MakeMyTrip (MMT) reported largely positive results for its third fiscal quarter ending December 31, 2025.
The India-based online travel agency’s revenue increased by 10.6% year over year, reaching $295.7 million, while adjusted operating profit reached $50.7 million, marking the first time the metric has passed $50 million.
Gross bookings were up 11.8% year over year, while adjusted net profit totaled $51.4 million, a $6.5 million year-over-year increase.
The company also noted considerable growth in its “other” segment, which includes ancillaries, with the adjusted margin up 45.5% year over year to $27.5 million. MMT attributed the spike to expanding services such as insurance, visa, forex, sponsorship, ad tech and tours and activities.
“Our ancillaries business, which is part of the other segment, is scaling up well,” group COO Mohit Kabra said during the company’s Q3 earnings call with analysts.
“This is helping us get a larger share of the wallet of our customers by building the attach of a variety of ancillary services.”
When asked about quantifying the underlying margin for this metric, Kabra said ancillary growth has been an ongoing trend thanks to MMT’s incremental addition of services, particularly non-transport ancillaries and tours and activities.
“A lot of these travel customers book their core travel bookings with us, but there is a requirement for in-destination services as well, largely on tours and activities,” Kabra said.
“Building that on the platform helps us retain them even for these services with us. With this increasing spread of other travel or travel-related services, which we are going on adding, we do believe that the other segment will keep delivering good growth for us.”
In the future, Kabra added that these segments could also be meaningful enough to be reported on their own.
Additional financial results, AI progress
MMT reported growth across sectors in Q3, with air ticketing up 20.4% year over year to $107.9 million, hotels and packages up 14.6% to $133.2 million and bus ticketing up 26.1% to $42.4 million.
Hotels and packages saw a 20.3% year-over-year increase in volume growth, with standard hotels up 20.6% and non-premium room nights up 23%. Kabra attributed this spike to the Indian government’s reduction of the goods and services tax rate for hotels under a certain price point.
“It is encouraging, this tax rationalization initiative of the government of India has had a positive impact on driving up volumes in the hotel segment,” Kabra told analysts.
Marketing and sales promotion expenses increased by 10.5% to $52.3 million in Q3, up from $47.3 million. This represented 5.6% of gross bookings, which Kabra said was “in line with high seasonality and improving mix coming in on the back of strong growth in higher margin segments like hotels and packages, bus ticketing and ancillaries.”
The company also provided updates on its Myra artificial intelligence (AI) assistant. Over the summer, the OTA launched a generative AI-enabled trip-planning assistant as part of the tool. According to Rajesh Magow, co-founder and group CEO, the feedback on Myra has been “very encouraging.”
“Myra has now scaled to over 50,000 conversations daily, with over 72% of conversations being termed as good conversations. Around 15% of the conversations happen during the early stage of trip planning, enabling us to influence destination and product choice earlier in the customer life cycle,” Magow said.
“Myra is also helping us drive penetration into smaller cities, whether it's vernacular voice capabilities, with over 45% of Myra users coming from tier-2 cities and beyond.”