MMYT — MakeMyTrip Limited

MMYT Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Adjusted Operating Profit: $44.2 million, up 18% year-on-year.
• Revenue Contribution: International business now accounts for 28% of overall revenue, up from 25% year-on-year.
• Loss for the Quarter: $5.7 million, compared to a profit of $17.9 million in the same quarter last year, primarily due to foreign currency losses and interest costs from convertible notes.
• Adjusted Margin: Improved to 1.8% of gross booking value, up from 1.66% year-on-year.
• Cash and Cash Equivalents: $835 million, an increase of $31 million from the previous quarter.

2. Strategic Updates and Business Highlights

• Travel Demand Recovery: Post Q1's geopolitical tensions and supply constraints, Q2 saw a rebound in travel demand, particularly in international air ticketing (up 29.6% year-on-year) and international hotels (up 42% year-on-year).
• AI Initiatives: Launched AI-powered travel assistant "Myra," which has garnered over 25,000 daily conversations, enhancing user engagement and simplifying the booking process.
• Diversified Product Portfolio: Strong performance in bus ticketing and accommodation, with bus ticketing adjusted margin growth at 44.1% year-on-year.
• Corporate Travel Growth: Active corporate customer count on myBiz increased to over 75,500, up from 59,000 year-on-year.

3. Forward Guidance and Outlook

• Growth Expectations: Despite challenges in the domestic air market, the company anticipates maintaining overall revenue growth in the 20% range for the fiscal year, driven by recovery in air travel and increased consumer spending due to recent fiscal measures.
• Market Dynamics: The company expects the GST reductions to positively impact travel demand, particularly in Tier 2 and Tier 3 cities.

4. Bad News, Challenges, or Points of Concern

• Domestic Air Market: Continued supply constraints led to a 3% year-on-year decline in domestic air passenger growth, with the outlook for recovery still uncertain.
• Foreign Currency Losses: A loss of $14.3 million was recorded due to the depreciation of INR against USD.
• Competitive Pressures: Concerns about increased competition in the travel sector, particularly with a significant minority stake acquired by a competitor's investor, raising questions about market dynamics.

5. Notable Q&A Insights

• Air Capacity Issues: Management indicated that while domestic air capacity is improving, it is not yet back to pre-crisis levels, and international travel is recovering faster.
• Marketing Expenses: Increased marketing costs to 5.2% of gross bookings were attributed to slower consumer spending rather than heightened competition.
• Buyback Program: No stock repurchases occurred in Q2, but the buyback program has been extended and increased, allowing for opportunistic repurchases in the future.
• Profitability Outlook: The focus remains on growth, with expectations that margins may normalize as domestic air travel rebounds.

Overall, MMYT's Q2 2026 results reflect a resilient performance amid challenging conditions, with strategic initiatives in AI and a diversified portfolio positioning the company for future growth, despite facing headwinds in the domestic air market and competitive pressures.