Breaking Down MakeMyTrip Limited (MMYT) Financial Health: Key Insights for Investors

You're looking at MakeMyTrip Limited (MMYT) and seeing a travel giant that just delivered a massive year, but you're defintely wondering if the tailwinds are slowing. Honestly, the headline numbers for the fiscal year 2025 are phenomenal: the company clocked a record $9.8 billion in Gross Bookings, a 25.9% jump, with total revenue hitting $978.3 million. That kind of scale, plus an Adjusted Operating Profit of $167.3 million for the year, shows a platform that's mastering operational efficiency (leveraging its fixed cost base, as they say). But here's the quick math for the realist: the Q2 2025 results, released in October, showed a revenue miss, reporting $229.3 million against higher expectations, and a net loss of $5.62 million. So, while the full-year picture is strong-driven by a significant 65%+ growth in international hotel revenue-the near-term challenge is clear: can they sustain margin expansion while navigating a constrained domestic air market and ramping up investments in new AI-driven experiences?

Revenue Analysis

You need a clear picture of where MakeMyTrip Limited (MMYT) is actually making its money, and the answer for fiscal year 2025 is simple: accommodation is the dominant driver, but the 'Others' segment is the fastest-growing opportunity. The company delivered total revenue of $978.3 million in FY2025, a solid 25.0% increase from the $782.5 million reported in FY2024.

That kind of year-over-year growth shows robust travel demand, especially in the Indian market, but the core story is in the mix. Hotels and Packages is the anchor, but you shouldn't ignore the high-velocity segments that are starting to move the needle. You have to look past the headline number.

Segment Contribution: Where the Money Lands

MakeMyTrip Limited's revenue streams break down into four primary segments, with the Hotels and Packages business serving as the clear revenue powerhouse. This segment alone is responsible for over half of the company's total sales.

Here's the quick math for the full fiscal year 2025, which ended March 31, 2025:

• Hotels and Packages: Generated $520.0 million, making up about 53.15% of total revenue.
• Air Ticketing: Brought in $241.5 million, contributing roughly 24.68%.
• Bus Ticketing: Accounted for $119.4 million, or approximately 12.20%.
• Others: This segment, which includes ancillary services and alternative accommodations, delivered $97.0 million, or about 9.91% of the total.

The concentration in Hotels and Packages is a strength, but it also highlights a risk if that market sees a slowdown. Air ticketing is a high-volume, lower-margin business, but it's crucial for customer acquisition and retention. Exploring MakeMyTrip Limited (MMYT) Investor Profile: Who's Buying and Why?

Growth Vectors and Strategic Shifts

When you look at the growth rates, you see where management is placing its bets and where the market is responding. The FY2025 growth was strong across the board, but the strategic focus on international travel and other ancillary services is defintely paying off.

Here is the year-over-year revenue growth for each segment in FY2025:

The 'Others' segment's 82.9% revenue surge is the biggest takeaway; it signals successful diversification beyond core flights and hotels. Also, the international business now makes up 25% of overall revenue, a jump from 22% in FY2024, showing a successful pivot to higher-value outbound travel.

What this estimate hides is the one-time accounting change in Q4 for Bus Ticketing, where revenue recognition shifted from the date of travel to the date of ticket issuance, which slightly boosted the reported revenue for that quarter. Still, the underlying demand is clearly there.

Profitability Metrics

You need to know if MakeMyTrip Limited (MMYT) is converting its massive gross bookings into real profit, and the short answer is yes: the company is demonstrating solid, expanding profitability, especially at the operating level. For the fiscal year (FY) 2025, MMYT delivered a net profit of $95.3 million on revenue of $978.3 million, a significant step up from the prior year.

The key takeaway is that MMYT's operational efficiency (cost management) is improving, which is driving margin expansion. Here's the quick math on the core profitability ratios for FY2025, which ended March 31, 2025:

• Gross Profit Margin: 71.96%
• Operating Profit Margin (IFRS): 12.26%
• Net Profit Margin: 9.71%

A Deep Dive into MakeMyTrip Limited (MMYT)'s Profitability

Looking at the full fiscal year 2025, the profitability picture for MakeMyTrip Limited is strong and shows a clear commitment to operational discipline. The company's Gross Profit-the revenue left after deducting the cost of procuring services (Cost of Goods Sold)-stood at approximately $704 million on an IFRS basis, translating to a robust gross margin of 71.96%. This margin is generally healthy for a platform-based business, but it's where the comparison gets interesting.

The real story is in the operating profit. MMYT's Adjusted Operating Profit (AOP)-a non-IFRS measure often used by management to show core business performance before non-cash charges like share-based compensation-soared to $167.3 million in FY2025, up sharply from $124.2 million in FY2024. This increase of over 34% year-over-year is defintely a bullish signal, reflecting their strategy to leverage a fixed cost base and drive operational efficiency.

Profitability Trends and Industry Comparison

The trend is decisively positive. The jump in Adjusted Operating Profit from FY2024 to FY2025 shows that MMYT is successfully converting its record gross bookings of $9.8 billion into bottom-line results. The company's IFRS Operating Profit of $119.9 million is a significant improvement from the prior year, highlighting that the core business is generating substantial cash flow before financing and tax. This is what you want to see from a mature growth company.

When you compare MMYT to its global peers in the Online Travel Agency (OTA) sector, the picture is nuanced. MMYT's Gross Margin of 71.96% is solid, but it sits below the high-water marks set by global giants like Expedia Group, which boasts a gross margin near 89.94%, and Airbnb, at around 83.04%. This difference is largely due to MMYT's business mix, which includes a higher proportion of air ticketing revenue with lower inherent margins compared to the hotel and packages segment. Still, the company's operating efficiency shines through.

MMYT's IFRS Operating Margin of 12.26% is competitive, closely tracking Expedia Group's trailing twelve-month (TTM) Operating Margin of 11.79%. This tells me that while MMYT might start with a slightly lower gross profit, their cost management and fixed cost leveraging-the operational efficiency-are excellent, allowing them to keep pace with a major global competitor on operating profitability. The Net Profit Margin of 9.71% is a healthy figure in this high-volume, low-margin industry. For a deeper look at who is betting on this performance, you can check out Exploring MakeMyTrip Limited (MMYT) Investor Profile: Who's Buying and Why?

Debt vs. Equity Structure

You want to know how MakeMyTrip Limited (MMYT) is funding its growth, and the short answer is: they are aggressively using debt, but with a strategic twist to manage their equity base. The company's capital structure has shifted dramatically in 2025, driven by a major financing maneuver that has temporarily resulted in a very high debt-to-equity ratio.

As a seasoned analyst, I look at the balance sheet for the quarter ending September 30, 2025, and the numbers are stark. MakeMyTrip's total debt is substantial, sitting at approximately $1.388 billion. This is the sum of their Short-Term Debt & Capital Lease Obligation of $231 million and their Long-Term Debt & Capital Lease Obligation of $1.157 billion. That's a huge debt load for a company that, at the same time, reported Total Stockholders Equity of only about $26 million for the same period. The low equity figure is the key.

Here's the quick math on what that means for leverage. The Debt-to-Equity (D/E) ratio measures financial leverage-how much debt finances assets compared to equity (shareholders' money). The most recent D/E ratio for MakeMyTrip is around 38.85, or 3,885%, as of November 2025. To be fair, this is an outlier number, largely explained by the low equity value, which can happen with accumulated losses or, in this case, a major share repurchase. For context, their fiscal year (FY) 2025 D/E was a much more modest 0.20, or 20%. You just can't ignore the recent spike.

Compared to the industry, MakeMyTrip's leverage is now significantly higher. A major competitor, Trip.com Group Limited (TCOM), for instance, maintains a conservative D/E ratio of about 0.27. A D/E ratio around 0.5 to 1.5 is generally considered healthy for the broader technology and consumer cyclical sectors. MakeMyTrip's current high ratio signals a high-risk, high-reward strategy, but the risk is definitely elevated.

The reason for this massive shift is the company's recent capital-structure rebalancing in June 2025. They executed a classic debt-for-equity swap, but with a twist. They raised capital through two simultaneous offerings:

• Issued US$1.25 billion in 0.00% Convertible Senior Notes due 2030 (the debt).
• Priced an upsized registered public offering of 16,000,000 ordinary shares at US$90 per share (the equity).

They used the net proceeds from both the debt and equity offerings to repurchase a portion of their Class B shares from Trip.com Group Limited. This action reduced the total number of shares outstanding, consolidating ownership and potentially boosting earnings per share (EPS), but it also dramatically reduced the total value of stockholders' equity on the balance sheet, hence the sky-high D/E ratio you see now. It's a calculated move to clean up the cap table, but it introduces significant debt risk.

The company is balancing debt financing and equity funding by using a zero-coupon convertible note-a debt instrument that pays no interest but can be converted into equity later. This pushes out the cash interest payments and gives them a future equity option, but the $1.25 billion principal still needs to be paid or converted in 2030. This strategy is a clear bet on continued strong operational growth to service the debt and make the conversion option attractive. For more on the company's performance, check out this full analysis: Breaking Down MakeMyTrip Limited (MMYT) Financial Health: Key Insights for Investors.

The key takeaway is that MakeMyTrip is choosing to finance its operations with a much higher proportion of debt than its peers right now, a decision that will either supercharge returns or create a significant refinancing hurdle down the line.

Liquidity and Solvency

You want to know if MakeMyTrip Limited (MMYT) can cover its near-term obligations, and the quick answer is yes, with a healthy margin. The company's liquidity position, as of the most recent data, is strong, supported by robust operating cash flow and a positive shift in working capital dynamics.

For the quarter ending September 2025, MakeMyTrip Limited's current ratio (current assets divided by current liabilities) stood at 1.91. This means for every dollar of short-term debt, the company holds $1.91 in short-term assets to cover it. The quick ratio (acid-test ratio), which excludes less-liquid assets like inventory, was also 1.91. This is defintely a solid position, well above the 1.0 benchmark, and it shows the company is highly liquid, which is typical for a travel service provider with minimal inventory.

Here's the quick math on their short-term financial health:

• Current Ratio (Sep 2025): 1.91
• Quick Ratio (Sep 2025): 1.91
• Industry Median Current Ratio: 1.335 (MMYT is significantly better)

Still, it's worth noting that the current ratio for the full fiscal year ending March 2025 was 1.85, a drop of 35.9% from the prior year's 2.88. This decline is a trend we need to monitor, but the absolute level remains excellent. A ratio this high suggests they aren't struggling to pay bills, but sometimes a very high ratio can signal that capital is sitting idle, which isn't the most efficient use of funds.

Working Capital and Cash Flow Trends

The working capital trend for MakeMyTrip Limited is a major positive. For the full fiscal year ended March 31, 2025, the change in working capital was a positive $857 thousand (or $0.857 million), which is a huge turnaround from the negative $(14,589) thousand in the previous fiscal year. This shift indicates a much better management of short-term assets and liabilities, meaning the core business is generating cash more efficiently.

Looking at the cash flow statement for the fiscal year ended March 31, 2025, the trends are clear and strong. Net cash generated from operating activities was a robust $185,286 thousand ($185.29 million), up substantially from the prior year's $125.74 million. This is the lifeblood of the company, showing their core travel business is a powerful cash engine.

The cash flow from investing and financing activities also paints a picture of a company investing in its future while managing its capital structure responsibly. Net cash generated from investing activities was $26,444 thousand ($26.44 million), indicating they were net sellers of investments or had minimal capital expenditure (CapEx), which was only $(4,040) thousand in Q4 2025. Meanwhile, net cash used in financing activities was $(22,891) thousand ($22.89 million), primarily reflecting debt and equity repayments rather than new borrowings.

Here is a snapshot of the full fiscal year 2025 cash flow, in thousands of USD:

The net result was an increase in cash and cash equivalents of $188,839 thousand for the year. This is a massive liquidity strength, and it gives the company flexibility for strategic moves, like those outlined in the Mission Statement, Vision, & Core Values of MakeMyTrip Limited (MMYT).

The key takeaway is that MakeMyTrip Limited has no immediate liquidity concerns. The high quick ratio, the positive working capital swing, and the increasing operating cash flow all point to a very healthy balance sheet. The company has a strong cash fortress to weather any near-term economic turbulence and fund its growth initiatives.

Valuation Analysis

You are defintely right to question the current price of MakeMyTrip Limited (MMYT). The stock has been highly volatile, and a quick look at its valuation multiples suggests it is trading at a premium, signaling that the market is pricing in significant future growth. The short answer is: MakeMyTrip is currently overvalued based on traditional metrics, but the analyst consensus still leans toward a Buy because of its strong market position and growth trajectory in the Indian travel sector.

Is MakeMyTrip Limited Overvalued or Undervalued?

When we look at the core valuation ratios, MakeMyTrip Limited appears expensive. The Price-to-Earnings (P/E) ratio, which tells you how much investors are willing to pay for every dollar of earnings, is extremely high. As of November 2025, the Trailing Twelve Months (TTM) P/E ratio is around 115.47, with some sources citing it as high as 119.50. To put that in perspective, a P/E over 30 is generally considered a growth stock, and MMYT is four times that. This is a massive multiple, suggesting investors expect earnings to explode higher in the coming years.

The Enterprise Value-to-EBITDA (EV/EBITDA) ratio, which is a better measure for capital-intensive or high-growth companies as it accounts for debt and cash, is also elevated. The TTM EV/EBITDA is approximately 64.91. For a travel and leisure company, the industry median is much lower, often around 11.02. This tells you the company is trading at a high multiple of its operating cash flow (EBITDA), another sign of a growth premium.

Here's the quick math on the key valuation multiples as of late 2025:

• Price-to-Earnings (P/E) (TTM): 115.47x
• Price-to-Book (P/B): 9.1x (Fiscal Year 2025)
• Enterprise Value-to-EBITDA (EV/EBITDA) (TTM): 64.91x

Stock Trends and Analyst Outlook

The stock price trend over the last year shows the volatility that comes with this kind of valuation. MakeMyTrip Limited's stock has seen a significant pullback from its 52-week high of $123.00 to a recent 52-week low of $73.96 as of November 2025. The 1-year return is a decline of roughly -21.86%. This drop, while painful, is what leads to the current mixed-but-positive analyst view.

What this estimate hides is that the company does not pay a dividend. MMYT is a growth-focused company, so it reinvests all earnings back into the business, which is typical for a tech-driven travel platform. The dividend yield is 0.00%, and the payout ratio is not applicable. You are investing purely for capital appreciation, not income.

Despite the high multiples and recent price drop, the analyst community remains largely bullish. The consensus rating is a Moderate Buy or Strong Buy, with an average target price of around $120.00. This target suggests a potential upside of over 60% from the current price of around $74.00. The bullish take is that the recent weakness in domestic air travel is temporary, and the long-term growth story, driven by India's rising middle class and digital adoption, is intact.

For a deeper dive into the operational side of the business, you can read the full post: Breaking Down MakeMyTrip Limited (MMYT) Financial Health: Key Insights for Investors.

So, the action here is clear: If you believe in the long-term, high-growth narrative for the Indian travel market, the recent dip to the $74.00 range is an entry point. If you are a value investor, this stock is a pass until those multiples come down or earnings catch up.

Risk Factors

You've seen the record Gross Bookings for MakeMyTrip Limited (MMYT) in fiscal year 2025-around $9.8 billion, which is impressive. But as a seasoned analyst, I have to tell you that the biggest risk isn't a lack of demand; it's the combination of a stretched valuation and relentless, structural competition. The market is pricing in near-perfection, so any hiccup in execution or a major external shock could trigger a sharp correction.

External and Industry Headwinds

The online travel agency (OTA) space is a knife fight, especially in India. Persistent competition and unexpected volatility in travel demand are the core external risks. You're not just competing with local rivals; you're fighting the growing trend of direct bookings, where airlines and hotels bypass OTAs entirely. This creates margin compression, especially in the air ticketing business, which has a lower adjusted margin of 6.4% compared to the Hotels & Packages segment's 17.8% (Q1 2025 data).

Also, domestic airline supply constraints, largely due to ongoing aircraft engine issues, are a persistent operational headwind that could defintely delay full capacity recovery in the domestic air market. The company is also exposed to broader macroeconomic risks, like a slow-down in India's economic growth or global economic downturns, plus the ever-present threat of regulatory changes.

Operational and Financial Risks from Recent Filings

The most significant financial risk is the company's valuation multiple. As of November 2025, MakeMyTrip Limited trades at a Price-to-Earnings (P/E) ratio of a staggering 92x. To put that in perspective, the industry average is closer to 20.8x, which tells you the market is expecting heroic growth that leaves very little room for error.

Another key operational risk is the escalating cost of customer acquisition. Marketing and sales promotion expenses increased by 34% for the full fiscal year 2025, reaching $165 million. This high marketing intensity is necessary to maintain market share against global and local competitors, but it puts constant pressure on operating leverage. Here's a quick look at the core financial risks:

• Valuation: P/E ratio of 92x is highly stretched.
• Cost of Acquisition: Marketing spend grew 34% (FY25).
• Revenue Concentration: Reliance on transaction-based commissions faces structural challenge.

Mitigation and Strategic Response

The management team is not sitting still; they are actively mitigating these risks through diversification and technology. Their strategy is twofold: expand into higher-margin and less volatile areas, and use technology to lock in customer loyalty. A major move is the focus on international expansion, which now contributes 28% of overall revenue, up from 25% the previous year.

They are also leveraging Artificial Intelligence (AI) to differentiate the platform, such as launching the Gen AI-powered conversational travel assistant, Myra, to enhance customer experience and drive repeat bookings. To counter the direct booking risk, they are expanding high-margin ancillary services and focusing on the corporate travel market with a two-platform approach. This commitment to operational efficiency helped the adjusted operating profit increase to $167 million for the full year 2025.

You can dive deeper into the full financial picture by reading Breaking Down MakeMyTrip Limited (MMYT) Financial Health: Key Insights for Investors.

Next Step: Portfolio Manager: Stress-test your MMYT model by lowering the long-term growth rate by 200 basis points to reflect the 92x P/E risk by the end of this week.

Growth Opportunities

You're looking for a clear map of where MakeMyTrip Limited (MMYT) goes from here, and the short answer is continued expansion, driven by AI and a strategic focus on high-margin segments. The company's fiscal year 2025 (FY25) results set a strong foundation, with revenue hitting $978.3 million and Adjusted Operating Profit reaching $167.3 million, showing they can grow and maintain profitability. That's a solid platform to build on, but the real story is in the product and market moves they are making right now.

The primary growth driver isn't just organic travel demand-it's technology and market depth. MMYT is using generative AI (GenAI) to simplify the booking funnel, which is a defintely smart move to reduce customer acquisition friction. Their new GenAI-enabled Trip Planning Assistant, 'Myra,' handles complex queries for flights, visas, and ground transport, moving the platform from a simple booking engine to a comprehensive travel partner. This focus on a superior user experience is a crucial competitive edge.

• Launch GenAI assistant Myra.
• Add 900+ Premier Inn hotels for international supply.
• Map 2,000+ domestic homestays near national parks.
• Integrate corporate expense management via Happay.

Future Revenue and Earnings Trajectory

Near-term projections show a healthy continuation of this trend. Analysts are generally calling for full-year revenue growth in the high teens to 20% range for the next fiscal year (FY26). Here's the quick math: taking the high end of that guidance on the reported FY25 revenue of $978.3 million implies a revenue target exceeding $1.17 billion for FY26. While the consensus EPS estimate for FY25 was $0.97 per share, the market expects this profitability to accelerate, projecting a significant year-on-year increase in both revenue and earnings.

This growth is fueled by their expansion into higher-margin businesses, specifically hotels and packages, which saw an Adjusted Margin increase of 25.7% in FY25 to $429.5 million. Plus, the international business is growing fast, accounting for 27% of total revenue in the first quarter of FY25, a key area for further market expansion.

Strategic Positioning and Competitive Moat

MMYT's strategic moves are designed to solidify its dominant market position in India, which is its core competitive advantage (OTA market share is a clear strength). The acquisition of Happay, an expense management and corporate card provider, is key to capturing the lucrative corporate travel segment, automating invoice and expense management for clients. That's a smart vertical integration play.

A major corporate governance move in 2025 was the share repurchase agreement with Trip.com Group to reduce their voting power from 45.34% to a target of 19.99%. This move, funded by raising up to $3 billion, significantly increases the company's operational independence and strategic control, which is a massive positive for long-term strategic agility. It removes a potential overhang and clarifies the management's focus on the massive, growing Indian market.

To understand the institutional confidence in these moves, you should read Exploring MakeMyTrip Limited (MMYT) Investor Profile: Who's Buying and Why?. Finance: Model the impact of the Happay integration on the B2B segment's margin profile by the end of the quarter.