MakeMyTrip(MMYT) - 2026 Q1 - Quarterly Report

Performance Overview Financial & Operating Highlights (Q1 FY2026) 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 $21.5 million[5] Management Commentary Management acknowledged a challenging quarter with slowed growth in May and June due to external factors, yet expressed confidence in India's long-term travel sector growth and the company's resilient performance - CEO Rajesh Magow noted that while growth momentum from April slowed in May and June due to muted consumer sentiment and supply constraints from geopolitical events and a plane crash, the company's diversified business mix helped navigate these short-term adversities[3] - CFO Mohit Kabra emphasized the resilient performance and YoY profit improvement despite the challenging environment, attributing it to the company's diversified portfolio, financial discipline, and operational agility, also noting recent domestic air passenger numbers suggest easing headwinds[4] Detailed Financial Analysis (Q1 FY2026) Impact of External Events on Quarterly Performance External events in May and June 2025, including a terrorist attack and plane crash, significantly impacted quarterly performance, causing a slowdown in travel demand after a strong April - Business growth in May and June 2025 was negatively impacted by a terrorist attack near Pahalgam, Jammu and Kashmir on April 22, 2025, and a passenger airplane crash in Ahmedabad in June 2025[6] Monthly Gross Bookings YoY Growth (Constant Currency) | Segment | April 2025 | May 2025 | June 2025 | | :--- | :--- | :--- | :--- | | Air Ticketing | 19.9% | -4.7% | 0.8% | | Hotels and Packages | 29.6% | 10.5% | 9.3% | | Bus Ticketing | 38.7% | 32.6% | 30.9% | | Others | 39.7% | 27.3% | 28.6% | Segment Performance Analysis Segment performance varied, with Bus Ticketing and 'Others' showing strong growth, Air Ticketing modest gains, and Hotels and Packages revenue declining despite Adjusted Margin improvement Segment Revenue and Adjusted Margin (Q1 FY2026 vs Q1 FY2025) | Segment | Revenue Q1'25 ($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 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] - The growth was primarily driven by a 5.0% increase in the number of air ticketing flight segments year over year[11] Hotels and Packages 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] - 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][13] Bus Ticketing 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] - The growth was driven by a 32.6% increase in the number of bus tickets sold year over year[15] 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] Operating Expenses and Profitability 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] Liquidity and Financial Position 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] Corporate Developments and Governance Share Repurchases 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] - Post-repurchase, Trip.com holds approximately 16.90% of the voting power in MakeMyTrip[28] - 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] Board Committee Updates 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] - A new nominations committee was established, consisting of three members: Deep Kalra (Chair), May Yihong Wu, and Hashim Joomye[30] Non-IFRS Financial Measures and Reconciliations Explanation of Key Performance Indicators and Non-IFRS Measures 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][36] - 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] - 'Constant currency' results are presented to provide a baseline for analyzing business trends by removing the impact of foreign exchange rate fluctuations[40] Reconciliation of IFRS to Non-IFRS Measures 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 Condensed Consolidated Interim Statement of Financial Position 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] Condensed Consolidated Interim Statement of Profit or Loss 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 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 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% |