Executive Summary
MakeMyTrip Limited reported a strong performance in Q2 2025, with total gross bookings hitting $2.3 billion, representing a year-over-year growth of 24.3% in constant currency. The quarterly revenue reached $210.99 million, reflecting a robust year-over-year increase of 26.5%. Despite facing headwinds from unusual heavy rainfall affecting demand in traditionally low-season periods, management noted resilience and continued momentum in both domestic and international markets. Adjusted operating profit grew significantly, by 33%, to $37.5 million, underlining the company’s effective cost management strategies and focus on enhancing customer experience through technological advancements such as AI-driven solutions. The outlook remains positive as India's economic growth supports increasing discretionary spending on travel.
Key Performance Indicators
QoQ: -17.10% | YoY:25.08%
QoQ: -7.56% | YoY:-10.34%
QoQ: -6.61% | YoY:286.80%
QoQ: -15.11% | YoY:762.05%
QoQ: -15.79% | YoY:700.00%
Key Insights
1. **Revenue:** $210.99 million, +26.5% YoY; +7.4% QoQ
2. **Gross Profit Margin:** 54.57%, improved from 49.14%
3. **Net Income:** $17.85 million, +762.05% YoY; $0.16 EPS
4. **Cash Position:** $401.87 million in cash, up from $348.57 million last quarter
5. **Debt to Equity Ratio:** 0.196, indicating a stable and manageable debt load.
6. **Operating Exceptionality:** Registered operating profit margin at 17.8% versus 14.8% in the previous quarter, demonstrating strong operational leverage amidst...
Financial Highlights
1. Revenue: $210.99 million, +26.5% YoY; +7.4% QoQ
2. Gross Profit Margin: 54.57%, improved from 49.14%
3. Net Income: $17.85 million, +762.05% YoY; $0.16 EPS
4. Cash Position: $401.87 million in cash, up from $348.57 million last quarter
5. Debt to Equity Ratio: 0.196, indicating a stable and manageable debt load.
6. Operating Exceptionality: Registered operating profit margin at 17.8% versus 14.8% in the previous quarter, demonstrating strong operational leverage amidst sales growth.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
210.99M |
25.08% |
-17.10% |
| Gross Profit |
115.14M |
-10.34% |
-7.56% |
| Operating Income |
25.97M |
286.80% |
-6.61% |
| Net Income |
17.85M |
762.05% |
-15.11% |
| EPS |
0.16 |
700.00% |
-15.79% |
Key Financial Ratios
operatingProfitMargin
12.3%
operatingCashFlowPerShare
$0.32
freeCashFlowPerShare
$0.32
priceEarningsRatio
145.99
Management Commentary
- Growth Driven by Demand: Rajesh Magow emphasized, "We managed to deliver this strong performance across all business segments, leveraging our brand and distribution strength."
- AI Adoption: The implementation of AI technology has increased operational efficiency, with a notable decrease in customer service involvement by 45% due to the GenAI chatbot system.
- Market Dynamics: Mohit Kabra stated, "We continue to expand both our domestic and international outbound business. Our market share stands strong at over 30% in the domestic flight ticketing market."
- Customer Engagement: Rajesh noted, "Overall, we now have a lifetime transacted user base of 77 million customers across all our three brands," emphasizing the company’s focus on deepening engagement.
Rajesh Magow: 'We have been consistently outpacing the industry's growth on the back of continued supply-side expansion.'
— Rajesh Magow
Mohit Kabra: 'We have achieved another quarter of growth in the 20s, showcasing strong performance across all business segments.'
— Mohit Kabra
Forward Guidance
Management remains encouraged about the outlook for the travel sector, particularly due to India's projected economic growth trajectory. The focus is on enhancing international and domestic offerings, especially leveraging technological advancements to improve customer engagement and operational efficiency. They aim to further enhance their corporate travel segment and explore B2B channels to optimize revenue streams. Key factors to monitor include the effectiveness of marketing initiatives and the economic environment affecting discretionary spending.