""Indian travelers continue to demonstrate their eagerness to travel and experience new horizons... this has enabled us to outpace industry growth consistently." - Rajesh Magow" - Rajesh Magow
MakeMyTrip Limited (MMYT) posted robust financial results for Q3 2025, characterized by strong revenue growth driven by increased travel demand and improved operational efficiency. The company reported a revenue of $267.4 million, reflecting a year-over-year increase of 24.8%. This growth is attributed to favorable macroeconomic conditions, changing consumer behaviors, and strategic enhancements in service offerings. Management highlighted record performance in both air ticketing and hotel bookings, showcasing a resilience against competitive pressures. As the company continues to innovate and adapt to customer needs, the forward outlook remains optimistic, with significant growth opportunities identified in international markets and experiential travel segments.
Key Performance Indicators
Revenue
267.36M
QoQ: 26.72% | YoY:24.81%
Gross Profit
189.98M
71.06% margin
QoQ: 65.00% | YoY:25.11%
Operating Income
34.69M
QoQ: 33.57% | YoY:53.18%
Net Income
27.02M
QoQ: 51.35% | YoY:11.37%
EPS
0.24
QoQ: 50.00% | YoY:9.09%
Revenue Trend
Margin Analysis
Key Insights
**Revenue**: $267.4 million (YoY +24.8%, QoQ +26.7%)
**Net Income**: $27.0 million (YoY +11.4%, QoQ +51.4%)
**Gross Profit Margin**: 71.1%
**Operating Income**: $34.7 million (29.6% of revenue)
**EBITDA**: $48.1 million
Financial Highlights
Key Financial Metrics
- Revenue: $267.4 million (YoY +24.8%, QoQ +26.7%)
- Net Income: $27.0 million (YoY +11.4%, QoQ +51.4%)
- Gross Profit Margin: 71.1%
- Operating Income: $34.7 million (29.6% of revenue)
- EBITDA: $48.1 million
- Adjusted Operating Profit Margin: 17.8%
- Customer Acquisition Cost: 4.9% of gross bookings
Operational Highlights
- Adjusted operating profit reached its highest at $46 million.
- Domestic air ticketing market share maintained above 30%, despite supply constraints.
- International air ticketing revenue increased by 32% YoY, while hotel bookings grew 63% YoY.
- The company's strong cash position with over $700 million in cash and cash equivalents supports future growth initiatives and potential acquisitions.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
267.36M
24.81%
26.72%
Gross Profit
189.98M
25.11%
65.00%
Operating Income
34.69M
53.18%
33.57%
Net Income
27.02M
11.37%
51.35%
EPS
0.24
9.09%
50.00%
Key Financial Ratios
currentRatio
2.88
grossProfitMargin
71.1%
operatingProfitMargin
13%
netProfitMargin
10.1%
returnOnAssets
1.49%
returnOnEquity
2.28%
debtEquityRatio
0.2
operatingCashFlowPerShare
$-0.09
freeCashFlowPerShare
$-0.09
priceToBookRatio
10.7
priceEarningsRatio
117.42
Net Income vs. Revenue
Expense Breakdown
Management Commentary
1. Growth Drivers: Rajesh Magow emphasized the shift in consumer habits, noting that a majority of Indian consumers plan to increase their discretionary spending ("62% of Indian consumers plan to increase their spending on discretionary goods and services"). The company's strategies to enhance customer experience continue to pay dividends in higher booking rates.
2. Market Outlook: Magow discussed India's projected growth and investments in infrastructure ("India is undertaking significant investments in infrastructure... making travel seamless, convenient, and reliable") which supports the travel sector's expansion.
3. Competitive Advantage: Mohit Kabra noted the efficiency in customer acquisition costs remained stable, affirming their strategic marketing effectiveness while maintaining profitability.
"Indian travelers continue to demonstrate their eagerness to travel and experience new horizons... this has enabled us to outpace industry growth consistently." - Rajesh Magow
â Rajesh Magow
"We are confident of growing at a higher rate than industry averages, regardless of any macro events that impact overall market conditions." - Rajesh Magow},
â Rajesh Magow
Forward Guidance
Management is optimistic about maintaining momentum through Q4 2025, attributing this to a resilient consumer market and recent infrastructure investments. The outlook for international travel is particularly promising, as India is projected to see a rise in international outbound travel, positioning MMYT favorably to capture this growing market. Key factors to monitor include fluctuations in domestic air supply, potential economic shifts that may influence consumer spending, and continued developments in service offerings that enhance customer engagement.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
MMYT Focus
71.06%
13.00%
2.28%
117.42%
TOUR
65.50%
15.70%
4.01%
6.68%
MOND
70.80%
-5.09%
36.70%
-3.46%
AMADF
39.00%
28.70%
7.15%
21.06%
TNL
93.80%
19.00%
-11.30%
8.29%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Overall, MakeMyTrip's strong quarterly results and positive outlook create a compelling investment thesis. The company's ability to innovate and adapt to market demands, coupled with a solid financial foundation, positions it favorably for future growth. Potential investors should consider ongoing market dynamics, especially in air travel supply and economic conditions, but the indicators suggest sustained growth is achievable. Continuous monitoring of customer engagement strategies and operational efficiencies will be critical to ensuring that MMYT remains competitive in a rapidly evolving market.
Key Investment Factors
Growth Potential
With robust quarterly growth and expansion into emerging markets, MakeMyTrip is poised to continue capturing increased consumer disposable income directed towards travel and experiences. The anticipated growth in spiritual and concert tourism signifies new revenue channels.
Profitability Risk
Risks include potential supply chain disruptions in the air travel sector, as highlighted by ongoing engine issues affecting domestic airlines. Additionally, a broader economic downturn could constrict consumer spending on travel.
Financial Position
Strong balance sheet demonstrated by over $700 million in cash, enabling investments into future growth initiatives and acquisitions. This liquidity, coupled with a healthy operating margin and profitability, positions MMYT favorably against competitors.
SWOT Analysis
Strengths
Strong market position in India with significant brand recognition.
Diverse service offerings across domestic and international travel segments.
Robust technology infrastructure leading to improved customer experience.
Weaknesses
Reliant on domestic air travel supply which remains constrained in some areas.
High customer acquisition costs relative to revenue may pressure margins.
Opportunities
Expansion of international outbound travel market offers growth potential.
Emerging trends in experiential and spiritual tourism can diversify revenue streams.
Strategic investments in technology and partnerships can enhance customer engagement.
Threats
Increased competition from both direct airlines and OTAs could pressure margins and market share.
Economic volatility may impact consumer travel budgets and discretionary spending.