MakeMyTrip Q1 2026 Earnings Report

MakeMyTrip EPS Results

• Actual EPS: N/A
• Consensus EPS: $0.46
• Beat/Miss: N/A
• One Year Ago EPS: N/A

MakeMyTrip Revenue Results

• Actual Revenue: N/A
• Expected Revenue: $296.39 million
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

MakeMyTrip Announcement Details

• Quarter: Q1 2026
• Date: 7/22/2025
• Time: Before Market Opens
• Conference Call Date: Tuesday, July 22, 2025
• Conference Call Time: 7:30AM ET

MakeMyTrip (NASDAQ:MMYT), an online travel company, sells travel products and solutions in India, the United States, Singapore, Malaysia, Thailand, the United Arab Emirates, Peru, Colombia, Vietnam, and Indonesia. The company operates through three segments: Air Ticketing, Hotels and Packages, and Bus Ticketing. Its services and products include air tickets; hotels and packages; rail tickets; bus tickets; and car hire, as well as ancillary travel requirements, such as visa processing and facilitating access to travel insurance. The company allows travelers to research, plan, book, and purchase travel services and products through its websites, such as makemytrip.com, goibibo.com, redbus.in, makemytrip.com.sg, and makemytrip.ae; and other technology-enhanced distribution channels, such as call centers, travel stores, and travel agents network, as well as mobile service platform. The company serves leisure and corporate travelers. MakeMyTrip Limited was incorporated in 2000 and is based in Gurugram, India.

MakeMyTrip Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Despite macro headwinds including the May Belgaon incident and June crash, the company delivered 21% adjusted operating profit growth and marginally increased domestic air market share from 30.6% to 30.8% in Q1.
• Positive Sentiment: The international segment outpaced peers with 27% YOY growth in air ticketing revenue and 45% YOY growth in hotels revenue, lifting its share of total revenue to 27%.
• Negative Sentiment: Domestic leisure demand was notably weak in May and June, causing holiday package bookings to remain flat and dragging on standalone hotel and flight bookings.
• Positive Sentiment: The company raised approximately $3.1 billion through primary offerings and used the net proceeds to repurchase and cancel 34.3 million Class B shares, reducing total outstanding shares by over 14%.
• Neutral Sentiment: Ongoing investments in GenAI-powered search, expanded ancillary travel services and new bus and accommodation supply aim to reinforce long-term growth in India’s travel sector.

Presentation

[Vipul Garg, SVP - IR at MakeMyTrip]

And group chief executive officer, and Mohit Kabra, 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 a 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 US 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.

[Vipul Garg, SVP - IR at MakeMyTrip]

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 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 over the call to Rajesh. Over to you, Rajesh.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

Thank you, Vipul. Welcome everyone to our first quarter call of fiscal twenty twenty six. The first quarter of the fiscal year is typically a high season for leisure travel, and this quarter also started on a similar note with strong demand momentum and booking growth in mid twenties in the month of April. However, domestic demand was impacted due to the unfortunate, incident in Balgam, leading to geographical escalations in the month of May and the tragic crash of a passenger airplane in June. While domestic demand for leisure travel was particularly weak for domestic leisure destinations for air travel and holiday packages, being a one stop shop on travel allowed us to drive growth from other travel services, other modes of transport, as well as ancillary travel services catering to non leisure travel use cases.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

We also continue to drive growth in international travel where online booking behavior is growing, and the overall demand was really relatively less impacted. And last but not the least, we managed to continue the growth momentum in our corporate offerings. As a result, despite the exceptional macro headwinds during the reported quarter, I'm pleased to report that we delivered very good top line growth on our hotels and packages, bus and ancillary business segments and also managed to grow market share in domestic air segment, marginally from 30.6 to 30.8%. Our adjusted operating profit for the quarter was also at $47,300,000, witnessing growth of 21% year on year. We believe this impact is short term in nature and doesn't materially alter our view of the travel sector's long term growth prospects of the Indian travel and tourism market.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

India's travel sector is poised for strong long term growth driven by rising disposable income, infrastructure upgrades, and fundamental shift in consumer behavior to spend more on travel. Indian consumers are increasingly prioritizing experiential travel, activities, experiences. There's a clear shift toward taking multiple holidays and short breaks throughout the year, signaling a structural change in travel consumption patterns, which bode well for us. International outbound travel from India presents a significant growth opportunity as well with more Indians eager to explore global destinations. Short haul markets are gaining traction driven by better air connectivity, simplified visa processes, and rising preferences for quick get gateways.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

For q one fiscal year twenty six, our international air ticketing revenue grew by over 27% year on year, far out with outpacing industry growth. Similarly, our international hotels revenue grew by over 45% year on year. Our international business now contributes about 27% to the overall revenue, up from 24% during the same period last year. Let me now turn to the business segment starting with the air ticketing business. As mentioned before, this quarter was impacted by operational disruptions, particularly for domestic market due to uncontrollable factors.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

However, we delivered above market growth and gained share in our air business. As part of our ongoing efforts to enhance customer experience, we have launched a new version of our zero cancellation product for domestic flights designed to boost user confidence and repeat users of usage for free frequent domestic flyers. We've also further streamlined the airport transfer booking process for domestic flights. Travelers can now conveniently reserve a cab of their choice from a wide range of options while booking their flight. For our international travelers, we also expanded our lounge offerings to include the vouchers from 131 international airports.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

Customers can now conveniently purchase airport lounge access while booking their international flights, enhancing their preflight experience. Our accommodation business, which includes hotels, home stays, and packages, delivered healthy growth despite a lower share of leisure bookings this quarter due to macro disruptions, particularly for our 100 leisure folks, focused to packages business. Yamu and Kashmir, the key summer travel destinations saw a dip in tourist inflow this quarter due to the unfortunate incident in Belgaon that's affecting our growth. Gross booking value of hotel and packages business grew by 15.3% year on year in constant currency for q one fiscal year twenty six. Gross bookings for standalone hotels business, however, grew by 19.4% year on year on constant currency basis.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

While domestic leisure travel faced headwind this quarter, other segments, including corporate, travel, and international outbound delivered strong growth. As we deepen our reach across the country, we see good traction from tier three cities reflecting rising travel adoption in smaller cities. In line with this trend, we continue to expand our supply base in the domestic market. We now have 91,000 plus accommodation options available on the platform covering 2,000 plus cities in the country. Our international market, on the other hand, we have been expanding our international drill supply through a direct contracting strategy focused on high demand outbound destinations.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

In the past year, we have added over 2,000 directly contracted hotels across 50 cities in 20 countries. These 50 cities collectively account for more than half of India's outbound travel. During the quarter, we partnered with Premier Inn, The UK's largest hotel chain. The addition further this addition further strengthens our international hotel portfolio with a brand known for its scale, reliability, and value. Offering Indian travelers more relevant choices across key cities in The United Kingdom.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

Our product strategy is built on deep consumer insights and leveraging GenAI. This is helping us transform hotel booking experience on our brands through a robust and comprehensive knowledge graph that indicates integrates hotel data, reviews, images, location insights, and user intent. This enables natural language search and context aware recommendations as well. As the graph evolves, it will unlock more personalized and relevant results for our customers. Recognizing the influence of food and hotel selection by Indian travelers, we have made dining related content a key product priority on MakeMyTrip from showcasing on property dining options, like rooftop lounges and specially because specialty cuisines for premium travelers to highlighting availability of vegetarian and gen meals in religious destinations.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

We've scaled food related data coverage to over 21,000 properties across India. This allows us to deliver more context aware hotel recommendations based on travelers' culinary preferences. Another emerging trend among Indian travelers is wildlife tourism. We have prioritized this insight by enriching our content and discovery signals. With increasing interest in nature based experiences among families and small groups, the proximity of hotel to a national park safari gate or forest buffer zone has become a key factor in trip planning.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

For over 2,000 properties, especially near wildlife hotspots, we now surface these details prominently driving higher engagement and conversion. In our holiday packages business, international outbound packages continue to scale well with Japan leading the growth followed by Africa. For international, we continue to add destinations and options for travelers. We launched packages for Jordan with the start of direct flights from Mumbai on Royal Jordanian Airlines. We also launched packages for Tashkan and Our Our homestay business continues to scale.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

We continue to build the category and expand our homestay supply. We added more supply in our top 18 pilgrimage cities led by Varanasi, Yodhaya, Theropati, which witnessed a 103% increase in new rooms on the platform versus same quarter last year. The supply in business cities grew 46% year on year, with notable growth in new rooms in Mumbai, Delhi, Bangalore, Hyderabad, and Gurgaon. Among international travelers, so particularly solo travelers, families, and groups, we have observed a rising preference for alternative accommodations such as hostels and apartments. To cater to this shift, we implemented target targeted interventions to surface these property types to relevant customer cohorts in Europe and other key destinations.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

As a result, we saw an improvement in the share of alternative accommodation with our international business. In our bus business, growth further improved in q one fiscal year twenty six with all regions growing in double digits. Our growth continues to be broad based with all regions growing in double digits with north and east outpacing traditional bus markets like south and west during the quarter. We are also noticing significantly higher growth from pilgrimage and tier three destinations. Inventory addition remained buoyant throughout q one fiscal year twenty six with private inventory crossing 44,000 daily schedules by the end of the quarter.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

This was driven by new bus addition by existing operators, which are predominantly sleeper buses in long routes, including the addition of 90 plus premium Volvo buses in the quarter. This trend of investment in new buses is likely to continue in the coming quarters. For RTCs, common buses too, we saw significant increase in inventory with the acquisition of GSRTC, Gujarat, State Road Roadways Transport Corporation, and then almost four x increase in digitized inventory from UPSC, UPS RTC. This has resulted in RTC inventory crossing 40,000 daily schedules as of June. Our international bus business continues to be promising.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

In Malaysia, which is a big market and where we are the market leader, with a healthy market share in online bus booking, we are adding more adjacent products such as ferries and activities. In other countries, we are in the mark market making mode and seeing steady progress. We continue to strengthen the customer proposition with within our trains business. This quarter, we launched an industry first seat availability prediction feature powered by a machine learning based forecasting model. By integrating real time seat availability signals within the booking funnel and and deploying targeted notifications, we enable we have enabled more confident and timely booking decisions.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

For our cabs business, we continue to scale both airport transfer and intercity cabs. During the quarter, we launched flight track cabs to ensure seamless airport to city rides for our customers. By using real time flight data, we dynamically adjust cab pickup times, guaranteeing timely service whether a flight is delayed or arrives early. This initiative has improved our service reliability and has led to higher NPS. We plan to enhance accuracy using data science, increase supply participation, and scale this across all our platforms.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

Our corporate travel business via both our platforms, that is MyBiz and Quest to Travel, is witnessing strong growth. Our active corporate customer count on MyBizness is now over 66,500 plus compared to 59,700 customers during the same quarter last year. And for Quest two Travel, the active customer count has reached 515 large corporates compared to 458 customers in the same quarter last year. Looking ahead, we remain optimistic about the long term growth prospects of the Indian travel sector and are firmly committed to delivering sustained value to our customers, partners, and stakeholders. Before I conclude, I want to extend my sincere thanks to all our existing and new shareholders and investors for their trust and support in our recent capital raise, which contributed to making it a very successful offering.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

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

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

Hi, Rajesh, and hello, everyone. We started the quarter with strong gross booking growth of 25.3% during April. It's tapered out during May and June due to multiple macro challenges that Rajesh has already spoken about. What stands out during the quarter is that within the Indian travel market, we were able to leverage our diversified mix to grow faster in other segments when domestic air ticketing and holiday packages demand was muted. Secondly, dial up our corporate platforms when leisure demand was impacted.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

Also, push international offerings when domestic demand was subdued. And lastly, drive operating leverage by affecting cost levers when growth seemed to have muted despite peak travel seasonality. This performance underscores the importance of our diversified business portfolio, disciplined financial management, and operational agility. For the reported quarter, revenue as per IFRS grew by 7.8% year on year in constant currency to $268,800,000.0 from $2,024,500,000.0 dollars in same quarter last year. The growth was impacted due to a series of external events.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

Our profit for the quarter was 25,800,000.0 compared to 21,000,000 during same quarter last year, raising 22.6% year on year growth. Adjusted operating profit, reached on a growth of 21% year on year and reached $47,300,000 compared to $39,100,000 in q one of last year. Moving on to our segment results. Our rate ticketing adjusted margin stood at $97,000,000, registering a growth of 11.5% year on year in constant currency. Take rates for the air ticketing business were in line at 6.8%.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

In the domestic air market, we maintain our market share despite the macro challenges at over 30%. Our international a t h business continues to grow faster than the market with increasing market share. Volumes in this segment grew by over 21% year on year, which was almost three times the market growth of 7% during the quarter. Mix of international air ticketing business revenue has now reached an all time high of 42% compared to 37% during the same quarter last year. In the hotels and packages segment, adjusted margin growth was 16.3% year on year in constant currency, resulting in adjusted margin of $121,900,000 during the quarter.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

The growth was more than expected as the holidays packages business was largely flat year on year by because of domestic leisure travel being impacted despite the increased. The increase for the quarter were in line at 17.7% in this segment. As Rajesh has already explained, we have also been increasing directly contracted international accommodation options, particularly in destinations where direct flight connectivity has been established and select long haul destinations which are of great interest to Indians. As a result, the mix of international in hotels and packages revenue reached an all time high of 25.2% during this quarter, up from 21% during the same quarter last year. In our bus ticketing business, the existing margin stood at $42,600,000, raising a strong year on year growth of over 34.1% in constant currency terms.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

Take rates for the business were in line at 10.3%. Our ground transport business, which includes rail and the city cabs and is reported under the others category, this test is strong growth. Gross booking for the quarter is $271,800,000, witnessing a growth of 31.6% year on year in constant currency for the ground transport businesses. Most of the ancillary services reported under others category, such as travel insurance, ForEx, etcetera, also grew very well during the quarter. As a result, adjusted margin from others category came in at $21,500,000, witnessing a strong growth of 47.4% year on year in constant currency.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

We remain focused on building operating cost efficiencies and driving operating leverage in our fixed cost, including personal selling and general and administrative expenses. Similarly, our customer efficient cost, that is our marketing and sales promotion expenses, continue to remain efficient. Quarter one and quarter three are generally higher brand marketing expense quarters in line with the seasonality. In this quarter, we were able to partially roll this back through the tepid months of May and June. As a result, our customer action cost came in at 5.1% of gross booking value.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

All other expenses were in line and helped us expand the overall adjusted operating margin from 1.64% of gross booking value during q one of last year to 1.8% of gross booking value during the current reported quarter. We entered the quarter with cash and cash equivalents of 804,000,000, and we'll continue to look for inorganic investment opportunities during the year. During the quarter, we were also able to significantly dial up on our share repurchase initiatives. We raised additional capital of approximately $3,100,000,000 through primary offering of ordinary shares and zero coupon convertible senior notes. The entire net proceeds from the offerings were used for repurchase of class b shares.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

After the completion of the reported quarter on second July two thousand twenty five, we have completed the repurchase and cancellation of 34,300,000.0 class b shares. As a result of the repurchase, we have a total of 95,400,000.0 shares outstanding compared to 111,300,000.0 shares outstanding as of thirty first March twenty twenty five. Trip.com is now the largest minority shareholder with approximately 16.9 voting shares in the company. We would like to take this opportunity to thank our existing and new incoming investors who have participated in the Afourcer primary offerings. With that, I'd like to turn the call back to Nipul for q and a.

[Vipul Garg, SVP - IR at MakeMyTrip]

Thanks, Mohit. Anyone wishing to ask a question can click on the raise hand options on their computer screen, and we will take the questions one by one. The first question is from the line of Sachin Saldankar of Bank of America. Sachin, may please ask your question now.

[Sachin Salgaonkar, MD - APAC Telcos, Media & Tech analyst at Bank of America]

Thanks, Vipul. Hi, management. Congrats on a good set of numbers and what was looking as, you know, a very difficult quarter. I have a few questions. First question, I know you as a company were targeting revenue and GMV growth of 20% every year.

[Sachin Salgaonkar, MD - APAC Telcos, Media & Tech analyst at Bank of America]

Given the fact that 1Q is at a 16% growth on revenue, how should we think about the upcoming quarters in the sense that for full year, are we still aiming at a 20% growth, or we might see growth, you know, lower than 20 odd percent? So that's question number one, but let me pause here.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

Yes, Sachin. Maybe I can just take that. Actually, if we really look at it across lines of businesses, you know, if I look at across all lines of businesses, the adjusted margin growth overall stands at close to about 18.8%. So we're kind of pretty close to the, you know, the 20% mark that we were kind of wanting to achieve. This is coming despite all the, you know, the micro events that we've already talked about during the quarter.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

I think that kind of pretty much gives us comfort that we're still on target to be in the high teens to twenties in terms of overall growth for the year as well.

[Sachin Salgaonkar, MD - APAC Telcos, Media & Tech analyst at Bank of America]

So, Mohit, in a way, what you're saying is the next three quarters, the growth could be better than one q to achieve your full year target of 20%. Right?

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

Yes. We do expect, you know, that we should be able to dial back growth because, like we said, know, operating started off with much better growth, but it's the events of May and June, which have kind of, you know, brought down the overall number for the quarter.

[Sachin Salgaonkar, MD - APAC Telcos, Media & Tech analyst at Bank of America]

Got it. The second question

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

Sorry, Sachin. Sorry, Sachin. If I may just add one important data point here, you know, while what Mohit said about the rest of the segments and our commentary, we covered that only domestic market was, you know, more impacted. I think we should look at constant currency growth number and the the gap with non constant currency, you know, from growth perspective is just 1.2%. So 18.8% is actually growth for constant currency overall.

[Sachin Salgaonkar, MD - APAC Telcos, Media & Tech analyst at Bank of America]

Fair point, Rajesh. And, you know, thank you for that. Second question, just wanted to gauge, the consumer sentiment out here. I know because of the three one off issues, be it, India, Pakistan conflict, Iran, Israel, or to that matter even an Air India plane going down. Clearly, the near term consumer sentiment was negative.

[Sachin Salgaonkar, MD - APAC Telcos, Media & Tech analyst at Bank of America]

So just wanted to understand, you know, as we head out of one q, are you seeing an improvement in the sentiment? I do understand, you know, from a seasonality perspective, one q, three q are strong. But keeping aside seasonality, do we see the consumer sentiment improving? And a related question perhaps is, you know, obviously, last couple of years, we are seeing a bit of an air supply If anything, that supply issue is again increased. So we'd love to get your thoughts in terms of how we should see at that also.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

Yeah. Maybe I can take that, Sachin. So we've started seeing the the sentiment improving, Sachin. In fact, if you look at the, you know, the overall daily flown data, first in the domestic market and then look at the international flown data, you would see the trends. You know, April, the daily flow numbers were actually were pretty close to the average of, the previous quarter, and then back was May and June.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

But if you release, you know, break that into literally day on day trend, you would see that the June numbers have started to come back. So we do see, you know, the overall sort of sentiment improving. We obviously see data on our platform in terms of booking trends for even leisure destinations slowly and gradually coming back as well. So I do think, like I was just saying it as part of the commentary as well, that that this is not this is like a temporary disruption. I don't think it's going to sort of, you know, change the the, you know, the structural shift that was happening on consumer behavior on spending more as part of their discretionary income on travel or on any other experience.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

I don't think so, and we've seen that sort of recovery already happening slowly and gradually. You know, obviously, the it'll pick up this running quarter is is non nonseason travel quarter as well. But in the you know, keeping that in mind keeping seasonality in mind, we do we do see the sentiment coming back. We also keep doing our own sort of consumer sentiment survey, and there also we've started to see the recovery trend, you know, week on week. And on the supply side, yes, there was a temporary disruption, and this was completely this time around from a different reasons for a different reason.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

Right? This was just more for the safety check for various planes and all the partners just being absolutely making sure that, that they had to double down on safety checks, etcetera. And because of it, some temporary announcements were made. But there also, we have started to see plane planes coming back, overall sort of daily departures coming back to track. And as far as international travel or daily flown traffic is concerned, that in any case relatively was less impacted, and we see that sort of coming back as well.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

So I don't think on the supply side, anything, you know, changes from what our narrative was, let's say, beginning of the the fiscal when we had reported our last quarter last year results, you know, last quarter results of last fiscal and full year, it it remains the same. Seems like this impact was in the quarter, and we see the recovery happening. And it should go back to the sort of same levels of April in terms of just the supply that was already there in the market. So I don't really see any further situation deteriorating from what it what what what it was at the beginning of the fiscal.

[Sachin Salgaonkar, MD - APAC Telcos, Media & Tech analyst at Bank of America]

Thank you, Rajesh. And my last question is on a potential IPO in India. And as you know, after ctrip selling down stake and be coming below 20%, few investors, you know, do have some expectations about a potential IPO in India. I know management in the past had reiterated listing in India as a medium term aspiration, but would love to get, you know, an incremental update from you guys. Anything so we as analysts and investors need to watch out for us to get a sense that, you know, if indeed there is a thought process and there is a clarity about the potential IPO and, you know, what are some of the, you know, events to watch out from from that perspective?

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

Actually, Jim, maybe I can take that. And, no, you're right. And and I think I just reiterate that it continues to be a a midterm opportunity for us to look at. Like like, we have been calling out in the past, you know, the India capital markets is something that we'll definitely look at. And we'll give the next opportunity to kind of, you response.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

The current exercise that we did was largely, you know, more repurchase program. And like we have always said, you know, the current shareholding pattern that we had even pre pre the repurchases wasn't really return to any kind of, you know, capital market activity globally or within India. So I think the the the eventual listing in India is gonna be more linked to a fund raise plans as it when they materialize. And right now, like I called out, we only added further to the balance sheet to the quarter, and we're currently sitting at about $800,000,000 of cash and cash equivalents. So unless we find a a significant, you know, reason to deploy, you know, large amount of funds, I think the India plans we can be we could offer, you know, midterm opportunity and a short term opportunity.

[Sachin Salgaonkar, MD - APAC Telcos, Media & Tech analyst at Bank of America]

Got it. Thanks, guys, and all the best.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

Thank you, Sachin.

[Vipul Garg, SVP - IR at MakeMyTrip]

Thanks, Sachin. The next question is from the line of Manish Adukia from Goldman Sachs. Manish, may please ask your question now.

[Manish Adukia, Equity Research Analyst at Goldman Sachs]

Thank you, Rupul. Hi. Good evening. You for taking my questions. My first question is on, again, demand.

[Manish Adukia, Equity Research Analyst at Goldman Sachs]

So when I think about your international segment, which, again, has done, a really good quarter, Air, you mentioned 27% and hotel 45%. And now the overalls international segment is more than a quarter of your revenue. So one, just want to get a sense of do you think this runway of 30% plus growth on a blended basis is still, like, a long way to go and you can continue to deliver on this number for some more time? And is it largely a function of you adding more supply, or is it also a function of, you know, continued shift to online on the international side? And a related question there is, do you gave the monthly booking data for April, May, and June for your overall segments, air, hotel, and bus?

[Manish Adukia, Equity Research Analyst at Goldman Sachs]

Was the trend similar for international as well where April was very strong and then May and June worsened, or was the trend in international different? That was my first set of questions.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

Maybe I can just sorry.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

Go ahead. Maybe I can just start with that, and and then, Mohit, you please add. So, Manish, you're absolutely right. Two reasons you've already actually called out, and it's a combination of the two. I'll give you one more reason.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

You know, on the on the international trend, one two that you called out is underpenetrated online market, which is absolutely true. Behavior is going more and more towards online booking. And the second is we are doing a lot of effort on adding supply, on all the sec on on both the segments directly contracted. Of course, you know, just working really hard to, also picking up consumer insights to improve the product experience as well. But I'll tell you one more macro reason for this, that is about the overall sort of country growth, you know, consistently GDP growing, rising income, disposable income growing.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

Also, it's sort of leading to, you know, sort of, international travel, the overall international travel, growth as well. So that is the third macro reason, and it's it's likely to be, you know, there for the foreseeable future. These all these macro drivers, because there is headroom everywhere. So if we the country continues to keep growing, and the the incomes continue to keep rising, you will see more and more urban population tier one, tier two cities, especially, and look to, you know, sort of leverage and and cash on, the air connectivity improving, the direct flights can air connectivity improving, and also the the ease of travel. Thanks to the, you know, certain short haul destinations, the the visa is becoming very, very sort of easy, you know, easily available for people and smooth experience for getting those visas without any hassles.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

All of these trends, if you really bring them together, would help, the international, you know, travel segment to definitely grow. And, you know, from our strategic sort of direction standpoint, we're clearly doubling down on that.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

Yeah. Maybe I can just add, Manish, that I can go to two questions that you had. Yes. While Rajesh has already covered the depth of supply both for domestic and international, I would also say the the the overall bit of supply because we keep on adding new ancillary services on the platform as well. So that's another one of the other kind of, you know, source of incremental growth that we'll want to keep dialing upon.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

And, of course, the continued shift from offline to online will be a driver as well. So just on the on the first question that you had, this would be the kind of, you know, drivers for growth. And on the second one, on international, you know, while domestic was very, very tepid growth in in May and June, international wasn't as as impacted even through May and June. And therefore, we were able to drive much better growth through the international offerings that we have on the platform.

[Manish Adukia, Equity Research Analyst at Goldman Sachs]

Thank you. My second set of question was on competition. So, Juan, if you can just maybe highlight, the general competition landscape, particularly from airline direct. Has there been any change? And second, from one of the other listed OTAs, Exegu, which reported results, I think, last week, their growth, at least on headline, looked stronger than your reported growth.

[Manish Adukia, Equity Research Analyst at Goldman Sachs]

Anything that you can talk about in the competition dynamics that may have changed in the market where, any of the OTS may have become slightly more aggressive than they were in the past? Would you love to get your thoughts?

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

I can take the, you know, the the the second one probably, you know. So in terms of if you look at it, you look it in the overall competitive dynamics and, you know, shares of of the various OTAs or intermediaries in the in the in the segment, we've generally seen, you know, the number three, four, five kind of, you know, changing places often and, you know, this could be for multiple reasons. What we are kind of, you know, seeing largely across what we're kind of, you know, actually more targeting across various segments is if you really look at it on domestic air, we've got a very strong leading market share of close to over 30%. And, therefore, at that kind of a, you know, sizable, you know, share of the market, we kind of are pretty realistic that they would tend to grow in line with the market. And it's not gonna be disproportionate to the market, you know, any longer.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

Whereas for some of the, you know, OTAs with kind of, you know, marginal shares in the segment, you could see a little bit of a, you know, kind of, you know, trend changing depending upon seasonality, depending upon company dynamics. But we are more focused on ensuring, you know, longer term growth and longer term market share remaining holding, you know, at the 30% plus level. So that's more on the on the overall, you know, change in kind of, you know, market participants and the and the and the report is there from. And coming to overall competitive dynamics, no significant change as such, you know, when it's, you know, largely in line with what it has been for the last few quarters or for the last couple of years, including on the direct side. I think, you know, the dialing of supply direct is something which we have always said.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

All suppliers will be, you know, kind of, of course, looking at maintaining or kind of increasing their share of direct share of the of the overall demand size. But we want to kind of make sure that, know, we continue to, you know, gain a meaningful share of most of our suppliers. We're not looking at kind of, you know, doing a 100% of any supplier, but we would want to have a rightful share and and also provide distribution at the most efficient level and in the most effective kind of, you know, cost of distribution. And that's what makes sure that, you know, a longer term kind of, you know, growth with each of these suppliers remains consistent.

[Manish Adukia, Equity Research Analyst at Goldman Sachs]

Thank you, Mike. My last question, Mohit, to you is on just capital allocation. In the March, we saw some buyback from public shareholders in June. Of course, you had that large share repurchase from tim.com, but outside of that, I don't think we saw any buyback here. You obviously have 800,000,000 of cash in the books and you're netting significant cash.

[Manish Adukia, Equity Research Analyst at Goldman Sachs]

Is there, like, a formal buyback policy that you're looking at beyond what you've put in the, you know, letter that there's a maximum amount that you will allocate towards buyback? And from a buyback strategy perspective, is there, like, a certain share price number that you have in mind? And if it goes below that, you look to intervene and buyback, or how are you thinking about that? Some color there would be helpful.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

No. Sure. Happy to share some color. And, you know, if you really look at it during the primary offerings also, we had called out that we were looking to deploy up to about $200,000,000 from the balance sheet, you know, to kind of achieve the objectives of the of the overall, you know, repurchase program of class b shares. Right?

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

It so happened that we were able to kind of, you know, upsize the offerings, and therefore, we didn't have to deploy from the balance sheet. Otherwise, the intent during this quarter was to largely deploy in terms of, you know, repurchase of class b versus class a because that kind of, you know, works even better from a company's standpoint and even from the point of view of the minority shareholders. So that's been the objective. That said, I think, if you really look at it in terms of, you know, the overall size of the repurchase program, we've been able to significantly dip into it for the quarter, which is a transition that we've already reported. But we remain open to kind of, you know, dipping into further buyback even in the in the in the rest of the year because we haven't really deployed directly from the balance sheet through the quarter.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

Now in terms of a program, whether we want to get into a steady program, like we have said, at least at this stage, we want to kind of keep it more like an opportunistic program, and therefore, we'll deploy it as we believe there's a right opportunity to do so. But in the future years, we'll remain open to kind of looking at it in steady program as well.

[Manish Adukia, Equity Research Analyst at Goldman Sachs]

Thank you for taking my questions. All the best.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

Thank you, Manish. Thanks, Manish.

[Vipul Garg, SVP - IR at MakeMyTrip]

Thanks, Manish. The next question is from the line of Aditi Suresh of Macquarie. Aditi, you may please ask your question now.

[Aditya Suresh, Head - India Equity Research at Macquarie Group]

Thank you, Rupul. Thank you, Rajesh, and most taking my my question as well. The first one is on hotels. I had two questions within hotels. So one is so your stand alone kind of, room nights booked was up about 18%.

[Aditya Suresh, Head - India Equity Research at Macquarie Group]

I'm just curious to understand, Was there any kind of down trading which you all witnessed in your platform, through the quarter?

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

Sorry. What? Say that again, Aditya?

[Aditya Suresh, Head - India Equity Research at Macquarie Group]

Was there any kind of drop, in the average room nights, the rate for room night, booked in in in the quarter?

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

Yeah. No. I got it. I got it. No.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

Very interesting question, and very interesting sort of trend also that we noticed in the quarter. See, this is, you know, as we mentioned, this is supposed to be a, you know, high, travel season quarter for leisure travel for sure, and that was muted. You know, just because overall sort of sentiment was down, general expectation was that they, you know, there will be impact on ADRs or there will be you know, the prices might go down significantly and all. I the reality was that that that did not happen. You know, it was, like, you know, small, literally one or two percentage point in certain segments drop, but nothing significant, nothing material.

[Aditya Suresh, Head - India Equity Research at Macquarie Group]

That's really interesting. Thank you for clarifying that, Rajesh. And then within hotels again, can you clarify, what proportion of activity is MICE related? And was that a bit of growth tailwind here for you this quarter?

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

Actually, overall corporate. Overall corporate, you know, because it was non leisure travel use case. Right? So it was nondiscretionary, if you will. Overall corporate and MICE is part of that corporate, you know, actually has been growing very, very well for us and continue to keep sort of, growing even in the in the quarter that we are reporting out.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

And and MICE was no real exception, but, pretty healthy growth there as well.

[Aditya Suresh, Head - India Equity Research at Macquarie Group]

Okay. And then with ancillary services and and bus, you you clearly kinda demonstrated really strong growth, in this quarter. But just on ancillary services and and kind of what you all speak about outside of ground ground transportation because there, I guess, your margin is a full drop down. Growth here is strong. What sort of headroom do you all think about in terms of growth and the growth potential?

[Aditya Suresh, Head - India Equity Research at Macquarie Group]

Could we kind of think about this 30% kind of pace in growth sustaining, say, for next three, four, five years? Or how do you all think about that opportunity?

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

So yeah. I think we are kind of actually rolling out, like I said, you know, we're kind of increasing the number of ancillary services that we are putting on the platform. And that is also another kind of driver for growth, particularly in the other segment because all of these kind of largely get clubbed under others. And therefore, not just the depth of supply with the width of supply in terms of, you know, new services that we are putting on the platform. We can do to be a a big opportunity.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

In fact, we have called out that this year, we also want to kind of dial up activities and experience service, which are gonna be reported as part of, you know, others to the extent that they get good on a standalone basis. And so we kind of feel confident that with all the initiatives that we have kind of taken in the last few years and are continuing to take, this will be a segment which we continue to grow faster and possibly in the thirties even in the in the years to come.

[Aditya Suresh, Head - India Equity Research at Macquarie Group]

Thanks, Mohit. And if I may, Rajesh, if if you just clarify, so there'll be changes in the board with kind of trips, Cheryl, Nick, and coming down. Could you call out any key changes which have happened from a board composition perspective?

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

Yeah. I'll let Mohit take that.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

Yeah. Sure. So, you know, essentially, you know, the the number of nominees from trip.com has gone down, you know, by three. So they now have only two nominees on the board, and therefore, we've kind of, you know, brought in, know, independence on the on the on the board apart from myself. So we've got two independence on the board, and I have also kind of, you know, joined the board once again.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

So this has been the broad chain. Nothing nothing exceptional to call out.

[Aditya Suresh, Head - India Equity Research at Macquarie Group]

Thank you. And all the best.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

By the way, the other two changes that we have kind of, you know, made is, you know, we've also just as part of the board management, we've also kind of now constituted nomination committee. We didn't have that earlier. But now that we have, you know, quite a few independent directors on the board, we thought it would be appropriate to set up a nomination committee as well. And we're also increasing the size of the audit committee from two independent members to three independent members.

[Vipul Garg, SVP - IR at MakeMyTrip]

Thanks, Aditi. Thanks, Aditi. The next question is from the line of Vijay Jayan of Citi. Vijay, you may please ask your question now.

[Vijit Jain, Director at Citi]

Thanks, Rupul. Hi, everyone. So congratulations on the successful transaction last month. And, also, I guess, in a challenging quarter, I see that your adjusted EBIT margins are now at the lower end of your guidance, despite the growth headwinds you saw in the quarter. So my first question is, how should one look at, your margin guidance from here?

[Vijit Jain, Director at Citi]

Growth in the subsequent quarters, as you mentioned earlier, is going pick up, to achieve greater than 20%, and, you have all these cost measures that you've implemented. So, that's my first question. How should one look at, that guidance in that context? And then I'll come back, for other question, please.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

You see the overall guidance kind of, you know, remains of wanting to get into that 1.8 to 2% range as a percentage of gross bookings, you know, on the on the additional operating margin. Now, of course, you know, within quarters, we'll kind of remain tactical. Like like I said, you know, while operating was a good growth but, therefore, you know, you know, we were going to normal course. But in during May and June, we realized that, you know, growth was being tipped. And therefore, we've kind of dialed up on on better kind of, you know, operating margins at the next level.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

So I think we continue to keep doing tactical moves in line with how the market is behaving or other. Very broadly, I think we'd kind of want to settle down in that range of 1.8 to 2% on a full year basis before we kind of, you know, revisit the the longer term outlook.

[Vijit Jain, Director at Citi]

Got it, mate. But my second question is, just on the A and P spends. Right? I know, and you you've spoken about how you calibrated them. But when I look at the split of it, I would have normally thought that, you know, the customer incentive is where you would have more immediate flexibility.

[Vijit Jain, Director at Citi]

And I do see that air ticketing customer inducements went kind of went up, in the in the quarter. Right? So I'm just trying to understand, you know, is that is that more to do with closer to the end of the quarter where you were looking to, you know, also support growth or, you know, if I'm looking at it a bit differently? So that's the second question.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

No. No. Probably not in those lines. Actually, like I've always said, you know, a large part of the sales promotion number is put out on the on the on the bridge, you know, between the gap revenue and the adjusted margin that we report is based on, you know, last distribution.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

Right? You know, and therefore, may not be most kind of, you know, representative, particularly if you look at it in a snapshot business. Right? If you look at it only for one quarter or over a longer period of time, it is still more reflective, you know. And therefore, it is much better to look at the overall customer efficient cost, you know, therefore, marketing and sales promotion put together.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

There, I believe we've kind of come in at about 5.1. And like I've been saying, we'll be fine anywhere being closer to the 5% range. We have generally been kind of, you know, below the 5% mark. This quarter being an exceptional one in terms of what has played out in in May and June, we have been slightly higher. It has also got to the fact that it's also linked into our adjusted margin also kind of blended basis coming in very strong, you know, up at the earlier quarters and years.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

And therefore, to that extent, it comes in, you know, with the improvement in the blend of business and in the improvement in the blended adjusted margin. It is a good expense to kind of incur. So this is largely going in tandem with that. So largely in line with, you know, how we wanted to kind of play out from a longer term perspective. But, yes, tactically, we'll kind of, you know, keep, you know, revisiting the overall customer acquisition spends, particularly the the longer term impact in brand marketing spends based on any, you know, specific one off, you know, macro situation that may that may play out for certain weeks or months.

[Vijit Jain, Director at Citi]

Got it. And the you know, ordinarily and when I look at your, you know, the monthly split you've given, and thank you for providing that additional color in the filing, And just also your your commentaries around where growth was. You you mentioned how international did very well, and, you know, kind of offset some of the domestic leisure travel plane. Now when I look at the hotel business, for example, and I see that the, you know, night booked is, you know, pretty healthy. You've said that international has done well.

[Vijit Jain, Director at Citi]

But the realizations or the GBV bookings on the hotel side is lower versus the nights booked. So I'm just trying to understand. Ordinarily, would have thought international higher should mean, in terms of tickets or nights would mean inter GBV would also see that upward pressure. So I'm just trying to understand that. And related to it, I suppose, you know, with both the May and June events, wouldn't international outbound have seen more pressure than the domestic leisure? Just just yeah.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

But great questions both, Vijay. And, actually, you know, the the the softening of the gross booking kind of, you know, growth percentage that you see largely comes in because of, you know, package is not doing well. Like, had called out, if there are two segments which kind of, you know, didn't do well, it was domestic air and domestic holiday packages. Right? Holiday packages, as you know, from a gross booking point of view are much higher. You know? The the average ASP for a holiday package is much higher than a than a than a than a hotel booking.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

And therefore, you see that impact playing out on the cross booking level. But if you really look at it at the at the revenue or the adjusted margin level, the growth was much stronger because the overall room rate growth has remained, you know, reasonably stronger. So this is largely the impact of holiday packages, you know, going down in the mix, you know, nothing else. And secondly, on the other question, on outbound, yes, there has been pressure and, you know, there have been, you know, kind of also issues around, say, for instance, certain air spaces being, you know, kind of geographically being being closed at certain points in time. But overall, sentiment on international, we it's almost kind of seems that that wasn't as weak as the as the overall sentiment on the domestic side.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

So we have seen more kind of, you know, muted kind of, you know, growth on on domestic. International, we were able to kind of still see a good growth. And like I said, I think it is also a little specific to us as a as a company because while the overall growth on, like, say, instance, on, you know, the international side, like, call out was about 21%, whereas the market grew only about 7%. So it is also specifically because we have been historically also over the last few years driving international very strong, and that continues to be a thematic, and we were able to continue to do that even during this reported quarter.

[Vijit Jain, Director at Citi]

Got it. Understood. And, yes. I think those were my questions. Thanks once again.

[Vijit Jain, Director at Citi]

And sorry. If I can, one last question, though just

[Vipul Garg, SVP - IR at MakeMyTrip]

to be in interest of Sean, I would request you to come back in the queue. Sure.

[Vijit Jain, Director at Citi]

Sure.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

Sorry, Vijay. We'll take it offline.

[Vipul Garg, SVP - IR at MakeMyTrip]

The next question is from the line of Manik Taneja of Excess Capital. Manik, you may please ask your question now.

[Manik Taneja, Executive Director at Axis Capital Ltd]

Hi. Thank you for the opportunity, and I hope I'm audible. So my while my question related to the customer acquisition cost has been answered, just a couple of bookkeeping questions with regards to the ESOP charge that we saw this current quarter and also on the ETR. If you could help us understand as to how should we be thinking about both these elements on a go forward basis.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

Yeah. On on ESOP course, like we've been saying, our endeavor is to kind of, you know, keep this within the 35 to $40,000,000 kind of a bracket for the for the full fiscal year. Now, you know, the kind of, you know, exercises pan out, how the grants are made, there could be kind of, you know, tweaks between quarters, and you would have seen that in the in the previous years as well. So I think much more to kind of, you know, read out on the on the ease of cost per se. On the ETS side, like, we have said, we have another we have already kind of, you know, recognized the different types of certain, therefore, there is fully reversal of that, which is happening in line with the profitability, you know, for the respective quarters.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

But going forward, in another two years' time, I think we'll kind of, you know, get to full flexibility as well.

[Manik Taneja, Executive Director at Axis Capital Ltd]

Yep. And, Mohit, just with regards to so while we did see some impact through May and June and you're seeing you're seeing some recovery on a day to day basis, if you were to hazard a guess between our hotels and packages business and the air business, which of the two segments do you essentially expect to essentially recover faster and get back to the normal trajectory in the course of the time?

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

If I just look back in the quarter that has already been reported, we saw a bit of disruption in May and June. You know, hotels has done, you know, much better as you can see from the reported numbers. So I think the trending is there to kind of, you know, look at.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

So maybe maybe if I can just add one more, point on top of that. I think maybe the right way to think about would be mostly the use case customer use case rather than just looking at, you know, particular travel service, whether it is air booking or or hotel or any of the other mode mode of transport. You know, the the impacted segment was only leisure, and it was supposed to be a, you know, sort of a high season quarter. Now this running quarter is not supposed to be a high season quarter because there are no summer vacation, there are no school holidays, and no college holidays, etcetera. So that so leisure's if you keep the seasonality in mind, all of the boards should start rising.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

And we've seen that rising already because, relatively, in any case, there's non leisure travel use case that happens in this quarter.

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

Also, Manik, usually I mean, historically, we've seen that, you know, from a product point of view, you really look at it, compared to a standalone bookings, you know, package bookings generally take a little longer to kind of, you know, come back post any any macro disruption. So won't be surprised if, you know, by the next seasonality, peak seasonality of q three, packages would come back strongly as well.

[Manik Taneja, Executive Director at Axis Capital Ltd]

Sure. Thank you for the response.

[Vipul Garg, SVP - IR at MakeMyTrip]

Thanks, Manik. The next question is from the line of Aditi Chandrasekar of UBS. Aditi, you may please ask your question now.

[Aditya Chandrasekar, Associate Director at UBS Group]

Yeah. Hi, team. Thanks for the opportunity. Just a quick question related to, you know, what was already asked on competition. I think you clearly stated that in air, in fact, you have gained a little bit of market share.

[Aditya Chandrasekar, Associate Director at UBS Group]

But can you just give some color on hotels and especially buses as well? Because Exigo has been stating that, you know, AbhiBus has also gained market share within the online segment itself. So I just wanted to understand how we should kind of, think about our market share in both hotels as well as, buses. Thank you.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

Maybe take the bus segment first, Aditi. And if you really look at the growth numbers that we've reported out on top of the scale and the size that we already have, I think it's testament of the fact that, you know, even at a very high base, we've been able to deliver a very robust growth rate, which effectively means that, you know, we are getting disproportionate or continue to get disproportionate share of the market. While, you know, whether it is Abhippers or any other player for that matter, because of the base, there's always a possibility that they may be gaining share. But that share also happens comes from, you know, essentially, two two sides. One is, you know, the offline market to online will continue to keep growing.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

And, the second one is that, you know, there's a long tail of, players. And if you end up sort of, taking an aggressive approach, sometimes maybe with aggressive promotions, etcetera, you will definitely tend to on a low base game share. Right? So I think we need to just look at, this whole comparison, keeping all these factors in mind, try to to look at it more like to like more than and then maybe sort of, you know, conclude one way or the other.

[Aditya Chandrasekar, Associate Director at UBS Group]

And and the hotel side, what we say that

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

also. So, you know, as we have said in the past also, Ruta, I think it'll be fair to say that the Indian OTA segment, there is no real, other OTA player which has any and then, you know, on the a lot of them are public and the numbers are out there, are any meaningful. And we continue to, on a high base, continue to keep growing. And, you know, our brand for hotel booking also continues to become stronger and stronger by the quarter. So there's so therefore, the competition there for us is international players, you know, whether it is Booking or Agoda. Now given that they have more global, you know, sort of business model or a playbook versus very India and a regional playbook, if I may call it, because we've also gone to The Middle East now, You know, our strategy to drive hotel business and the consumer behavior is on the, like, you know, sort of promise to the consumer is very, very different than any of the global player will do.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

And also the investments on the grounds are on the ground on the supply side are very, very different. So, you know, we we have built our moat, all aspects of the business, very focused on Indian travelers, and Indian market and now Middle East rather than any of the other global player who would be competing, you know, in 20 other markets and having a global sort of platform. So they would definitely have more strength on, you know, bringing customers from the foreign countries to the to India, which is like inbound travel. And they're also giving our GDPR compliance platform now, at least for people on Indian of Indian origin, we've started to get traction because that that, you know, that was, you know, going to be our first strategic initiative to attract inbound travel into into India. But as far as domestic and international is are concerned, we continue to, you know, of course, theoretically compete, but continue to lead the show.

[Aditya Chandrasekar, Associate Director at UBS Group]

Thank you, and all the best.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

Thanks.

[Vipul Garg, SVP - IR at MakeMyTrip]

Thanks, Aditi. In the interest of time now, we will take the last question from Gaurav Lathiri of Morgan Stanley. Gaurav, you may please ask your question now.

[Gaurav Rateria, Executive Director at Morgan Stanley]

Hi. Congrats on, great execution. I have two questions, one for, Rajesh and one for Mohit. So for Rajesh, just wanna check on how do you see AI led search and booking for travel as an opportunity or as a threat? Can you highlight some initiatives which future proves our business or even kind of stand makes it a standout winner given competition may not have the depth and the bandwidth to invest, in such kind of offering.

[Gaurav Rateria, Executive Director at Morgan Stanley]

And question from Mohit is that if you look at last three years as a trend on one q, the advertisement and promotion spend as percentage of gross booking has gone up from, one q '24 to one q '25 and one q '25 to one q '26. So I'm just trying to correlate this to, two or three factors. One is competition, which has largely been stable to benign. Second is share of repeat business, which I understand has been going up. And third could be the incremental investments in the new offering.

[Gaurav Rateria, Executive Director at Morgan Stanley]

So could you try and, you know, help me understand what could be the factor that is driving this up on a three year basis. Thank you.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

Sure, Gaurav. Let me let me take that to the AI question. I was smiling because I I don't know how, but I anticipated that you're going to ask the AI question. So I'll compliment to you on that. So, Gaurav, like you rightly called out.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

Right? So one, of course, you know and we've also called out in the plan for the last several quarters now that our strategy on product and technology has always been evolving around on one side, deep consumer insights to cutting edge technology, whichever might be the new technology that might be emerging. And with that same team, you know, we we've seen a lot of promise coming out of GenAI, and we've been investing, significantly behind that. And we will continue to keep investing. And we see it more, us sort of, you know, leading the innovation through GenAI rather than overtly getting paranoid about potential disruption.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

Now, theoretically, potential disruption can happen, but why would we not be in position to given that we have massive data, you know, over the so many years. Now we have 83,000,000 consumers who have transacted with us live to date on all our brands. And we have, you know, a huge amount of traffic coming every every day on our platform and transition related data, many other input signals from supply side, etcetera. All of that repository is only going to add more strength to our initiatives for us to be able to just come up with, you know, cutting edge innovation on enhancing the consumer experience, which is one of the main areas where we are, you know, sort of investing behind leveraging GenAI. And then the other area is, of course, the productivity, which is, you know, sort of also a consistent team across the, across the board where people are looking at and and and seeing where are wherever there are productivity gain, opportunities, we should we should leverage the the technology.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

And we are, you know, pretty much every, and I highlighted one, know, sort of, one odd or two odd features that we we released even the even last quarter. So pretty much every quarter, there will be something or the or the other coming out, you know, sort of following this strategy. And and and and this is an evolving space, and we will continue to keep learning because, here, the models are changing literally by weeks. And, and that this the space is so evolving, and we'll also learn along the way. But we will continue to keep invest behind it, and and and we do believe we are in better position given all the strengths that I called out for us to be able to just, you know, sort of directionally, strategically innovate better for consumers, more than, you know, getting sort of, worried about the the potential disruption.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

So that's really our take on GenAI. And, Mohit, you do want to take the second question?

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

Yeah. Surely. Hi, Bharat. This is a good question again. You know?

[Mohit Kabra, Group CFO & Director at MakeMyTrip]

But my see, what happens is, you know, over the years, if you also look at it, our mix of the business has been changing a bit as well, you know, with with more and more kind of, you know, increasing share coming in from non domestic air kind of, you know, businesses. And therefore, would just say that apart from looking at, you know, the customer action cost as a percentage of cross bookings, where you could see a slight kind of, you know, changes coming in in line with the change in the blended margin. But if you look at it as a percentage of, you know, the the adjustment margin that we report, it has largely remained at about 47%, you know, across the last, you know, three years in in q one. So I would just kind of, you know, also urge you to look at, you know, this as a percentage of the overall adjustment margin because based on, you know, the the mix improvements, our ability to kind of, you know, spend a little more with them.

[Gaurav Rateria, Executive Director at Morgan Stanley]

Thank you. Very helpful, and all the best for future.

[Vipul Garg, SVP - IR at MakeMyTrip]

Thank you. Thank you, Gaurav. This was our last question. Now over to you, Rajesh, for closing remarks.

[Rajesh Magow, Co-Founder & Group CEO at MakeMyTrip]

Thank you. Thank you, Rupul, and thank you, everyone, for your patience and for your time to listen in to us and for all the good questions that you had. And see you see you in the next quarter. Thank you.

[Vipul Garg, SVP - IR at MakeMyTrip]

Thank you, everyone. This brings us to the end of the call. You may please disconnect.

Participants

Executives

• Vipul Garg, SVP - IR
• Rajesh Magow, Co-Founder & Group CEO
• Mohit Kabra, Group CFO & Director

Analysts

• Sachin Salgaonkar, MD - APAC Telcos, Media & Tech analyst at Bank of America
• Manish Adukia, Equity Research Analyst at Goldman Sachs
• Aditya Suresh, Head - India Equity Research at Macquarie Group
• Vijit Jain, Director at Citi
• Manik Taneja, Executive Director at Axis Capital Ltd
• Aditya Chandrasekar, Associate Director at UBS Group
• Gaurav Rateria, Executive Director at Morgan Stanley