MakeMyTrip Limited (NASDAQ:MMYT) Q4 2026 Earnings Call Transcript

MakeMyTrip Limited (NASDAQ:MMYT) Q4 2026 Earnings Call Transcript May 19, 2026

MakeMyTrip Limited misses on earnings expectations. Reported EPS is $0.25 EPS, expectations were $0.31.

Vipul Garg: Hello, everyone. I’m Vipul Garg, Senior Vice President, Investor Relations at MakeMyTrip Limited, and welcome to our fiscal 2026 fourth quarter and full year earnings webinar. Today’s event will be hosted by company’s leadership team, comprising Rajesh Magow, our Co-Founder and Group Chief Executive Officer; Mohit Kabra, our Group Chief Operating Officer; and Dipak Bohra, our Group Chief Financial Officer. As a reminder, this live event is being recorded by the company and will be made available for replay on our IR website shortly after the conclusion of today’s event. At the end of these prepared remarks, we will also be hosting Q&A session. Furthermore, certain statements made during today’s event may be considered forward-looking statements within the meaning of the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995.

These statements are not guarantees of future performance, are subject to inherent uncertainties, and actual results may differ materially. Any forward-looking information relayed during this event speaks only as of this date, and the company undertakes no obligation to update the information to reflect changed circumstances. Additional information concerning these statements is contained in the Risk Factors and Forward-looking Statements section of the company’s annual report on Form 20-F filed with the SEC on June 16, 2025. Copies of these filings are available from the SEC or from the company’s Investor Relations department. I would like to now turn over the call to Rajesh. Over to you, Rajesh.

Rajesh Magow: Thank you, Vipul. Welcome, everyone, to our fourth quarter and full year call for fiscal 2026. Before we take you all through the quarter details, I would like to step back a bit and remind everyone about some fundamental structural changes that have emerged post-COVID that has been shaping the travel market in India. When the world opened in 2022, the rebound that initially looked to be pent-up demand coming out of the quiet phase due to pandemic soon formed a new baseline. This robust shift in demand is reflected in our reported numbers where gross bookings went from approximately $3.2 billion in fiscal year ’22 to $6.6 billion in fiscal year ’23 and a record $10.4 billion in fiscal year ’26, compounding at roughly 34% over 4 years.

This was a good combination of post-pandemic recovery and behavior shift among Indian travelers, well supported by some key structural macro changes in the Indian economy. Major reasons for this robust demand shift are: First is rising and aspirational middle class. As per a Bain study, the middle income household with annual income between $4,500 to $35,000 has been growing at a robust high single-digit annual growth rate and is likely to further grow at an accelerated pace from 200 million in 2022 to 300 million in 2032, a growth of 50% in 10 years. India also added over 70 million passport holders in the last 5 years. Tier 2 and Tier 3 cities are now major growth drivers. A traveler from Indore or Coimbatore today has the same aspiration and increasingly the same purchasing power as one from Mumbai or Delhi 5 years ago.

This is a massive multiyear addressable market expansion, and we are only in its early innings. Second, travel has shifted from occasion to habit. Our data shows booking frequency per user is rising year-on-year. Indians are no longer saving up for one big annual holiday. They are taking multiple trips a year. 3 to 6 trips a year across leisure, villages and extended weekend categories is becoming the new normal for India’s connected earning class. The experiential economy is real and is a big opportunity. The cohort driving this is also the one with the longest consumption runway ahead. As per Collinson International’s 2024 Research, Indian millennials annual travel spend was at about $6,000, making travel their single largest discretionary expense at 34% of annual spending.

Q&A Session

These millennials are not yet in their peak earning years. These millennials are not yet in their even peak earning years. The per trip wallet will only expand with time. Third, the growth of world-class physical infrastructure. The demand story compounds if supply keeps pace, as we all know, new airports, UDAN routes, expressways, premium train corridors, the government’s infrastructure investment is creating supply that meets this demand. Every new airport is a new market for us. Every new direct international route is a new booking opportunity. India’s expanding highway network and airport capacity are making travel faster, easier and more reliable across the country. Better road and air connectivity is opening up smaller cities and tourist destinations, reducing travel time and helping unlock tourism, local spending and regional economic growth.

On aviation, operational airports have doubled from 74 in 2014 to 157 in 2024, improving access beyond major metros and making travel more affordable and widespread, especially for Tier 2 and Tier 3 cities. This is expected to further expand to 400 airports by 2027, providing a multi-decade opportunity. India’s highway network has expanded sharply with national highways rising from 91,287 kilometer in 2014 to about 1,46,145 kilometers in 2024, while construction speed increased to 33.8 kilometer per day in ’23,’24. Similarly, listed hotel companies are projected to add over 70,000 keys to India’s hotel sector by fiscal year 2030, according to CBRE. The majority of new additions are being built into undersupplied Tier 2 markets and spiritual tourism corridors, both of which are future growth opportunities.

Homestays have emerged as a flexible, scalable supply addition as well, now actively supported by Governments. Vacation rentals and boutique Homestays are capturing outsized growth because they are aligned with experiential itineraries that favor local immersion over standardized services. The physical infrastructure story only is half the job done in today’s digital age, unless the digital infrastructure has kept pace in it. India has come a long way on digital infrastructure development as well as with Internet penetration touching about a billion people with high quality bandwidth becoming affordable with data costs falling from INR 269 per GB in 2014 to about INR 9 per GB in 2024. On top of this is the payments infrastructure. UPI processed 640 million transactions daily in 2025, clearing over 16 billion transactions in a single month by late 2025.

The combined effect is that checkout friction, historically, one of the largest causes of bookings abandonment has largely been addressed. A traveler in a Tier 3 city with a mid-range Android device can now search, compare, book and pay in under 5 minutes without a credit card. We have also witnessed Indian market showing resilience to bounce back fairly quickly as the disruption starts to go away. Last year was another such year as it was impacted by many disruptions pretty much every quarter but interesting part was that the travel demand remained resilient and robust during the unimpacted months of the year, reflecting the continued strength of underlying consumer sentiment and the structural growth trajectory of international market. We at MMYT continue to outpace industry growth despite disruptions with healthy momentum across segments.

Mohit Kabra: Rajesh, you might just need to come a little closer because you’re fading out at times.

Rajesh Magow: Sure, sure. Sorry. Is it fine now?

Mohit Kabra: It’s better. Yes, much better.

Rajesh Magow: All right. While our international business started to get impacted in March due to Middle East conflict, the domestic business remains strong. For the reported quarter, March was impacted due to West Asia conflict January and February, we witnessed strong year-on-year growth on a steady-state basis, encouraged by structural changes in the market and consumer behavior to spend more on travel, we remain confident of revenue growth in the 20s during normal periods. And when external headwinds arise, we rely on the strength and resilience of our platform, which offers multiple travel services, serves diverse demand segments to still deliver healthy growth compared to the industry. The other big transformational shift in the digital world is being caused by AI.

At MakeMyTrip, we see AI not merely as a productivity tool but as a foundational layer that can redefine travel discovery, planning, booking, servicing and loyalty. As shared earlier, we have been on our journey to embed GenAI all through the consumer journey, leveraging our own proprietary data besides launching Myra, a conversational interface. Continuing with the journey, we launched an upgraded and more powerful and intelligent version of Myra, where the traveler can now complete consumer journey right from planning to making payments within Myra using multilingual voice feature. It also now enables seamless natural interactions across flights, hotels, buses, trains, cabs and end-to-end itinerary planning, positioning itself as a true travel companion.

What makes India uniquely exciting in the AI era is also the diversity and scale of consumer behavior. AI allows us to bridge language, trust and discovery barriers in ways that were previously impossible. Over the last quarter, Myra has scaled to over 50,000 plus conversations every day and is now embedded across the entire customer journey from inspiration and discovery to booking and post-sales support. Over the last few days, this number has further scaled to over 80,000 conversations per day. For Myra, adoption is broad-based. Over 45% of usage comes from Tier 2 and smaller cities with voice emerging as a key interface. Voice interactions are 50% higher in nonmetro markets with 70% of queries in Hinglish and prompts that are for 40% longer and more complex than text inputs, highlighting deeper engagement and richer intent capture.

Regional languages are also gaining traction, contributing 10% of voice volume today. Myra has now expanded to 7 additional Indian languages, significantly widening accessibility. Almost 15% of conversations now happen at the trip planning stage, where users are still exploring destinations and options. This allows us to influence decision-making much earlier and guide users towards more relevant, higher value outcomes. This deeper engagement is translating into measurable business impact. Users interacting with Myra across discovery, support and booking stages demonstrate 10% higher conversion rates compared to traditional filter-led journeys. By making discovery more intuitive and personalized, Myra is reducing friction and accelerating decision-making.

During the quarter, Myra assisted over 200,000 bookings directly. Customers engaged with our AI agent got their queries resolved and completed a transaction. We are also continuing to enhance our existing consumer journey flow with the use of AI. Our smart search feature is now enabling intent-led discovery at scale. Smart searches, semantic free tech search capability that lets customers describe what they want naturally. For example, family staying near Baga Beach with Jain food or rooftop pool hotel in Jaipur with spa access. Through this feature, customers now receive contextually precise explainable results. This feature delivers much higher conversion versus traditional filter-based journeys, clearly demonstrating that understanding intent outperforms matching keywords.

We have also enabled user reviews through voice. With this feature, we are seeing a fundamental shift in review quality. Voice reviews are generating a lot more content per submission compared to typed reviews. Customers describe their stays naturally in detail in their own language. This richer signal feeds directly into our knowledge graph, improving the quality of AI-generated summaries, safety scores and contextual recommendations for future travelers. Voice is becoming the default input for Indian customers increasingly, and we are building our content infrastructure around that reality. We continue to drive AI-based interventions in our redBus brand, too, apart from customer support, handling through AI chatbots, which have scaled up and yielded about 33% efficiencies.

We are now introducing voice bots to replace legacy IVR systems. We are witnessing an initial C stack additionally. We have scaled up the AI chatbot RAY in the prebooking user journey as well. Adoption has scaled meaningfully. Regional language users show 2x engagement compared to English users, indicating clear resonance among high intent and regional audiences. Around 6% of total queries come via voice as input. Overall, RAY is emerging as an assist layer that improves decision, confidence before booking and deepens engagement in core booking funnel. This is reflected in an overall strong growth in bus ticketing segment driven not just by top metros, but mid Tier 2 cities across the country. Overall, we are on our journey to make MakeMyTrip and AI-native org with engineering, customer support, supply onboarding, content generation and marketing functions leading the race, while other corporate functions are catching up on AI adoption real fast, making the org more agile and efficient.

We have started to see a meaningful impact in certain areas as well. For instance, about 60% to 70% of the new code is being written by AI tools now. Similarly AI is also driving meaningful efficiency gains on our customer service function. About 55% of our call center flight and hotels customer queries are being now resolved by digital voice agent. The aim is to keep solving for the long tail and corner use cases as we go along to ultimately have minimal human intervention on customer service without compromise on quality of experience for the customer. India remains one of the most underpenetrated travel markets globally relative to its population and income trajectory. Over the next decade, we believe India could become one of the largest travel opportunity markets in the world.

Online travel is a multibillion-dollar structural growth opportunity, and MakeMyTrip intends to play a central role in enabling their journey. As we look ahead, our priorities remain clear. Driving an AI and proprietary data-led transformation change in the org to drive the future growth at MMYT, keep innovating to further strengthen the core offerings with supply-side moats and scale our new offerings to the customers’ first choice to be the customer’s first choice as one-stop shop for all travel needs, both for our retail and corporate customers, leverage unique positioning of our 3 strong brands and other distribution channels to expand customer reach, leverage AI tools to drive efficiencies across the org to help drive operating leverage.

With this, let me now hand over the call to Mohit for the business highlights of the quarter.

Mohit Kabra: Thanks, Rajesh, and hello, everyone. The reported financial year presented a challenging operating environment with several external factors impacting travel demand across quarters. The reported quarter was also marked by the West Asia conflict, which has impacted westbound international travel and with increasing fuel cost has also led to an increase in domestic airfares in a highly price-conscious market. We were able to partially mitigate the impact of these headwinds by promoting domestic travel with a variety of transport options to suit the varying travel budgets of our customers and promoting eastbound travel within our international travel offerings. India continues to offer a deep and growing domestic travel opportunity supported by improving infrastructure, which is helping open travel demand beyond the traditional destinations.

While we are dialing up traditional leisure destinations like Goa, Kerala, Rajasthan and Kashmir, we are now actively promoting the relatively underexplored destinations of say Northeast. We are also tapping into the potential of pilgrimage plus pleasure trips combining visits to pilgrimage destinations with activities or holiday options in or around those destinations. Short duration, drive down holidays, or breaks, are also gaining popularity, and we are curating more of such options for our customers across the length and breadth of the country. This is being done by curating relevant supply, strengthening partnerships and targeting customers with more contextual offerings as well as curating destinations on products where the travel confidence and affordability remains strong.

Our customers who are finding increasing air fares as a deterrent to travel, we have dialed up our ground transport offerings to retain or spur up domestic travel demand. We have added new supply to take the private bus inventory to an average of 46,000 daily schedules during the reported quarter. To channel new supply of routes to higher demand categories or sectors, we have revamped the route suggestions module for our suppliers on bus services. This enables them to figure out routes that have unmet demand and add more inventory on those routes. As a result, our bus ticketing volumes for the quarter grew by 27.6% year-on-year and for the full year grew by 32.9% year-on-year. And the intercity cabs business, which is a relatively new business, has also seen growth at over 20%.

Demand on a variety of these routes was also aided by regional festivals during the quarter. As a result of providing a variety of transport options that suit the travel budgets of our varied customers, we were able to deliver strong volume growth of 15.2% in our accommodation business, which includes hotels, homestays and holiday packages. It might be relevant to call that as per HVS ANAROCK Research, the occupancy in the accommodation industry during the reported quarter is likely — or slightly negative on a year-on-year basis. This year-on-year growth of 15.2% is also notable as it has come in, in a quarter which has been impacted by the high base of Kumbh-related onetime demand in the same quarter of last year. Long weekends and drive-down holidays are emerging as important growth drivers as more consumers or customers increasingly look for short-haul, convenient and value-oriented travel options.

We recorded our highest-ever domestic hotel check-ins on 24th January weekend crossing 200,000 room nights on a single day for the first time. And particularly notable trend is the rise of spiritual and pilgrimage tourism. Accommodation bookings for spiritual destinations have continued to demonstrate strong momentum even after the Kumbh event of last year, highlighting the structural rise of pilgrimage and faith-based tourism in India. Pilgrimage has always been embedded in India’s culture. We are witnessing now a growing wave with more and more Indians across age groups actively choosing spiritual travel as part of their lives. This also reflects that travel in India is increasingly emotional, cultural and experience-driven and not just transactional.

We continue to differentiate ourselves through unmatched spread and selection, offering customers a breadth of inventory across destinations, price points as per their travel needs. This extensive choice combined with our strong platform experience allows us to serve a wide range of travel preferences more effectively. We now have over 100,000 accommodation options available on the platform, covering more than 2,050 cities in the country. During the last year, we sold room nights for over 12,000 new properties for the first time on our platforms. In the Homestay segment, we continue to invest in building the category and are enhancing our product proposition to improve customer experience and broaden the appeal of these kind of stays. We believe this remains an important long-term opportunity, and we are focused on strengthening the value proposition of both travelers as well as our supply partners.

We launched quick commerce and food delivery serviceability status on relevant property-based details of many of such accommodations, surfacing availability of essentials and food delivery upfront improve trip planning convenience for our customers and reduces the prebooking anxiety. We also enhanced visibility of caretaker and on-site support information across these listings. Clearer disclosure of presence, availability and responsibilities help the guests, better assess the stay experience and off the ground — and provide on-ground assistance. Our holiday packages business and Homestay business continue to scale well. During the quarter, we completed our acquisition of the majority stake in Flamingo Transworld, a regional group holiday packages business based out of Gujarat in India.

Flamingo has a strong presence in the state of Gujarat, Maharashtra, Rajasthan and Madhya Pradesh with curated group tours known for regional focus, customized experiences and servicing of international travelers. This is going to add to our strength of the holidays business, particularly on the international side. Coming to our air ticketing business. This was impacted by a combination of supply side and geopolitical factors. During the first 3 quarters, the domestic aviation market was affected by geopolitical issues and capacity constraints leading to limited growth despite underlying demand remaining healthy. In the fourth quarter, the West Asia conflict has created uncertainty and impacted west bound traffic from India. This has impacted both international air ticketing as well as international accommodation business for us.

Some of this uncertainty is continuing in the current quarter as well. Elevated crude oil prices and a depreciating rupee are weighing on international travel, though both higher airfare and softer discretionary demand for outbound trips. This is also leading to profitability pressures for the airlines and some of the airlines have already curtailed their international capacity. During the reported quarter, both domestic and international flight departures witnessed degrowth as compared to the same quarter last year. While domestic flown passenger market for the quarter declined by 1.5% year-on-year, the decline in the international passenger traffic was even higher at 6% year-on-year. We continue to grow in line with the industry while maintaining our leading market share in the air ticketing business.

Just as a booking of travel services, including mobile — including multiple transport options is helping us meet the travel budgets of our varied retail customers, our differentiated demand segments are also helping us drive better than industry growth, while the West Asia crisis has had a higher impact on retail demand, corporate demand continues to remain strong. Our corporate travel businesses via both our platforms that is myBiz and Quest2Travel saw not only growth from existing accounts but also new acquisition. Our active customer count on myBiz is now over 76,800 corporates compared to 64,000 of them during the same quarter last year. Similarly, for Q2T, the active customer count has now raised 548 large corporates compared to 507 such corporates during the same quarter last year.

Across the 2 platforms, we now service over 1,500 large corporate customers. Lastly, we made a strategic minority investment and visa servicing agreement with Atlys, a visa processing platform. This investment will allow MakeMyTrip travelers to benefit from a streamlined visa application process as well as create an opportunity for MakeMyTrip to cross-sell its travel offerings to the customer base of Atlys. Before I hand over the call to Dipak to present the financial summary, I would like to call out that we remain cautiously optimistic in view of the ongoing geopolitical issues. Just as COVID offered us a silver lining in terms of utilizing the team to invest in new platforms to tap into corporate and small travel agent demand, we are now investing in an AI-first approach to build AI-enabled platforms for the future.

This will span across our investments in product innovation, personalization, supply partnerships, service reliability and building platform-native revenue streams to drive traffic monetization. It will also be important to call out that we have built a playbook to manage demand volatility with a disciplined approach on optimizing costs in line with market conditions, and ensuring operating leverage in our business. This, along with our diversified business model, strong brand equity and deep customer relationships should keep us well positioned to capture the next phase of growth as demand conditions improve. With this, let me now hand over the call to Dipak for financial highlights of the quarter.

Dipak Bohra: Thanks, Mohit, and hello, everyone. We started January on a strong note with healthy growth across the businesses. In February, our growth rate moderated and was broadly in line with our expectations given the higher base from Kumbh-related demand in the same period of last year. March was impacted by the conflict, which created pressure on demand. Even so, overall growth for the quarter remained decent and demonstrated the resilience of our business. For the full year, IFRS revenue grew by 10.7% Y-o-Y in constant currency. Our results from operating activities, which is equivalent to EBIT was at $156 million in FY ’26, witnessing a strong growth of 30.1% Y-o-Y. Even in an impacted year, we continue to improve our unit economics through better mix, operating discipline and steady execution across the platform.

As a result, overall profitability for the year improved meaningfully. Adjusted operating profit margin expanded to 1.82% of gross booking in FY ’26 compared to 1.71% in FY ’25. Importantly, even in a quarter that was impacted by external events, we were able to maintain profitability, which reflects the strength of our business model and benefits our disciplined cost management. Moving on to our segment results. For the quarter, our air ticketing adjusted margin stood at $99.3 million, registering a Y-o-Y growth of 10.7% Y-o-Y in constant currency. While the volume declined due to disruption, we achieved robust growth in adjusted margin on the back of a strong ancillary attach and better unit economics. For the Hotels and Packages segment, we recorded strong volume growth of 15.2% Y-o-Y with stand-alone hotels growing faster at 15.5% Y-o-Y on the back of a strong demand in domestic hotel segments.

International hotel segment growth was impacted this quarter due to the conflict, like international air. As explained, last quarter, we are witnessing a mix shift between the hotel segment by GST reduction, leading to a lower ASP. In line with this, the shift our gross booking growth was at 10.8% Y-o-Y in constant currency and adjusted margin growth was at 11.5% Y-o-Y in constant currency. For the full year, hotel and packages adjusted margin growth was at 15.7% Y-o-Y in constant currency. In our bus ticketing business, the adjusted margin stood at $41.1 million registering a Y-o-Y growth of 17.1% in constant currency terms. This is a little lower than the trend due to the impact of onetime Kumbh-related demand in quarter 4 of last year. Our ancillary business, which is part of other segment is scaling up well.

This is helping us get a larger share of wallet of our customers by building the attach of ancillary business. As a result, adjusted margin from other segment came in at $25.4 million in quarter 4 of ’26, witnessing a strong growth of 27.1% Y-o-Y in constant currency. For the full year FY ’26, adjusted margin from others was at $95 million, witnessing a growth of 37.1% Y-o-Y in constant currency. Moving on to the expense side. Most expenses came in line. Marketing and sales promotion expense for the quarter was at 5.2% of booking compared to 5.6% in the previous high season quarter. As a result, our adjusted operating profit for the quarter was at $46.5 million with a margin at 1.82% of gross bookings. The noncash interest cost on our zero coupon convertible bonds for the quarter in the P&L was at $27.6 million and also a onetime gain of $30.6 million due to the change in carrying value of 2028 convertible bonds.

And we had a translation-related foreign currency loss at $17.7 million, which has been significant due to the sharp depreciation of INR by 4.45% drop over the last quarter. Consequently, reported PAT for the quarter was $24.3 million. The adjusted net profit came in at $33.8 million. We have a strong balance sheet and our cash flow generation continues to be robust. For the full year of FY ’26, we generated $182.5 million cash from operating activities. We were able to convert 97% of adjusted operating profit into cash flow from operating activities. As part of our capital allocation strategy during the quarter, we repurchased 0.9 million ordinary shares for an aggregate amount of approximately $50.3 million during this quarter. Total utilization for buyback program, including buyback of convertible bonds during the full year was $96.4 million out of the $100 million plan allocated for buybacks.

This was the highest in the market buyback in a single year. Another $22 million deployment was made for the investment made in Flamingo and a minority stake in Atlys. We ended the quarter with a cash and cash equivalent of over $782 million. As outlined in our March announcement, we completed our internal restructuring to combine all our key brands operating in India under a single entity with the merger of redBus India into MakeMyTrip India. These steps were undertaken to enable the company to evaluate a potential listing of the overall India business at the appropriate stage, which will strengthen our brand further in India and allow access to a differentiated and new pool of capital across institutional and retail investors. A potential listing requires several customary work streams to be completed, including regulatory, financial, legal, tax, audit, governance, disclosure and market readiness preparation.

We are working on each of these with our advisers and shall keep periodically updates shared with the market. With that, I would like to turn the call to Vipul for Q&A.

Vipul Garg: [Operator Instructions] The first question is from the line of Manish Adukia of Goldman Sachs.

Manish Adukia: You are able to hear me okay, right?

Vipul Garg: Yes, please go ahead.

Manish Adukia: A few questions. Firstly, thanks for the elaborate color on the overall environment right now. Given the headwinds have persisted in the June quarter as well and given the West Asia conflict only started in the month of March, is it like fair to assume that things will probably get worse in the near term from a numbers perspective, whether it’s GBV or revenue growth at least in the June quarter before they start getting better? And a related question to that, this disruption in demand to outbound travel, particularly westbound travel, is that — does that have like a negative impact on margins or on margins, the impact is not material? That’s my first question, please.

Mohit Kabra: Manish, maybe I can take the second question first. So as far as margins are concerned, as you would have seen even in the reported quarter, we have not seen any impact across segments. So we’ve largely maintained similar kind of margin levels across our segment, and we expect that, that will continue even through the upcoming quarter. On the first one, the West Asia crisis continues to impact us, right? And we are almost like more than halfway into the first quarter of the next fiscal year as well. So we do believe, yes, there will be impact on the growth trajectory. However, we should just keep in mind that this is also a seasonally better quarter on travel. And therefore, we are trying to kind of make as much as possible by dialing up domestic travel offerings and providing increasing variety of travel options to customers on the domestic front to try and capture the demand or move the demand from international to domestic to the best extent possible.

Manish Adukia: And maybe just a quick follow-up on that — and sorry if I missed if you already disclosed it. But if you can just remind us for this quarter, what was the growth in your overall outbound portfolio versus domestic, maybe at a revenue or GBV level? If I recall correctly, I think outbound travel is about 27%, 28% of your overall revenue. So if you can just maybe give us the mix of growth between domestic and outbound, that will be helpful.

Mohit Kabra: Yes. Actually, the — considering that because of the West Asia crisis, international has been significantly impacted. The mix hasn’t moved or gotten any better during this quarter. So it’s largely kind of remained stable. And therefore, like I was saying, large part of growth has been domestic led.

Rajesh Magow: And maybe, Manish, I can just add to the first question a little bit more color for you because see, while there is obviously Middle East crisis and that is continuing. I think what is different from what it was in March and what it is now, is that in March, when war started, it was a general overall sentiment drop, a lot of the cancellations happening and a lot of the flights not operating and so on. And now what the situation is that actually a lot of the flights are back operational now. So it’s not that about 65% to 70% in the GCC region, the flights are operational. Now it has moved from like a complete disruption to inflationary-led issues given the oil and energy prices crisis leading to ATF prices going up.

So what this particular thing does is that the essential travel continues and the leisure and the discretionary drops. So to that extent, there will be some travel happening, and we can see that even on our platform, some bookings happening. So that will be a nuanced difference between March and what is happening now, and we’ll see how it sort of goes. And the second very important thing that we are seeing is that particularly in the beginning of May onwards, we started seeing, as Mohit was alluding to, the seasonality kicking in, which effectively means that historically also we have seen that when people are looking for it, there is a problem in a particular destination, they quickly make their plans — they change their plans to the other alternative destinations.

And because of which international, we have seen Southeast Asia and Far East bookings going up and the shift happening on the booking on the domestic travel side. So I think that it’s going to be a bit of a mixed bag. And we see overall where do we sort of land, but it is not completely a doomsday scenario is what I wanted to highlight.

Manish Adukia: Very clear. My second question is on your press release from the month of March where you did talk about you evaluating a potential listing in India. One, is there like a timeline that you have in mind, like 6 months, 12 months, is there like an outer limit within which you want to list? And second, if you were to list MakeMyTrip India, any early thoughts and color on how you’re thinking about the potential fungibility of MakeMyTrip India versus MakeMyTrip Limited and shareholder of MakeMyTrip Limited currently? How do they participate in that? So any early color? I know it might be too early, but any thoughts you can share?

Mohit Kabra: To be honest, Manish, a little too early in the process. Like we have called out, the India listing is more a long-term kind of a strategy kind of priority considering that MakeMyTrip’s core business is in the India market, right? So we are kind of like Dipak has called out, this involves multiple streams to be kind of worked upon. And that work is ongoing. But do we have a clear indicative timeline? Probably not yet. But we’ll keep you posted as we kind of keep getting closer to it. Also in terms of the existing listing and the potential India listing, clearly, India does not allow dual listing as such, right? And therefore, to begin with, there will be multiple listings that we have within the group, and that’s very likely.

However, longer term, we’ll kind of aim towards moving to a singular fungible structure subject to the regulatory and kind of rules and regulations from a point of view of making sure that the stakeholder valuation is optimized, right? So we’ll keep that in mind. But we’ll share more color as we get closer to the process.

Manish Adukia: Very clear. Just last question, if I can sneak in. Rajesh, thank you so much for all the color on AI and the initiatives there. Anything that you can maybe share on in the last few months, all the development around agentic commerce, and you talked about your own Myra where you can also complete payments. But do you think there are any advantages that frontier models bring where maybe there’s a possibility that online travel traffic could shift to them if agentic commerce evolves to a place where consumers may not come to OTA. So maybe your thoughts on — in what scenario could agentic commerce be negative for MakeMyTrip or for the OTA industry in general, that would be helpful?

Rajesh Magow: Yes. So let’s see how it evolves, Manish. But our view right now is, and we’ve studied it very, very deep, and we continue to, as you saw in that, I was just trying to sort of give a lot more sort of deep color and the way we are looking at AI from an opportunity standpoint as well. But to answer your specific question, I think we should keep in mind specific to the OTA model, there are a few fundamental moats that it brings to the table, which is going to be — I mean, never say never. It’s not going to be an impossible task to disrupt, but it’s going to be really highly challenging task. And that’s — and those sort of 4 big moats are fragmented supply underneath. I mean imagine the supply that is in the hotel and accommodation space, including the homestays, it’s really, really fragmented.

And there is a lot of heavy lifting that we need to do as OTAs and we’ve been doing it over the years for it to come online to sort of leverage the power of online platform. And then there is fulfillment and experience on the post-sale side in terms of just handholding the customer in case of any needs that after he completes or she completes the transaction that they might have. And there’s so much of disruption that takes place in the travel space in general. And there is another sort of very deep work that has happened where OTAs have done — in the OTA, there is a deep funnel work that has happened in the OTA model, especially in the emerging markets is the payment side where it’s kind of underestimated the number of options and the number of sort of promotional activities that go on with the commercial alignment and arrangements with multiple sort of partners on the payments front.

And last but not the least, which is more specific to MakeMyTrip than maybe the rest of the players in the market is that we’ve also consciously built capabilities to make our platform like super comprehensive with potentially every single service being offered and tightly sort of coupled and decoupled at the same time as the need be from a consumer point of view. Now when you bring in all of these elements together, it is hard to sort of imagine that for a desired result for the customer, it is going to be an easy thing for an involved sort of buying experience like travel for just do a quick and dirty job on agentic e-commerce and bringing both the supply and the demand side at the same place without any friction. So I guess it’s not going to be an easy thing to do.

It’s going to take a lot. And will — do we see any of the horizontal players sort of venturing into it at this point in time? In fact, they have already stated that they want to probably focus a lot more on the planning and the discovery step of the overall journey and not necessarily go deep because it’s not easy and probably not their DNA to go really deep in the funnel. Having said this, we — on MakeMyTrip will leave no stone unturned as the kind of sort of positioning and direction that I was trying to call out as part of my section in the script. To ensure that leveraging this technology, whatever it takes that we continue to be the first place of choice for all the new users for travel when they come online as well as for the existing users to make sure that we end up sort of providing a stellar experience even in the sort of new transformational phase, if you will.

So I guess — so we’ve got our strategies in place on both sides, watching the space very carefully and see how we sort of react to it or partner in that scenario if we need to be, but also keep building our own capabilities with a lot of sort of investment and focus on it.

Vipul Garg: The next question is from the line of Sachin Salgaonkar of Bank of America.

Sachin Salgaonkar: Congrats management on a great set of numbers in terms of what was turning out to be a very difficult quarter. I have three questions. First question is to some of the comments what management said in terms of travel moving from, let’s say, west of India to East of India. I presume the ticket size for Southeast Asia versus Europe is a bit low. So in that context, we should expect a bit of an impact. And again, the domestic traffic does indicate that the month of April is turning out to be soft as compared to what we historically saw. So the question out here is, is this led by a higher fuel increase and if so, then should we see a bit of an impact in overall usage as fuel price continues to increase? And Rajesh, Mohit, it would be great to get a sense that what happened last time when fuel price increased in terms of impact from a demand point of view? That’s the first question. Let me pause here.

Rajesh Magow: Yes. Sure, Sachin. Actually, both the observations are not off, Sachin, I must say. So your first observation saying from West movement to East, and I highlighted that and what’s happening. But if the ticket price is going to be lower relatively, the answer is yes. Some part of that gets sometimes compensated because you extend the stay depending upon your budget option. But relative to the western side, which is like a mid-haul to long-haul kind of holiday versus a relatively shorter stay holiday or even if the same duration holiday, the ticket size is going to be lower. So to that extent, and I was saying that not necessarily that we are saying that there is not going to be any impact. There is going to be some impact, but part of it is getting mitigated by this shift, number one.

And number two, on the domestic market. So now coming to your second part of the question, off late now, as I was saying it earlier, in March, it was more sentiment driven and the real disruption. The flights were not flying at all. And then some impact of the sentiment was there starting with March and spilled over in April. And therefore, your observation that April was also relatively slower is also correct. But — and that’s what I was mentioning earlier, that starting May, we started to see seasonality kick in. So we’ve started to see that momentum coming back. And now I attribute that to and that, again, I was just trying to allude to in our script as well that we have seen the bounce back happening very, very quickly as well. Now imagine if there was a sentiment which was quite bad in March and April, there was a bit of a sort of it continued in April.

But starting May, we’ve started seeing that sort of general sentiment improving and people starting to book and travel. Like anecdotally, yesterday was the highest booking account for hotels for us on our platform, just very anecdotally. Now [indiscernible] quarter will be somewhat impacted. Now to what extent will it be impacted? International, definitely relatively higher than the domestic market. But on an overall basis, we are hoping that some impact will get mitigated with some of these positive trends that we are seeing. Now historically, just the last question that you asked that actually, we have seen when the fuel prices had gone up, if I recall well, to $90 to even closer to $100 a barrel, depending upon which airline you talk about, I think they were able to sustain it historically with some increase in prices and absorbing some of the costs and some of the — some of it passing it on to the consumer and demand was not terribly impacted.

But I think the key point here is not necessarily going up for a week and coming down significantly. If it stays at that level for a little longer period, that is when the impact starts to sort of clearly become more visible. As anecdotally, you have seen Air India announcing that from June onwards, they would be reducing number of flights. So this April, May, June quarter because it’s a high season quarter, I think they’re generally directionally going to run the same number of flights. But come middle of June, end of June onwards, there’s going to be some reductions. SpiceJet has reduced some flights, but IndiGo hasn’t, right? So it’s also a function of how strong is the particular airline that is operating in the market. But historically, we’ve seen if the demand sentiment continues, then even up to as high as about $90 a barrel kind of a number, $90 to $100 was not necessarily leading to a huge impact.

But like I said, the key is going to be how long it kind of stays at that level.

Mohit Kabra: Sachin, if I may just add, for the budget-conscious customer, like I had mentioned, we are also trying to make sure that we provide enough and more transport options. So those who are finding flight prices to be kind of a lot more expensive than what they would have preferred it to be, we’re kind of trying to dial up AC bus options or, say, cab options for them, so as to just make sure that the overall travel budget is not impacted and the travel demand is not something that [indiscernible]. And similarly finding more pocket-friendly options on eastbound kind of international travel versus westbound.

Sachin Salgaonkar: Very clear. Very quickly, my second and third questions. Second question, you guys have not changed your EBITDA guidance suggested a bit as a percentage of GMV. I presume that indicates for the foreseeable future it could be in the range of 1.8% to 2% and this is despite the mix shift happening in favor of high margin hotel and it’s understandable give where things are. So just wanted to confirm and here Mohit, would love to get your thoughts on how to think about medium term margin our there. And third question is more a clarification on some of the earlier comments. From what I understand, there will two listing, US listed and India listed for some point. And eventually at some point in future, the U.S. entity might be delisted subject to regulations. Is that what you guys meant? I just wanted to clarify on that.

Mohit Kabra: On the first one, you are right, Sachin, in view of the current volatility in the travel demand. I think we’d want to continue to remain in the 1.8% to 2% kind of margin guidance and it will be good to kind of remain there because I think we need a little more stability in the travel environment before we kind of revisit this guidance. So you’re kind of absolutely right on that. And secondly, yes, on the potential India listing, like I said, India does not offer dual listing, right? And therefore, in a manner of sorts, the currently listed entity of Mauritius will also remain on the U.S. bourses while we kind of take India entity to India capital markets. Over a longer-term period, there are a variety of ways through which fungibility can be created, and we’ll try and put a place and structure that kind of facilitates that.

But beyond that, if you really look at it, even from an investor’s point of view, a large part of our investor base actually has the ability to invest both in India as well as in the U.S. And therefore, to a large extent, that fungibility in some form and shape exists even today.

Vipul Garg: The next question is from the line of Vijit Jain of Citi.

Vijit Jain: Can you hear me?

Rajesh Magow: Yes, please go ahead.

Vijit Jain: So just double-clicking on your comments on trends since May. So, a, I’m mindful that last year from May, macro had started to go south. And so to your comment also on yesterday being the highest GBV number for hotels ever, I guess two questions. One, does it mean broadly speaking, there’s a more accelerated shift in mix to hotels from air? And second question related to that, in the comment on traffic shifting from West to East, is there enough capacity on East to kind of support some kind of a surge there if it continues to persist for some time?

Mohit Kabra: Vijit, relatively, if you see the capacity is not kind of as constrained on the Eastern side for eastbound travel, and therefore, we are leveraging that. On the overall kind of trends for the current quarter that we are in, you’re right that last year, May and June was subdued because of macro events. We continue to see that kind of relatively subdued impact continuing on international. Domestic is something that we’re kind of continuing to dial upon. And like I kind of mentioned during my callout, we have been able to drive or spur up demand on the domestic side through a variety of things, which is kind of going much deeper and wider in terms of accommodation options across the length and breadth of the country, opening up a lot more kind of leisure destinations, pilgrimage destinations, to offer greater variety to customers, dialing up a lot of short duration drive down kind of opportunities on the travel side.

And also kind of making sure that in many routes, which are not very long in terms of drivable distance, providing kind of cabs and buses as an alternative to flights just to kind of meet the budget kind of aspirations of the various travelers. So these are all things that we’re kind of using to dial up the domestic demand. And we hope we’ll continue to kind of keep delivering demand much ahead of industry growth in the accommodation segment. So if you look at it just as an indication, even in Q4, which is a reported quarter, the overall occupancy has actually remained flattish or might even go negative per estimates. And therefore, overall growth for the accommodation industry has been almost flattish, whereas we have posted almost like 15% plus growth even in the reported quarter.

So we hope to kind of continue to kind of be on that trajectory and keep delivering much better growth on the domestic side while international continues to be under pressure. You might just see that until about some time back or until about 5 or 6 quarters back, international was kind of leading the growth charter for us, and that has kind of turned around a little bit. But I think that’s the advantage of being present across kind of travel options as well as transport options that we can dial up one versus the other based on prevailing conditions.

Vijit Jain: So Mohit, just a little clarification on that. So in general, for you guys, air has been always a pretty important kind of funnel into your hotels business, right? And to what you mentioned, hotels have done well in 4Q and are continuing to do well despite all the various headwinds we see on the air side, right? So is there — if you can give me a color of how overall funnel has changed over time? What is your overall mix of people directly coming on to your platform to book hotels first and foremost in those kinds of things, that will be super helpful to understand. And then I just have a follow-up question on AI, if I can.

Mohit Kabra: Considering the paucity of time, maybe I’ll just kind of suggest that we should look at the overall transport options and then kind of look at that opposite the accommodation kind of opportunity rather than look at purely versus flight segments, right? So that’s the reason I was calling out that we should look at probably entire set of transport options, including buses and cabs. And there, you would see that the overall growth on transport continues to be healthy. It’s just that air kind of growth in air or flights is lagging. So that’s helping us do much better.

Rajesh Magow: And Vijit, just the pointed response to what you were saying, it’s very important is that the question that whether air is critical for us, air funnel is very important for us. The answer is absolutely yes, it continues to be. It is just the market situation, what Mohit is trying to highlight from a consumer point of view, for certain segment of consumers, air is expensive, will move to an alternative mode of transport. And we are seeing that happening on our platform. And therefore, you will see rest of the segments growing. The growth rate is pretty robust, whether you see quarter or you see it for the full year. And by the way, despite all these headwinds, and we didn’t really call that 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%.

So in this quarter, we’ve actually gained 0.2 percentage — 0.2% as well. So it continues to be very important. It’s just a midterm to long-term view. And as I was highlighting as part of the physical infrastructure development, airport infrastructure development is also happening at a very robust pace, right? So — and that is going to be one of the important sort of mode of transport to drive growth for the country if you start to look at it from a midterm to long-term standpoint. It’s just the sort of temporary cycle headwinds that we have right now. So in that context, the consumers tend to shift.

Vijit Jain: Got it. Rajesh, my next question — my last question is on AI stuff that you guys discussed, including Myra. Now when we look at the developments on this term increasingly being used as a harness, and I’ve seen some reports suggesting that when you build a harness around AI and use your own proprietary data, the experience in terms of quality of responses is much better in other use cases, right? So I’m just wondering is it measurable for you guys? You now have launched Myra. It is front and center on the main app. When you — are you, a, fully combining all of your first-party and proprietary data in that already? And can you measure the responses versus what I get out of a generic say, ChatGPT query? And then if I can sandwich another related question, is it possible to quantify the cost efficiencies that you could get in customer support and engineering?

Vipul Garg: In the interest of time, this will be the last question.

Vijit Jain: Yes, of course.

Rajesh Magow: Yes. Sorry. So very, very quickly, which is a very good question. The answer to the first question, are we using proprietary data? In fact, I had mentioned that very clearly as well, along with the LLMs and marrying the 2 because — and just to ensure that there is a harness layer on top of it to make sure that the results or the responses on Myra are relevant and more accurate. The answer is 100% yes. We’ve been doing that. Otherwise — and that is what this new launch was. In fact, and I guess the second part of your question is about measurement. Yes, we are able to measure that. We have clear metrics defined on measurement, specifically on quality of conversation, something called good conversation versus not so good conversation.

There’s a clear quality metric attached to it. And we’ve seen some of those sort of data points I’ve tried to sort of highlight as well. For example, the fact that the conversion on query starting at Myra to the normal funnel is better than — better because it is deeply engaged and you are able to find all the answers, et cetera, in one go is better by 10 percentage points, clearly indicates that while it’s a journey, but the quality has been improving. And we’ll continue to keep sort of progressing well on this journey and keep you all updated on that. And on the cost side, you will see this reflecting slowly and gradually. Now there are a few things that we have already given like whether it is productivity improvement on consumer service side, also on the new code development, all of this is going to eventually reflect somewhere now on the P&L.

And it’s just going to be a bit of a lag effect because there is — it’s going to be a journey where there is going to be AI tooling cost and then there is going to be efficiency kicking in. At some point in time, efficiency is going to sort of show bigger impact than the additional cost that is coming from the AI tools, right? So I think we need to be a little bit patient to see the results, but we are super confident the results will start to reflect in the near future.

Vipul Garg: This was our last question. Over to you, Rajesh, for your closing remarks.

Rajesh Magow: All right. Thank you, Vipul, and thank you, everyone. Thank you, everyone, for good set of questions and your patience for listening in. I know it was a little longish as the three of us were presenting, but thanks again for your patience and look forward to see you again in the next quarter.

Vipul Garg: Thank you, Rajesh. The call is now over. You may please disconnect.