MakeMyTrip (MMYT) Q4 2025: International Revenue Jumps 65% as Outbound Travel Accelerates
International expansion and GenAI-driven product innovation propelled MakeMyTrip’s Q4, with outbound hotel revenue up 65% and international air up 33%. The company’s deepening reach into tier 2 and 3 cities, robust new user growth, and a unified AI interface signal an aggressive push to consolidate leadership across India’s evolving travel market. Management’s focus on operating leverage, selective buybacks, and opportunistic M&A underpins a strategy built for scale and resilience as competition and macro volatility loom.
Summary
- International Growth Outpaces Market: Outbound hotel and air revenues surged, now representing 25% of group revenue.
- GenAI Integration Reshapes Customer Experience: Myra.ai and AI-powered features drive self-service and personalization.
- Margin Expansion Remains Core Priority: Operating leverage and disciplined marketing spend reinforce sustainable growth focus.
Performance Analysis
MakeMyTrip posted another record quarter, with revenue up 25.6% YoY in constant currency and adjusted operating profit climbing nearly 38%. The company’s gross booking value (GBV) reached $9.8 billion for the year, up 25.9%, reflecting broad-based demand across air, hotels, bus, and new travel segments. International business was a standout, with air ticketing revenue up 33% and hotel revenue up 65% YoY—outpacing both the local market and global peers. International now accounts for a quarter of consolidated revenue, up from 22% last year.
Domestic travel remains resilient, with MakeMyTrip maintaining a 30%+ share in domestic flight bookings and expanding its accommodation supply to over 89,000 options in 2,000+ cities. The company added over 9 million new users, with significant traction from tier 2 and 3 towns. Repeat usage rates remain robust at over 70%, underscoring strong brand stickiness. Bus ticketing also saw margin growth of 44% YoY, aided by the one-off Mahakumbh pilgrimage demand.
- International Revenue Mix Shift: International hotels and air now contribute 25% of revenue, up from 22% last year.
- Operating Leverage Gains: Adjusted operating profit margin rose to 1.71% of GBV, reflecting cost discipline and scale.
- Broad-Based Segment Growth: Hotels, packages, bus, and homestays all delivered double-digit volume and margin growth.
Cash and cash equivalents closed at $750 million, supporting continued investment in product, AI, and selective buybacks. The company’s buyback program repurchased $21.5 million of shares in Q4, with management signaling an opportunistic approach going forward.
Executive Commentary
"We not only delivered record performance, but we also celebrated our 25th anniversary. This milestone is more than a measure of time. It reflects the dedication, innovation, and resilience that have defined our journey... Our high growth rate has come from the new users as well as from the existing customers. During the year, we added more than 9 million customers, taking the lifetime transacted user base to 82 million now."
Rajesh Mago, Co-founder and Group Chief Executive Officer
"During fiscal year 25, our revenue as per IFRS grew by 27.4% year-on-year in constant currency to $978 million from $782 million in fiscal year 24... Our capital allocation strategy remains focused on three core priorities. Firstly, continuing to invest in growth initiatives across our platform. Secondly, selectively exploring niche inorganic opportunities that can strengthen our market position or add strategic capabilities. And lastly, returning value to the shareholders through our buyback program."
Mohit Kabra, Group Chief Financial Officer
Strategic Positioning
1. International Expansion as Growth Engine
International travel is now MakeMyTrip’s fastest-growing segment, with outbound hotel and air revenues far outpacing both domestic and industry averages. This is supported by enhanced product localization, expanded direct contracting with global hotels, and a stronger proposition for Indian travelers. The company’s ability to deliver 65% YoY growth in international hotels and 33% in international air underscores its competitive positioning and market share gains in a structurally underpenetrated outbound market.
2. GenAI and Unified Customer Experience
GenAI-led innovation is central to MakeMyTrip’s product roadmap. Myra.ai, the company’s agentic trip planning bot, now orchestrates seamless interactions across flights, hotels, and ground transport. AI-driven features—ranging from review summaries to smart search and automated post-sales support—are designed to reduce friction, cut support costs, and drive higher conversion. The integration of these tools reflects a deliberate shift toward a more intuitive, self-service platform, with management emphasizing proprietary data as a long-term moat.
3. Operating Discipline and Capital Allocation
Management continues to prioritize operating leverage and disciplined marketing spend, keeping promotional expenses at or below 5% of GMV while investing in ancillary services and geographic expansion. The focus on cost efficiency is evident in the rising operating profit margin and the company’s measured approach to ESOP and tax expense management. Opportunistic share repurchases and targeted M&A in niche segments (such as the recent acquisition of Happy Expense Management from CRED) highlight a capital allocation strategy that balances growth, innovation, and shareholder returns.
4. Deepening Domestic Penetration and Supply Aggregation
Expansion in tier 2 and 3 cities remains a key lever, with MakeMyTrip adding over 120,000 rooms to its domestic supply and capturing surging demand in alternative accommodations and pilgrimage travel. The company’s unique ability to aggregate inventory—evidenced by exclusive offerings during high-demand events like Mahakumbh—reinforces its one-stop-shop positioning and supply-side differentiation.
5. Resilient Demand and Adaptive Execution
Despite short-term disruptions from geopolitical tensions, management reports a swift recovery in bookings post-ceasefire and remains optimistic about underlying travel demand. The company’s ability to quickly collaborate with partners and adapt offerings in response to macro events demonstrates operational agility and a customer-first approach.
Key Considerations
MakeMyTrip’s Q4 was defined by strong international momentum, AI-driven product advances, and disciplined execution across segments. Strategic context for the quarter included:
Key Considerations:
- International Outbound as a Structural Tailwind: Outbound travel is seeing secular growth, with MakeMyTrip gaining share via tailored content and expanded supply.
- GenAI as Differentiator: Proprietary data and unified interfaces may create defensible advantages as the travel booking experience shifts toward automation and personalization.
- Marketing Spend Philosophy: Management aims to maintain marketing at ~5% of GMV, prioritizing efficient growth and new business incubation over margin maximization.
- Buyback and M&A Optionality: Opportunistic capital returns and selective M&A in ancillary segments signal flexibility and a focus on long-term value creation.
- Macro and Geopolitical Sensitivity: The business remains exposed to short-term shocks but has shown resilience and adaptability in response to recent disruptions.
Risks
MakeMyTrip faces risks from increased competition in both core OTA and emerging AI-driven travel platforms, as well as from macro and geopolitical volatility, particularly in international travel corridors. The shift toward automation may erode some traditional service moats, while episodic disruptions—such as the recent conflict in North India—can cause near-term demand shocks. Management’s cautious approach to cost control and capital deployment helps buffer these risks, but sustained margin expansion will depend on continued execution and market stability.
Forward Outlook
For Q1 FY26, MakeMyTrip management expects:
- Travel demand to normalize post-disruption, with early signs of booking recovery after the ceasefire.
- Continued double-digit growth in international and ancillary segments, supported by new product launches.
For full-year FY26, management did not provide explicit guidance but reiterated its ambition to maintain growth rates in the 20s and outpace the broader industry.
Management highlighted several factors that will shape results:
- Sustained investment in GenAI and digital product experience to drive user engagement and retention.
- Opportunistic buybacks and ongoing evaluation of niche M&A to supplement organic growth.
Takeaways
Investors should recognize MakeMyTrip’s multi-pronged strategy—international growth, AI-led innovation, and deep domestic penetration—as key to sustaining outperformance in a structurally expanding market.
- International Momentum: Outbound travel is now a material driver, with MakeMyTrip’s localization and direct supply approach delivering market share gains.
- AI-Led Differentiation: Myra.ai and related GenAI features are not just cost levers but central to the customer value proposition and long-term defensibility.
- Resilience and Flexibility: The company’s ability to adapt to macro shocks, maintain disciplined marketing, and deploy capital opportunistically will be critical as competitive and geopolitical risks evolve.
Conclusion
MakeMyTrip’s Q4 2025 results highlight a business scaling rapidly on international and digital strengths, with disciplined execution and capital allocation underpinning its leadership. The coming year will test its ability to extend these gains amid evolving market and technology dynamics.
Industry Read-Through
MakeMyTrip’s results signal robust secular growth in Indian travel, with outbound and experiential segments outpacing legacy domestic categories. The successful integration of GenAI into customer-facing workflows offers a blueprint for travel and consumer internet peers navigating the shift from service-heavy to automated, data-driven models. International hotel and air providers, as well as alternative accommodation platforms, should note the rapid rise in Indian outbound demand and the growing importance of local content and supply partnerships. The resilience shown in response to geopolitical shocks also highlights the importance of operational agility and diversified supply in emerging markets.