MakeMyTrip’s Q1 beats travel headwinds

MakeMyTrip reported robust financial results for the first quarter of FY27, overcoming a challenging market scenario with growth fueled by its varied travel divisions. External events, such as the West Asia conflict, which influenced oil prices, and the decline in international travel, did not deter the firm's momentum. CEO Rajesh Magow expressed optimism about the travel and tourism sector's long-term prospects in India, citing infrastructure development and growing travel willingness.

Gross bookings surged 19.9% year-on-year in constant currency to approximately $2.9 billion. Revenue increased 16.1% to $285.6 million, with operating results rising 8.3% to $43.7 million. Adjusted operating profit, or adjusted EBIT, amounted to $51.4 million. Growth was seen across all business segments, with adjusted margins from air ticketing increasing 10.8% year-on-year, hotels and packages expanding 21.3%, bus ticketing growing 32.4%, and the others segment rising 27.2% in constant currency.

The notable increase in these segments suggests they outperformed the more established air ticketing segment during the quarter.

MakeMyTrip further reinforced its technological advancements by enhancing its artificial intelligence initiatives, particularly Myra 2.0, the AI-powered travel assistant. The platform now facilitates end-to-end conversational bookings, enabling customers to search, compare, inquire, upload documents, and finalize bookings via voice in eight Indian languages.

Myra processed over 85,000 daily conversations in the quarter, with more than 45% originating from Tier II and Tier III cities. Notably, it managed to resolve more than 50% of post-booking queries related to flights and hotels, underscoring its role in enhancing customer service efficiency.