Core Viewpoint - MakeMyTrip reported quarterly earnings of $0.42 per share, missing the Zacks Consensus Estimate of $0.45 per share, but showing an increase from $0.39 per share a year ago, indicating a -6.67% earnings surprise [1][2] Financial Performance - The company posted revenues of $268.85 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 2.99%, compared to $254.52 million in the same quarter last year [2] - Over the last four quarters, MakeMyTrip has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance - MakeMyTrip shares have declined approximately 13% since the beginning of the year, contrasting with the S&P 500's gain of 7.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.43 on revenues of $256.02 million, and for the current fiscal year, it is $1.97 on revenues of $1.16 billion [7] Industry Outlook - The Internet - Delivery Services industry, to which MakeMyTrip belongs, is currently ranked in the top 11% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - Revenue for Q1 FY26 grew by 7.8% year on year in constant currency to $268.8 million, impacted by external events [26] - Adjusted operating profit reached $47.3 million, reflecting a 21% year on year growth [27] - Profit for the quarter was $25.8 million, up 22.6% from $21 million in the same quarter last year [27] Business Line Data and Key Metrics Changes - International air ticketing revenue grew over 27% year on year, significantly outpacing industry growth [8] - International hotels revenue increased by over 45% year on year, contributing 27% to overall revenue, up from 24% in the same period last year [8][26] - Gross booking value for hotel and packages business grew by 15.3% year on year in constant currency [10] Market Data and Key Metrics Changes - Domestic air segment market share increased from 30.6% to 30.8% [5] - International air ticketing business volumes grew by over 21% year on year, nearly three times the market growth of 7% [28] - The mix of international air ticketing revenue reached an all-time high of 42%, compared to 37% in the same quarter last year [28] Company Strategy and Development Direction - The company is focusing on enhancing customer experience through new product offerings and expanding its international market presence [9][12] - There is a strategic emphasis on corporate travel and international outbound travel, with a commitment to leveraging consumer insights and technology [6][13] - The company aims to maintain a diversified business portfolio to mitigate risks from macroeconomic challenges [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth prospects of the Indian travel sector, driven by rising disposable income and changing consumer behavior [6][22] - Despite recent macro headwinds, management believes the impact is short-term and does not alter the long-term outlook for the travel sector [5][6] - There are signs of improving consumer sentiment and recovery in travel demand, particularly in June [46][49] Other Important Information - The company raised approximately $3.1 billion through primary offerings, which were used for share repurchase initiatives [32][33] - The board composition has changed, with a reduction in nominees from Trip.com and an increase in independent directors [86][88] Q&A Session Summary Question: What is the outlook for revenue and GMV growth for the full year? - Management indicated that despite Q1 growth being at 16%, they remain on target for high teens to 20% growth for the year [39][40] Question: How is consumer sentiment trending post recent events? - Management noted an improvement in consumer sentiment and booking trends, indicating a recovery from temporary disruptions [46][49] Question: What is the company's stance on a potential IPO in India? - Management reiterated that an IPO remains a mid-term opportunity, contingent on capital market conditions and fundraising plans [51][52] Question: How does the company view competition in the market? - Management stated that while competition remains, they maintain a strong market share and focus on long-term growth rather than short-term fluctuations [66][68] Question: What is the strategy for capital allocation and buybacks? - Management expressed openness to opportunistic buybacks while maintaining a focus on deploying capital effectively [72][73]

Financial Data and Key Metrics Changes - Revenue for Q1 FY26 grew by 7.8% year on year in constant currency to $268.8 million, impacted by external events [24] - Adjusted operating profit reached $47.3 million, reflecting a 21% year on year growth [24][25] - Profit for the quarter was $25.8 million, up from $21 million in the same quarter last year, marking a 22.6% increase [25] Business Line Data and Key Metrics Changes - International air ticketing revenue grew over 27% year on year, significantly outpacing industry growth [6] - International hotels revenue increased by over 45% year on year, contributing approximately 27% to overall revenue, up from 24% in the same period last year [6][24] - Gross booking value for hotel and packages business grew by 15.3% year on year in constant currency [9] Market Data and Key Metrics Changes - Domestic air market share increased from 30.6% to 30.8% despite macro challenges [4][26] - International air ticketing business volumes grew by over 21% year on year, nearly three times the market growth of 7% [26] - The mix of international air ticketing revenue reached an all-time high of 42%, compared to 37% during the same quarter last year [26] Company Strategy and Development Direction - The company is focusing on enhancing customer experience through new product offerings and expanding its international market presence [10][12] - There is a strategic emphasis on diversifying the business portfolio to mitigate risks from domestic market fluctuations [23] - The company aims to leverage rising disposable income and changing consumer behavior towards experiential travel to drive long-term growth [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth prospects of the Indian travel sector, despite short-term macro headwinds [4][21] - There is an expectation of recovery in consumer sentiment and travel demand, particularly in the international segment [44][46] - Management indicated that the impact of recent events on travel demand is temporary and does not alter the long-term growth narrative [44] Other Important Information - The company successfully raised approximately $3.1 billion through primary offerings, which were used for share repurchase initiatives [31][32] - The board composition has changed with a reduction in Trip.com's nominees, increasing the number of independent directors [88][91] Q&A Session All Questions and Answers Question: What is the outlook for revenue and GMV growth for the upcoming quarters? - Management indicated that despite Q1's 16% revenue growth, they remain on target for high teens to 20% growth for the full year [35][38] Question: Is there an improvement in consumer sentiment following recent events? - Management noted that consumer sentiment is improving, with booking trends for leisure destinations gradually returning [44][46] Question: What is the competitive landscape like, particularly regarding OTAs? - Management stated that they maintain a strong market share of over 30% in the domestic air market and do not see significant changes in competitive dynamics [66][68] Question: What is the company's approach to capital allocation and buybacks? - Management confirmed an opportunistic approach to buybacks, with plans to deploy capital as opportunities arise [73][74]

[Performance Overview](index=1&type=section&id=Performance%20Overview) [Financial & Operating Highlights (Q1 FY2026)](index=1&type=section&id=Financial%20%26%20Operating%20Highlights%20(Q1%20FY2026)) MakeMyTrip reported resilient Q1 FY2026 growth with Gross Bookings up 9.6% to **$2.61 billion** and revenue up 5.6% to **$268.8 million**, alongside significant profitability improvements Q1 FY2026 Financial Summary (vs. Q1 FY2025) | Metric | Q1 FY2025 ($ thousands) | Q1 FY2026 ($ thousands) | YoY Change | YoY Change (Constant Currency) | | :--- | :--- | :--- | :--- | :--- | | **Gross Bookings** | 2,380,358 | 2,608,479 | 9.6% | 12.4% | | **Revenue** | 254,519 | 268,846 | 5.6% | 7.8% | | Air Ticketing Revenue | 57,546 | 60,125 | 4.5% | 6.9% | | Hotels and Packages Revenue | 146,846 | 141,648 | -3.5% | -1.7% | | Bus Ticketing Revenue | 29,217 | 38,753 | 32.6% | 35.0% | | **Results from Operating Activities** | 27,858 | 40,361 | 44.9% | N/A | | **Profit for the period** | 21,046 | 25,805 | 22.6% | N/A | | **Adjusted Operating Profit** | 39,139 | 47,341 | 21.0% | N/A | | **Adjusted Net Profit** | 44,523 | 49,429 | 11.0% | N/A | - Adjusted Margin, a key non-IFRS performance indicator, showed strong year-over-year growth across all segments (based on constant currency): - **Air Ticketing:** **+11.5%** to **$97.1 million** - **Hotels and Packages:** **+16.3%** to **$121.9 million** - **Bus Ticketing:** **+34.1%** to **$42.6 million** - **Others:** **+47.4%** to **$21.5 million**[5](index=5&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management acknowledged a challenging quarter with slowed growth in May and June due to external factors, yet expressed confidence in India's long-term travel sector growth and the company's resilient performance - CEO Rajesh Magow noted that while growth momentum from April slowed in May and June due to muted consumer sentiment and supply constraints from geopolitical events and a plane crash, the company's diversified business mix helped navigate these short-term adversities[3](index=3&type=chunk) - CFO Mohit Kabra emphasized the resilient performance and YoY profit improvement despite the challenging environment, attributing it to the company's diversified portfolio, financial discipline, and operational agility, also noting recent domestic air passenger numbers suggest easing headwinds[4](index=4&type=chunk) [Detailed Financial Analysis (Q1 FY2026)](index=3&type=section&id=Detailed%20Financial%20Analysis%20(Q1%20FY2026)) [Impact of External Events on Quarterly Performance](index=3&type=section&id=Impact%20of%20External%20Events%20on%20Quarterly%20Performance) External events in May and June 2025, including a terrorist attack and plane crash, significantly impacted quarterly performance, causing a slowdown in travel demand after a strong April - Business growth in May and June 2025 was negatively impacted by a terrorist attack near Pahalgam, Jammu and Kashmir on April 22, 2025, and a passenger airplane crash in Ahmedabad in June 2025[6](index=6&type=chunk) Monthly Gross Bookings YoY Growth (Constant Currency) | Segment | April 2025 | May 2025 | June 2025 | | :--- | :--- | :--- | :--- | | Air Ticketing | 19.9% | -4.7% | 0.8% | | Hotels and Packages | 29.6% | 10.5% | 9.3% | | Bus Ticketing | 38.7% | 32.6% | 30.9% | | Others | 39.7% | 27.3% | 28.6% | [Segment Performance Analysis](index=3&type=section&id=Segment%20Performance%20Analysis) Segment performance varied, with Bus Ticketing and 'Others' showing strong growth, Air Ticketing modest gains, and Hotels and Packages revenue declining despite Adjusted Margin improvement Segment Revenue and Adjusted Margin (Q1 FY2026 vs Q1 FY2025) | Segment | Revenue Q1'25 ($k) | Revenue Q1'26 ($k) | Adjusted Margin Q1'25 ($k) | Adjusted Margin Q1'26 ($k) | | :--- | :--- | :--- | :--- | :--- | | Air ticketing | 57,546 | 60,125 | 89,109 | 97,060 | | Hotels and packages | 146,846 | 141,648 | 107,275 | 121,881 | | Bus ticketing | 29,217 | 38,753 | 32,356 | 42,593 | | Others | 20,910 | 28,320 | 14,918 | 21,495 | [Air Ticketing](index=3&type=section&id=Air%20Ticketing) Air Ticketing revenue increased by **4.5%** to **$60.1 million** and Adjusted Margin grew **8.9%** to **$97.1 million**, driven by a **5.0%** rise in flight segments - Revenue increased by **4.5%** (**6.9%** in constant currency) to **$60.1 million**, and Adjusted Margin increased by **8.9%** (**11.5%** in constant currency) to **$97.1 million**[11](index=11&type=chunk) - The growth was primarily driven by a **5.0%** increase in the number of air ticketing flight segments year over year[11](index=11&type=chunk) [Hotels and Packages](index=3&type=section&id=Hotels%20and%20Packages) Hotels and Packages revenue decreased **3.5%** to **$141.6 million**, but Adjusted Margin increased **13.6%** to **$121.9 million**, driven by a **17.0%** rise in hotel-room nights - Revenue decreased by **3.5%** (**1.7%** in constant currency) to **$141.6 million**, primarily due to a decrease in revenue from the packages business[12](index=12&type=chunk) - Adjusted Margin increased by **13.6%** (**16.3%** in constant currency) to **$121.9 million**, driven by a **17.0%** increase in the number of hotel-room nights year over year[12](index=12&type=chunk)[13](index=13&type=chunk) [Bus Ticketing](index=5&type=section&id=Bus%20Ticketing) Bus Ticketing showed strong growth, with revenue up **32.6%** to **$38.8 million** and Adjusted Margin up **31.6%** to **$42.6 million**, driven by a **32.6%** increase in tickets sold - Revenue increased by **32.6%** (**35.0%** in constant currency) to **$38.8 million**, and Adjusted Margin increased by **31.6%** (**34.1%** in constant currency) to **$42.6 million**[15](index=15&type=chunk) - The growth was driven by a **32.6%** increase in the number of bus tickets sold year over year[15](index=15&type=chunk) [Others](index=5&type=section&id=Others) The 'Others' segment reported robust growth, with revenue up **35.4%** to **$28.3 million** and Adjusted Margin rising **44.1%** to **$21.5 million**, driven by ancillary services and marketing alliances - Revenue increased by **35.4%** (**38.7%** in constant currency) to **$28.3 million**, and Adjusted Margin increased by **44.1%** (**47.4%** in constant currency) to **$21.5 million**, primarily due to growth in ancillary services and marketing alliances[16](index=16&type=chunk) [Operating Expenses and Profitability](index=5&type=section&id=Operating%20Expenses%20and%20Profitability) The company achieved improved profitability with Results from Operating Activities up **44.9%** to **$40.4 million** and Net Profit up **22.6%** to **$25.8 million**, despite increased operating expenses Key Expense and Profitability Metrics (Q1 FY2026 vs Q1 FY2025) | Metric | Q1 FY2025 ($ thousands) | Q1 FY2026 ($ thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Service Cost | 85,100 | 74,900 | -12.0% | | Personnel Expenses | 38,200 | 40,200 | 5.3% | | Marketing & Sales Promotion | 40,100 | 43,900 | 9.6% | | Results from Operating Activities | 27,858 | 40,361 | 44.9% | | Profit for the Period | 21,046 | 25,805 | 22.6% | | Diluted EPS | $0.19 | $0.22 | 15.8% | - Net finance costs were **$4.0 million**, a shift from a net finance income of **$1.7 million** in the prior year, primarily due to higher interest expense and foreign exchange losses[22](index=22&type=chunk) [Liquidity and Financial Position](index=7&type=section&id=Liquidity%20and%20Financial%20Position) As of June 30, 2025, the company maintained a strong liquidity position with **$804.2 million** in cash, cash equivalents, and term deposits - As of June 30, 2025, the company's cash, cash equivalents, and term deposits totaled **$804.2 million**[26](index=26&type=chunk) [Corporate Developments and Governance](index=7&type=section&id=Corporate%20Developments%20and%20Governance) [Share Repurchases](index=7&type=section&id=Share%20Repurchases) On July 2, 2025, the company completed a significant repurchase and cancellation of **34.4 million** Class B shares from Trip.com, reducing Trip.com's voting power to **16.90%** - On July 2, 2025, the company completed the repurchase and cancellation of **34,372,221** Class B shares from Trip.com Group Limited[27](index=27&type=chunk) - Post-repurchase, Trip.com holds approximately **16.90%** of the voting power in MakeMyTrip[28](index=28&type=chunk) - As of June 30, 2025, the company had remaining authority to repurchase up to **$114.2 million** of its ordinary shares and 2028 Notes, with no repurchases made under this plan in Q1 FY2026[33](index=33&type=chunk) [Board Committee Updates](index=7&type=section&id=Board%20Committee%20Updates) Effective July 22, 2025, the company updated its board committees, appointing an independent director to the audit committee and establishing a new nominations committee - Independent director Hashim Joomye was appointed as a member of the audit committee, which now comprises three independent members[29](index=29&type=chunk) - A new nominations committee was established, consisting of three members: Deep Kalra (Chair), May Yihong Wu, and Hashim Joomye[30](index=30&type=chunk) [Non-IFRS Financial Measures and Reconciliations](index=9&type=section&id=Non-IFRS%20Financial%20Measures%20and%20Reconciliations) [Explanation of Key Performance Indicators and Non-IFRS Measures](index=9&type=section&id=Explanation%20of%20Key%20Performance%20Indicators%20and%20Non-IFRS%20Measures) The company utilizes non-IFRS measures like Adjusted Margin, Adjusted Operating Profit, and constant currency results to evaluate performance, excluding non-cash or non-recurring items for clearer financial analysis - The company's key performance indicator is 'Adjusted Margin', which represents IFRS revenue after adding back customer inducement costs and deducting the cost of procurement of services[35](index=35&type=chunk)[36](index=36&type=chunk) - Adjusted Operating Profit and Adjusted Net Profit are used for internal reporting and exclude non-cash or non-recurring items such as share-based compensation costs, amortization of acquired intangibles, and certain interest expenses[38](index=38&type=chunk) - 'Constant currency' results are presented to provide a baseline for analyzing business trends by removing the impact of foreign exchange rate fluctuations[40](index=40&type=chunk) [Reconciliation of IFRS to Non-IFRS Measures](index=17&type=section&id=Reconciliation%20of%20IFRS%20to%20Non-IFRS%20Measures) Detailed reconciliations are provided, showing how IFRS Results from Operating Activities of **$40.4 million** reconcile to an Adjusted Operating Profit of **$47.3 million** for Q1 FY2026 Reconciliation of Results from Operating Activities to Adjusted Operating Profit | Description | Q1 FY2025 ($ thousands) | Q1 FY2026 ($ thousands) | | :--- | :--- | :--- | | **Results from operating activities (IFRS)** | **27,858** | **40,361** | | Add: Acquisition related intangibles amortization | 2,881 | 2,875 | | Add: Employee share-based compensation costs | 8,400 | 5,466 | | Less: Gain on discontinuation of equity accounted investment | — | (1,361) | | **Adjusted Operating Profit (Non-IFRS)** | **39,139** | **47,341** | Reconciliation of Profit for the period to Adjusted Net Profit | Description | Q1 FY2025 ($ thousands) | Q1 FY2026 ($ thousands) | | :--- | :--- | :--- | | **Profit for the period (IFRS)** | **21,046** | **25,805** | | Add: Adjustments (Amortization, Share-based comp, etc.) | 15,005 | 13,648 | | Add: Income tax expense | 8,472 | 10,574 | | Add: Share of loss of equity-accounted investees | 15 | 6 | | **Adjusted Net Profit (Non-IFRS)** | **44,523** | **49,429** | [Financial Statements and Operating Data](index=12&type=section&id=Financial%20Statements%20and%20Operating%20Data) [Condensed Consolidated Interim Statement of Financial Position](index=12&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets increased significantly to **$4.88 billion**, primarily due to proceeds from a share and convertible note issuance held in escrow for a share repurchase Key Balance Sheet Items (as of June 30, 2025) | Item | Amount ($ thousands) | | :--- | :--- | | Total Assets | 4,878,919 | | Total Liabilities | 4,817,176 | | Total Equity | 61,743 | | Cash and cash equivalents | 486,596 | | Term deposits | 317,598 | - A significant increase in assets and liabilities is noted due to net proceeds of approximately **$3,038.8 million** from a share and convertible note issuance, which were held in an escrow account as of June 30, 2025, to fund the share repurchase from Trip.com[48](index=48&type=chunk) [Condensed Consolidated Interim Statement of Profit or Loss](index=13&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss) For Q1 FY2026, total revenue reached **$268.8 million**, with Results from Operating Activities improving to **$40.4 million** and Profit for the period increasing to **$25.8 million** Income Statement Summary (Q1 FY2026 vs Q1 FY2025) | Item | Q1 FY2025 ($ thousands) | Q1 FY2026 ($ thousands) | | :--- | :--- | :--- | | Total Revenue | 254,519 | 268,846 | | Results from operating activities | 27,858 | 40,361 | | Profit before tax | 29,518 | 36,379 | | **Profit for the period** | **21,046** | **25,805** | | Basic Earnings per share | $0.19 | $0.23 | | Diluted Earnings per share | $0.19 | $0.22 | [Condensed Consolidated Interim Statement of Cash Flows](index=15&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Cash%20Flows) Net cash generated from operating activities decreased to **$41.8 million** in Q1 FY2026, with net cash used in investing and financing activities leading to a **$21.1 million** decrease in cash and cash equivalents Cash Flow Summary (Q1 FY2026 vs Q1 FY2025) | Item | Q1 FY2025 ($ thousands) | Q1 FY2026 ($ thousands) | | :--- | :--- | :--- | | Net cash generated from operating activities | 72,323 | 41,843 | | Net cash used in investing activities | (45,868) | (60,691) | | Net cash used in financing activities | (4,993) | (2,251) | | **Increase (decrease) in cash and cash equivalents** | **21,462** | **(21,099)** | [Selected Operating and Financial Data](index=19&type=section&id=Selected%20Operating%20and%20Financial%20Data) Key operating metrics showed strong year-over-year volume growth, with Hotel and Packages room nights increasing to **10.7 million** and Bus tickets sold rising to **35.2 million** Key Operating Metrics (Q1 FY2026 vs Q1 FY2025) | Unit Metric (in thousands) | Q1 FY2025 | Q1 FY2026 | | :--- | :--- | :--- | | Air Ticketing – Flight segments | 14,156 | 14,479 | | Hotels and Packages – Room nights | 9,108 | 10,657 | | Bus Ticketing – Bus tickets | 26,558 | 35,205 | Adjusted Margin % by Segment | Segment | Q1 FY2025 | Q1 FY2026 | | :--- | :--- | :--- | | Air Ticketing | 6.4% | 6.8% | | Hotels and Packages | 17.5% | 17.7% | | Bus Ticketing | 10.2% | 10.3% |

Core Viewpoint - MakeMyTrip (MMYT) is currently facing challenges in stock performance, with a notable decline over the past month, while upcoming earnings are anticipated to show growth in both EPS and revenue compared to the previous year [2][3][4]. Company Performance - The stock price of MakeMyTrip ended at $93.01, reflecting a +2.25% change from the previous day's closing price, outperforming the S&P 500 which fell by 0.4% [1]. - Over the last month, MakeMyTrip's shares have decreased by 9.83%, underperforming the Computer and Technology sector which gained 6.34% and the S&P 500 which increased by 4.97% [2]. Upcoming Earnings - MakeMyTrip is set to release its earnings report on July 22, 2025, with an expected EPS of $0.45, indicating a 15.38% increase from the same quarter last year [3]. - The consensus estimate for revenue is projected at $277.12 million, representing an 8.88% year-over-year increase [3]. Full-Year Estimates - The Zacks Consensus Estimates for MakeMyTrip's full-year earnings are $1.96 per share and revenue of $1.16 billion, which would signify year-over-year growth of +25.64% and +18.78%, respectively [4]. Analyst Sentiment - Recent changes in analyst estimates for MakeMyTrip are crucial, as positive revisions indicate optimism regarding the company's business and profitability [4]. - The Zacks Rank for MakeMyTrip is currently 5 (Strong Sell), reflecting a decline of 0.61% in the consensus EPS projection over the past 30 days [6]. Valuation Metrics - MakeMyTrip's Forward P/E ratio stands at 46.53, which is significantly higher than the industry average Forward P/E of 14.77, indicating a premium valuation [7]. - The Internet - Delivery Services industry, to which MakeMyTrip belongs, has a Zacks Industry Rank of 94, placing it in the top 39% of over 250 industries [7].

Group 1 - MakeMyTrip's stock decreased by 1.27% to $93.36, underperforming the S&P 500's gain of 0.61% and the Nasdaq's increase of 0.95% [1] - Over the past month, MakeMyTrip shares have declined by 4.26%, while the Computer and Technology sector gained 5.6% and the S&P 500 increased by 3.85% [1] Group 2 - The upcoming earnings report for MakeMyTrip is anticipated, with projected earnings per share (EPS) of $0.45, reflecting a 15.38% increase year-over-year [2] - Revenue is expected to reach $277.12 million, indicating an 8.88% growth compared to the same quarter last year [2] Group 3 - For the entire fiscal year, earnings are projected at $1.98 per share and revenue at $1.16 billion, representing increases of 26.92% and 18.78% respectively from the previous year [3] - Recent analyst estimate revisions are seen as positive indicators for MakeMyTrip's business outlook [3] Group 4 - The Zacks Rank system, which evaluates estimate changes, indicates that MakeMyTrip currently holds a Zacks Rank of 5 (Strong Sell) [5] - The Zacks Rank has a historical track record of outperforming, with stocks rated 1 yielding an average annual return of +25% since 1988 [5] Group 5 - MakeMyTrip is trading at a Forward P/E ratio of 47.88, significantly higher than the industry average Forward P/E of 15.37 [6] - The Internet - Delivery Services industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 90, placing it in the top 37% of over 250 industries [6] Group 6 - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Company Performance - MakeMyTrip's stock closed at $99.82, with a daily increase of +1.86%, outperforming the S&P 500's gain of 0.52% [1] - The stock has decreased by 3.93% over the past month, underperforming the Computer and Technology sector's gain of 9.55% and the S&P 500's gain of 5.95% [1] Earnings Forecast - The upcoming earnings report projects earnings per share (EPS) of $0.46, representing a 17.95% increase year-over-year [2] - Revenue is estimated to be $277.12 million, indicating an 8.88% increase compared to the same quarter last year [2] Annual Estimates - For the entire year, earnings are forecasted at $1.98 per share and revenue at $1.16 billion, reflecting increases of +26.92% and +18.78% respectively compared to the previous year [3] Analyst Sentiment - Recent modifications to analyst estimates for MakeMyTrip are being monitored, as they indicate changing near-term business trends [4] - Positive estimate revisions suggest analyst optimism regarding the company's business and profitability [4] Zacks Rank and Valuation - MakeMyTrip currently holds a Zacks Rank of 4 (Sell), with the Zacks Consensus EPS estimate remaining unchanged over the last 30 days [6] - The company has a Forward P/E ratio of 49.62, which is a premium compared to its industry's Forward P/E of 17.47 [6] Industry Context - MakeMyTrip operates within the Internet - Delivery Services industry, which is part of the Computer and Technology sector [7] - This industry has a Zacks Industry Rank of 53, placing it in the top 22% of over 250 industries [7]

Group 1 - Trip.com Group Limited has entered into a share repurchase agreement with MakeMyTrip Limited to sell a portion of its Class B ordinary shares for cancellation, aiming to optimize its investment portfolio and enhance shareholder returns [1] - After the proposed repurchase, Trip.com Group will remain the largest minority shareholder of MakeMyTrip and continue to support its growth [1] - To fund the repurchase, MakeMyTrip has launched an offering of convertible senior notes and a concurrent underwritten public offering of ordinary shares, with Trip.com Group agreeing to a 180-day lock-up period [1] Group 2 - Trip.com Group Limited is a leading global one-stop travel platform, offering a comprehensive suite of travel products and services [2] - The company operates under various brands, including Ctrip, Qunar, Trip.com, and Skyscanner, and aims to provide travelers with cost-effective booking options and support [2] - Founded in 1999, Trip.com Group was listed on Nasdaq in 2003 and on HKEX in 2021, with a mission to pursue the perfect trip for a better world [2]

PART I [Key Information](index=10&type=section&id=ITEM%203.%20KEY%20INFORMATION) This section outlines the company's principal risks, including industry disruptions, intense competition, regulatory changes, and significant shareholder influence [Risk Factors](index=10&type=section&id=D.%20Risk%20Factors) The company's business is subject to numerous risks including industry disruptions, intense competition, evolving laws, and significant shareholder influence - The business is highly sensitive to disruptions in the travel industry, such as the liquidation of **Go First**, which reduced ticket supply and disrupted customer travel[45](index=45&type=chunk) - The company faces **intense competition** from other online travel agencies (OTAs), traditional agencies, and direct booking channels, which may increase marketing expenses and pressure commissions[57](index=57&type=chunk)[58](index=58&type=chunk) - Evolving regulations in India, particularly the **Digital Personal Data Protection Act (DPDP Act)**, could impose significant compliance costs and affect business operations[112](index=112&type=chunk)[113](index=113&type=chunk)[114](index=114&type=chunk) - Major shareholder **Trip.com holds 45.34% of total voting power**, giving it significant influence over corporate matters[134](index=134&type=chunk) - The company is subject to ongoing tax proceedings in India with **aggregate claims amounting to millions of dollars**, which could adversely affect financial performance[123](index=123&type=chunk)[695](index=695&type=chunk) [Information on the Company](index=48&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) This section details the company's history, business model through its primary brands, and strategy focused on high-margin segments and technology [History and Development of the Company](index=48&type=section&id=A.%20History%20and%20Development%20of%20the%20Company) Founded in 2000, the company has grown through key acquisitions like ibibo Group, with its stated capital reaching approximately $2.04 billion by March 2025 - The company was founded in 2000, initially serving non-resident Indians in the US, and launched its Indian business in September 2005[199](index=199&type=chunk) Key Acquisitions | Acquisition | Year | Business Description | | :--- | :--- | :--- | | **ibibo Group** | 2017 | Online travel services including Goibibo and redBus brands | | **Bitla** | 2018 | Technology support for bus operators | | **Quest 2 Travel** | 2019 | Corporate travel solutions | | **Book My Forex** | 2022 | Currency exchange and cross-border remittances | | **Simplotel** | 2022 | Website and booking technology for hotels | | **Savaari** | 2023 | Car rental services in India | | **HAPPAY** | 2025 | Corporate travel and expense management business | - In February 2021, the company issued **$230.0 million in 0.00% convertible senior notes** due 2028[209](index=209&type=chunk) [Business Overview](index=50&type=section&id=B.%20Business%20Overview) The company is a leading Indian travel provider whose strategy emphasizes growing its high-margin hotels and packages segment through technology and acquisitions Key Business Metrics (Fiscal Years 2023-2025) | Metric | FY 2023 | FY 2024 | FY 2025 | | :--- | :--- | :--- | :--- | | **Gross Bookings** | $6.6 billion | $8.0 billion | $9.8 billion | | **Flight Segments** | 43.9 million | 51.1 million | 58.7 million | | **Hotel & Package Room Nights** | 26.1 million | 31.1 million | 37.0 million | | **Bus Tickets Booked** | 73.0 million | 86.8 million | 106.5 million | - The company's strategy is to expand its **higher-margin Hotels and Packages business**, which it aims to achieve through technology investment, automation, and strategic partnerships[241](index=241&type=chunk)[242](index=242&type=chunk) - As of March 31, 2025, the platform offered approximately **87,000 properties in India** and over **1.2 million properties outside India**[220](index=220&type=chunk) - The company faces strong competition from other OTAs (Agoda, Booking.com, Expedia), traditional agencies, and direct supplier channels[356](index=356&type=chunk) Employee Headcount as of March 31, 2025 | Function | Number of Employees | | :--- | :--- | | Sales and marketing | 1,569 | | Technology | 1,649 | | Product development | 303 | | Operations, business dev. & supply | 991 | | Management & Others | 610 | | **Total** | **5,122** | [Operating and Financial Review and Prospects](index=82&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) This section analyzes the company's financial performance, highlighting 25.0% revenue growth to $978.3 million in FY2025, strong liquidity, and key accounting policies [Operating Results](index=82&type=section&id=A.%20Operating%20Results) FY2025 revenue reached **$978.3 million**, a 25.0% increase, with Adjusted Operating Profit growing to **$167.3 million** driven by strong travel demand Consolidated Statement of Profit or Loss Summary (FY2024 vs FY2025) | Metric (in millions) | FY 2024 | FY 2025 | Change (%) | | :--- | :--- | :--- | :--- | | **Revenue** | $782.5 | $978.3 | 25.0% | | **Results from operating activities** | $65.2 | $119.9 | 83.9% | | **Profit for the year** | $216.7 | $95.3 | (56.0)% | | **Adjusted Operating Profit** | $124.2 | $167.3 | 34.7% | | **Adjusted Net Profit** | $137.2 | $178.2 | 29.9% | Adjusted Margin by Segment (FY2024 vs FY2025) | Segment (in millions) | FY 2024 | FY 2025 | Change (%) | | :--- | :--- | :--- | :--- | | **Air Ticketing** | $317.7 | $373.1 | 17.4% | | **Hotels and Packages** | $348.9 | $429.5 | 23.1% | | **Bus Ticketing** | $102.1 | $131.0 | 28.2% | | **Others** | $48.8 | $72.0 | 47.7% | - The increase in revenue and adjusted margin across all segments in FY2025 was primarily attributed to **robust travel demand in India** for both domestic and international outbound travel[492](index=492&type=chunk) - Marketing and sales promotion expenses **increased by 34.1% to $165.3 million** in FY2025, driven by variable costs and brand-building initiatives in response to strong travel demand[499](index=499&type=chunk) - FY2024 profit was significantly impacted by a **one-time income tax benefit of $123.8 million** from the recognition of deferred tax assets, which was not repeated in FY2025[503](index=503&type=chunk)[518](index=518&type=chunk) [Liquidity and Capital Resources](index=116&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with **$763.3 million in cash and term deposits** and an active share repurchase program Cash and Liquidity Position (as of March 31, 2025) | Item (in millions) | Amount | | :--- | :--- | | Cash and cash equivalents | $508.9 | | Term deposits | $254.4 | | **Total Cash & Term Deposits** | **$763.3** | Summary of Cash Flows (FY2025, in millions) | Cash Flow Activity | Amount | | :--- | :--- | | Net cash from Operating Activities | $185.3 | | Net cash from Investing Activities | $26.4 | | Net cash used in Financing Activities | ($22.9) | - The company has **$230.0 million in convertible notes due 2028**, with the next potential repurchase date for holders on February 15, 2026[534](index=534&type=chunk)[562](index=562&type=chunk) - The company has an authorized share repurchase program for up to $136.0 million, with **$114.2 million remaining** available for repurchasing ordinary shares and the 2028 Notes as of March 31, 2025[560](index=560&type=chunk)[561](index=561&type=chunk) [Directors, Senior Management, and Employees](index=125&type=section&id=ITEM%206.%20DIRECTORS%2C%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) This section details the company's leadership, compensation structure, and board practices, including the influence of shareholder Trip.com - The board comprises ten directors, with key figures being Founder **Deep Kalra** (Group Chairman) and **Rajesh Magow** (Group CEO)[568](index=568&type=chunk)[571](index=571&type=chunk)[572](index=572&type=chunk) - Major shareholder **Trip.com has the right to nominate five directors** to the board[618](index=618&type=chunk) - Aggregate compensation for directors and executive officers in fiscal year 2025 was **$2.0 million**, consisting of $1.4 million in base salary and $0.6 million in other payments, excluding equity grants[583](index=583&type=chunk) - The company has a **Share Incentive Plan**, last amended to extend its expiration to March 31, 2032, under which it grants RSUs and ESOPs to employees, consultants, and directors[584](index=584&type=chunk)[604](index=604&type=chunk) - As a foreign private issuer, the company follows certain **Mauritian home country governance practices**, such as not having a majority of independent directors, which differs from Nasdaq requirements[180](index=180&type=chunk)[636](index=636&type=chunk) [Major Shareholders and Related Party Transactions](index=141&type=section&id=ITEM%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) This section identifies major shareholders, led by **Trip.com with 45.34% voting power**, and details significant related party transactions Major Shareholders (as of March 31, 2025) | Shareholder | Ordinary Shares (%) | Class B Shares (%) | Total Voting Power (%) | | :--- | :--- | :--- | :--- | | **Trip.com** | 15.05% | 100.0% | 45.34% | | **Schroder Investment Management** | 5.75% | 0% | 3.70% | | **FMR LLC** | 6.43% | 0% | 4.14% | | **Baillie Gifford & Co.** | 7.20% | 0% | 4.63% | | **Deep Kalra** | 5.07% | 0% | 3.28% | - The company procured air tickets and hotel room nights valued at **$109.8 million from Trip.com subsidiaries** in fiscal year 2025[652](index=652&type=chunk) - The company sold air tickets and hotel room nights with a value of **$19.7 million to Trip.com subsidiaries** in fiscal year 2025[652](index=652&type=chunk) [Financial Information](index=144&type=section&id=ITEM%208.%20FINANCIAL%20INFORMATION) This section references the consolidated financial statements and details significant legal proceedings, including numerous tax disputes in India [Consolidated Statements and Other Financial Information](index=144&type=section&id=A.%20Consolidated%20Statements%20and%20Other%20Financial%20Information) The company is contesting multiple tax demands from Indian authorities and a significant penalty from the Competition Commission of India (CCI) - The company is contesting numerous income tax assessment orders from Indian tax authorities for assessment years 2009-10 through 2023-24, with disputes over issues like **transfer pricing and depreciation**[663](index=663&type=chunk)[664](index=664&type=chunk)[694](index=694&type=chunk) - Multiple **service tax and GST demands are outstanding** from Indian authorities for periods from 2006 to 2021, with many of these cases under appeal[695](index=695&type=chunk)[704](index=704&type=chunk)[733](index=733&type=chunk) - The Competition Commission of India (CCI) imposed a **penalty of Rs. 2,234.8 million ($26.1 million)** for alleged anti-competitive practices, which the company has appealed[749](index=749&type=chunk)[750](index=750&type=chunk) - The company is involved in a writ petition regarding the applicability of the **Motor Vehicles Act** to its redBus business, with an interim order preventing adverse action[746](index=746&type=chunk)[748](index=748&type=chunk) [Additional Information](index=161&type=section&id=ITEM%2010.%20ADDITIONAL%20INFORMATION) This section details the company's dual-class share structure, which grants significant control rights to Trip.com, and discusses potential PFIC status [Memorandum and Articles of Association](index=161&type=section&id=B.%20Memorandum%20and%20Articles%20of%20Association) The company's governance is defined by its Mauritian incorporation and a **dual-class share structure granting Trip.com significant control rights** - The company has two classes of shares: ordinary shares and **Class B shares**, with the latter possessing special control rights[762](index=762&type=chunk) - As long as Permitted Holders (currently Trip.com) own 10% or more of voting securities, they are entitled to **nominate directors in proportion to their ownership**[808](index=808&type=chunk)[815](index=815&type=chunk) - Certain **'Reserved Matters' require approval from a majority of Class B directors**, including major asset sales and changes to key executive positions[820](index=820&type=chunk) - Trip.com holds **pre-emptive rights** to purchase additional Class B Shares to maintain its voting percentage in the event of new voting security issuances[812](index=812&type=chunk)[867](index=867&type=chunk) [Taxation](index=187&type=section&id=E.%20Taxation) This sub-section describes the company's 15% Mauritian tax rate and the potential US tax implications for shareholders, including PFIC risk - As a Mauritius Global Business Company (GBC), the company is subject to a **15% income tax rate** and may receive an 80% partial exemption on certain foreign income[172](index=172&type=chunk)[173](index=173&type=chunk) - For US Holders, distributions are generally treated as dividends, with tax rates dependent on the company not being classified as a **Passive Foreign Investment Company (PFIC)**[896](index=896&type=chunk)[897](index=897&type=chunk) - The company **does not believe it will be a PFIC** for the current taxable year, but this status is subject to annual testing and could have adverse tax consequences for US Holders[903](index=903&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=196&type=section&id=ITEM%2011.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risk is foreign currency exposure, particularly between the INR and USD, while it reports no interest rate risk - The company is exposed to **foreign currency risk**, primarily from mismatches between the Indian Rupee (functional currency) and the US Dollar (presentation currency)[927](index=927&type=chunk) Foreign Currency Risk Sensitivity (FY2025) | Scenario | Impact on Profit (in millions) | | :--- | :--- | | 10% appreciation of USD vs INR | ($19.7) | | 10% depreciation of USD vs INR | $19.7 | - The company **does not currently use any hedging agreements** to cover its foreign exchange exposure[930](index=930&type=chunk) - The company reports **no interest rate risk** as it does not have any variable rate interest-bearing financial instruments[930](index=930&type=chunk) [Controls and Procedures](index=198&type=section&id=ITEM%2015.%20CONTROLS%20AND%20PROCEDURES) Management and the independent auditor concluded that the company's disclosure controls and internal control over financial reporting were effective - Management concluded that the company's **disclosure controls and procedures were effective** as of March 31, 2025[941](index=941&type=chunk) - Management concluded that the company's **internal control over financial reporting was effective** as of March 31, 2025, based on the COSO framework (2013)[944](index=944&type=chunk) - The independent auditor, KPMG, issued an **unqualified opinion** on the effectiveness of the company's internal control over financial reporting as of March 31, 2025[948](index=948&type=chunk)[949](index=949&type=chunk) - **No material changes** in internal control over financial reporting were identified during the period covered by the annual report[954](index=954&type=chunk) [Other Information](index=202&type=section&id=ITEM%2016.%20%5BVARIOUS%20SUB-ITEMS%5D) This section covers governance topics including the audit committee financial expert, accountant fees, share repurchases, and cybersecurity risk management - The board has determined that **Ms. May Yihong Wu** qualifies as an audit committee financial expert[955](index=955&type=chunk) Principal Accountant Fees (FY2025) | Fee Category | Amount | | :--- | :--- | | Audit Fees | $681,371 | | Tax Fees | $190,768 | | All Other Fees | $0 | | **Total** | **$872,139** | - The company has a share repurchase plan with **$114.2 million remaining** for future purchases as of March 31, 2025[964](index=964&type=chunk) - The company follows **home country (Mauritius) practices** in lieu of certain Nasdaq rules, such as not having a majority-independent board[970](index=970&type=chunk) - The company has a **cybersecurity risk management program** overseen by the board and has not identified any cybersecurity threats that have materially affected the company[973](index=973&type=chunk)[977](index=977&type=chunk)[978](index=978&type=chunk) PART II PART III [Financial Statements](index=209&type=section&id=ITEM%2017.%20FINANCIAL%20STATEMENTS) This section indicates that the company's audited consolidated financial statements are provided under Item 18 [Financial Statements](index=209&type=section&id=ITEM%2018.%20FINANCIAL%20STATEMENTS) This section contains the company's audited consolidated financial statements for fiscal years 2023-2025, prepared in accordance with IFRS Consolidated Financial Position (as of March 31) | (in thousands) | 2024 | 2025 | | :--- | :--- | :--- | | **Total Assets** | $1,660,077 | $1,828,288 | | **Total Liabilities** | $543,659 | $620,311 | | **Total Equity** | $1,116,418 | $1,207,977 | Consolidated Profit or Loss (for the year ended March 31) | (in thousands) | 2023 | 2024 | 2025 | | :--- | :--- | :--- | :--- | | **Total Revenue** | $593,036 | $782,524 | $978,336 | | **Results from operating activities** | $23,604 | $65,214 | $119,889 | | **Profit (loss) for the year** | ($11,168) | $216,743 | $95,274 | - The independent auditor's report identified two critical audit matters: the evaluation of **revenue recognition** due to high transaction volume and the recoverability of **deferred tax assets**[1001](index=1001&type=chunk)[1002](index=1002&type=chunk)[1006](index=1006&type=chunk) [Exhibits](index=210&type=section&id=ITEM%2019.%20EXHIBITS) This section lists all exhibits filed with the Form 20-F, including governing documents, material agreements, and required certifications - Key exhibits include the company's Constitution, the **Amended and Restated Investor Rights Agreement with Trip.com**, and the Indenture for the 2028 Convertible Notes[986](index=986&type=chunk)

Group 1 - MakeMyTrip's stock closed at $100.42, with a +1.67% change, outperforming the S&P 500's gain of 0.38% [1] - The stock has decreased by 6.01% over the past month, underperforming the Computer and Technology sector's gain of 11.61% and the S&P 500's gain of 6.6% [1] Group 2 - The upcoming earnings report is expected to show an EPS of $0.46, a 17.95% increase year-over-year, with revenue forecasted at $277.12 million, reflecting an 8.88% growth [2] - For the full year, earnings are projected at $1.98 per share and revenue at $1.16 billion, indicating increases of +26.92% and +18.78% respectively from the previous year [3] Group 3 - Recent analyst estimate revisions indicate optimism about MakeMyTrip's business and profitability [3] - The Zacks Rank system, which correlates estimate changes with stock prices, currently ranks MakeMyTrip at 4 (Sell) [5] Group 4 - MakeMyTrip's Forward P/E ratio is 50.01, significantly higher than the industry average of 17.82 [6] - The Internet - Delivery Services industry, part of the Computer and Technology sector, ranks in the top 22% of over 250 industries according to the Zacks Industry Rank [6]