MakeMyTrip Limited

hosted by the company's leadership team, comprising Rajesh Maghu, our co-founder and group chief executive officer, Mohit Kabra, our group chief operating officer, and Deepak Bora, who has recently joined us as group chief financial officer. As a reminder, this live event is being recorded by the company and will be made available for replay on our IR website shortly after the conclusion of today's event. At the end of these prepared remarks, we will also be hosting Q&A session. Furthermore, certain statements made during today's event may be considered forward-looking statements within the meaning of safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. These statements are not guarantee of future performance, are subject to inherent uncertainties, and actual results may differ materially. Any forward-looking information relayed during this event speaks only as of this date, and the company undertakes no obligation to update the information to reflect changed circumstances. Additional information concerning these statements is contained in the risk factors and forward-looking statement section of the company's annual report on Form 20F filed with the SEC on June 16, 2025. Copies of these filings are available from the SEC or from the company's investor relations department. I would like to now turn the call over to Rajesh. Over to you, Rajesh.

Thank you, Vipul. Welcome everyone to our second quarter call for fiscal 2026. As you will recall, Q1 was impacted by a series of exceptional external events such as geopolitical tensions, post the unfortunate Pelgaon terrorist attack on tourists and the tragic airplane crash at Ahmedabad. These events impacted the consumer sentiment for travel, especially for leisure. Additionally, supply-side constraints continue to impact the domestic aviation market growth in Q1. I am happy to report, however, that as we entered Q2, the broader travel and tourism demand started to rebound across travel segments, despite Q2 being a seasonally slow quarter. and our diversified product portfolio covering all travel customer segments of retail as well as corporate customers helped us deliver strong overall performance in the quarter. Barring the domestic air market's slow recovery due to temporary supply constraints, where we continue to maintain our market share of 30% plus levels, all other modes of transport segments like bus, rail, cabs, and international air witnessed robust growth, Consequently, we saw robust growth in our hotels and eco-business, both for domestic and international travel segments as well. Our adjusted operating profit for the quarter was at $44.2 million, witnessing growth of 18% year-on-year. Consumer sentiment towards travel remains positive, supported by high propensity of experiential getaways and short breaks. In air segment, international outbound travel from India presents a significant growth opportunity. Being an under-penetrated segment for an online perspective, we remain focused on growing this segment. In Q2 fiscal year 26, our international air ticketing revenue grew by over 29.6% year on year in constant currency terms, far outpacing industry growth. Similarly, our international hotels revenue grew by over 42% year on year. Our international business now contributes 28% to the overall revenue, up from 25% during the same period last year. On macro front, we welcome the recent fiscal and monetary policy measures to rationalize and reduce GST rates, income tax cuts announced in the budget, and interest rate reductions to further boost the consumption. These measures will provide a further boost to the disposable income and discretionary spending, particularly within urban middle-income households. Analysts estimate that the combined fiscal and monetary stimulus from these measures could unlock additional consumer spending of $3 to $3.5 billion during the latter half of fiscal year 26. This along with increasing desire to travel, more among Indians should help in growth of travel market as well. Let me now move on to share the progress on our AI journey. AI continues to be at the center of our core strategy for us to enhance customer experience and improve productivity. We launched the beta version of our AI-powered conversational travel assistant Myra in August 2025 and is currently available in English and Hindi with voice and text features and plans to expand to more Indian languages soon. The initial response has been encouraging for a collection of consumer insights as travelers begin to interact with this new interface. In a short span of time, the agent has scaled to over 25,000 conversations daily. Myra is poised to redefine and help travelers explore, plan, and book trips all at one place, making it super simple for new users and comprehensive at the same time for complex travel use cases. By simplifying the discovery and booking experience through natural language interaction and personalized recommendations, we plan to transform how travelers plan their journeys, making travel planning faster, easier, and more intuitive. We aim to make our platforms the default search engine for the travel needs of Indians. Myra is contributing to this by significantly enhancing user engagement. More than 35% of travelers begin engaging with Myra up to 90 days before their trip, using it as a space for exploration and planning. What also stands out is how the return, nearly one in four users, come back seeking help across multiple categories, from itineraries and visa queries to flights, forex, hotels, and local experiences. They're not just asking where to go, but also what to do once there, turning Myra into an end-to-end companion that guides them from inspiration to action. Myra is also helping us penetrate deeper into India with voice first engagement strategy with new user share at about 20%. In tier two and tier three cities, voice adoption is 50% higher than in metros. 60% of voice queries come in English compared to just 20% in text chat. When travelers speak to Myra, they speak naturally, freely, and confidently with over 70% of conversations now being termed good conversations. Voice-led conversations are richer and longer. Users ask follow-up questions, express preferences, and describe context just as they would with a human travel expert. In a country where digital literacy and linguistic diversity vary widely, Myra's voicelet discovery is quietly expanding access, unlocking the next wave of online travelers who are more comfortable speaking than typing. For our cabs business, we also launched our GenAI-powered pre-sales chatbot. The bot acts as an information provider, as a recommender, and provides assurance to the customer. We are expanding the coverage. This bot plus assist approach drives a higher conversion rate compared to traditional agent. traditional agent-led assistance for users who interact with it. We are expanding the board's capabilities with a new agentic seller, Persona, for advanced search and quick actions, while continuously improving accuracy and chat quality. Besides, as part of our ongoing efforts to enhance customer experience and to strengthen our post sales flow further, We recently launched an AI voice agent for our flights and hotels customers, which is designed to handle all customer queries received via calls and offer resolutions to the consumers in the same call. This agent is successfully integrated with our telephony system, enabling the AI agent to handle calls with background noise, understand interruptions, and accurately interpret queries, including complex actions like date change, web check-in, cancellations, etc., Let me now turn to business segment, starting with air ticketing business. The domestic supply continues to be impacted, thus affecting the overall domestic air passenger growth, which witnessed a decline of 3% year on year. The outlook for domestic supply in H2 is improving with daily departures expected to cross 3,200 plus, which is similar to Q3 of last year. We believe these issues are short-term in nature and long-term outlook for Indian aviation sector continues to be robust. Our accommodation business which includes hotels, homestays and holiday packages delivered a strong 18% volume growth year on year in a seasonally weak quarter. Short holidays and weekend getaways continue to define travel behavior and emerge as a key theme. We continue to see new demand peaks in the long weekends. For the weekend of 15th August, we had an all-time high hotel check-in, which was about 20% higher than the last peak. It was also very well supported by robust growth of 38% year on year in the hotel segment of our corporate business. helping us deliver strong overall growth. The outlook for India's hospitality sector remains optimistic, supported by sustained demand, an expanding supply base, and a healthy pipeline of new signings across markets. According to HBS data, domestic and international chain hotels signed over 36,400 rooms by August 2025, a 32% increase over the same period last year. We continue to expand our supply base in domestic market. We now have 95,000 plus accommodation options available on the platform covering 2000 plus cities in the country. Events are emerging as a high intent travel driver across entertainment, sports and cultural segments. We have built specialized mapping between major events and nearby stays, improving conversion through dynamic packaging. From IPL weekends to music festivals, these moments now form predictable demand peaks. With real-time availability, we are turning spontaneous plans into structured, high-yield travel opportunities so that users can book their stay near to the venue well in advance. Our international hotel business continues to record strong growth, driven by rising air connectivity and the accelerated shift from offline to online travel purchasing behavior. We are witnessing rapid adoption and digitization in Tier 2 and Tier 3 cities as first-time international travelers increasingly use mobile platforms to book stays, flights, and activities together. We continue to increase our hotel inventory across international destinations which are of interest for Indian travelers. Recognizing the influence of food on hotel selection by Indian travelers, we enhanced our restaurants section to highlight user-generated insights on breakfast, calling out Indian vegetarian options and familiar menu items, further strengthening relevance for Indian travelers. Our holidays package business grew in line with seasonality. We continue to strengthen our product proposition. We have launched curated holiday packages to Phu Quoc, Vietnam with exclusive direct flights starting December 9, 2025. We have scheduled multiple flights for the upcoming winter season. As Phu Quoc currently has no direct connectivity from India, the direct service will cut travel time from around 8 hours via connecting routes to just about 5 hours, making the island far more accessible for Indian holidaymakers. Indian travelers today are looking for destinations that offer unique experiences, easy access, and great value. Fukuoka fits the bill but has remained relatively underexplored due to the lack of direct connectivity. We are making this scenic island destination directly accessible for Indians planning their international holidays this winter. Our homestay business continues to scale well, and we continue to build the category and expand our homestay supply. We added over 49,000 plus rooms to the overall supply during the quarter, resulting in a cumulative supply growth of about 35% year-on-year. Our aim is to build a category and solve for the consumer pain points. Food availability remains one of the most frequent customer queries for alternative accommodation stays, with a clear guest preference for properties offering ready meals over self-cooking options. To address this, we revamped the food and dining module across both supply and consumer products. The new flow enables hosts to provide rich details on meal availability, pricing, cuisines, variety, and timings, along with cook availability and associated charges for customized meals. In our bus ticketing business, we witnessed strong growth in Q2 led by strong inventory addition and with all regions growing 20% plus year on year. Inventory addition remained strong throughout Q2 fiscal year 26. This trend of investment in new buses among private operators is likely to continue in the upcoming quarter. as well due to increased festive demand. We expect further buoyancy in new bus addition with reduction of GST for procurement of buses announced in September. During the quarter, we have onboarded Gujarat and Orissa State Transport Corporation, leading to the addition of 5,700 plus services. Our growth continues to be broad-based with all regions growing in double digits with North and Gujarat, Rajasthan growing at 40% plus in Q2. We have also launched bus booking options within our Red Rail standalone Android and iOS applications. We continue to strengthen our customer proposition within our trains business during the quarter. We launched the food on trains feature in partnership with Zomato, thus expanding on our customer convenience initiatives within the trains category. The service is now live across 130 stations and is accessible to both transacting and non-transacting users. Early results have been promising, with strong conversion and top-of-funnel engagement. Notably, a significant share of users are placing orders up to two hours prior to station arrival, and orders span a wide range of cuisine types, indicating both the flexibility and variety of selections available to customers. Our corporate travel business, via both our platforms, that is MyBiz and Quest2Travel, is witnessing strong growth on the back of new customer acquisition. Our active customers Corporate customer count on MyBusiness now over 75,500 plus compared to 59,000 customers during the same quarter last year. And for Quest for Travel, the active customer count has reached 527 large corporates compared to 462 customers in the same quarter last year. Before I conclude, here's a quick reminder of key leadership role changes announced recently. After a successful stint of 14 years as Group CFO, Mohit has taken on a larger role of leading business and has been elevated as Group Chief Operating Officer. In his current role, Mohit will work closely with business heads and will drive the future growth agenda of the company. We also welcome Deepak Bohra, who joins us as group CFO. Deepak is a chartered accountant, comes with 30 years of rich experience in the field of finance. Deepak joins us from Wipro, where he has handled large teams and led a variety of roles within the finance function. I wish them all the best for their new roles. With this, let me now hand over the call to Mohit for financial highlights of the quarter.

Thanks, Rajesh. Welcome on board, Deepak, and hello, everyone. The last two months of the previous quarter, that is May and June, were impacted by a series of external events and the weak sentiment for domestic air travel spilled over into the reported quarter due to continued supply constraints, leading to a market degrowth of about 3% year on year in the domestic air market. Quarter two, which is generally a low season quarter, was also impacted by excessive rainfall, particularly in some of the North Indian hill states and union territories like Jammu and Kashmir, Ladakh, Himachal Pradesh, etc., which led to a degrowth in the 20s in these regions on a year-on-year basis during the quarter. Despite these macro conditions, we leveraged a one-stop-shop approach across travel services to drive growth via accommodation and other transport segments like bus ticketing to make the most of the overall bounce-back in travel demand during the quarter. As a result, the highlights of the quarter were hotels and packages adjusted money margin growth, which accelerated from 16.3% year on year in Q1 to 21.6% year on year in constant currency during the reported quarter. Within this segment, standalone hotels adjusted margin growth accelerated from 18.5% in the previous quarter to 23.1%. In the non-flights transport business, bus ticketing adjusted margin growth increased from 34.1% year on year in the previous quarter to 44.1% year on year in constant currency during this quarter. Before I get into the financial details, I would also like to call out a couple of accounting items in this quarter for better understanding of the results that we are calling out right now. You would recall that last quarter we had raised an additional capital of approximately $3.1 billion through a mix of primary offering of ordinary shares as well as zero-coupon convertible serial nodes maturing in 2030. The internet proceeds from the offerings were used for repurchase of Class B shares. On 2nd July 2025, we completed the repurchase and cancellation of 34.4 million Class B shares. Out of the $3.1 billion raised, about $1.4 billion were raised through 2030 zero-coupon convertible nodes and While these notes have no interest cost associated with them, as per IFRS, about $1.1 billion has been recognized as debt on the balance sheet and the balance of about $319 million will be recognized as an interest cost in the P&L every quarter over the next three years until July 2028. As a result, $24.3 million has been recognized as interest cost during the current quarter related to the 2030 convertible notes, in addition to about $4 million of finance costs, which is recognized every quarter for the 2028 notes issued earlier in 2021. Please note that this active interest cost of $28.3 million will not have any bearing on the operating profitability of the company, as there is no actual interest outgo whether in cash or otherwise, as these are zero-coupon convertible notes. Secondly, while our operations are predominantly in INR, our reporting currency is dollars, as a result of which there are usually translation-related forex gains or losses. As a result of the sharp weakness in INR versus the USD during the current quarter, we have recognized a foreign currency loss of $14.3 million during the quarter, Both these items, that is interest and forex costs of approximately $28.2 million and $14.3 million have been recorded in the finance cost line in the P&L. As a result, we report a loss for the quarter of $5.7 million compared to a profit of $17.9 million during the same quarter in the last year. However, our registered operating profit has registered a strong growth and has reached $44.2 million during this quarter compared to $37.5 million in the same quarter last year. Moving on to our segment results, our air ticketing adjusted margin stood at $102.8 million, registering a year-on-year growth of 10.6% year-on-year in constant currency. In the domestic air market, we maintained our market share of about 30%. Our international air ticketing business continues to grow faster then the market, and we completed the green market share. Volumes in this segment grew by over 16% year-on-year, which is almost 2.5 times the market growth of about 6% during the period. In the quarter, the mix of international air ticketing business has reached an all-time high of 43% compared to 37% during the same quarter last year. In the hotels and packages segment, adjusted margin growth stood at about 21.6% year-on-year in constant currency terms, resulting in adjusted margin of $5.8 million during the quarter. We have witnessed strong growth despite Q2 being a seasonally slow quarter for leisure travel. The growth for standalone hotels was even better at 23.1% year-on-year. The mix of international... Hotels and packages revenue reached a high of 23.4% during the quarter, up from 21.4% same quarter last year. Now, bus ticketing business, the adjusted margin stood at $37.7 million, registering a strong year-on-year growth of 44.1% in constant currency terms. Most of our engineering services, such as travel insurance, forex, etc., as well as other transport services such as cabs and rails, have also shown good growth during the quarter. As a result, adjusted margin from the others category came in at $20.5 million, with a strong growth of 29.7% year-on-year in cost and currency. Moving on to the expense side, most expenses have come in line during the quarter. Marketing and sales promotion expense for the quarter stood at 4.2% of gross bookings, compared to 5.1% in the previous quarter and 4.6% during the same quarter last year. This has been in line with our segment margins being better than both the previous quarter as well as the same quarter last year. As a result, our adjusted operating margin has actually improved from 1.66% of gross booking value during the same quarter last year to 1.8% of gross booking value during the current reported quarter. We entered the quarter with cash and cash equivalents of $835 million, translating to an increase of $31 million over the previous quarter. We will continue to look for organic and inorganic investment opportunities through the year. Looking ahead, while the growth in domestic air ticketing is marred by short-term supply-side challenges, we believe the GST benefits have come in at a very appropriate time. Reduction in rates for procurement of new buses, as well as reduction in GST for hotel stays up to a price point of 7,500 will help rebound the demand for travel services after a muted first quarter. These measures are expected to boost demand, particularly in the value-sensitive segments, supporting volume growth and market penetration in key regions, including Tier 2 and Tier 3 cities. With our Omni, channel platform strategy across retail, B2B, and corporates, and the increasing supply of services being contracted across the length and breadth of the country, we remain focused on driving growth ahead of the industry. To conclude, our diversified portfolio, execution capabilities, and operational discipline continue to position as well for sustained long-term growth and value creation. With that, I'd like to turn the call back to Vipul for Q&A.