Core Insights - MakeMyTrip has experienced a strong recovery in travel demand during Q3 of fiscal 2026, driven by the festive season and long weekends, despite a temporary disruption in December due to new flight duty time limitation rules [4][7] - The company reported its first quarter with over $50 million in adjusted operating profit and $51.4 million in adjusted net profit, with a significant cash position of over $800 million [5][19] - AI-driven innovations, particularly the Myra trip-planning assistant, have enhanced customer interactions and service efficiency, with over 50,000 conversations daily and a high quality score [1][6] Financial Performance - MakeMyTrip achieved an adjusted operating profit of $50.7 million, marking a significant milestone, and reported an adjusted diluted EPS increase of 33% year-over-year [5][17] - The company repurchased approximately $46.1 million in securities during the quarter, indicating strong capital management [19] - Adjusted margins in air ticketing reached $107.9 million, up 20.4% year-over-year, while hotel and package volumes grew by 20.3% year-over-year [18] Product and Service Innovations - The Myra AI assistant has been pivotal in enhancing customer engagement, with 72% of interactions rated as "good" and a notable increase in voice-led interactions in tier-two cities [1][6] - MakeMyTrip has expanded its offerings to include over 200,000 bookable activities across 1,100 cities globally, aligning with its "one-stop-shop" strategy [8] - The introduction of an end-to-end visa guidance feature has shown strong engagement and improved conversion rates in international travel [10] Market Trends and Segment Performance - Domestic air ticketing saw a 2% year-over-year growth in daily departures in October and 5% in November, although December experienced a 5% decline due to regulatory changes [9] - The accommodation segment reported a 20.3% year-over-year volume growth, supported by leisure demand and a GST reduction on hotel rooms [11] - Corporate travel also saw growth, with active corporate customers on MyBiz increasing to over 77,500 [15] Strategic Outlook - Management emphasized ongoing product innovation through AI, which is expected to enhance all aspects of the customer journey [2] - The company anticipates that full recovery of domestic air supply may extend into the next fiscal year due to recent disruptions [7][21] - MakeMyTrip is focused on protecting and growing its direct traffic, particularly through its mobile app, amidst increasing competition in the AI space [21]

Financial Data and Key Metrics Changes - The company reported a strong performance in Q3, with adjusted operating profit exceeding $50 million for the first time, standing at $50.7 million, and adjusted net profit at approximately $51.4 million, reflecting a year-on-year growth of 33% in adjusted diluted EPS [20][21] - The adjusted margin for air ticketing was $107.9 million, showing a year-on-year growth of 20.4% in constant currency, with international air ticketing now accounting for about 43% of the adjusted margin [17][18] - The hotels and packages segment recorded a volume growth of 20.3% year-on-year, while gross booking value growth was more moderate at about 15.9% due to a reduction in GST rates impacting pricing [18][10] Business Line Data and Key Metrics Changes - The air ticketing business experienced a mixed performance, with domestic daily departures growing by 2% and 5% year-on-year in October and November, but declining by 5% in December due to new flight duty rules [8][17] - The accommodation business, including hotels and holiday packages, saw a strong demand driven by leisure travel, with the highest-ever check-ins recorded on December 25 [9][10] - The bus ticketing business witnessed strong growth, aided by festive travel, with inventory addition buoyant throughout Q3, crossing 45,000 daily schedules [13] Market Data and Key Metrics Changes - The company noted that over 45% of Myra users are from tier-two cities and beyond, indicating a growing penetration into smaller markets [5] - The corporate travel business is also witnessing strong growth, with active corporate customers on MyBiz increasing to over 77,500, compared to 64,000 in the same quarter last year [14] Company Strategy and Development Direction - The company is focusing on leveraging AI to enhance customer experience across all aspects of the travel journey, from planning to post-sales support [4][6] - A one-stop-shop strategy is being implemented to meet all travel-related needs, with the recent launch of tours and activities, providing access to over 200,000 bookable activities [7] - The company aims to improve its product relevance and effectiveness through proprietary data and AI-driven insights [5] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the Indian travel market's expansion, driven by economic, social, and technological factors, despite temporary disruptions [3][4] - The company anticipates that the disruption in flight operations will stabilize, with a return to positive growth in domestic air traffic expected in the upcoming quarters [16][46] - Management highlighted the importance of maintaining direct traffic to the company's platforms amidst emerging competition from AI tools in travel planning [56] Other Important Information - The company has repurchased approximately $41.5 million worth of shares during the quarter as part of its capital allocation strategy [21] - The integration of the travel expense management platform Happay has been completed, enhancing the company's corporate travel offerings [14] Q&A Session Summary Question: Can you break down the hotel segment growth by premium and budget segments? - The standalone hotel room nights grew by 20.6%, with the non-premium segment growing at about 23% year-on-year, while margins remained stable at about 17.7% [24][25] Question: What is the underlying margin for the growth in ancillary services? - The growth in ancillary services has been strong, with various new services being added, contributing to overall growth, but specific margins were not disclosed [30] Question: How should we think about normalized growth in the hotel business? - The GST rationalization has impacted growth, but the company expects growth to normalize and potentially return to previous levels over the next four quarters [39][43] Question: What is the outlook for domestic air traffic growth given the capacity cuts by IndiGo? - The company expects domestic air traffic to stabilize and return to positive growth, albeit at a modest rate, as supply issues are resolved [46][47] Question: How is Myra performing since its launch? - Myra has seen significant growth in interactions, with 50,000 daily interactions and a quality score of 3.9, indicating positive user engagement [50][51] Question: What are the implications of AI tools like Google and ChatGPT for the company? - The company views AI as an opportunity rather than a threat, focusing on enhancing its own AI tools while maintaining direct traffic to its platforms [56][57]