvement compared to expected single-digit to low double-digit segment growth. “So that has impacted the working capital, but it's a seasonality feature and in line with the growth of our corporate business.”

MMYT

MakeMyTrip (MMYT) Q1 FY27 earnings call: the analyst Q&A

Earnings call· Jun 2026 (Q1 FY27)· Industrials· Aug 3, 2026

Source: earnings call transcript

Executive summary

MakeMyTrip Q1 FY27 — Strong Performance Amidst Headwinds, AI-Driven Efficiency

MakeMyTrip delivered a strong Q1 FY27, navigating significant macro and geopolitical headwinds with diversified offerings. The company leveraged resilient domestic travel demand and non-air segments to offset softness in air ticketing, while AI investments are driving operational efficiencies and enhancing customer experience. Strategic moves like the India IPO filing aim to strengthen the balance sheet and enhance market presence.

Highlights

Gross booking value grew 19.9% YoY in constant currency terms.
Hotels and Packages adjusted margin grew 21.3% YoY in constant currency.
Bus ticketing adjusted margin grew 32.4% YoY in constant currency, with volume growth of 23.9%.
AI-powered customer support bot independently resolves over 50% of customer calls.
Ended the quarter with a strong cash and cash equivalent balance of $794 million.

Concerns

International flight departures witnessed a degrowth of 13% YoY.
Domestic departures were flat YoY.
Reported PAT for the quarter was $9.1 million, impacted by noncash interest and FX loss.
Working capital deployment increased due to corporate business growth and seasonality.

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Air ticketing Adjusted margin grew due to strong ancillary attach and better unit economics, despite marginal volume decline from macro headwinds. Domestic departures were flat, while international flight departures saw a significant degrowth. Adjusted margin growth: 10.8% YoY in constant currencyVolume: marginally declinedDomestic departures: flat YoYInternational flight departures: -13% YoYDomestic air ticketing market share: 30%	—	—	—	$98.5 million
Hotels and Packages Strong volume growth, particularly in stand-alone hotels, benefited from a shift in leisure demand towards domestic travel. International hotel segment growth was impacted by the conflict, similar to international air. Gross booking growth: 19.6% YoYAdjusted margin growth: 21.3% YoY in constant currencyVolume growth: 19.9% YoYStand-alone hotels volume growth: 20.2% YoY	—	—	—	$134.5 million
Bus ticketing Continued strong growth, supported by elevated airfares driving consideration for ground transport, supply additions, wider route coverage, and India's highway infrastructure development. Adjusted margin growth: 32.4% YoY in constant currencyVolume growth: 23.9% YoY	—	—	—	$51.8 million
Other segment (Ancillaries) The ancillaries business is scaling up well, helping to capture a larger share of customer wallet by building attach of ancillary services. Adjusted margin growth: 27.2% YoY in constant currency	—	—	—	$24.9 million

MMYT operating KPIs by quarter

MMYT operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Mar 2026 Q4 FY26	This call Jun 2026 Q1 FY27	Change vs prior quarter
Corporate customers MyBiz	76K+ Our active customer count on MyBiz now over 76,000 during the same quarter last year. Source: earnings call transcript	79K+ Our active SME and MSME corporate customer count on myBiz has grown by almost 19% year-on-year to over 79,000 customers. Source: earnings call transcript	—
Market share Domestic aviation	30.8% And by the way, despite all these headwinds, and we didn't really call out -- that number out this time around in the script, but our market share on domestic aviation market, despite everything, given that we are growing we always end up doing better than the industry is at 30.8%. Source: earnings call transcript	30% In line with our call-out strategy, we continue to maintain a leading 30% share of the market of the domestic air ticketing industry. Source: earnings call transcript	-0.8 pt

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

Product	Type	Timeline
Myra 2.0	launch	Q1 FY27
AI-powered smart filters	launch	Q1 FY27
Guaranteed early check-in or guaranteed late checkout	launch	Q1 FY27
OneCircle	launch	FY27
Star Host program	launch	Q1 FY27
Price Drop Protection	launch	Q1 FY27
Visa Guide	launch	Q1 FY27
Seamless native flight booking experience on PhonePe	launch	Q1 FY27
Comfort Score	launch	Q1 FY27

Deals & partnerships

PhonePe Reinitiated partnership to expand distribution footprint and reach a larger base of high-intent digital customers.

Partnership for bus ticketing and seamless native flight booking experience powered by Goibibo brand within the PhonePe app.

SEBI and stock exchanges Confidential filing of a pre-filed Draft Red Herring Prospectus for an initial public offering and listing of equity shares of MakeMyTrip India Limited.

MakeMyTrip India Limited, a wholly owned subsidiary, filed for an IPO. MMT India will remain a subsidiary and be included in consolidated financials. Entities may evaluate alternatives for fungibility between India and US capital markets.

Risks & headwinds

West Asia conflict Q1 FY27 (continuing impact)

Disrupted flight operations, increased caution for international travel (particularly westbound routes).

Mitigation:Diversified product offerings, alternative transport/accommodation options, focus on East/Far East destinations and domestic travel.

Higher fuel costs and ATF prices Q1 FY27 (continuing impact)

Translated into elevated airfares, affecting westbound international travel and price-sensitive domestic air demand. Also affected airline profitability, leading to short-term capacity cuts.

Mitigation:Focus on non-air ticketing segments, calibrating marketing investments, leveraging ground transport options.

Weakening of Rupee Q1 FY27

Impacted reported numbers, with a ~10% impact on YoY growth in Q1 FY27 due to currency movement (USD and INR depreciation).

Mitigation:Constant currency growth numbers are presented as the best representation of health; no direct operational mitigation stated for FX impact on reporting.

Domestic air supply easing and industry growth uncertainty Near-term (Q2 FY27)

DGCA data shows potential for higher drop in segments for JAS season; flights industry seeing degrowth (almost -2% in market).

Mitigation:Focus on growth from non-flight segments (holidays, hotels, packages, bus ticketing), leveraging diversified offerings, increasing market share during turbulent times.

Working capital deployment Q1 FY27

Cash from operations was down due to increased working capital deployment.

Mitigation:Attributed to growth in B2B corporate business (myBiz) and seasonality (lower advances in Q1); implies a natural consequence of growth and seasonal patterns rather than a specific mitigation.

What to watch in Q2 FY27

Myra 2.0 end-to-end booking traction

next quarter / 1-2 quarters down the line

Current Early days, just about started to come

Target More color on consumer adoption and scale-up

Why it matters

Indicates the success of AI-driven conversational commerce and its potential to improve conversion and customer experience.

As far as end-to-end booking, which is just a very recent launch, it's early days on that, and that is going to be largely start with Myra and don't really go to the existing funnel and complete the transaction completely on Myra in the same interface, either using text chat or voice complete voice interaction or voice come text chat. That part is early. So there, the traction has started to just about started to come. We will have to see, I think 1 quarter, 2 quarters down the line, we should be able to give you more color on that.

Find out whether MMYT delivers this. Inve re-checks your case every morning.

Q&A highlights

Given the ongoing Iran conflict and higher fuel prices, what is the outlook for domestic air supply and overall travel consumption? Can the company maintain 20%+ constant currency growth, or will domestic air supply impact it?

Domestic air segment growth is uncertain, with potential for higher drop in segments. The company is focusing on diversified transport options and non-flight segments (holidays, hotels, bus ticketing) to maintain growth trajectory. Underlying travel intent remains strong, with quick recovery observed after initial disruptions.

“But overall, directionally, that will be the intent to kind of keep it largely in line with the trajectory. The only exception could be 1 quarter here and there. But in general, we should be sort of continue to keep driving that.”

asked by Sachin Salgaonkar · answered by Mohit Kabra

2 min read 5 chapters

Detailed narrative

Impact of External Events and Travel Resilience

The quarter was significantly influenced by external events, including the West Asia conflict and elevated fuel costs, which disrupted flight operations and increased airfares, particularly for westbound international travel. Despite these challenges, the underlying resilience of Indian travel demand, especially for leisure, remained strong. Customers shifted towards domestic destinations, short-duration holidays, and pilgrimage travel, leveraging MakeMyTrip's comprehensive product offerings across hotels and ground transport.

AI-First Transformation and Product Innovation

MakeMyTrip is pursuing an AI-first transformation, integrating AI across travel discovery, planning, booking, payments, servicing, and loyalty. The company launched Myra 2.0, an AI-powered travel assistant, enabling end-to-end conversational booking in 8 Indian languages. Myra handled over 8 million conversations during the quarter, with 45% usage from Tier 2 cities.

AI also generates over 75% of code and resolves over 50% of customer support calls, driving engineering velocity and customer service efficiency.

Growth in Non-Air Segments

Growth in hotels and packages and ground transport helped offset softness in air ticketing. Hotels and packages saw adjusted margin growth of 21.3% YoY in constant currency, driven by stand-alone hotel booking volumes growing 20.2%. Bus ticketing delivered strong adjusted margin growth of 32.4% YoY in constant currency, supported by 23.9% volume growth.

Intercity cabs also grew in the 40s, albeit from a smaller base, demonstrating the strength of the diversified platform.

Strategic Initiatives and Capital Allocation

MakeMyTrip India Limited confidentially filed a Draft Red Herring Prospectus for an IPO with SEBI, aiming to strengthen the cash position and support long-term growth, strategic inorganic initiatives, and security repurchases. The company also deployed $7.8 million in its buyback program during the quarter. Management is exploring options for fungibility between the India and US listed entities post-IPO, subject to regulatory changes.

Market Share and Customer Acquisition Focus

Despite a challenging environment for flights, MakeMyTrip maintained a leading 30% share of the domestic air ticketing industry. The company is focused on increasing market share across non-flight segments, including hotels and ground transport, by investing in customer acquisition and tech capabilities. New partnerships, such as the reinitiated PhonePe collaboration, are expanding distribution and reaching a larger base of high-intent digital customers.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.