Does MakeMyTrip’s (MMYT) Rising Profitability Reveal a New Edge in Operating Efficiency?

• MakeMyTrip Limited recently announced its earnings for the first quarter ended June 30, 2025, revealing increased revenue at US$268.85 million and net income at US$25.92 million compared to the same period last year.
• Despite a decrease in sales, the company achieved higher profits and improved earnings per share, signaling enhanced operating efficiency over the past year.
• We'll explore how MakeMyTrip's increased net income and rising earnings per share may reshape the company's investment narrative.

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MakeMyTrip Investment Narrative Recap

To be a MakeMyTrip shareholder, you need to believe in the long-term expansion of online travel and recurring revenue growth across India and neighboring markets, despite tight competition and cyclical demand. The latest earnings show a meaningful rise in net income and earnings per share even as sales slipped, demonstrating improved operational execution. However, this does not materially shift the near-term catalyst of digital travel adoption or lessen the key risks around competitive pricing pressure and persistent customer acquisition costs.

Of all recent updates, the first-quarter earnings release stands out as most relevant, showing higher profits on lower sales, which points directly to improved operating leverage. While this supports the core catalyst of margin expansion through focused execution, it does not eliminate exposure to competitive threats, especially as new entrants push aggressive pricing to win share.

Yet, against this backdrop of better margins, investors should watch for signs of competitive pricing pressures that...

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

MakeMyTrip's outlook anticipates $1.8 billion in revenue and $289.3 million in earnings by 2028. This assumes annual revenue growth of 22.2% and a $189.3 million increase in earnings from the current $100.0 million.

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

Exploring Other Perspectives

Three Simply Wall St Community member estimates place fair value for MakeMyTrip anywhere from US$37.61 to US$180,922.76 per share. As many await expanded online travel adoption to drive future revenue, contrasting views encourage you to consider several possible paths for the company.

Explore 3 other fair value estimates on MakeMyTrip - why the stock might be worth less than half the current price!

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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