Earnings call transcript: MakeMyTrip Q2 2025 sees EPS beat, revenue miss

MakeMyTrip Limited reported its Q2 2025 earnings, showcasing a significant earnings per share (EPS) beat against forecasts but a revenue miss. The company posted an EPS of $0.37, nearly doubling the forecast of $0.19, marking a surprise of 94.74%. Revenue fell short of expectations, registering at $229.3 million compared to the anticipated $261.37 million, a shortfall of 12.27%. The company maintains impressive gross profit margins of 57.06% and has achieved 18.13% revenue growth over the last twelve months. Despite the mixed results, the stock showed resilience, with premarket trading reflecting a slight uptick of 0.03% to $90. InvestingPro analysis reveals 11 additional key insights about MMYT’s performance and valuation metrics.

Key Takeaways

• MakeMyTrip’s EPS exceeded forecasts by 94.74%, a notable achievement.
• Revenue fell short of expectations by 12.27%, impacting overall financial performance.
• The stock price experienced a minor premarket increase, indicating cautious investor optimism.
• The company launched several AI-driven innovations, including a travel assistant and presales chatbot.
• International business contributed 28% to overall revenue, with strong growth in international air and hotel segments.

Company Performance

MakeMyTrip demonstrated robust performance in its air ticketing, hotels, and packages segments, with substantial year-over-year growth. The company reported an adjusted operating profit of $44.2 million, an 18% increase from the previous year, despite a net loss of $5.7 million compared to a profit of $17.9 million last year. With a market capitalization of $8.34 billion and an overall financial health score rated as GOOD by InvestingPro, the company’s international business showed strong momentum, contributing significantly to overall revenue, while the domestic air market remained constrained.

Financial Highlights

• Revenue: $229.3 million, below the forecast of $261.37 million
• Earnings per share: $0.37, significantly above the forecast of $0.19
• Adjusted operating profit: $44.2 million, up 18% year-over-year
• Cash and cash equivalents: $835 million, an increase of $51 million from the previous quarter

Earnings vs. Forecast

MakeMyTrip’s Q2 2025 EPS of $0.37 outperformed the forecast of $0.19, resulting in a 94.74% surprise. However, the company fell short on revenue, reporting $229.3 million against an expected $261.37 million, a 12.27% miss. This mixed performance reflects both operational efficiency and challenges in meeting revenue expectations.

Market Reaction

Following the earnings release, MakeMyTrip’s stock experienced a modest premarket gain of 0.03%, trading at $90. This movement suggests a cautious yet optimistic investor sentiment, despite the revenue miss. The stock remains within its 52-week range, with a high of $123 and a low of $81.84, indicating stability amidst market fluctuations. According to InvestingPro Fair Value analysis, the stock appears overvalued at current levels, though analysts maintain a Strong Buy consensus with an average price target suggesting 33% upside potential. For detailed valuation analysis and more insights, check out the comprehensive Pro Research Report, available for MMYT and 1,400+ other top stocks.

Outlook & Guidance

Looking ahead, MakeMyTrip expects to maintain growth in the 20% range for the full fiscal year, with potential boosts from GST reductions and increased consumer spending. This aligns with the company’s five-year revenue CAGR of 14% and projected FY2026 revenue growth of 20%. The company anticipates a recovery in the domestic air market in the second half of the year and continues to focus on AI-driven customer experiences and market penetration. Gain access to detailed growth forecasts, peer comparisons, and expert analysis through the comprehensive Pro Research Report on InvestingPro.

Executive Commentary

CEO Rajesh Margu emphasized the company’s strategic focus, stating, "We want MakeMyTrip to be the first port of call for trip planning." COO Mohit Kabra highlighted the company’s strengths, noting, "Our diversified portfolio, execution capabilities, and operational discipline continue to position us well for sustained long-term growth." Margu also underscored the role of AI in the company’s strategy: "AI continues to be at the center of our core strategy."

Risks and Challenges

• Domestic air market constraints could hinder revenue growth.
• Competitive pressures in the travel sector may affect market share.
• Macroeconomic factors, including consumer spending trends, could impact demand.
• Potential regulatory changes in key markets might pose challenges.
• Dependence on technological advancements necessitates continuous innovation.

Q&A

During the earnings call, analysts inquired about the company’s strategies to address air capacity constraints and potential recovery timelines. Discussions also covered increased marketing expenses, competitive dynamics, and the accounting treatments for convertible notes, providing insights into MakeMyTrip’s operational and strategic priorities.

Full transcript - MakeMyTrip Limited (MMYT) Q2 2026:

Ripul Garg, Senior Vice President of Investor Relations, MiqMatrip Limited: Hello, everyone. I’m Ripul Garg, senior vice president of investor relations at MiqMatrip Limited, and welcome to our fiscal twenty sixth second quarter earnings webinar. Today’s event will be hosted by the company’s leadership team comprising Rajesh Margu, our Co Founder and Group Chief Executive Officer Mohit Kabra, our Group Chief Operating Officer and Deepak Bhora, who has recently joined us as 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 and A session.

Furthermore, certain statements made during today’s event may be considered forward looking statements within the meaning of 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 06/16/2025. Copies of these filings are available from the SEC or from the company’s Investor Relations department. I would like to now turn the call over to Rajesh. Over to you, Rajesh.

Rajesh Margu, Co Founder and Group Chief Executive Officer, MiqMatrip Limited: Thank you, Ripul. Welcome, everyone, to our second quarter call for fiscal twenty twenty six. As you will recall, Q1 was impacted by a series of exceptional external events such as geopolitical tensions post the unfortunate Palegong terrorist attack on tourists and the tragic airplane crash at Ahmedabad. These events impacted the consumer sentiment for travel, especially for leisure. Additionally, supply side constraints continue to impact the domestic aviation market growth in Q1.

I’m happy to report, however, that as we entered Q2, the broader travel and tourism demand started to rebound across travel segments despite Q2 being a seasonally slow quarter. And our diversified product portfolio covering all travel customer segments of retail as well as corporate customers helped us deliver strong overall performance in the quarter. Barring the domestic air market’s slow recovery due to temporary supply constraints, where we continue to maintain our market share of 30% plus levels, all other modes of transport segments like bus, rail, cabs and international air witnessed robust growth. Consequently, we saw robust growth in our hotels and eco business, both for domestic and international travel segments as well. Our adjusted operating profit for the quarter was at $44,200,000 witnessing growth of 18% year on year.

Consumer sentiment towards travel remains positive, supported by high propensity of experiential getaways and short breaks. In Air segment, international outbound travel from India presents a significant growth opportunity. Being an underpenetrated segment for an online perspective, we remain focused on growing this segment. In Q2 fiscal year twenty six, our international air ticketing revenue grew by over 29.6% year on year in constant currency terms, far outpacing industry growth. Similarly, our international hotels revenue grew by over 42% year on year.

Our international business now contributes 28% to the overall revenue, up from 25% during the same period last year. On macro front, we welcome the recent fiscal and monetary policy measures to rationalize and reduce GST rates, income tax cuts announced in the budget and interest rate reductions to further boost the consumption. These measures will provide a further boost to the disposable income and discretionary spending, particularly within our good middle income households. Analysts estimate that the combined fiscal and monetary stimulus from these measures could unlock additional consumer spending of $3,000,000,000 to $3,500,000,000 during the letter of our fiscal year ’twenty six. This, along with increasing desire to travel more among Indians, should help in growth of travel market as well.

Let me now move on to share the progress on our AI journey. AI continues to be at the center of our core strategy for us to enhance customer experience and improve productivity. We launched the beta version of our AI powered conversational travel assistant, Myra, in August 2025 and is currently available in English and Hindi with voice and text features and plans to expand to more Indian languages soon. The initial response has been encouraging for collection of consumer insights as travelers begin to interact with this new interface. In a short span of time, the agent has scaled to over 25,000 converse conversations daily.

Myra is poised to redefine and help travelers explore, plan, and book trips all at one place, making it super simple for new users and comprehensive at

: the

Rajesh Margu, Co Founder and Group Chief Executive Officer, MiqMatrip Limited: same time for complex travel use cases. By simplifying the discovery and booking experience through natural language interaction and personalized recommendation, We plan to transform how travelers plan their journey journeys making travel planner planning faster, easier, and more intuitive. We aim to make our platforms the default search engine for the travel needs of Indians. Myra is contributing to to this by significantly enhancing user engagement. More than 35% of travelers begin engaging with Myra up to ninety days before their trip, using it as a space for exploration and planning.

What also stands out is how the return, nearly one in four users come back seeking help across multiple categories from itineraries and visa queries to flights, ForEx, hotels, and local experiences. They’re not just asking where to go, but also what to do once they once they’re, turning Myra into an end to end companion that guides them for from inspiration to action. Myra is also helping us penetrate deeper into India with voice first engagement strategy with new user share at about 20%. In tier two and tier three cities, voice adoption is 50% higher than in metros. 60% of voice queries come in English compared to just 20% in text chat.

When travelers speak to Myra, they speak naturally, freely, and confidently with over 70% of conversations now being termed good conversations. Voice led conversations are richer and longer. Users ask follow-up questions, express preferences, and describe context just as they would with a human travel expert. In a country where digital literacy and linguistic diversity vary widely, Myra’s VoiceLead Discovery is quietly expanding access, unlocking the next wave of online travelers who are more comfortable speaking than typing. For our CAPS business, we also launched our GenAI powered presales chatbot.

The bot acts as an information provider, as a recommender, and provides assurance to the customer. We are expanding the coverage. This bot plus assist approach drives a high conversion rate compared to traditional agent traditional agent led assistance for users who interact with it. We are expanding the bot’s capabilities with the new agentic seller persona for advanced search and quick actions while continuously improving accuracy and chat quality. Besides, as part of our ongoing efforts to enhance customer experience and to strengthen our post sales flow further, we recently launched an AI voice agent for our flights and hotel customers, which is designed to handle all customer queries received via calls and offer resolutions to the consumers in the same call.

This agent is successfully integrated with our telephony system, enabling the AI agent to handle calls with background noise, understand interruptions, and accurately interpret queries, including complex actions like date change, web checking, cancellations, etcetera. Let me now turn to business segment, starting with air ticketing business. The domestic supply continues to be impacted, thus affecting the overall domestic air percentage growth, which witnessed a decline of 3% year on year. The outlook for domestic supply in H2 is improving with daily deposits expected to grow at 3,200 plus, which is similar to Q3 of last year. We believe these issues are short term in nature, and long term outlook for Indian aviation sector continues to be robust.

Our accommodation business, which includes hotels, home stays, and holiday packages, delivered a strong 18% volume growth year on year in a seasonally weak quarter. Short holidays and weekend gateways continue to define travel behavior and emerge as a key theme. We continue to see new demand peaks in the long weekends. For the weekend of fifteenth August, we had an all time high hotel check-in, which was about 20% higher than the last week. It was also very well supported by robust growth of 38% year on year in the hotel segment of our corporate business, helping us deliver strong overall growth.

The outlook for India’s hospitality sector remains optimistic, supported by sustained demand and expanding supply base and a healthy pipeline of new signings across markets. According to HBS data, domestic and international chain hotels signed over 36,400 rooms by August 2025, a 32% increase over same period last year. We continue to expand our supply base in domestic market. We now have 95,000 plus accommodation options available on the platform covering 2,000 plus cities in the country. Events are emerging as a high intent travel driver across entertainment, sports, and cultural segments.

We have built specialized mapping between major events and nearby states, improving conversion through dynamic packaging. From IPL weekends to music festivals, these moments now form predictable demand peaks. With real time availability, we are turning spontaneous plans into structured high yield travel opportunities so that users can book their stay near to the venue as well in advance. Our international hotel business continues to record strong growth driven by rising air connectivity and the accelerated shift from offline to online travel purchasing behavior. We are witnessing rapid adoption and digitization in tier two and tier tier three cities as first time international travelers increasingly use mobile platforms to book stays, flights, and activities together.

We continue to increase our hotel inventory across international destinations, which are of interest for Indian travelers. Recognizing the influence of food on hotel selection by Indian travelers, we enhanced our restaurant section to highlight user generated insights on breakfast, calling out Indian vegetarian options, and familiar menu items, further strengthening relevance for Indian travelers. Our holidays package business grew in line with seasonality. We continue to strengthen our product proposition. We have launched curated holiday packages to Phu Quoc, Vietnam with exclusive direct flights starting 12/09/2025.

We have scheduled multiple flights for the upcoming winter season as Phu Quoc currently has no direct connectivity from India. The direct service will cut travel time from around eight hours via connecting routes to just about five hours, making the island far more accessible for Indian only holiday makers. Indian travelers today are looking for destinations that offer unique experiences, easy access and great value. Fukuk fits the bill, but has remained relatively underexplored due to the lack of direct connectivity. We are making this unique island destination directly accessible for Indians planning their international holidays this winter.

Our homestay business continues to scale well, and we continue to build the category and expand our homestay supply. We added over 49,000 plus rooms to the overall supply during the quarter, resulting in a cumulative supply growth of about 35% year on year. Our aim is to build the category and solve for the consumer pain points. Food availability remains one of the most frequent customer queries for alternative accommodation stays with a clear guest preference for properties offering ready meat ready meals over self cooking options. To address this, we revamped the food and dining module across both supply and consumer products.

The new flow enables hosts to provide rich details on meal availability, pricing, cuisines, variety, and timings, along with cook availability and associated charges for customized meals. In our bus ticketing business, we witnessed strong growth in Q2, led by strong inventory addition and with all regions growing 20% -plus year on year. Inventory addition remained strong throughout Q2 fiscal year twenty twenty six. This trend of investment in new buses among private operators is likely to continue in the upcoming quarter as well due to increased festive demand. We expect further buoyancy in new bus addition with reduction of GST for procurement of buses announced in September.

During the quarter, we have onboarded Gujarat and Orissa State Transport Corporation, leading to the addition of 5,700 plus services. Our growth continues to be broad based with all regions growing in double digits with North And Gujarat, Rajasthan growing at 40% plus in Q2. We have also launched bus booking options within our RedRail standalone Android and iOS applications. We continue to strengthen our customer proposition within our trains business. During the quarter, we launched the food on trains feature in partnership with Zomato, thus expanding on our customer convenience initiatives within the Trains category.

The service is now live across 130 stations and is accessible to both transacting and nontradacting users. Early results have been promising with strong conversion and top of funnel engagement. Notably, a significant share of users are placing orders up to two hours prior to station arrival, and orders span a wide range of cuisine types, indicating both the flexibility and variety of selections available to customers. Our corporate travel business via both our platforms, that is MyBiz and Quest to Travel, is witnessing strong growth on the back of new customer acquisition. Our active corporate customer count on MyBiz is now over 75,500 plus compared to 59,000 customers during the same quarter last year.

And for Quest to Travel, the active customer count has reached five twenty seven large corporates compared to four sixty two customers in the same quarter last year. Before I conclude, here is a quick reminder of key leadership role changes announced recently. After a successful stint of fourteen years as Group CFO, Mohit has taken on a larger role of leading business and has been elevated as Group Chief Operating Officer. In his current role, Mohit will work closely with business heads and will drive the future growth agenda of the company. We also welcome Deepak Bora, who joins us as Group CFO.

Deepak is a chartered accountant, comes with 30 of rich experience in the field of finance. Deepak joined us from Wipro, where he has handled large teams and led a variety of roles within the finance function. I wish them all the best for their new roles. With this, let me now hand over the call to Mohit for financial highlights of the quarter. Thanks, Rajesh.

Welcome onboard, Deepak, and hello, everyone. The last two months of the previous quarter, that is May and June, were impacted by a series of external events. The weak sentiment for domestic air travel spilled over into the reported quarter due to continued supply constraints, leading to a market degrowth of about 3% year on year in the domestic air market. Quarter two, which is generally low season quarter, was also impacted by excessive rainfall, particularly in some of the North Indian states and union territories like Jammu and Kashmir, Ladakh, Himachal Pradesh, etcetera, which led to a degrowth in the 20s in these regions on a year on year basis during the quarter. Despite these macro conditions, we leveraged our one stop shop approach across travel services to drive growth via accommodation and other transport segments like bus ticketing to make the most of the overall bounce back in travel demand during the quarter.

As a result, the highlights of the quarter were Models and Packages adjusted margin growth, which accelerated from 16.3% year on year in Q1 to 21.6% year on year in constant currency during the reported quarter. Within this segment, stand alone hotels adjusted margin growth accelerated from 18.5% in the previous quarter to 23.1%. In the nonflight transport business, bus ticketing adjusted margin growth increased from 34.1% year on year in the previous quarter to 44.1% year on year in constant currency during this quarter. Before I get into the financial details, I would also like to call out a couple of accounting items in this quarter for better understanding of the results that we are calling out right now. You would recall that last quarter, we had raised an additional capital of approximately $3,100,000,000 through a mix of primary offering of ordinary shares as well as zero coupon convertible senior notes maturing in 2030.

The entire net proceeds from the offerings were used for repurchase of Class B shares. On second slide, 2025, we completed the repurchase and cancellation of 34,400,000.0 Class B shares. Out of $3,100,000,000 raised, about $1,400,000,000 were raised through 2,030 coupon convertible notes. And while these notes have no interest costs associated with them, as per IFRS, about $1,100,000,000 has been recognized as debt on the balance sheet and the balance of about $319,000,000 will be recognized as an interest cost in the P and L every quarter over the next three years until July 2028. As a result, dollars 24,300,000.0 has been recognized as interest cost during the current quarter related to the 2030 convertible notes in addition to about $4,000,000 of finance cost, which is recognized every quarter for the 2028 notes issued earlier in 2021.

Please note that this active interest cost of $28,300,000 will not have any bearing on the operating profitability of the company as there is no actual interest although, whether in cash or otherwise, as these are zero coupon convertible notes. Secondly, while our operations are predominantly in INR, our reporting currency is dollars as a result of which there are usually translation related ForEx gains or losses. As a result of the sharp weakness in INR versus the USD during the current quarter, we have recognized the foreign currency loss of $14,300,000 during the quarter. Both these items, that is interest and ForEx cost of approximately $28,200,000 and $14,300,000 have been recorded in the finance cost line in the P and L. As a result, we reported loss for the quarter of $5,700,000 compared to a profit of $17,900,000 during the same quarter in the last year.

However, our registered operating profit has registered a strong growth and has reached $44,200,000 during this quarter compared to $37,500,000 in the same quarter last year. Moving on to our segment results. Our Air ticketing adjusted margin stood at 102,800,000 registering a year on year growth of 10.6% year on year in constant currency. In the domestic air market, we maintained our market share of about 30%. Our international air business continues to grow faster than the market in the market.

Volumes in this segment grew by over 16% year on year, which is almost 2.5x the market growth of about 6% during the period. In the quarter, the mix of international air ticketing business has reached an all time high of 43% compared to thirty seven percent during the same quarter last year. In the Hotels and Packages segment, adjusted margin growth stood at about 21.6% year on year in constant currency terms, resulting in adjusted margin of $105,000,000 $5,800,000 during the quarter. We have witnessed strong growth despite Q2 being a seasonally slow quarter for leisure travel. The growth for stand alone hotels was even better at 23.1% year on year.

The mix of international hotels and packages revenue reached a high of 23.4% during the quarter, up from 21.4% same quarter last year. In our bus ticketing business, the adjusted margin stood at $37,700,000 registering a strong year on year growth of 44.1% in constant currency terms. Most of our Integrity services, such as travel insurance, ForEx, etcetera, as well as other transport services, such as cabs and rails, have also shown good growth during the quarter. As a result, adjusted margin from the Others category came in at $20,500,000 a strong growth of 29.7 year on year in constant currency. Moving on to the expense side.

Most expenses have come in line during the quarter. Marketing and sales promotion expense for the quarter stood at 5.2% of gross bookings compared to 5.1% in the previous quarter and 4.6% during the same quarter last year. This has been in line with our segment margins being better than both the previous quarter as well as the same quarter last year. As a result, our adjusted operating margin has actually improved from 1.66 of gross booking value during the same quarter last year to 1.8% of gross booking value during the current reported quarter. We entered the quarter with cash and cash equivalents of $835,000,000 translating to an increase of $51,000,000 over the previous quarter.

We will continue to look for organic and inorganic investment opportunities through the year. Looking ahead, while the growth in domestic air ticketing is marred by short term supply side challenges, we believe the GST benefits have come in at a very appropriate time. The reduction in rates for procurement of new buses as well as reduction in GST for hotel stays up to a price point of INR 57,500 will help rebound the travel demand the demand for travel services after a muted first quarter. These measures are expected to boost demand, particularly in the value sensitive segments, supporting volume growth and market penetration in key regions, including Tier two and Tier three cities. With our omnichannel platform strategy across retail, B2B and corporates and the increasing supply of services being contracted across the length and breadth of the country, we remain focused on driving growth ahead of the industry.

To conclude, our diversified portfolio, execution capabilities and operational discipline continue to position us well for sustained long term growth and value creation. With that, I’d like to turn the call back to Vipul for q and a.

Ripul Garg, Senior Vice President of Investor Relations, MiqMatrip Limited: Thanks, Mohit. Any participants willing to ask question can click on the raise hand option on their screen, and we will take the questions one by one. The first question comes from the line of Sachin Salgankar of Bank of America. Sachin, you may please unmute and ask the question.

Sachin Salgankar, Analyst, Bank of America: Hey, Vipul. Can you hear me?

Ripul Garg, Senior Vice President of Investor Relations, MiqMatrip Limited: Yes. Please go ahead. Yes. Yes.

: You for the opportunity. I have three questions. First question is on the air capacity issue. Based on our understanding, it looks like most of the Air India planes are back and not all IndiGo planes are back. So just wanted to understand where are we on the air capacity issue?

And how should we expect demand going ahead, particularly for the December?

Rajesh Margu, Co Founder and Group Chief Executive Officer, MiqMatrip Limited: Yes. Maybe I can take that, Sachin. So as I think it was there in my script I was reading out. So in the current quarter, what is expected is that as far as domestic air market is concerned, that the daily departures will get back to about 3,200 plus, which is similar to the same period last last year. That is as far as domestic.

Now this this data is obviously based at the you know, it’s quite informed data with basically the inputs that we’ve had from we we have from the airlines, which I think it’s a good start. You know, ideally, obviously, we wanted it to to grow. But as you know, this quarter, there was a dip to three percentage points. But now if it gets back to the same level, it’s a decent start, and this is also it is because of the because of what you mentioned. Right?

So some planes are coming back and and the others are coming back slowly. But very interestingly, worth also mentioning is that this is as far as same quarter last year, the number of departures actually went up. About 30 departures, daily departures went up. And out of that, you know, the two main noticeable countries where it went up significantly was actually Thailand and UAE, which are effectively the sweet spot for us and also for the overall Indian travel market for outbound. So as far as international is concerned, it’s doing well.

It’s back. As far as domestic is concerned, constraints still remain, hoping it’ll lift soon.

: Thanks, Rajesh. Very clear. And there are two parts elements going into the December, right? One, what you highlighted right now, which is not the entire supply is up. But on the second hand, we are actually seeing benefits coming from a GST perspective.

Would love to understand from you, actually, are these because on the face of it, clearly, you should see GST benefits. But in terms of advanced booking and others, are we seeing this December turning out to be slightly better as compared to, let’s say, December, purely on the back of more money in the hands of consumers?

Rajesh Margu, Co Founder and Group Chief Executive Officer, MiqMatrip Limited: Yes. I would say such a nice I I think it’s a decent start. But in all fairness, for our categories, specifically for travel, while for the other nontravel categories, a lot of the shopping and the consumption picks up before Diwali. For travel, it picks up actually after Diwali. And we therefore, we will have to just wait and watch for for a little bit more time.

But early signs are clearly there. Like, you know, I think we should just look at this overall consumption boost story, mostly looking at an overall GST reduction that has been announced, sort of across the categories, which effectively puts more money into your pockets. And that coupled with the fact that there is more desire to travel, I’m quite optimistic that, you know, travel as a category will also benefit out of this overall sort of GST reduction and more disposable income in consumers’ hands. Got it. Right.

Yeah. Mean, that, you know, as you know, the the advanced purchase window, you know, particularly in India on travel is not very high. And, you know, as a result, it’s kind of, you know, more bookings are happening to say the say, the last week or so ahead of, you know, scheduled drivers. And therefore, kind of slightly difficult to, you know, call pull out in terms of, you future bookings, you know, in our kind of a market. But like Raj called out, it’s a it’s a very positive development.

And if you look at it from an Indian traveler point of view, you know, our our our kind of average ASP, you know, on the on the hotel accommodations tends to be below the 7,500 kind of, you know, price point on which the GST reduction has been announced. So, therefore, this will actually benefit, you know, bulk of the bookings. So to that extent, it should be a, you know, a very positive development on on driving kind of, you know, travel demand overall in the coming quarters.

: Thanks, Mohit. And Raj, it’s very clear. Second question, marketing expenses clearly increased and moved to 5.2 as a percentage of gross bookings. I just wanted to confirm that this is mainly on the back of slower consumer spend and less to do with competitive intensity. Is that a fair observation?

Rajesh Margu, Co Founder and Group Chief Executive Officer, MiqMatrip Limited: See, I’ll just call out that, you know, if you it’s also good to kind of look at the overall marketing and sales promotion spending in tandem with our kind of, you know, segment margins. And like I called out, you know, across the board, across segments, we have actually seen margins strengthening. And particularly in a weaker seasonality like q two, this tends to happen. And both on a quarter on quarter basis as well as year on year basis, we have actually improved margins. And therefore, to some extent, that’s also been kind of, you know that’s also got deployed.

But with the improved mix across segments and the improved margins across segments, this actually is kind of pretty much in line, you know, in in in terms of the callout that we had made.

: Got it. And what and on this, the improvement in margin, is it seasonal? And should it normalize going ahead, or we should see the take rate improvement continuing with that and hotels going ahead?

Rajesh Margu, Co Founder and Group Chief Executive Officer, MiqMatrip Limited: To some extent, it remains seasonal because, you know, depending upon, you know, high and low seasonality, there is, you know, at times, a little bit of a variation. And then also, more so in the in the in the current fiscal year because, like, we have been talking, you know, the the mix of air has been reducing, I mean, for for unwanted reasons because, you know, the the overall market is supply constrained, and air is the least kind of, you know, margin in terms of, you know, segmental margins per se. Therefore, overall, blended margins have only improved. Right? That is something that we kind of taken care of.

Going forward, if it is rebounds, the blended margin might kind of, you know, go down a little bit. But across categories, we still kind of expect margins to remain largely in line with what they have been. Yes.

: Got it. Third question on buyback. I just wanted to understand whether you guys have repurchased any stock in this quarter. And I know historically, you guys said that there is a thought process to opportunistically look to buyback. So I was looking to understand, you know, any buyback happened in this quarter?

Rajesh Margu, Co Founder and Group Chief Executive Officer, MiqMatrip Limited: So the thing, nothing that has happened through the quarter as would have got reported, and therefore, we called out that we’ve not kind of been able to do any buybacks in the current quarter. But we made certain changes to the buyback program. One, you know, we’ve kind of now made it slightly more longer term, kind of extending the buyback program up to, you know, fiscal year ending thirty first March twenty thirty so that we have, you know, window available for the next four and a half years. The current buyback program had a balance left of 114 plus million dollars. We’ve increased that to $200,000,000 and also increased the annual limit, which was earlier about 60,000,000 or so to about 100,000,000 so that, you know, we can deploy a little more on the on the buyback program.

And we’ve also included the the twenty thirteen notes. You know, they recently issued convertible notes maturing 2030 in the program so that we could kind of also buy back the CDs which are recently issued. So making it more comprehensive across the across shares as well as both the convertible note offerings which you have done in the past. So that’s what I wanted to share. So I think we’ll keep looking for, you know, opportunistic buybacks across shares and notes in the remainder part of the year.

: And, Mohit, just to clarify, is it across both Class A and Class B shares? Are you at some point

Rajesh Margu, Co Founder and Group Chief Executive Officer, MiqMatrip Limited: in future if you want

: to buy Ctrip shares, this could be done as a part of this buyback?

Rajesh Margu, Co Founder and Group Chief Executive Officer, MiqMatrip Limited: Actually, since, you know, the Class B shares are kind of in hand by one investor and the two strategic investor, we have not included that so that there’s absolute clarity that we’re looking at repurchase program deployment in the normal course happening for class a or for the convertible notes. Should we be kind of doing any repurchase programs on the class b shares? We call it out specifically in that particular period, just like we did it, you know, in the previous quarter.

: Got it. And lastly, you know, obviously, with this incremental 43,000,000 kind of a finance cost going ahead as well, from a positive net income, is it fair to that, you know, going ahead, we should see sort of a negative net income, although your free cash flow doesn’t change? But optically, you do see a sort of a negative net income at the company going ahead also.

Rajesh Margu, Co Founder and Group Chief Executive Officer, MiqMatrip Limited: No, no, absolutely. And therefore, I’d called out, you know, the the nuance around this. And as you know, these are actually zero coupon bonds. So it’s more kind of, you know, in a manner of sort of notional, you know, interest cost, which is kind of, you know, being charged to the p and l. This is the effective interest methodology under IFRS.

But as I said, there is no no real interest being paid whether in cash or in any other form. So I just wanted to call that out.

: Alright. Thank you, and all the best. Thank you.

Ripul Garg, Senior Vice President of Investor Relations, MiqMatrip Limited: Thanks, Sachin. Next question is from the line of Manish Rukia of Goldman Sachs. Manish, may you please ask your question now?

Manish Rukia, Analyst, Goldman Sachs: Thank you, Vikram. Hi. Good evening team. Happy Diwali to all of you. So my first question is on the overall growth profile of the business now.

A quarter of your business is probably domestic air and another revenue contribution, and that’s not growing at all, at most two quarters in a row. But despite that, you have delivered 20% overall revenue growth because other segments are doing well. Now when we think about your medium to long term growth outlook where you said underlying market grows 8% to 10% and you can do 2x of that, you’re already in line with your medium, long term growth outlook. But as domestic air improves, shouldn’t we expect that the 20% revenue growth number further accelerate from here? Or you think that, you know, the bus segment, etcetera, outbound may decelerate from the current base.

So even though domestic air may improve, overall growth on revenue for the company probably remains around 20% level. So just wanted to get your puts and takes around that debate.

Rajesh Margu, Co Founder and Group Chief Executive Officer, MiqMatrip Limited: Happy Diwali, you know, Manish as well. And, you know, great question. And and, you know, I think one of the, you know, advantages that we kind of keep calling out, you know, for ourselves is that we are a one stop shop in terms of travel services or ancillary services. And what that allows us is just in case there is there is kind of weakness in any particular segment, there is an ability to try and drive, you know, incremental growth through the other segment. And similarly, if you look at it on the on the demand side also, having kind of, you know, multiple platforms targeting, say, across retail, b to b, and corporate kind of, you know, demand, There’s opportunity to kind of, you know, leverage each demand segment depending upon, you know, whether there is weakness in any of them and therefore dial up the other ones.

So I think we’ll continue to do that. Hopefully, if you really see despite these, you know, tough macro conditions, we’ve still been able to kind of, you know, post the post growth in the twenties. And therefore, like we had mentioned in the last quarter also, we do remain, you know, positive and hopeful that, you know, we’ll be growing in the twenties for the full fiscal year despite, you know, the the one offs for the for the first half of the year. And, hopefully, if, you know, kind of if kind of domesticated particular bounces back, we hope that we are able to inch up the overall growth, you know, from being at the low end of, you know, twenties to kind of, you know, being more closer to the mid end of the twenties. So let’s see.

It’s very difficult to call out how each of these segments will kind of, you know, behave whether on the supply side or the demand side. But, yes, the overall strategy is to kind of keep driving growth in the twenties in the medium to long term.

Manish Rukia, Analyst, Goldman Sachs: Sure. Thanks, Mohit. And maybe a follow-up on that. I mean, you’re saying growth in the twenties for the full fiscal year. And to confirm this, despite the fact that March should have a very strong base because of QUM last year, which would have impacted almost all your segments quite positively.

So despite that, for a full year, q 119%, q 220%, and you’re saying overall full fiscal still should end up 20% despite that base, just to confirm.

Rajesh Margu, Co Founder and Group Chief Executive Officer, MiqMatrip Limited: No. No. No. No. Absolutely right, Manishan.

And I know there are these kind of, you know, one off that we had in the previous quarter on the positive side, and we have had a few negative, kind of one offs in this year, particularly in H1. But we are still keeping fingers crossed and hoping that we’ll kind of continue to grow in the 20s.

Manish Rukia, Analyst, Goldman Sachs: Right. Thank you for clarifying. My second question is on competition and at an overall level, right? I mean, process or Naspers used to be your largest shareholder until a few years ago, and now they have acquired a significant minority stake in one of your competitors. And at least, you know, based publicly available data on air and bus volumes, a part of a low base, they seem to have grown faster than you over the last three or four quarters.

So anything to read into that, and how should we think about any new entrants’ ability to also maybe expand into the hotel segment and potential competitive intensity in that going forward? Your thoughts there would be helpful.

Rajesh Margu, Co Founder and Group Chief Executive Officer, MiqMatrip Limited: A couple of thoughts over there. You know, one, overall, I would say it’s always good to see increasing interest for investments in the travel industry as such. Right? So it’s a welcome sign. In fact, if you look at it from a a from our own kind of, you know, vantage point of view, just last quarter, we had almost done, like, a $3,100,000,000 transaction, but that was essentially to kind of, you know, repurchase class b shares.

Right? And while we were initially budgeted to deploy close to about $200,000,000 from the balance sheet, but we didn’t have to do anything. We have the, you know, significant interest that we saw in the primary offerings, you know, to fund the to fund the repurchase. So I think, clearly, there is there is increasing interest in the in the overall travel industry. And if you look at it overall, India, again, is a very, very kind of a very large market, growing well.

And then there is also kind of, you know, opportunity for driving online penetration. Although I would say that the segments, you know, we kind of, you know, I would say initial offshoots of, you know, online penetration have changed. So ten years back, it might have been more accommodation, which was maybe in the in the early single digits of online penetration. And therefore, we had seen competitive intensity growing much, much higher in in that segment, you know, about a decade back. But today, those segments have changed.

And if you and if you know, as we have been calling out, the has been pretty aggressive in terms of driving online penetration, adding lot more new segments and lot more new travel services, ancillary services on the platform. So don’t really see any big concern. And the other fact is also that over the last twenty five years, if you look at it, we have continuously invested behind driving online penetration across segments, whether it is transport, whether it is accommodation, or whether it is other ancillary travel services. We have been doing that on a consistent basis. And whenever any other, you know, players in the in the market have also done that, we’ve generally tend ended up gaining, you know, on account of the overall spend because, you know, ultimately, these are category driving spends.

And as a market leader, you tend to gain if the overall kind of, you know, investments in in driving on that transition goes up. So we think of it more on those terms I remain pretty much kind of, you know, stay on course on our own, driving our own agenda, which is largely to say that we keep driving growth much ahead of, you know, the industry growth at a significant multiple, and we continue to be market leader across kind of, you know, driver segment, whether it is transport, whether it is accommodation or ancillary services, making sure that, you know, both MakeMyTrip and Go they remain the top two of your brands, and Red Bulls remains pretty much the top ground transport brand, you know, for all Indian travelers. So that’s the the other kind of, you know, response that I would have. We want to see what’s happening. No.

I think you’ve covered it all. I’ll maybe just add one more point. Manish, if you go back in history a little bit and go deeper, you would realize that, you know, the the share shift I mean, the firstly, the investments have come in. It’s not for the first time the investment has not has come in the travel and tourism market and specifically in the OTA segment. Have come in the past.

You know, disruptive investments have also come in the past. But if you really see from an OTA standpoint, you would see at least in the Indian OTA market, the share shift has happened into, say, between the existing players and the new old challenger that sometimes appears and not necessarily you know, we’ve seen impact on our either the the growth rate or the market share gain over the years. And that’s because of the fact that, one, of course, we will have to, you know, continuously keep executing our strategy as well and keep innovating for consumer experience all the time. But also the fact that over the years that the brand is and in the consumer’s mind, all our three brands have got established very, very firmly and which obviously gives you sort of the benefit from an from a, you know, sort of dealing with any of the new competition perspective, etcetera as well. So I think we should just keep that thing also in mind.

I get both the points. One, that this is not the first time investment. When investment comes in overall, market grows, which is good news. And then historically, if you really go deeper, you would realize that the the share shift has happened pretty much, if at all, within the, you know, sort of existing players and the newcomers, and then that cumulatively, it doesn’t really change too much.

Manish Rukia, Analyst, Goldman Sachs: Thank you, Rajesh Moit. I really appreciate you providing

Rajesh Margu, Co Founder and Group Chief Executive Officer, MiqMatrip Limited: that color. All the best. Thank you, Manish.

Ripul Garg, Senior Vice President of Investor Relations, MiqMatrip Limited: Thanks, Manish. The next question is from the line of Aditi Sudesh of Macquarie. Aditi, you may please ask your question now.

Sachin Salgankar, Analyst, Bank of America: Yeah. Thank you, Rupul. I have two questions. So first is just on the guidance in itself. So when we when we speak about 20%, can you just reiterate again at what line are you speaking about?

Is it on count terms, gross booking, adjusted revenue, overall revenue? Because I think there are distinctly different kind of dynamics which are at play depending on which side you’re looking at. Because even if I look at overall gross bookings, we’re we’re now, for the first six months, sub 10%. Right? So can you still clarify that the the guidance in itself?

When you speak about 20%, what you’re specifically referring to?

Rajesh Margu, Co Founder and Group Chief Executive Officer, MiqMatrip Limited: Yeah. I think while you know, there’s no I mean, we don’t necessarily kind of, you know, put out a guidance, but more directionally, how are we kind of, you know, seeing growth coming in. And that’s in terms of, you know, the adjusted margin that we report. If you look at, you know, the through the script also, we have called out, you know, the adjusted margin growth, and it’s largely on that metric that we kind of, you know, look at it. And the simple reason being, adjusted margin is kind of, you know, the number which is kind of, you know, called out in line with how kind of, you know, OTA revenues are looked worldwide, you know, across segments because, you know, we do have some segments where we report on a gross basis, say, for instance, on the packages side.

And similarly, we do have kind of, you know, certain amount of customer expense, which are otherwise kind of, you know, treated as as deductions from revenue from an IFRS basis point of view. So it is on adjusted margin basis that we are calling out. And if you look at it, adjusted margin across segments, then this is broadly the trajectory that we are kind of looking at. Now this might come in in terms of different, you know, adjusted margin growth across segments. But holistically, all the segments put together is where we are kind of looking at remaining in the twenties.

Sachin Salgankar, Analyst, Bank of America: Thanks, Mohit. And then just specifically on hotels. Right? So for this quarter, when I look at this in count terms, your number of bookings up 18%. Gross booking value is up 13.

IFRS seven is up five. Right? And I appreciate there are kind of foreign currency impacts here going on as well in that 5% revenue number which you’re reporting. But, clearly, there seems to be one is both as you’re you’re seeing more bookings, yes, but the value per booking is going down and also the take rate on that said booking is also going down. Right?

So could you just, like, speak through that that that theme which you’re observing?

Rajesh Margu, Co Founder and Group Chief Executive Officer, MiqMatrip Limited: Actually, not, Arita, and maybe I’ll just, you know, kind of guide you once again, and then call out in the script also. You know, there’s a lot of, you know, foreign currency translation impact, you know, particularly in this quarter. Actually, the adjusted margin growth in our stand alone hotel business, we just called out is at about 23.1%, you know, in the current quarter. In fact, actually, it’s it’s up significantly from the previous quarter during which it was at about 18.5%. So, you know, the adjusted margin growth has come in much stronger and generally tends to come in, you know, better than, you know, the overall volume growth.

Now this this change depending upon how the ASPs are behaving and how, you know, the overall kind of margin is trending in the category. This particular quarter, actually, even from a margin point of view, we saw margin improvement coming through both on a quarter on quarter basis as well as on a year on year basis. So, actually, it’s held pretty well. And, therefore, maybe, you know, I’ll just guide you back to those sections of the script that I just called out just from a clarification point of view.

Sachin Salgankar, Analyst, Bank of America: Okay. And then in terms of the ancillary business, right, so so here, obviously, kind of higher take rate segments on the fourth. You’ve had a few new product launches in this quarter. So for example, I I I observed something like experiences in city, which I think is new for for you all. You have a a Visa offering as well.

Can you maybe speak about some some of these new new kind of revenue streams within ancillary services?

Rajesh Margu, Co Founder and Group Chief Executive Officer, MiqMatrip Limited: Actually, on the on the ancillary side or the other segment, if you look at it over the last couple of years, we’ve continuously been adding a variety of ancillary services. So, you know, we started with, say, maybe, you know, forex, like, about three years back. We’ve dialed up in the city to have some over the last two years or so. We have now also kind of you know, this particular year, we had called out specifically that we would be kind of, you know, focusing on adding a lot of, you know, tools and activities, you know, on on the experiences side as part of the other segment. So, yes, we’ll continue to keep adding, you know, a lot more on this segment, you know, even going forward as well.

So and you’ll see that kind of, you know, being called out. In fact, I had also in my script, kind of called out that almost all the ancillary services, whether it is, you know, travel insurance or ForEx, etcetera, have done well. And there are two kind of, you know, transport led services in the in the other segment, which is largely cabs and more so industry cabs rails, which also have grown very well during the quarter. So the overall growth in the others category this quarter came in at about 29.7%, so broadly around the 30% mark. So continues to do very well.

Thanks, Vasant.

Ripul Garg, Senior Vice President of Investor Relations, MiqMatrip Limited: Thanks, Vasanti. The next question is from the line of Gaurav Bhateri of Morgan Stanley. Gaurav, you may please ask your question now.

Gaurav Bhateri, Analyst, Morgan Stanley: Hi. Happy Diwali, and congrats on resilient performance in a tough macro environment. My first question is on your comment that you made that you would like MakeMyTrip to be the default search engine for travel. It’s a pretty interesting comment. And also, you shared quite a bit of, interesting metrics around your, engagement in the AI assistant.

When I look at the measure of success over time, I thought that it would be the overall traffic increasing, pace of new customer acquisition improving and the better repeat rates. When you look at some of the early trends, how have these matrices fared?

Rajesh Margu, Co Founder and Group Chief Executive Officer, MiqMatrip Limited: Very good point. And thank you, firstly, and happy to evaluate to you too as well. And Gaurav, I have to say upfront, and like I said, right, it’s beta launch, and the insights are very encouraging. And right now, the the phase is only to collect insights and and see how do we sort of do two things. One, keep fine tuning the product and keep improving the interaction so that the experience for the end consumer is very relevant, very personalized, very to the context, etcetera.

And and the other is to also keep track and see how are they adopting to this new interface, you know, specifically this, you know, Myra end to end, let’s say, trip planning tool that we were talking about. And the comment around, you know, we want AmicPoint trip to be the first port of call has always been there, but even in this new interface, more from trip planning perspective. See, we’ve been perhaps the first port of call for the transactions, but also for the trip planning is our attempt this time around with this new interface. And I think it has a lot of sort of promise that it offers, and we’ll see how it goes. But in terms of the success metrics that you talked about, ultimately, those are the two metrics that you just called out.

We will see new user acquisition because we are looking at going really deeper and pushing the adoption through voice feature as well as vernacular. And, you know, as I mentioned, right now, you know, Hindi and lot of the English conversations happening, but but we are looking at adding more regional conversations. And this time around, as we hear some of the quality of the calls and the handling by the by Myra, which is a digital agent, it’s very, very close to or even in some cases better to to the human agent. So the LLMs this time around, the various models and, you know, and and on top of that, the the amount of work that happens with our own data to fine tune with the grounding internally is producing fantastic results in terms of just, you know, interaction with the consumer even if you are, like, from hinterland and so on. Right?

So so so there is a lot of promise right now, but the consumer adoption journey is going to take time as it takes time for every new interface. And we will see how it goes. And as as as and when, like we shared some early trends already, as and when we see some meaningful impact happening on this particular new interface that we launched, we will definitely come out and share. Having said that, out if you keep this aside for a minute, because this is a new completely new interface that has been launched, very enhanced, there are many other places where we’ve been leveraging AI. And there we have started seeing the impact.

We started seeing the impact, for example, in post sales already. You know, the number of calls that are being now handled seamlessly without any human intervention is going up. This is over and above the current sort of, you know, automated self-service that we already had. There are there is a conversion improvement that we’ve seen in specifically in the hotels and and accommodation side with the many AI powered features of using, you know, let’s say, videos, using video LLMs, etcetera, and many other interventions with persuasions, which have enabled which we’ve been doing in our current interface that is already there in the funnel. And that has seen very minutely we go and we look at whether the conversion rate all, you know, literally on an AB framework that we’ve seen improvement.

And it’ll it is only going to to sort of continuously keep improving as we sort of not only make the right kind of interventions, but also make it a lot more relevant and lot more sort of to the context to the consumers. So but on this particular one, we’ll come back as in as in when we have more data on impact matrices as you as you spoke about.

Gaurav Bhateri, Analyst, Morgan Stanley: Thank you for the detailed answer, Rajesh. My second question is for Mohit. You’ve shared in the past, you know, profitability benchmark that you look to aspire. You’ve already reached that 1.8%. You had talked about 1.8% to 2% range.

So in pursuit of balancing growth and profitability, how should we think about next one to three years in terms of this range, meaning what you said already? Or do you think there could be an upside to this change because you’ve already gotten to 1.8 in the current year?

Rajesh Margu, Co Founder and Group Chief Executive Officer, MiqMatrip Limited: Yeah. But, you know, at least to to begin with right now, you know, like we’ve been saying, we do believe there is an opportunity to kind of, you know, dial up growth, particularly as, say, instance, you know, the the domestic, you know, air air ticketing industry kind of, you know, bounces back to good growth. So that’s something that we want to kind of, you know, keep in mind. And, therefore, if you would ask me, I think in the shorter term, you know, the focus would be a lot more tilted towards kind of, you know, driving the growth agenda because, you know, even at 1.8%, like we have always called out, you know, one of the rationales for the 1.8 to 2% was that if we even benchmark with the best in class in terms of, you know, the OTA margins globally, with our kind of, you know, mix of segments between transport and accommodation, with accommodation at about 40% ballpark, you know, we do believe we’ll compare with the best. However, longer term, like, when you say the next three years or so, over the next three years, particularly if the if the mix of accommodation, you know, goes up, you know, in the in the overall just margin pie, which it is expected to, then I don’t see a reason why we should not have the potential to kind of, you know, put out a slightly better number than what we’ve already called out.

But let’s see. The next few years should be an interesting journey on that count.

Gaurav Bhateri, Analyst, Morgan Stanley: Thank you, and all the best.

Rajesh Margu, Co Founder and Group Chief Executive Officer, MiqMatrip Limited: Thanks, Gaurav. Thanks, Gaurav. We’ve almost run out

Ripul Garg, Senior Vice President of Investor Relations, MiqMatrip Limited: of time. This was the last question over to you, Rajesh, for your closing comments.

Rajesh Margu, Co Founder and Group Chief Executive Officer, MiqMatrip Limited: Thank you. Thank you, Rupul, and thank you, everyone, once again. Thank you for your patience and, you know, good line of questioning. As always, we look forward to see you next quarter. Thank you.

Thank you, everyone. Thank you, everyone.

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