Summary of MakeMyTrip Limited (MMYT) Q4 2026 Earnings Call

1Key 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.

2Strategic 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.

3Forward 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.

4Bad 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.

5Notable 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.