Can MakeMyTrip’s (MMYT) Profitability Gains Sustain Its Competitive Edge?

• MakeMyTrip reported its first quarter 2025 earnings, with revenue rising to US$268.85 million and net income improving to US$25.92 million compared to the previous year.
• While total sales declined slightly year-over-year, stronger net income and higher earnings per share highlight operational improvements during the quarter.
• We’ll examine how the combination of higher revenue and improved profitability may influence MakeMyTrip’s longer-term investment narrative.

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MakeMyTrip Investment Narrative Recap

To be a MakeMyTrip shareholder, you need to believe in the long-term potential of digital travel adoption in India and adjacent markets, supported by consumers’ shift toward online booking. The most immediate catalyst remains MakeMyTrip’s ability to drive margin expansion amid ongoing competitive pressure, while its ongoing dependence on regional travel demand remains a key risk. The latest earnings reveal resilient profitability, but the impact on competitive dynamics and travel demand sensitivity in the near term is not material.

Of the company’s recent updates, the newly completed buyback plan stands out. While no new shares were repurchased in the latest quarter, MakeMyTrip previously completed buybacks totaling 1,208,742 shares for US$35.76 million, signaling ongoing attention to capital structure, though this moves the needle less on short-term competitive or travel demand risks than fresh earnings momentum or major industry partnerships.

On the other hand, heightened price competition among global and domestic travel booking platforms is an important risk investors should be aware of as it could...

Read the full narrative on MakeMyTrip (it's free!)

MakeMyTrip's narrative projects $1.8 billion revenue and $289.3 million earnings by 2028. This requires 22.2% yearly revenue growth and a $189.3 million earnings increase from $100.0 million.

Uncover how MakeMyTrip's forecasts yield a $120.11 fair value, a 28% upside to its current price.

Exploring Other Perspectives

Fair value estimates from three Simply Wall St Community members span from US$37.77 to an outlier at US$180,922.76, highlighting sharp differences in expectations. While many see widening margins as an earnings catalyst, opinions on future potential vary, review the range of viewpoints to find which best matches your assessment.

Explore 3 other fair value estimates on MakeMyTrip - why the stock might be a potential multi-bagger!

Build Your Own MakeMyTrip Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your MakeMyTrip research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free MakeMyTrip research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate MakeMyTrip's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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