MakeMyTrip posts 22% profit growth despite travel headwinds in Q1
BENGALURU: Online travel firm MakeMyTrip reported a 22.6 per cent year-on-year rise in net profit to $25.8 million for the quarter ended June 30, 2025, even as disruptions in May and June dented leisure travel demand.
Revenue grew 7.8 per cent in constant currency terms to $268.8 million, supported by gains in bus ticketing and international travel segments.
CEO Rajesh Magow said the quarter began with strong momentum in April but was impacted by macro events, including a geopolitical standoff and a passenger aircraft crash in India, which temporarily disrupted air supply and consumer sentiment. 'We do see the sentiment coming back… this is like a temporary disruption.
I don't think it's going to change the structural shift that was happening on consumer behaviour,' he said during the post-earnings analyst call.
While domestic air and holiday package bookings slowed, MakeMyTrip's international air segment grew over 21 per cent, helping push its share of international air bookings to a record 42 per cent. CFO Mohit Kabra noted that this diversification allowed the company to "dial up" international offerings and corporate travel when domestic leisure demand was muted.
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Adjusted operating profit rose 21 per cent to $47.3 million. The company also saw strong performance in its bus and ground transport business, with adjusted margin in bus ticketing rising 34.1 per cent year-on-year in constant currency. Inventory growth in this segment was led by new sleeper and Volvo buses, especially on long routes.
Hotel-room nights booked grew 17 per cent, with particular strength in standalone online hotel bookings and alternative accommodations, such as homestays and hostels.
International hotel bookings accounted for over a quarter of hotel and package revenue for the first time. However, Magow clarified that average rates held steady despite concerns of potential downtrading, saying there was 'nothing material' in terms of pricing pressure.
The company ended the quarter with $804 million in cash and cash equivalents. Following a recent $3.1 billion capital raise through ordinary shares and convertible notes, MakeMyTrip repurchased and cancelled 34.3 million Class B shares from Trip.com, making the Chinese travel giant its largest minority shareholder with a 16.9 per cent stake.
On a potential India listing, Kabra reiterated that a domestic IPO remains a medium-term consideration. 'The eventual listing in India is going to be more linked to fundraising plans as and when they materialise,' he said.
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