MakeMyTrip Limited (MMYT) Q2 Earnings call transcript Oct 23, 2025
2min read MakeMyTrip, a leading Indian travel company, recently held its fiscal 2025 second quarter earnings call, highlighting robust growth and strategic expansion across its business segments. Rajesh Magow, Co-Founder and Group Chief Executive Officer, and Mohit Kabra, Group Chief Financial Officer, led the call, emphasizing the company's strong performance and future outlook.
Earnings Highlights
MakeMyTrip reported a gross booking value of $2.3 billion for the quarter, registering a year-on-year growth of 24.3% in constant currency terms. This growth was driven by a 33% increase in adjusted operating profit, showcasing the company's operational efficiency and financial health. The company's revenue growth, as per GAAP, was even stronger at 26.5% year-on-year.
Strategic Expansion and Market Outlook
The company's growth was attributed to its brand and distribution strength, consistent supply-side expansion, and customer-centric initiatives. Rajesh Magow highlighted MakeMyTrip's outpacing of industry growth and its ability to cater to a variety of travel needs, particularly in the Indian market, where the consumer class is growing and discretionary spending is increasing.
Market Trends and Competitive Landscape
MakeMyTrip's international air ticketing business and international hotel business continued to witness faster growth than the industry, with revenue growth of over 39% in constant currency terms and 62% in constant currency terms, respectively. This growth was driven by strategic initiatives like enhancing the business class funnel experience for international flights and revamping the premium economy class booking flow. The company also highlighted its expansion into new destinations like Georgia, Vietnam, Hong Kong, Azerbaijan, Kazakhstan, and others, underscoring its global reach and strategic focus.
Strategic Investments and Innovation
MakeMyTrip's investment in digital technologies, particularly AI and data science, has been a key driver of its growth and customer experience enhancements. The company introduced its GenAI chatbot, Myra, to enhance the hotel and homestay booking process, offering real-time assistance and personalized responses. This strategy aligns with the company's focus on using AI-driven solutions to boost customer satisfaction and drive growth.
Financial Health and Future Outlook
MakeMyTrip's strong financial health was evident in its cash generation, with cash and cash equivalents exceeding $700 million. The company also outlined its intent to pursue opportunistic share repurchase programs, signaling its confidence in its future performance and growth prospects.
Challenges and Risks
The call acknowledged the challenges posed by the ongoing monsoon and the impact on demand momentum, particularly in the traditionally low season quarter for leisure travel. However, the company's focus on supply-side expansion and targeting a variety of customer segments through multiple distribution channels has helped mitigate these challenges and ensure growth in the 20s.
Conclusion
MakeMyTrip's Q2 2025 earnings call highlighted its strong financial performance, strategic expansion, and focus on customer-centric initiatives. With a clear focus on leveraging technology, data, and strategic partnerships, the company is well-positioned to capitalize on the growing travel market in India and beyond. The company's robust financial health and strategic investments in innovation underscore its confidence in its future growth prospects.
