MMYT — MakeMyTrip Limited

MMYT Q3 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Revenue Growth: The company reported a 20% year-on-year growth in constant currency, despite challenges in December due to new flight duty regulations.
• Adjusted Operating Profit: Achieved $50.7 million, marking a significant milestone with an adjusted operating margin of 1.82% of gross bookings, up from 1.76% in the same quarter last year.
• Net Profit: Reported a net profit of $7.3 million; adjusted net profit was $51.4 million, reflecting a 33% year-on-year growth in adjusted diluted EPS.
• Air Ticketing Segment: Adjusted margin of $207.9 million, with a 20.4% growth in constant currency, driven by international travel.
• Accommodation Business: Volume growth of 20.3% year-on-year, with a notable surge in bookings due to reduced GST rates on hotel rooms under ₹7,500.
• Bus Ticketing Segment: Margins stood at $42.4 million, up 26.1% year-on-year.

2. Strategic Updates and Business Highlights

• AI Integration: The company is leveraging AI through its platform, Myra, which now handles 50,000 conversations daily with 72% deemed as good quality. This has enhanced customer engagement, particularly in tier two cities.
• Product Expansion: Launched tours and activities, offering over 200,000 bookable activities in 1,100 cities worldwide, addressing the needs of Indian outbound tourists.
• Corporate Travel Growth: Active corporate customers on MyBiz increased to 77,500, and Quest2Travel reached 539 large corporates.
• Marketing Initiatives: Launched a festival travel sale, "Travel Kamhurat Seed," engaging 75 million users and promoting advanced purchase behavior.

3. Forward Guidance and Outlook

• The company expects continued growth in the travel market, driven by economic and technological factors. However, full recovery in domestic air travel supply is anticipated to extend into the next fiscal year.
• The management remains optimistic about the international travel segment, which is seen as a significant growth opportunity.

4. Challenges and Points of Concern

• Disruption from Flight Duty Regulations: New regulations caused a 5% year-on-year decline in domestic daily departures in December, impacting bookings during peak season.
• Mixed Performance in Hotel Segment: While volume growth was strong, gross booking value growth was more moderate due to the impact of GST changes, leading to concerns about pricing dynamics.
• Competitive Pressures: The company acknowledged potential competition from generative AI tools in trip planning, particularly from platforms like Google, which could shift consumer behavior.

5. Notable Q&A Insights

• Hotel Segment Growth: Management clarified that while the hotel segment saw strong volume growth, the impact of GST changes led to a divergence between volume and gross booking value growth.
• Future Marketing Spend: The marketing expense was noted at 5.6% of gross bookings, influenced by a mix shift towards higher-margin segments. Management indicated this could normalize as air travel recovers.
• Trip Planning and AI: Myra's success in enhancing trip planning was discussed, with management viewing generative AI as an opportunity rather than a threat, emphasizing the importance of retaining direct traffic to their platform.

In summary, MMYT demonstrated robust growth in Q3 2026, driven by strong demand recovery and strategic initiatives, despite facing challenges from regulatory disruptions and competitive pressures. The outlook remains positive, with a focus on leveraging technology and expanding product offerings.