MakeMyTrip Limited

Hello, everyone. I'm Vipul Garg, Senior Vice President, Investor Relations at McMaster Limited, and welcome to our Fiscal 2026 Port Quarter and Full-Year Earnings webinar. Today's event will be hosted by company's leadership team, comprising Rajesh Mago, our Co-Founder and Group Chief Executive Officer, Mohit Kabra, our Group Chief Operating Officer, and Deepak Borah, 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 the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. These statements are not guarantees 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 change 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 fourth quarter and fully a call for fiscal 2026. Before we take you all through the quarter details, I would like to step back a bit and remind everyone about some fundamental structural changes that have emerged post-COVID that has been shaping the travel market in India. When the world opened in 2022, the rebound that initially looked to be pent-up demand coming out of the quiet phase due to pandemic soon formed a new baseline. This robust shift in demand is reflected in our reported numbers where gross bookings went from approximately 3.2 billion in fiscal year 22 to 6.6 billion in fiscal year 23 and a record 10.4 billion in fiscal year 26, compounding at roughly 34% over four years. This was a good combination of post-pandemic recovery and behavior shift among Indian travelers, well supported by some key structural macro changes in the Indian economy. Major reasons for this robust demand shift are, first is rising and aspirational middle class. As per a Bain study, the middle income household with annual income between $4,500 to $35,000 has been growing at a robust high single digit annual growth rate and is likely to further grow at an accelerated pace from $200 million in 2022 to $300 million in 2032. a growth of 50% in 10 years. India also added over 70 million passport holders in the last five years. Tier 2 and Tier 3 cities are now major growth drivers. A traveler from Indore or Coimbatore today has the same aspiration and increasingly the same purchasing power as one from Mumbai or Delhi five years ago. This is a massive multi-year addressable market expansion and we are only in its early innings. Second, Travel has shifted from occasion to habit. Our data shows booking frequency per user is rising year on year. Indians are no longer saving up for one big annual holiday. They are taking multiple trips a year. Three to six trips a year across leisure, religious, and extended weekend categories is becoming the new normal for India's connected earning class. The experiential economy is real and is a big opportunity. The cohort driving this is also the one with the longest consumption runway ahead. As per Gollingen International's 2024 research, Indian millennials' annual travel spend was at about $6,000, making travel their single largest discretionary expense at 34% of annual spending. These millennials are not yet in their peak earning years. These millennials are not yet in their even peak earning years. The per-trip wallet will only expand with time. Third, the growth of world-class physical infrastructure. The demand story compounds if supply keeps pace, as we all know. New airports, road-on routes, expressways, premium rent, train corridors, the government's infrastructure investment is creating supply that meets this demand. Every new airport is a new market for us. Every new direct international route is a new booking opportunity. India's expanding highway network and airport capacity are making travel faster, easier and more reliable across the country. Better road and air connectivity is opening up smaller cities and tourist destinations, reducing travel time and helping unlock tourism, local spending and regional economic growth. On aviation, operational airports have doubled from 74 in 2014 to 157 in 2024, improving access beyond major metros and making travel more affordable and widespread, especially for Tier 2 and Tier 3 cities. This is expected to further expand to 400 airports by 2047, providing a multi-decade opportunity. India's highway network has expanded sharply, with national highways rising from 91,287 km in 2014 to about 1,46,145 km in 2024. while construction speed increased to 33.8 km per day in 2023-24. Similarly, listed hotel companies are projected to add over 70,000 keys to India's hotel sector by fiscal year 2030, according to CBRE. Majority of new additions are being built into under-supplied Tier 2 markets and spiritual tourism corridors, both of which are future growth opportunities. Homestays have emerged as a flexible, scalable supply addition as well, now actively supported by governments. Vacation rentals and boutique homestays are capturing outsized growth because they align with experiential itineraries that favor local immersion over standardized services. The physical infrastructure story only is half the job done in today's digital age unless the digital infrastructure has kept pace with it. India has come a long way on digital infrastructure development as well. With internet penetration touching about a billion people, with high quality bandwidth becoming affordable, with data costs falling from Rs. 269 per GB in 2014, to about 9 rupees per GB in 2024. On top of this is the payments infrastructure. UPI processed 640 million transactions daily in 2025, clearing over 16 billion transactions in a single month by late 2025. The combined effect is that checkout friction, historically one of the largest causes of booking abandonment, has largely been addressed. A traveler in a tier three city with a mid-range Android device can now search, compare, book and pay in under five minutes without a credit card. We have also witnessed Indian market showing resilience to bounce back fairly quickly as the disruption starts to go away. Last year was another such year as it was impacted by many disruptions pretty much every quarter. But the interesting part was that the travel demand remained resilient and robust during the unimpacted months of the year, reflecting the continued strength of underlying consumer sentiment and the structural growth trajectory of the industrial economy. We at MMYT continue to outpace industry growth despite disruptions with healthy momentum across segments.

Rajesh, you might just need to come a little closer because you're fading out at times.

Sure, sure, sure. Sorry.

Is it fine now?

Yes, better. Is it fine now? Yes, better. Yes, much better. All right. While our international business started to get impacted in March due to Middle East conflict, the domestic business remains strong. For the reported quarter, March was impacted due to West Asia conflict. January and February witnessed strong year-on-year growth on steady-state basis. Encouraged by structural changes in the market and consumer behavior to spend more on travel, We remain confident of revenue growth in the 20s during normal periods and when external headwinds arise, we rely on the strength and resilience of our platform, which offers multiple travel services, serves diverse demand segments to still deliver healthy growth compared to the industry. The other big transformational shift in the digital world is being caused by AI. At MechMyTrip, we see AI not merely as a productivity tool, but as a foundational layer that can redefine travel discovery, planning, booking, servicing, and loyalty. As shared earlier, we have been on our journey to embed GenAI all through the consumer journey, leveraging our own proprietary data, besides launching Myra, a conversational interface. Continuing with the journey, we launched an upgraded and more powerful and intelligent version of Myra, where a traveler can now a complete consumer journey right from planning to making payments within Myra using multilingual voice feature. It also now enables seamless natural interactions across flights, hotels, buses, trains, cabs, and end-to-end itinerary planning, positioning itself as a true travel companion. What makes India uniquely exciting in the AI era is also the diversity and scale of consumer behavior. AI allows us to bridge language, trust, and discovery barriers in ways that were previously impossible. Over the last quarter, Myra has scaled to over 50,000 plus conversations every day and is now embedded across the entire customer journey from inspiration and discovery to booking and post-sales support. Over the last few days, this number has further scaled to over 80,000 conversations per day. For Myra, adoption is broad-based. Over 45% of usage comes from Tier 2 and smaller cities, with voice emerging as a key interface. Voice interactions are 50% higher in non-metro markets, with 70% of queries in Hinglish and prompts that are 40% longer and more complex than text inputs. Highlighting deeper engagement and richer intent capture. Regional languages are also gaining traction, contributing 10% of voice volume today, where it has now expanded to seven additional Indian languages, significantly widening accessibility. Almost 15% of conversations now happen at the trip planning stage, where users are still exploring destinations and options. This allows us to influence decision-making much earlier and guide users towards more relevant, higher value outcomes. This deeper engagement is translating into measurable business impact. Users interacting with Myra across discovery, support and booking stages demonstrate 10% higher conversion rates compared to traditional filter-led journeys. By making discovery more intuitive and personalized, Myra is reducing friction and accelerating decision-making. During the quarter, Myra assisted over 200,000 bookings directly. Customers engaged with our AI agent, got their queries resolved and completed a transaction. We are also continuing to enhance our existing consumer journey flow with the use of AI. Our smart search feature is now enabling intent-led discovery at scale. Smart search is semantic free tech search capability that lets customers describe what they want naturally. For example, families stay near Baga beach with gen food or rooftop pool hotel in Jaipur with spa access. Through this feature, customers now receive contextually precise, explainable results. This feature delivers much higher conversion versus traditional filter-based journeys, clearly demonstrating that understanding intent outperforms matching keywords. We have also enabled user reviews through voice. With this feature, we are seeing a fundamental shift in review quality. Voice reviews are generating a lot more content per submission compared to typed reviews. Customers describe their stays naturally in detail in their own language. This richer signal feeds directly into our knowledge graph, improving the quality of AI-generated summaries, safety scores, and contextual recommendations for future travelers. Voice is becoming the default input for Indian customers, increasingly, and we are building our content infrastructure around that reality. We continue to drive AI-based interventions in our Redbus brand too. Apart from customer support, handling through AI chatbots, which have scaled up and yielded about 33% efficiencies, we are now introducing voicebots to replace legacy IVR systems. We are witnessing an initial CSAT additionally. We have scaled up the AI chatbot rate in the pre-booking user journey as well. Adoption has scaled meaningfully. Regional language users show 2x engagement compared to English users, indicating clear resonance among high intent and regional audiences. Around 6% of total queries come via voice as input. Overall, Ray is emerging as an assist layer that improves decision confidence before booking and deepens engagement in core booking funnels. This is reflected in an overall strong growth in bus ticketing segment, driven not just by top metros, but the tier two cities across the country. Overall, we are on our journey to make MakeMyTrip an AI native org, with engineering, customer support, supply onboarding, content generation, and marketing functions leading the race, while other corporate functions are catching up on AI adoption, real fast, making the org more agile and efficient. We have started to see a meaningful impact in certain areas as well. For instance, about 60 to 70% of the new code is being written by AI tools now. Similarly, AI is also driving meaningful efficiency gains on our customer service function. About 55% of our call center flight and hotels customer queries are being now resolved by digital voice agents. Aim is to keep solving for the long tail and corner use cases as we go along to ultimately have minimal human intervention on customer service without compromise on quality of experience for the customer. India remains one of the most underpenetrated travel markets globally relative to its population and income trajectory. Over the next decade, we believe India could become one of the largest travel opportunity markets in the world Online travel is a multi-billion dollar structural growth opportunity and MakeMyTrip intends to play a central role in enabling that journey. As we look ahead, our priorities remain clear. Driving an AI and proprietary data-led transformation change in the org to drive the future growth at MMYT. Keep innovating to further strengthen the core offerings with supply-side modes. and scale our new offerings to the customer's first choice to be the customer's first choice as one-stop shop for all travel needs, both for our retail and corporate customers. Leverage unique positioning of our three strong brands and other distribution channels to expand customer reach. Leverage AI tools to drive efficiencies across the org to help drive operating leverage. With this, let me now hand over the call to Mohit for the business highlights of the quarter.

Thanks Rajesh and hello everyone. The reported financial year presented a challenging operating environment with several external factors impacting travel demand across quarters. The reported quarter was also marred by the West Asia conflict which has impacted westbound international travel and with increasing fuel costs has also led to an increase in domestic airfares in a highly price conscious market. We were able to partially mitigate the impact of these headwinds by promoting domestic travel with a variety of transport options to suit the varying travel budgets of our customers and promoting eastbound travel within our international travel offerings. India continues to offer a deep and growing domestic travel opportunity supported by improving infrastructure, which is helping open travel demand beyond the traditional destinations. While we are dialing up traditional leisure destinations like Goa, Kerala, Rajasthan and Kashmir, we are now actively promoting the relatively under explored destinations of say Northeast. We are also tapping into the potential of pilgrimage plus pleasure trips, combining visits to pilgrimage destinations with activities or holiday options in or around those destinations. Short duration, drive down holidays or breaks are also getting popularity and we are curating more of such options for our customers across the length and breadth of the country. This is being done by curating relevant supply, strengthening partnerships, and targeting customers with more contextual offerings, as well as curating destinations and products where the travel confidence and affordability remains strong. For customers who are finding increasing airfares as a deterrent to travel, we have dialed up our ground transport offerings to retain or spur up domestic travel demand. We have added new supply to take the private bus inventory to an average of 46,000 daily schedules during the reported quarter. To channel new supply of routes to higher demand categories or sectors, we have revamped the route suggestions module for our suppliers of bus services. This enables them to figure out routes that have unmet demand and add more inventory on those routes. As a result, our bus ticketing volumes for the quarter grew by 27.6% year on year, and for the full year grew by 32.9% year on year. And the intercity cabs business, which is a relatively new business, has also seen growth at over 20%. Demand on a variety of these routes was also aided by regional festivals during the quarter. As a result of providing variety of transport options that suit the travel budgets of our varied customers, we were able to deliver strong volume growth of 15.2% in our accommodation business, which includes hotels, homestays, and holiday packages. It might be relevant to call that as per HBS-NAROG research, the occupancy in the accommodation industry during the reported quarter is likely or slightly negative on a year-on-year basis. This year-on-year growth of 15.2% is also notable as it has come in quarter which has been impacted by the high base of Coombe-related one-time demand in the same quarter of last year. Long weekends and drive-down holidays are emerging as important growth drivers as more consumers or customers increasingly look for short-haul, convenient and value-oriented travel options. We recorded our highest ever domestic hotel check-ins on 24th January weekend, crossing 200,000 room nights on a single day for the first time. One particularly notable trend is the rise of spiritual and pilgrimage tourism. Accommodation bookings for spiritual destinations have continued to demonstrate strong momentum even after the confinement of last year, highlighting the structural rise of pilgrimage and faith-based tourism in India. Pilgrimage has always been embedded in India's culture. We are witnessing now a growing wave with more and more Indians across age groups actively choosing spiritual travel as part of their lives. This also reflects that travel in India is increasingly emotional, cultural, and experience-driven and not just transactional. We continue to differentiate ourselves through unmatched spread and selection, offering customers a breadth of inventory across destinations, price points, as per their travel needs. This extensive choice, combined with our strong platform experience, allows us to serve a wide range of travel preferences more effectively. We now have over 100,000 accommodation options available on the platform, covering more than 2050 cities in the country. During the last year, we sold room nights for over 12,000 new properties for the first time on our platforms. In the homestay segment, we continue to invest in building the category and are enhancing our product proposition to improve customer experience and broaden the appeal of these kind of stays. We believe this remains an important long-term opportunity and we are focused on strengthening the value proposition for both travelers as well as our supply partners. We launched quick commerce and food delivery serviceability status on relevant property page details for many of such accommodations. Surfacing availability of essentials and food delivery upfront improves trip planning convenience for our customers and reduces the pre-booking anxiety. We also enhanced visibility of caretaker and onsite support information across these listings. Clearer disclosure of presence, availability, and responsibilities helps the guests better assess the stay experience and provide on-ground assistance. Our holiday packages business and home stays business continue to scale well. During the quarter, we completed our acquisition of the majority stay in Flamingo Transfer, a regional group holiday packages business based out of Gujarat in India. Lemingo has a strong presence in the state of Gujarat, Maharashtra, Rajasthan, and Madhya Pradesh. It curated group tours known for regional focus, customized experiences, and servicing of international travelers. This is a way to add to our strength of the holidays business, particularly on the international side. Coming to our A-ticketing business, this was impacted by a combination of supply side and geopolitical factors. During the first three quarters, The domestic aviation market was affected by geopolitical issues and capacity constraints, leading to limited growth despite underlying demand remaining healthy. In the fourth quarter, the West Asia conflict has created uncertainty and impacted westbound traffic from India. This has impacted both international air ticketing as well as international accommodation business for us. Some of this uncertainty is continuing in the current quarter as well. elevated crude oil prices and a depreciating rupee are weighing on international travel, though both higher airfare and softer discretionary demand for outbound trips. This is also leading to profitability pressures for the airlines, and some of the airlines have already curtailed their international capacity. During the reported quarter, both domestic and international flight departures witnessed degrowth as compared to the same quarter last year. domestic flown passenger market for the quarter declined by 1.5% year-on-year. The decline in the international passenger traffic was even higher at 6% year-on-year. We continue to grow in line with the industry while maintaining our leading market share in the air ticketing business. Just as our bouquet of travel services including mobile including multiple transport options, is helping us meet the travel budgets of our varied retail customers. Our differentiated demand segments are also helping us drive better than industry growth. While the West Asia crisis has had a higher impact on retail demand, corporate demand continues to remain strong. Our corporate travel businesses, via both our platforms, that is MyBiz and Quest2Travel, saw not only growth from existing accounts, but also new acquisition. Our active customer count on MyBiz is now over 76,800 corporates compared to 64,000 of them during the same quarter last year. Similarly, for Q2T, the active customer count has now reached 548 large corporates compared to 507 such corporates during the same quarter last year. Across the two platforms, we now service over 1,500 large corporate customers Lastly, we made a strategic minority investment and visa servicing agreement with Atlas, a visa processing platform. This investment will allow Make My Trip travelers to benefit from a streamlined visa application process, as well as create an opportunity for Make My Trip to cross-sell its travel offerings to the customer base of Atlas. Before I hand over the call to Deepak to present the financial summary, I would like to call out that we remain cautiously optimistic in view of the ongoing geopolitical issues. Just as COVID offered us a silver lining in terms of utilizing the team to invest in new platforms to tap into corporate and small travel agent demand, we are now investing in an AI-first approach to build AI-enabled platforms for the future. This will span across our investments in product innovation, personalization, supply partnerships, service reliability, and building platform-native revenue streams to drive traffic monetization. It will also be important to call out that we have built a playbook to manage demand volatility with a disciplined approach on optimizing costs in line with market conditions and ensuring operating leverage in our business. This, along with our diversified business model, strong brand equity, and deep customer relationships should keep us well positioned to capture the next phase of growth as demand conditions improve. With this, let me now hand over the call to Deepak for financial highlights of the quarter.

Thanks Mohit and hello everyone. We started January on a strong note with healthy growth across the businesses. In February, our growth rate moderated and was broadly in line with our expectations given the higher base from Coombe related demand in the same period of last year. March was impacted by the conflict which created pressure on demand. Even so, overall growth for the quarter remained decent. and demonstrated the resilience of our business. For the full year, IFRS revenue grew by 10.7% YOY in constant currency. Our results from operating activities, which is equivalent to EBIT, was at $156 million in FY26, witnessing a strong growth of 30.1% YOY. Even in an impacted year, we continued to improve our unit economics through better mix, operating discipline, and steady execution across the platform. As a result, overall profitability for the year improved meaningfully. Adjusted operating profit margin expanded to 1.82% of gross booking in FY26 compared to 1.71% in FY25. Importantly, even in a quarter that was impacted by external events, we were able to maintain profitability, which reflects the strength of our business model and benefits of disciplined cost management. Moving on to our segment results, for the quarter, our air ticketing adjusted margins stood at 99.3 million, registering a YOY growth of 10.7 YOY in constant currency. While the volume declined due to disruption, we achieved robust growth in adjusted margin on the back of a strong ancillary attached and better unit economics. For the hotels and packages segment, we recorded strong volume growth of 15.2% YOY with standalone hotels growing faster at 15.5% YOY on the back of a strong demand in domestic hotel segments. International hotel segment growth was impacted this quarter due to the conflict like international air. As explained, last quarter we are witnessing a mixed shift between the hotel segment by GST reduction leading to a lower SP. In line with this, the shift our gross booking growth was at 10.8% YOY in constant currency and adjusted margin growth was at 11.5% YOY in constant currency. For the full year, hotel and packages adjusted margin growth was at 15.7% YOY in constant currency. In our bus ticketing business, the adjusted margin stood at 41.1 million, registering a YOY growth of 17.1% in constant currency terms. This is little lower than the trend due to the impact of one-time Qoom-related demand in Q4 of last year. Our ancillary 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 ancillary business. As a result, adjusted margin from other segment came in at 25.4 million in quarter four of 26, witnessing a strong growth of 27.1% YOY in constant currency. For the full year FY26, adjusted margin from others was at 95 million, witnessing a growth of 37.1% YOY in constant currency. Moving on to the expense side, most expenses came in line. Marketing and sales promotion expense for the quarter was at 5.2% of gross booking compared to 5.6 in the previous high season quarter. As a result, our adjusting operating profit for the quarter was at 46.5 million with a margin at 1.82% of gross booking. The non-cash interest cost on our zero coupon convertible bonds for the quarter in the P&L was at 27.6 and also a one-time gain of 30.6 million due to the change in carrying value of 2028 convertible bonds. And we had a translation related foreign currency loss at 17.7 million, which has been significant due to the sharp depreciation of INR by 4.45% drop over the last quarter. Consequently, reported PAT for the quarter was 24.3 million. The adjusted net profit came in at 33.8 million. We have a strong balance sheet and our cash flow generation continues to be robust. For the full year of FY26, we generated 182.5 million cash from operating activities. We were able to convert 97% of adjusted operating profit into cash flow from operating activities. As part of our capital allocation strategy during the quarter, we repurchased 0.9 million ordinary shares for an aggregate amount of approximately 50.3 million during this quarter. Total utilization for buyback program including buyback of convertible bonds during the full year was 96.4 million out of the 100 million plan allocated for buybacks. This was the highest in the market buyback in a single year. Another 22 million deployment was made for the investment made in Flamingo and a minority stake in Atlas. We ended the quarter with a cash and cash equivalent of over 782 million. As outlined in our March announcement, we completed our internal restructuring to combine all our key brands operating in India under a single entity with the merger of Redbus India into Make My Trip India. These steps were undertaken to enable the company to evaluate a potential listing of the overall India business at the appropriate stage, which will strengthen our brand further in India and allow access to a differentiated and new pool of capital across institutional and retail investors. A potential listing requires several customary work streams to be completed, including regulatory, financial, legal, tax, audit, governance, disclosure and market readiness preparation. We are working on each of these with our advisors and shall keep periodically updates shared with the market. With that, I would like to turn the call to Vipul for Q&A.

Thanks, Deepak. Any participant who wish to ask question can click on the raise hand button on their screen and we will take the questions one by one. The first question is from the line of Manish Adukia of Goldman Sachs. Manish, you may please ask your question now.

Thank you, Vipul. Just checking you're able to hear me okay, right? Yes, please go ahead. Perfect. Thank you. Hi, good evening team and thank you for taking my questions. A few questions. Firstly, thanks for the elaborate color on the overall environment right now. Given the headwinds have persisted in the June quarter as well, and given the West Asia conflict only started in the month of March, is it fair to assume that things will probably get worse in the near term from a numbers perspective, whether it's GBV or revenue growth, at least in the June quarter, before they start getting better? And a related question to that, this disruption in demand to outbound travel, particularly westbound travel, Is that, does that have like a negative impact on margins or on margins the impact is not material? That's my first question, please.

Manish, maybe I can take the second question first. So as far as margins are concerned, as you would have seen, even in the reported quarter, we have not seen any impact, you know, across segments. So we've largely maintained similar kind of, you know, margin levels across our segments. And we expect that that will continue even through the upcoming quarter. On the first one, the West Asia crisis continues to impact us, right? And we are almost like more than halfway into the first quarter of the next fiscal year as well. So we do believe, yes, there will be impact on the growth trajectory. However, we should just keep in mind that this is also a seasonally better quarter on travel. And therefore, we're trying to kind of make as much as possible by dialing up domestic travel offerings and providing increasing variety of travel options to customers on the domestic front to try and capture the demand or move the demand from international to domestic to the best extent possible.

Thanks, Mohit. And maybe just a quick follow-up on that. Sorry if I missed, if you already disclosed it. But if you can just remind us for this quarter, what was the growth in your overall outbound portfolio versus domestic, maybe at a revenue or GBV level, if I recall correctly? I think outbound travel is about 27-28% of your overall revenue. So if you can just maybe give us the mix of growth between domestic and outbound, that'll be helpful.

Yeah, actually, considering that because of the West Asia crisis, international has been significantly impacted. The mix hasn't moved or gotten any better during this quarter. So it's largely kind of remained stable. And therefore, like I was saying, large part of growth has been domestically.

Maybe Manisha, I can just add to the first question a little bit more color for you. Because while there is obviously Middle East crisis and that is continuing, I think what is different from what it was in March and what it is in now is that in March when war started, it was a general overall sentiment drop. You know, a lot of the cancellations happening and a lot of the flights not operating and so on. And now what the situation is that actually a lot of the flights are back operational now. So it's not that about 65 to 70% in the GCC region, the flights are operational. Now it has moved from like a complete disruption to inflationary led issues, given the oil and energy prices crisis leading to ATF prices going on. are going up. So what this particular thing does is that the essential travel continues and the leisure and the discretionary drops. So to that extent, there will be some travel happening and we can see that Even on our platform, some bookings happening. So that will be a nuanced difference between March and what is happening now. And we'll see how it sort of goes. And the second very important thing that we are seeing is that particularly in the beginning of May onwards, we started seeing, as Mohit was alluding to, the seasonality kicking in, which effectively means that, you know, historically also we have seen that when people are looking for, if there is a problem in a particular destination, they quickly make their plans, they change their plans to the other alternative destinations. And because of which international, we have seen Southeast Asia and Far East bookings going up and the shift happening on the bookings. on the domestic travel side. So I think it's going to be a bit of a mixed bag. And we see overall, you know, where do we sort of land, but it is not completely a doomsday scenario is what I wanted to highlight.

Very clear. Thank you. My second question is on your press release from the month of March, where you did talk about you evaluating a potential listing in India. One, is there like a timeline that you have in mind like six months 12 months is like an outer limit within which you want to list and second if you were to list in make my trip india um any early thoughts and color or how you're thinking about the potential fungibility of make my trip india versus make my limited and shareholder of make my trip limited currently how do they participate in that so any any early color i know it might be too early but any thoughts you can share yeah to be to be honest uh you know my

Manish a little too early in the process. Like we have called out, you know, the India listing is more, you know, a long-term kind of an strategy kind of, you know, priority considering that, you know, MakeMyTrap's core business is in the India market, right? So we are kind of, you know, like Deepak has called out, you know, this involves multiple streams to be kind of worked upon and that work is ongoing. But do we have a, a clear indicative timeline, probably not yet, but we'll keep you posted as we kind of keep getting closer to it. Also in terms of the existing listing and the potential India listing, clearly India does not allow dual listing as such, right? And therefore, to begin with, there will be multiple listings that we will have within the group. And that's very, very likely. Over longer term, We kind of aim towards moving to a singular, fungible structure, subject to the regulatory and rules and regulations, from a point of view of making sure that the stakeholder valuation is optimized. So we'll keep that in mind. But we'll share more color as we get closer to the process.

Very clear. Just last question, if I can sneak in. Rajesh, thank you so much for all the color on AI and the initiatives there. Anything that you can maybe share on in the last few months, all the development around agentic commerce, and you talked about your own Myra where you can also complete payments, but do you think there are any advantages that frontier models bring where maybe there's a possibility that online travel traffic could shift to them if agentic commerce evolves to a place where consumers may not come to OTAs? So maybe your thoughts on in what scenario could agentic commerce be negative for MakeMyType or for the OTA industry in general? That'd be helpful. Thank you.

Yeah. So let's see how it evolves, Manish. But our view right now is, and we have studied it very, very deep, and we continue to as you saw, and that is what I was just trying to sort of give a lot more sort of deep color and the way we are looking at AI from an opportunity standpoint as well. But to answer your specific question, I think we should keep in mind, specific to the OTR model, there are few fundamental modes that it brings to the table, which is going to be, I mean, never say never. It's not going to be an impossible task to disrupt, but it's going to be a really highly challenging task. And those sort of four big modes are you know, fragmented supply underneath. I mean, you know, imagine the supply that is, you know, in the hotel and accommodation space, including the homestays. It's really, really fragmented. And there is a lot of heavy lifting that we need to do as OTS and we've been doing it over the years for it to, you know, come on online, you know, to sort of leverage the power of online platform. And then there is fulfillment and experience on the post-sale side in terms of just handling the customer in case of any needs that after he completes or she completes the transaction that they might have. And there's so much of disruption that takes place in the travel space in general. And I think there is another sort of very deep work that has happened where OTAs have done in the OTA, there is a deep funnel work that has happened in the OTA model, especially in the emerging markets is the payment side where it's kind of underestimated the number of options and the number of sort of promotional activities that goes on with the commercial alignment and the arrangements with multiple sort of partners on the payments front. And last but not the least, which is more specific to MakeMyTrip and then maybe the rest of the players in the market is that we've also consciously built capabilities to make our platform super comprehensive. with potentially every single service being offered and tightly sort of coupled and decoupled at the same time, as the need be from a consumer point of view. Now, when you bring in all of these elements together, it is hard to sort of imagine that for a desired result for the customer, it is going to be an easy thing for an involved sort of buying experience like travel, for just to do a quick and dirty job on agentic e-commerce and bringing both the supply and the demand side at the same place without any friction. So I guess it's not going to be an easy thing to do. It's going to take a lot. And, you know, do we see any of the horizontal players sort of venturing into it at this point in time? In fact, they have already stated that they want to probably focus a lot more on the planning and the discovery step of the overall journey and not necessarily go deep because it's not easy and probably not their DNA to go really deep in the funnel. Having said this, we on Make My Trip will leave no stone unturned is the kind of positioning and direction that I was trying to call out as part of my section in the script to ensure that leveraging this technology whatever it takes that we continue to be the first place of choice for all the new users for travel and when they come online, as well as for the existing users to make sure that we end up sort of providing a stellar experience, even in the sort of new transformational phase, if you will. So I guess, you know, so we've got our strategies in place on both sides, watching the space very carefully and see, you know, how we sort of react to it or partner in that scenario if we need to be, but also keep building our own capabilities with a lot of sort of investment and focus on it.

Very clear. Thank you. Back to you, Vipul.

Thanks, Manish. The next question is from the line of Sachin Salgankar of Bank of America. Sachin, you may please ask your question.

Thanks, Vipul and congrats management on a great set of numbers in terms of, you know, what was turning out to be a very difficult quarter. I have three questions. First question is, you know, to some of the comments, what management said in terms of travel moving from, let's say, west of India to east of India. I presume the ticket size for Southeast Asia versus Europe is a bit low. So in that context, we should expect a bit of an impact. And again, the domestic traffic does indicate that the month of April is turning out to be soft as compared to what we historically saw. So the question out here is, is this led by a higher fuel price increase? And if so, then should we see a bit of an impact in overall usage as fuel price continues to increase? And Rajesh, Mohit, would be great to get a sense at what happened last time when fuel price increased in terms of impact from a demand point of view. That's the first question. Let me pause here.

Yeah, sure, Sachin. Actually, both the observations are not off, Sachin, I must say. You know, so your first observation saying from west moment to east, and I highlighted that and what's happening. But is the ticket prices going to be lower relatively? The answer is yes. Some part of that gets... you know, sometimes compensated because you extend the stay depending upon your budget option. But relative to the western side, which is like a mid-haul to long-haul kind of holiday versus, you know, relatively shorter stay holiday, or even if the same duration holiday, the ticket size is going to be lower. So to that extent, and I was saying that, you know, not necessarily that we are saying that there is not going to be any impact, there is going to be some impact, but part of it is getting mitigated by this shift, number one, and number two on the domestic market. So now coming to your second part of the question, off late now, you know, as I was saying it earlier, in March, it was more sentiment driven and the real disruption, the flights were not flying at all. And then some impact of the sentiment was there starting with March and spilled over in April. And therefore your observation that April was also relatively slower is also correct. And that's what I was mentioning earlier, that starting May, we started to see seasonality kicking. So we've started to see that momentum coming back. And now I attribute that to and that, again, I was just trying to allude to in our script as well. that we have seen the bounce back happening very, very quickly as well. Now, imagine if there was a sentiment which was quite bad in March and April, there was a bit of a, you know, sort of it continued in April. But starting May, we've started to seeing that sort of general sentiment improving and people starting to book and and travel uh you know like anecdotally yesterday was the highest booking uh account for hotels for us on the on our platform just very anecdotally now what extent will it be impacted international definitely relatively higher than the domestic market uh but on an overall basis uh We are hoping that some, you know, impact will get mitigated with some of these positive trends that we are seeing. Now, historically, just the last question that you asked, that actually we have seen when the fuel prices had gone up, if I recall well, to $90 to even closer to $100 a barrel, depending upon which airline you talk about. I think the they were able to sustain it, historically, with some increase in prices and, you know, absorbing some of the cost and some of the some of it, you know, passing it on to the consumer and, and the bond was not terribly impacted. But I think the key point here is not necessarily, you know, going up for a week and coming down significantly, if it stays at that level for a little longer period, that is when the impact starts to sort of clearly become more visible. As anecdotally, you have seen Air India announcing that from June onwards, they would be reducing number of flights. So this April, May, June quarter, because it's a high season quarter, I think they're generally directionally going to run the same number of flights. But, you know, come middle of June, end of June onwards, there's going to be some reductions. ViceJet has reduced some flights, but Indigo hasn't, right? So it's also a function of how, you know, strong is a particular airline that is operating in the market. But, you know, historically we've seen, you know, if the demand sentiment continues, then even up to as high as about $90 a barrel kind of a number, $90 to $100 was not necessarily leading to a huge impact. But like I said, the key is going to be how long it kind of stays at that level.

If I may just add, for the budget conscious customer, like I had mentioned, we are also trying to make sure that we provide enough and more transport options. So those who are finding you know, flight prices to be kind of a lot more expensive than what they would have preferred it to be. They're kind of trying to dial up, you know, AC bus options or say, you know, cab options for them. So as to just make sure that, you know, the overall travel budget is not impacted and the travel demand does not come at the lowest. And similarly finding, you know, more pocket-friendly options on eastbound kind of international travel versus westbound.

Thanks very much. Very clear. And very quickly, my second and third question. Second question, you guys have not changed your EBITDA guidance, adjusted a bit as a percentage of GMB. I presume that indicates, you know, for a foreseeable future, it could be in the range of 1.8 to 2%. And this is despite, you know, the mixed shift happening in favor of high margin hotel. And it's understandable given where things are. So just wanted to confirm. And, you know, Mohit would love to get your thoughts on how to think about a medium-term margin out there. And third question is more a clarification on some of the earlier comments. From what I understand, you know, there will be two listings, U.S. listed and India listed for some point. And eventually at some point in future, the U.S. entity might be delisted, subject to regulations. Is that what you guys meant? I just wanted to clarify on that. Thanks.

Yeah, sure. On the first one, you're right, Sachin, in view of the current volatility in the travel demand, I think we kind of want to continue to remain in the 1.8 to 2% kind of margin guidance. And it will be good to kind of remain there because I think we'll need a little more stability in the travel environment before we kind of revisit this guidance. So you're kind of absolutely right on that. And secondly, yes, on the potential India listing. Like I've said, India does not offer dual listing, right? And therefore, in a manner of sorts, the currently listed entity of Mauritius will also remain on the US forces while we kind of take India entity to India capital markets. Over a longer term period, there are a variety of ways through which, you know, fungibility can be created. And we'll try and put a place and a structure that kind of facilitates that. But beyond that, if you really look at it, even from an investor's point of view, you know, a large part of our investor base actually has the ability to invest both in India as well as in the US. And therefore, to a large extent, that fungibility in some form and shape exists even today.

Got it. Thank you and all the best.

Thanks, Sachin. Thank you.

Thanks, Sachin. The next question is from the line of Vijit Jain of Citi. Vijit, you may please ask your question now.

Yeah, thanks. Can you hear me?

Yes, yes, please.

Yeah, thank you. So just, you know, double clicking on your comments on trends since May. So, you know, I'm mindful that last year from May, you know, macro had started to go south. And so to your comment also on yesterday being the highest GBV number for hotels ever, I guess two questions. One, does it mean, broadly speaking, there's a more accelerated shift and mix to hotels from air? And second question related to that, in the comment on traffic shifting from west to east, is there enough capacity on east to kind of support some kind of a surge there if it continues to persist for some time?

Vijay, relatively, if you see, the capacity is not kind of as constrained on the eastern side. for eastbound travel, and therefore we are leveraging that. On the overall kind of trends for the current quarter that we are in, you're right that last year, May and June was subdued because of macro events. We continue to see that kind of relatively subdued impact continuing on international. Domestic is something that we are kind of continuing to dial upon, and like I had kind of mentioned during my call out, we have been able to drive or spur up demand on the domestic side through a variety of things, which is kind of going much deeper and wider in terms of accommodation options across the length and breadth of the country, opening up a lot more kind of leisure destinations, pilgrimage destinations to offer greater variety to customers, dialing up a lot of short duration you know, drive down kind of, you know, opportunities on the travel side. And also kind of making sure that, you know, in many routes, which are not very long in terms of travel distance, providing kind of, you know, cabs and buses as an alternative to flights, you know, just to kind of meet the budget kind of, you know, aspirations of the various travelers. So these are all things that we're kind of using to dial up the domestic demand. And we hope we'll continue to kind of keep delivering demand much ahead of industry growth in the accommodation segment. So if you look at it just as an indication, even in Q4, which is the reported quarter, the overall occupancy has actually remained flattish or might even go negative. That's my estimate. And therefore, overall growth for the accommodation industry has been almost flattish. Whereas we have posted almost like 15% plus growth even the reported quarter. So we hope to continue to be on that trajectory and keep delivering much better growth on the domestic side while international continues to be under pressure. I mean, you might just see that, you know, until about some time back or until about five or six quarters back, international was kind of, you know, leading the growth charter for us. And that has kind of, you know, turned around a little bit. But I think that is the advantage of, you know, being present across kind of, you know, travel options as well as transport options that we can dial up one versus the other based on prevailing conditions.

But Samit, just a little clarification on that. So in general for you guys, air has been always a pretty important kind of funnel into your hotel's business, right? And to what you mentioned, hotels have done well in 4Q and are continuing to do well despite all the various headwinds we see on the air side, right? So is there, you know, if you can give me a color of, you know, how your... overall funnel has changed over time you know what what is your overall mix of you know people directly coming onto your platform to book hotels first and foremost and those kinds of things that will be super helpful to understand and then I just have a follow-up question on AI if I can or that visit you know considering the paucity of time

Maybe I'll just kind of, you know, suggest that we should look at the overall transport options and then kind of look at that opposite, you know, the accommodation kind of opportunity rather than look at purely versus flight segments, right? So that's the reason I was calling out that we should look at probably entire set of transport options, including buses and cabs. And there you would see that the overall growth on transport continues to be healthy. which is that air kind of, you know, growth in air or flight is lagging. So that's helping us, you know, do much better.

Got it. And also, Vijay, sorry, sorry, just the pointed response to what you were saying, and it's very important, is that the question that whether air is critical for us, air funnel is very important. The answer is absolutely yes, it continues to be. It is just the market situation what Moit is trying to highlight from a consumer point of view. For certain segment of consumers, if air is expensive, they'll move to an alternative mode of transport. And we are seeing that happening on our platform. And therefore, you will see the rest of the segments growing. The growth rate is pretty robust, whether you see quarter or you see it for the full year on. And by the way, despite all these headwinds, and we didn't really call that number out this time around in the script, but our market share on domestic aviation market, despite everything, given that we are growing, we always end up doing better than the industry, is at 30.8%. So in this quarter, we've actually gained 0.2% as well. So it continues to be very important. It's just the mid-term to long-term view. And, you know, as I was highlighting, as part of the physical infrastructure development, airport infrastructure development is also happening at a very robust pace, right? And that is going to be one of the important sort of mode of transports to drive growth for the country if you start to look at it from mid-term to long-term standpoint. It is just the, you know, sort of cycle headwinds that we have right now. So in that context, the consumers tend to shift.

Got it. Rajesh, my next question, my last question is on AI stuff that you guys discussed, including Myra. Now, you know, when we look at the developments on this term increasingly being used as a harness, and I've seen some reports suggesting that when you build a harness around AI and use your own proprietary data, the experience in terms of quality of responses is much better in other use cases. I'm just wondering, is it measurable for you guys? You now have launched Myra, it is front and center on the main app. Are you A, fully combining all of your first-party and proprietary data in that already? And can you measure the responses versus what I'd get out of a generic, say, chat GPT query? And then if I can sandwich another related question, is it possible to quantify the cost efficiencies that you could get in customer support and engineering?

In the interest of time, this will be the last question.

Yeah, of course. Yeah, sorry. So very quickly, very quickly, Vijit, very good question. You know, the answer to the first question, Are we using proprietary data? In fact, I had mentioned that very clearly as well, along with the LLMs and marrying the two, and just to ensure that there's a hardness layer on top of it to make sure that the results or the responses on Myra are relevant and more accurate. The answer is 100% yes. We've been doing that. Otherwise, and that is what you know, this new launch voice. In fact, and I guess the second part of your question is about measurement. Yes, we are able to measure that. We have, you know, clear metrics defined on measurement, specifically on quality of conversation, something called, you know, good conversation versus not so good conversation. There's a clear quality metric attached to it. And we've seen in some of, Some of those sort of data points I've tried to sort of highlight as well. For example, the fact that the conversion on a query starting at Myra to the normal funnel is better because it is deeply engaged and you are able to find all the answers, et cetera, in one go is better by 10 percentage points. clearly indicates that, you know, while it's a journey, but the quality has been improving. And we'll continue to keep sort of progressing well on this journey and keep you all updated on that. And on the cost side, you will see this reflecting slowly and gradually. Now, there are a few things that we have already given, you know, like whether it is You know, productivity improvement on consumer service side, also on the new code development, all of this is going to eventually reflect somewhere now on the P&L. It's just going to be a bit of a lag effect because it's going to be a journey where there is going to be AI tooling cost and then there is going to be efficiency kicking in. At some point in time, efficiency is going to show bigger impact than the additional cost that is coming from the AI tools. I think we need to be a little bit patient. to see the results, but we are super confident the results will start to reflect in the near future.

Thank you and best of luck.

Thank you. Thank you, Vijit. This was our last question. Over to you, Rajesh, for your closing remarks.

All right. Thank you, Vipul, and thank you, everyone. Thank you, everyone, for a good set of questions and your patience for listening in. I know it was a little longish as the three of us were presenting, but thanks again for your patience and look forward to see you again in the next quarter.

Thank you, Rajesh. The call is now over. You may please disconnect.

Thank you.