MakeMyTrip Limited

Hello, everyone. I'm Vipul Garg, Senior Vice President, Investor Relations at MakeMyTrip Limited. And welcome to our fiscal 26 third quarter earnings webinar. Today's event will be hosted by the company's leadership team comprising Rajesh Mago, our co-founder and group chief executive officer, Mohit Kabra, our group chief operating officer, and Deepak Bora, our 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 a 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 guarantees of the 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 Statements 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 over the call to Rajesh. Over to you, Rajesh.

Thank you, Vipul. Welcome everyone to our third quarter call for fiscal 2026. At the outset, pleased to share that Q3, which traditionally represents the high season for leisure travel in India, witnessed strong demand recovery barring temporary disruption in December caused by new and stricter flight duty time limitation rules, FDTL, for pilots. The festive season and a series of long weekends fueled this demand momentum, reinforcing our belief in the emerging trend of Indian travelers' desire to spend more on travel. Our diversified product portfolio and market leadership continues to act as mitigating factor in case there is any macro disruption that happens in one of the segments. For instance, while domestic air was impacted in December, we were able to capture some of this demand on other means of transport like bus and cabs. We continue to believe the Indian travel market is poised to expand driven by a confluence of economic, social and technological factors Our focus remains on delivering superior value and seamless booking experience and support to our customers with constant product innovations leveraging AI. We see AI as a very welcome and positive tech evolution with opening up many new opportunities in our business. Leveraging AI, we are aiming to improve all aspects of the customer journey right from inspiration, discovery, search, booking, and post sales. One of the most significant impacts of AI with the ability to offer highly personalized experience. We have developed AI models using LLMs and vast amounts of in-house proprietary data to power Myra to help customers interact with it from planning to eventually booking their trips. We believe over time our product will be more relevant and effective because of our own proprietary data for travelers. Myra has now scaled to over 50,000 conversations daily with over 72% of conversations being termed as good conversations. Around 15% of the conversation happened during early stage of trip planning, enabling us to influence destination and product choice much earlier in the customer lifecycle. Myra is also helping us drive penetration into smaller cities with its vernacular voice capabilities. Over 45% of Myra Users are coming from Tier 2 cities and beyond, with voice-led interactions being 50% higher in non-metro cities. AI is also helping us improve post-sales customer experience through virtual assistant, providing instant 24x7 support to travelers. Our AI voice and chatbots are now autonomously resolving about half of the customer queries across flight and hotels, significantly improving service scalability and efficiency in the system. We are also using AI to augment our data intelligence support to our supply partners. For example, to empower our hotel and host partners, we have introduced the GenAI Power Digital Performance Analytics Summary in audio playbook format in Hindi and English, significantly improving partners' engagement. Besides, following our one-stop shop strategy with a view to meet all travel and travel-related needs on our platform, We have now expanded our product offerings with the recent launch of tours and activities, giving Indian travelers access to over 200,000 bookable activities across 1,100 cities in 130 countries worldwide. Indian outbound tourists often struggle with dispersed information, foreign currency pricing, and disjointed planning tools when booking activities and experiences. Stitching all of it together, we aim to remove friction and make it convenient for travelers to book in-destination experiences also in advance before they start their travel. Let me now turn to business segments, starting with air ticketing business. Air market supply and growth bounce back on the back of robust seasonal demand in October and November, with domestic daily departures growth of 2% and 5% year-on-year, respectively, from a degrowth of minus 4% in Q2, However, new flight duty rules caused disruption in December, leading to daily departure de-growing in December at minus 5% year-on-year, as against expected 5% growth year-on-year. Despite this disruption in the domestic market, we were able to deliver good performance, aided by robust growth in international travel and our diverse portfolio of all modes of transport as some of the seasonal demand moved to other modes of transport. International outbound travel from India presents a significant growth opportunity. We remain focused on growing this segment. We have launched a new feature in the international flights funnel that provides users with end-to-end visa guidance for their destination. It covers visa types, processing timelines, permitted length of stay, required documents, and applicable fees. Users can also initiate their visa application directly on MakeMyTrip through this feature as well. Early results show strong engagement on the listing page, along with a positive impact on both conversions and visa attach rates. Our accommodation business, which includes hotels, homestays, and holiday packages, delivered a strong 20.3% volume growth year-on-year. Growth was driven by a strong demand for leisure travel, with highest ever check-ins recorded on 25th December, along with wedding season demand and mice events. The reduction of GST on hotel rooms under the Rs. 7,500 category has also been a catalyst for the growth. We have seen a surge in booking volumes in this segment as customers responded to attractive pricing. It is important to note that this has led to a divergence between volume growth and gross booking value growth. The gross booking growth is more moderate as it reflects the lower tax component in the final price paid by the customer. Lower GBV growth is an arithmetic consequence of the tax change and not a sign of any structural weakness in the segment. We continue to drive deeper penetration into India. We now have 97,000 plus accommodation options available on the platform covering 2050 plus cities in the country. 2050 plus cities in the country. We are also driving online penetration in the segment with strong demand coming from tier 2 cities and beyond. During the quarter, we sold properties in over 1950 plus cities across the country, with almost 100 plus new cities selling for the first time in last 12 months. On product side, we have made GenAI-led interventions across top 25 international cities, including prominent international beach destinations, to power beachfront discovery for beach holiday seeking travelers. We are also using this knowledge graph information to determine and introduce clear beach proximity tags like on the beach, beachfront, short walk to beach on listing pages, thus improving discovery and conversion. In addition, for women travelers, we now feature women-specific ratings, AI-generated review summaries, and safety scores derived from female travelers to support deep information-seeking behavior. By adding specific safety indicators and top rated by women filters, we are building a confidence driven ecosystem for a segment that travels 25% more in groups. These features are already live across 100 plus cities and 33,000 plus properties. This comprehensive approach ensures that the growing number of women travelers can explore with predictability and trust. Our holiday packages business witnessed strong seasonal performance as well. During the quarter, we successfully operated MakeMyTrip chartered flight packages to Phu Quoc in Vietnam, thereby unlocking the potential in an unexplored destination for our outbound travelers. This reinforces our belief that direct connection along with simplified visa process help open new destinations very well. Philippines, for instance, is another such recent example. Our homestay business continues to scale well. During the quarter, we sold 27,600 plus unique properties covering over 1,050 plus cities. This business now contributes early double digit to the overall returns volume. Our bus ticketing business witnessed strong growth in Q3, aided by festive and holiday travel with all regions growing in double digits. Inventory addition remained point throughout Q3 fiscal year 26 with private inventory crossing 45,000 daily schedules by the end of quarter compared to 40,000 daily schedules during the same quarter last year. During the quarter, we strengthened cross-sell strategy by introducing unified inventory on rail search page, enabling rail users to discover available buses on their search routes. In our Southeast Asia RedBus platform, we partnered with Grab to integrate intercity bus and ferry bookings into its platform, giving more options and making travel more convenient for users. Our corporate travel business, where both our platforms MyBiz and Quest2Travel, is witnessing strong growth on the back of new customer acquisition. Our active corporate customer count on MyBiz is now over 77,500 plus compared to 64,000 customers during the same quarter last year. And for Quest to Travel, the active customer count has reached 539 large corporates compared to 493 customers in the same quarter last year. You would recall that we had acquired travel expense management platform Happe at the start of the year. I'm happy to report that our integration with Happe is now complete with flights and hotels resulting with flights and hotels, resulting in Haptair becoming a complete travel and expense management solution now. With this, let me now hand over the call to Mohith for financial highlights of the quarter.

Thanks, Rajesh. Hello, everyone. The highlight of the quarter was our strong performance in October-November, wherein we capitalized on the improved travel sentiment by launching a first-of-a-kind festival travel sale called Travel Kamhurat Sale. It saw the widest travel participation from our suppliers across travel services as well as our non-trade partners. It helped us engage with over 75 million users during this sale period of about 33 days. It also helped us build significant advance purchase behavior particularly for the upcoming peak holiday travel in December. It also helped us mitigate the impact from the low light of the quarter which was the disruption of flight operations particularly during the first fortnight of the December month, which significantly impacted travel plans and bookings during that period. While the situation has not stabilized, a complete supply recovery is likely to get pushed out into the next fiscal year. We are pleased to report that despite the disruption in the month of peak seasonality, we are able to drive strong performance overall for the quarter. Moving on to our segment results, our air ticketing adjusted margin stood at $107.9 million, registering an year-on-year growth of 20.4% in constant currency. This robust performance was driven by strong growth in international air ticketing business, which now accounts for about 43% of the adjusted margin within the air ticketing segment. In the domestic air market, while the industry grew by just 0.9% year-on-year, we were able to deliver 2.2% year-on-year growth. On a flown basis, we saw slight market share gains with our share now increasing to just over 31% during the quarter. On the huddle and packages segment, we recorded strong volume growth on 23% year-on-year, with standalone huddles growing even faster at 20.6%. This was largely on the back of strong demand aided by the recent rationalization of GST rates for HODLs priced under 7,500, where the GST rate has been reduced from 12% to 5%. This has resulted in strong room-night growth of over 23% in the non-premium price segment. As a result of this mixed shift, as explained by Rajesh, we saw a slightly limited gross booking growth year-on-year at about 15.9%. The adjusted margin in the standalone HODLs business was in line with the GMT growth. It is encouraging that this tax rationalization initiative of the government of India has had a positive impact on driving of volumes in the hotel segment. The tax of international hotels and packages revenue has also increased to about 24.2% during the quarter compared to about 23% during the same quarter last year. In our bus ticketing business, Existence margin stood at $42.4 million, registering a strong year-on-year growth of over 26.1% in constant currency. Our ancillaries business, which is part of other segment, is scaling up well. This is helping us get a larger share of wallet of our customers by building the attach of a variety of ancillary services. As a result, Existing margin from other segments came in at $27.5 million, witnessing a strong growth of 45.5% year-on-year in constant currency. Moving on to the expenses side, most expenses have come in line. Marketing and sales promotion expense for the quarter was at 5.6% of gross bookings, again in line with high seasonality and improving mix coming in on the back of strong growth in higher margin businesses like hotels and packages, bus ticketing and ancillaries this improvement of the mix is also translating into marginally better profitability for us our existing operating margin has improved from 1.76 percent of gross bookings during the same quarter last year to 1.82 percent of gross bookings during the current reported quarter we are glad to report our first 50 million dollar plus register operating product if the actual number is standing at $50.7 million. The non-cash interest cost on our zero-coupon convertible bonds for the quarter was recorded at $28.3 million, and the translation-related foreign currency losses in view of the rupee depreciation stood at about $5.3 million. As a result, the reported tax for the quarter was $7.3 million. The adjusted net profit came in at about $51.4 million with adjusted diluted EPS growing by about 33% year on year. You would recall that as part of our capital allocation strategy last quarter, we had increased the size of our buyback plan to $200 million and also included the recently issued 2030 convertible notes in the repurchase plan. We have repurchased 0.55 million shares for an aggregate amount of approximately $41.5 million during the quarter. We also repurchased 2030 notes with a principal amount of $5 million for an aggregate amount of approximately $4.6 million. Accordingly, the total utilization for the buyback program was about $46.1 million, which has been our highest in-market buyback till date. We ended the quarter with cash-in equivalents of over $800 million. We continue to dial up investments in core growth capabilities like AI and other organic initiatives while scouting for potential strategic investment opportunities. With that, I'd like to turn the call over to Vipul for Q&A.