MakeMyTrip Limited Q2 2027 Earnings Call Summary

Strategic Performance and Market Positioning

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• Achieved 20.9% constant currency gross booking growth by pivoting to domestic leisure and ground transport to offset macro-driven air travel softness.

• Strategic focus on non-air segments increased their business mix to 63.2%, providing resilience against high Aviation Turbine Fuel (ATF) prices and regional conflicts.

• Capitalized on fragmented supply in India by aggregating over 105,000 accommodation options and 50,000 daily bus schedules, creating a high barrier to entry for competitors.

• Maintained a leading 30%+ domestic air ticketing market share despite a 7% decline in industry-wide departures, focusing on unit economics over volume at any cost.

• Expanded the corporate travel footprint to over 84,600 active customers, utilizing B2B stability to balance seasonal fluctuations in retail leisure demand.

• Invested in directly contracted international hotel supply, growing the portfolio by 30% to 40,000 accommodations to capture long-term outbound travel potential.

• Leveraged proprietary data from two decades of transactions to power a knowledge graph that delivers more relevant, trust-based recommendations than general-purpose AI.

Strategic Outlook and AI Integration Framework

• AI strategy focuses on three economic outcomes: increasing conversion via semantic search, improving operational productivity, and expanding the addressable market through regional language support.

• Management expects the gap between air revenue and payment processing costs to narrow as fares and volumes normalize, supporting future margin expansion.

• Anticipates sustained momentum in bus ticketing driven by improving highway infrastructure and a shift toward premium fleet upgrades by supply partners.

• Plans to scale the ‘MMT Experience Pass’ and intercity cab offerings to capture a larger share of the end-to-end travel wallet beyond initial bookings.

• Future growth investments will prioritize under-penetrated categories like homestays, villas, and tours where supply remains digitally fragmented.

Financial and Structural Developments

• Reported a $29.6 million non-cash notional interest charge related to zero-coupon convertible bonds, which does not impact cash flow.

• Executed $17.2 million in share buybacks during the quarter to preemptively manage dilution from the 2028 convertible bonds.

• Confirmed a confidential filing for the IPO of MakeMyTrip India Limited, with timing dependent on regulatory approvals and market conditions.

• Noted a 10% currency translation headwind due to INR depreciation against the USD, impacting reported growth rates compared to constant currency performance.