MakeMyTrip Achieves 22% Profit Growth Amid Travel Industry Challenges

Online travel agency MakeMyTrip has reported a significant increase in net profit for the quarter ending June 30, 2025, with a year-on-year rise of 22.6% to $25.8 million. Despite facing challenges in leisure travel demand due to disruptions in May and June, the company saw a 7.8% growth in revenue, reaching $268.8 million. This growth was bolstered by strong performance in bus ticketing and international travel segments, as highlighted by CEO Rajesh Magow during a recent earnings call.

Impact of External Factors on Travel Demand

The quarter began positively for MakeMyTrip, with strong momentum in April. However, the company faced setbacks due to various macroeconomic events, including a geopolitical standoff and a tragic passenger aircraft crash in India. These incidents temporarily affected air supply and consumer sentiment. CEO Rajesh Magow expressed optimism, stating that the disruptions were temporary and would not alter the ongoing structural changes in consumer behavior. He emphasized that the company is witnessing a rebound in sentiment, indicating a potential recovery in travel demand.

Growth in International Travel and Corporate Segments

While domestic air travel and holiday package bookings experienced a slowdown, MakeMyTrip’s international air segment thrived, achieving over 21% growth. This success allowed the company to capture a record 42% share of international air bookings. CFO Mohit Kabra noted that the diversification into international offerings and corporate travel helped offset the muted demand in domestic leisure travel. The company’s strategic focus on these segments has proven beneficial, enabling it to adapt to changing market conditions effectively.

Strong Performance in Bus Ticketing and Hotel Bookings

MakeMyTrip reported a robust performance in its bus and ground transport business, with adjusted margins in bus ticketing rising by 34.1% year-on-year in constant currency. The growth in inventory for this segment was driven by the introduction of new sleeper and Volvo buses, particularly on long routes. Additionally, hotel-room nights booked increased by 17%, with notable strength in standalone online hotel bookings and alternative accommodations like homestays and hostels. For the first time, international hotel bookings contributed over a quarter of the company’s hotel and package revenue.

Financial Position and Future Plans

At the end of the quarter, MakeMyTrip reported $804 million in cash and cash equivalents. This financial stability follows a recent capital raise of $3.1 billion through ordinary shares and convertible notes. The company used part of these funds to repurchase and cancel 34.3 million Class B shares from Trip.com, which now holds a 16.9% stake, making it the largest minority shareholder. Regarding a potential listing in India, CFO Mohit Kabra reiterated that this remains a medium-term consideration, closely tied to future fundraising plans.

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