MakeMyTrip Ltd (MMYT) Stock Analysis and Metrics

MakeMyTrip

NASDAQ: MMYT

$49.19 ▲ +0.00 (+0.00%)

At close: Jul 24, 2026 · 3:59 PM UTC

Financial Ratios

Market Cap5.02 Bn

P/E261.37

P/S4.80

Div. Yield0.00

Revenue Growth (1y) (Qtr)1.90

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About

MakeMyTrip Limited is a leading online travel service provider operating primarily in India. The company operates under three flagship brands, MakeMyTrip, Goibibo, and redBus, offering air ticketing, hotel reservations, holiday packages, bus and rail tickets, car hire, activities and experiences, and ancillary services such as foreign exchange, visa assistance, and travel insurance. Its platforms include websites and mobile applications that enable travelers to research, plan, and book trips domestically and internationally. As of March 31, 2025, the company’s mobile applications had been downloaded over 183.8 million times on Android and 27.1 million times on iOS for MakeMyTrip, with similar scale for Goibibo and redBus. The firm leverages a technology infrastructure hosted on AWS to support high transaction volumes and to deliver a seamless user experience across its digital channels.

MakeMyTrip Limited generates revenue mainly from service fees and commissions earned on each booking made through its platform. The company collects fees from airlines, hotels, bus operators, rail providers, and other travel suppliers for facilitating transactions. It also earns revenue from value added services such as travel insurance, foreign currency exchange, visa assistance, and loyalty program activities. In fiscal year 2025, gross bookings reached $9.8 billion, up from $8.0 billion in fiscal year 2024 and $6.6 billion in fiscal year 2023, illustrating the growing scale of its transaction volume. During the same period, air ticketing accounted for 58.7 million flight segments, hotel and packages for 37.0 million room nights, and bus ticketing for 106.5 million bus tickets booked via the platform.

MakeMyTrip Limited holds a strong position in India's highly competitive online travel market, competing with rivals such as Cleartrip, Yatra, Expedia, Booking.com, agoda, Airbnb, ixigo, and EaseMyTrip. The company’s competitive advantages stem from its well recognized brands, extensive hotel inventory of approximately 87,000 properties in India and over 1.2 million abroad, and a robust technology platform hosted on AWS that ensures scalability and security. Based on data from the Directorate General of Civil Aviation, nearly one in three domestic air passengers in India booked their air ticket through MakeMyTrip during fiscal year 2025, underscoring its significant market share. Its large customer base and network effects enable it to negotiate favorable rates with suppliers and to cross sell higher‑margin services such as hotels and packages, which generally yield better adjusted margins than pure air ticketing. Loyalty programs like MMTBLACK and goTribe, with over 2.0 million and 2.4 million enrolments respectively as of March 31, 2025, further strengthen customer retention and repeat bookings.

The company serves a diverse customer base that includes individual leisure travelers, corporate clients, and non resident Indians seeking inbound and outbound travel. While the filing does not disclose specific corporate customer names, it notes that MakeMyTrip’s platform is used by millions of retail customers and by numerous travel agents and franchise owned stores across India. Since inception, over 81.9 million customers have transacted on the company’s various platforms, reflecting its broad reach. Loyalty program participation further illustrates engagement, with MMTBLACK and goTribe enrolling approximately 2.0 million and 2.4 million members respectively as of March 31, 2025. This broad base supports its position as a one stop shop for various travel needs, allowing the company to cross sell ancillary services such as foreign exchange, visa assistance, and travel insurance.

Investment Thesis

▲ Bull case

The company's deep structural positioning within India's rapidly expanding travel market remains significantly underestimated by the market, as evidenced by the sustained growth in middle-class aspirations and travel frequency. Management explicitly highlighted that the Indian middle-income household segment (annual income $4,500 to $35,000) is projected to grow from 200 million in 2022 to 300 million by 2032—a 50% increase over a decade—driving a multi-decade addressable market expansion. This demographic shift is compounded by the behavioral change where travel has transitioned from an occasional expense to a habitual one, with users now taking 3-6 trips annually across leisure, religious, and weekend categories. Furthermore, Indian millennials, who are not yet in their peak earning years, already allocate 34% of their annual spending to travel ($6,000 annually), indicating substantial room for increased per-trip wallets as their earnings grow. These trends are reinforced by the company's observation that Tier 2 and Tier 3 cities now exhibit travel aspirations and purchasing power comparable to major metros from five years ago, creating a vast, underpenetrated market that the company is uniquely positioned to capture through its platform dominance and localized offerings.
The company's strategic integration of proprietary AI, particularly through its Myra conversational interface, is generating measurable competitive advantages that are not yet fully reflected in valuation, with early evidence showing 10% higher conversion rates for users engaging with Myra compared to traditional booking flows. Management detailed that Myra now handles over 80,000 daily conversations, with 45% originating from Tier 2 and smaller cities, and that voice interactions—especially in Henglish and regional languages—are 50% higher in non-metro markets, featuring 40% longer and more complex queries that signal deeper user intent. Crucially, the company emphasized that 15% of conversations now occur at the trip planning stage, enabling earlier influence on user decisions and steering them toward higher-value outcomes. This is further amplified by the AI's ability to generate explainable, contextually precise results via semantic search (e.g., "family stay near Baga Beach with Jain food"), which demonstrably outperforms keyword-based filtering. The company also noted that AI is driving 60-70% of new code development and resolving 55% of customer service queries digitally, signaling imminent operational leverage that could meaningfully expand margins beyond the current 1.82% adjusted operating profit margin as these efficiencies scale.
The company's proactive pivot toward domestic and alternative travel channels in response to geopolitical headwinds is revealing a resilient and adaptive business model that is underappreciated, with strong growth in high-margin segments like bus ticketing and standalone hotels offsetting international air pressure. Management explicitly noted that despite a 6% year-on-year decline in international passenger traffic due to the West Asia conflict, domestic hotel and package volumes grew 15.2% year-on-year (with standalone hotels at 15.5%), even as industry occupancy remained flat or slightly negative—indicating genuine market share gains. Bus ticketing volume surged 27.6% for the quarter and 32.9% for the full year, driven by expanded supply (46,000 daily bus schedules) and technology enhancements, while the adjusted margin for this segment rose 17.1% year-on-year in constant currency. Additionally, the "Other" segment (including ancillary services) saw adjusted margin grow 27.1% quarterly and 37.1% annually, reflecting successful upselling and wallet expansion. This diversification, coupled with the company's ability to shift demand from international to domestic routes—evidenced by rising Southeast Asia and Far East bookings—demonstrates a flexible model that can sustain growth even amid external volatility, a trait the market may be overlooking in its near-term pessimism.

The company's deep structural positioning within India's rapidly expanding travel market remains significantly underestimated by the market, as evidenced by the sustained growth in middle-class aspirations and travel frequency. Management explicitly highlighted that the Indian middle-income household segment (annual income $4,500 to $35,000) is projected to grow from 200 million in 2022 to 300 million by 2032—a 50% increase over a decade—driving a multi-decade addressable market expansion. This demographic shift is compounded by the behavioral change where travel has transitioned from an occasional expense to a habitual one, with users now taking 3-6 trips annually across leisure, religious, and weekend categories. Furthermore, Indian millennials, who are not yet in their peak earning years, already allocate 34% of their annual spending to travel ($6,000 annually), indicating substantial room for increased per-trip wallets as their earnings grow. These trends are reinforced by the company's observation that Tier 2 and Tier 3 cities now exhibit travel aspirations and purchasing power comparable to major metros from five years ago, creating a vast, underpenetrated market that the company is uniquely positioned to capture through its platform dominance and localized offerings.
The company's strategic integration of proprietary AI, particularly through its Myra conversational interface, is generating measurable competitive advantages that are not yet fully reflected in valuation, with early evidence showing 10% higher conversion rates for users engaging with Myra compared to traditional booking flows. Management detailed that Myra now handles over 80,000 daily conversations, with 45% originating from Tier 2 and smaller cities, and that voice interactions—especially in Henglish and regional languages—are 50% higher in non-metro markets, featuring 40% longer and more complex queries that signal deeper user intent. Crucially, the company emphasized that 15% of conversations now occur at the trip planning stage, enabling earlier influence on user decisions and steering them toward higher-value outcomes. This is further amplified by the AI's ability to generate explainable, contextually precise results via semantic search (e.g., "family stay near Baga Beach with Jain food"), which demonstrably outperforms keyword-based filtering. The company also noted that AI is driving 60-70% of new code development and resolving 55% of customer service queries digitally, signaling imminent operational leverage that could meaningfully expand margins beyond the current 1.82% adjusted operating profit margin as these efficiencies scale.
The company's proactive pivot toward domestic and alternative travel channels in response to geopolitical headwinds is revealing a resilient and adaptive business model that is underappreciated, with strong growth in high-margin segments like bus ticketing and standalone hotels offsetting international air pressure. Management explicitly noted that despite a 6% year-on-year decline in international passenger traffic due to the West Asia conflict, domestic hotel and package volumes grew 15.2% year-on-year (with standalone hotels at 15.5%), even as industry occupancy remained flat or slightly negative—indicating genuine market share gains. Bus ticketing volume surged 27.6% for the quarter and 32.9% for the full year, driven by expanded supply (46,000 daily bus schedules) and technology enhancements, while the adjusted margin for this segment rose 17.1% year-on-year in constant currency. Additionally, the "Other" segment (including ancillary services) saw adjusted margin grow 27.1% quarterly and 37.1% annually, reflecting successful upselling and wallet expansion. This diversification, coupled with the company's ability to shift demand from international to domestic routes—evidenced by rising Southeast Asia and Far East bookings—demonstrates a flexible model that can sustain growth even amid external volatility, a trait the market may be overlooking in its near-term pessimism.

▼ Bear case

The company's reliance on domestic travel substitution to offset international weakness may be overstated, as rising domestic airfares fueled by elevated jet fuel costs and currency depreciation are eroding the price sensitivity advantage that has historically driven demand shifts, with management acknowledging that even domestic travel is becoming less affordable for budget-conscious consumers. Mohit Kabra explicitly stated that rising fuel costs have led to increased domestic airfares in a "highly price conscious market," and while the company is promoting ground transport alternatives (e.g., AC buses, cabs), these options may not fully compensate for the convenience and time savings of air travel, particularly for longer distances. The company's own data shows domestic flown passenger traffic declined by 1.5% year-on-year in the quarter, suggesting that even domestic air demand is weakening under cost pressures. Furthermore, the 4.45% quarterly depreciation of the INR, which caused a $17.7 million translation-related foreign currency loss, increases the cost of imported inputs (like aircraft leases and technology) and could compress margins if not fully passed on to consumers, a risk highlighted by the company's admission that it is "trying to capture the demand or move the demand from international to domestic to the best extent possible"—implying the shift is incomplete and costly.
The company's aggressive share buyback program, nearing the $100 million limit, may be masking underlying earnings quality concerns and diverting capital from higher-return growth investments, particularly as the buyback includes convertible bond repurchases that could signal limited internal investment opportunities. Management disclosed that $96.4 million was utilized under the buyback program for the year, including convertible bond buybacks, bringing total utilization close to the program's cap. While buybacks can enhance shareholder returns, the timing—coinciding with geopolitical headwinds and currency volatility—raises questions about whether capital is being allocated optimally. The company simultaneously invested only $22 million in strategic initiatives (Flamingo Transport acquisition and minority stake in Atlas), a fraction of the buyback amount, suggesting a preference for financial engineering over organic growth. This imbalance could become problematic if the current external pressures persist, as the company may lack sufficient reinvestment in innovation (beyond AI, which has unclear near-term ROI) or market expansion to sustain long-term competitiveness, especially given the capital-intensive nature of scaling in new verticals like visa processing or deepening hotel supply.
The company's path to an India listing remains uncertain and execution-heavy, with no clear timeline provided and significant regulatory, operational, and financial hurdles that could delay or complicate the transition, potentially creating investor confusion and limiting near-term valuation benefits. Although management confirmed internal restructuring (merging Red Bus India into MakeMyTrip India) is complete to facilitate a potential listing, they explicitly stated there is "no clear indicative timeline" and that the process involves "multiple streams" including regulatory, financial, legal, tax, audit, governance, disclosure, and market readiness—all requiring ongoing work with advisors. The complexity is heightened by India's prohibition on dual listings, meaning the current Mauritius-listed entity would remain on U.S. exchanges while a separate India entity is created, raising questions about shareholder fungibility, tax implications, and administrative burden. While management noted that a "large part of our investor base actually has the ability to invest both in India as well as in US," this does not eliminate friction for retail or institutional investors constrained by geography or mandate, and the lack of a defined path forward suggests the market may be overestimating the near-term impact of this initiative as a catalyst for re-rating.

The company's reliance on domestic travel substitution to offset international weakness may be overstated, as rising domestic airfares fueled by elevated jet fuel costs and currency depreciation are eroding the price sensitivity advantage that has historically driven demand shifts, with management acknowledging that even domestic travel is becoming less affordable for budget-conscious consumers. Mohit Kabra explicitly stated that rising fuel costs have led to increased domestic airfares in a "highly price conscious market," and while the company is promoting ground transport alternatives (e.g., AC buses, cabs), these options may not fully compensate for the convenience and time savings of air travel, particularly for longer distances. The company's own data shows domestic flown passenger traffic declined by 1.5% year-on-year in the quarter, suggesting that even domestic air demand is weakening under cost pressures. Furthermore, the 4.45% quarterly depreciation of the INR, which caused a $17.7 million translation-related foreign currency loss, increases the cost of imported inputs (like aircraft leases and technology) and could compress margins if not fully passed on to consumers, a risk highlighted by the company's admission that it is "trying to capture the demand or move the demand from international to domestic to the best extent possible"—implying the shift is incomplete and costly.
The company's aggressive share buyback program, nearing the $100 million limit, may be masking underlying earnings quality concerns and diverting capital from higher-return growth investments, particularly as the buyback includes convertible bond repurchases that could signal limited internal investment opportunities. Management disclosed that $96.4 million was utilized under the buyback program for the year, including convertible bond buybacks, bringing total utilization close to the program's cap. While buybacks can enhance shareholder returns, the timing—coinciding with geopolitical headwinds and currency volatility—raises questions about whether capital is being allocated optimally. The company simultaneously invested only $22 million in strategic initiatives (Flamingo Transport acquisition and minority stake in Atlas), a fraction of the buyback amount, suggesting a preference for financial engineering over organic growth. This imbalance could become problematic if the current external pressures persist, as the company may lack sufficient reinvestment in innovation (beyond AI, which has unclear near-term ROI) or market expansion to sustain long-term competitiveness, especially given the capital-intensive nature of scaling in new verticals like visa processing or deepening hotel supply.
The company's path to an India listing remains uncertain and execution-heavy, with no clear timeline provided and significant regulatory, operational, and financial hurdles that could delay or complicate the transition, potentially creating investor confusion and limiting near-term valuation benefits. Although management confirmed internal restructuring (merging Red Bus India into MakeMyTrip India) is complete to facilitate a potential listing, they explicitly stated there is "no clear indicative timeline" and that the process involves "multiple streams" including regulatory, financial, legal, tax, audit, governance, disclosure, and market readiness—all requiring ongoing work with advisors. The complexity is heightened by India's prohibition on dual listings, meaning the current Mauritius-listed entity would remain on U.S. exchanges while a separate India entity is created, raising questions about shareholder fungibility, tax implications, and administrative burden. While management noted that a "large part of our investor base actually has the ability to invest both in India as well as in US," this does not eliminate friction for retail or institutional investors constrained by geography or mandate, and the lack of a defined path forward suggests the market may be overestimating the near-term impact of this initiative as a catalyst for re-rating.

Geographical areas [axis] Breakdown of Revenue (2025)

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5	VIK	Viking Holdings Ltd	44.18 Bn	37.20	6.79	5.50 Bn
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8	NCLH	Norwegian Cruise Line Holdings Ltd.	8.54 Bn	15.32	0.85	15.15 Bn

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Investment Thesis

Products and services [axis] Breakdown of Revenue (2025)

Geographical areas [axis] Breakdown of Revenue (2025)

Peer Comparison

Research Tools

Developers

About

Investment Thesis

Products and services [axis] Breakdown of Revenue (2025)

Geographical areas [axis] Breakdown of Revenue (2025)

Peer Comparison

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