MakeMyTrip Q1 Earnings Call Highlights: International Growth, Domestic Challenges

MakeMyTrip reported strong international growth, increased market share in the domestic air segment, and adjusted operating profit growth of 21%. However, domestic leisure travel and holiday packages growth were impacted by macroeconomic challenges. The company's bus ticketing business showed robust growth, while corporate travel expansion continued. MakeMyTrip provided forward-looking guidance for fiscal 2026, emphasizing strong top-line growth and strategic focus on leveraging generative AI.

MakeMyTrip Ltd. (MMYT) has reported robust financial performance for the first quarter of fiscal year 2026, showcasing significant international growth despite facing macroeconomic challenges. The company's revenue reached $268.8 million, a 7.8% year-on-year growth in constant currency [1]. This growth was driven by strong performance in international air ticketing and hotels, with revenues increasing by over 27% and 45% year-on-year, respectively.

The company's adjusted operating profit grew by 21% year-on-year to $47.3 million, and net profit increased by 22.6% to $25.8 million. The bus ticketing business also performed well, with an adjusted margin of $42.6 million, a 34.1% year-on-year growth in constant currency. MakeMyTrip's international business mix reached 27% of total revenue, up from 24% in the previous fiscal year [2].

However, domestic leisure travel and holiday packages were negatively impacted by geopolitical tensions and a tragic airplane crash. The domestic air ticketing market also experienced operational disruptions, affecting overall growth. Despite these challenges, the company's adjusted operating margin as a percentage of gross booking value increased from 1.64% in Q1 of the previous year to 1.8% in the current quarter [2].

MakeMyTrip's cash and cash equivalents stood at $804 million at the end of the quarter, and the company completed a significant balance sheet recapitalization and Class B share repurchase. The repurchase and cancellation of 34.3 million Class B shares reduced shares outstanding to 95.4 million from 111.3 million as of March 31, 2025 [2].

Management provided forward-looking guidance for fiscal 2026, emphasizing strong top-line growth and strategic focus on leveraging generative AI for both customer experience and operational efficiency. The company's international outbound travel segment was less affected by adverse events, with management stressing ongoing shifts to online booking and new air connectivity accelerating segment opportunities.

In conclusion, MakeMyTrip reported a mixed performance for the first quarter of fiscal year 2026, with strong international growth balanced by domestic challenges. The company's forward-looking guidance and strategic focus on leveraging generative AI position it well for future growth.

References:
[1] https://finance.yahoo.com/news/makemytrip-ltd-mmyt-q1-2026-070425658.html
[2] https://www.fool.com/earnings/call-transcripts/2025/07/22/makemytrip-mmyt-q1-2026-earnings-call-transcript/