MakeMyTrip Stock

Good evening, everyone. Welcome to MakeMyTrip Earnings Call for Q1 FY '27. We will just give a minute for everyone to join. Okay. Hello, everyone. I'm Vipul Garg, Senior Vice President, Investor Relations at MakeMyTrip Limited, and welcome to our fiscal 2027 first quarter earnings webinar. Today's event will be hosted by company's leadership team, comprising Rajesh Magow, our Co-Founder and Group Chief Executive Officer; Mohit Kabra, our Group Chief Operating Officer; and Dipak Bohra, 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 provisions 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 20-F filed with the SEC on July 27, 2026. 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 for his remarks. Over to you, Rajesh.

Thank you, Vipul. Welcome, everyone, to our first quarter call for fiscal 2027. Before we go into the financial and operating details, I would like to put the quarter in context. This was a quarter in which external events continued to influence where and how customers traveled. The quarter began with the continuing impact of the West Asia conflict. In the initial phase, the impact was broad-based.

Flight operations were disrupted and customers became more cautious about international travel, particularly on westbound routes. As flight operations gradually resumed, the nature of the challenge also evolved. Higher fuel costs and ATF prices translated into elevated airfares, affecting westbound international travel as well as price-sensitive domestic air demand to an extent. Higher ATF cost also affected the profitability of airlines, leading to short-term capacity cuts.

However, as we moved into the peak summer holiday period, we saw seasonality began to support the underlying resilient travel intent for leisure travel, whereas essential travel and business travel largely continued as uninterrupted, except for long-haul westbound business travel. International leisure travel saw some shift from westbound to East and Far East destinations and domestic leisure travel was a combination of popular leisure destinations and nearby short-distance getaways by road.

Thanks to our comprehensive product offerings, we were well positioned to offer our customers alternative transport and accommodation options for their choice across both established and emerging leisure destinations during the quarter. As a result, we delivered a strong performance during Q1 despite significant macro and geopolitical headwinds, reflecting both the resilience of travel demand and the strength of our diversified platform. Growth in hotels and packages and ground transport helped offset softness in air ticketing to deliver targeted adjusted margin growth and profitability.

Both our bus ticketing and intercity cabs continue to grow at a strong pace, driven by sustained supply additions, wider route coverage and the continued expansion of India's highway infrastructure. We continue to curate pilgrimage plus leisure itineraries, short duration holidays and drive-down breaks.

These formats are increasingly becoming popular for customers looking for convenient, affordable and experience-led travel closer to home. The broader conclusion from this quarter is consistent with what we have observed post-COVID. Travel in India is gradually moving from an occasional purchase to becoming a recurring consumption category. Customers are taking more frequent trips across leisure, family visits, pilgrimage, short breaks and extended weekends.

We have seen external events impacting the demand sentiment initially. But when macroeconomic or geopolitical environment starts to show some improvement, demand recovers quickly. This quarter was another validation of this behavior among Indian travelers. The long-term structural growth drivers also remain unchanged. Growth in the aspirational middle class, increasing participation from Tier 2 and Tier 3 cities, expanding physical infrastructure and great digital continue to support the long-term positive outlook of the travel market in India. Let me now give an update on the progress we are making on our AI-first transformation.

We view AI as a foundational layer across travel discovery, planning, booking, payments, servicing and loyalty. During the quarter, we launched Myra 2.0, the next version of our AI-powered travel assistant to enable end-to-end conversational booking within the Myra interface possible now. Customers can now search, compare, ask contextual questions, upload documents and complete bookings, including agentic payments through a single conversational interface via text chat, voice-only chat or a combination of voice or text chat across 8 Indian languages.

In the meantime, customer adoption of Myra being used as an assistant in the existing funnel continues to scale well. It has handled over 8 million conversations during the quarter, including more than 3 million conversations in June alone. Over 45% of usage came from Tier 2 and smaller cities. We believe conversational AI feature will continue to simplify and personalize travel planning, improve customer engagement and serve as a key long-term differentiator for our platform.

We are also expanding the use of AI and automation across customer support, content creation, supply onboarding and operational processes. These investments are intended to reduce friction in the customer journey, improve conversion and enhance organizational productivity. We're already seeing the productivity benefits of AI translate into our operations.

AI now generates more than 75% of our code and our AI-powered customer support bot independently resolves over 50% of customer calls, meaningfully improving both engineering velocity and customer service efficiency. During the quarter, we launched AI-powered smart filters on the flights and hotels listing page to enhance discovery, enabling users to express preferences in natural language and instantly refine results using natural language instead of relying only on predefined filters.

Travelers can now search for highly specific preferences such as micro locations, early check-in, premium room amenities for hotels or exact baggage allowance, cancellation penalties, seat inclusions, layover preferences, et cetera, in case of flights, thus making discovery more intuitive and personalized for the customers.

Looking ahead, higher oil prices and weakening of rupee remain important variables to keep overall travel inflation in control. We remain cautious about the near-term environment while staying positive about structural drivers for long-term growth in the sector. We will continue to navigate the near-term challenging environment by tapping into growth opportunities in our non-air ticketing segments while calibrating our marketing investments in line with market conditions. With this, let me now hand over the call to Mohit for business highlights of the quarter.

Thanks, Rajesh, and hello, everyone. As explained by Rajesh, this was a quarter in which the external environment remained challenging, which impacted our outbound and air ticketing businesses. We leveraged the resilient travel sentiment by focusing on domestic travel, drive down on short duration holidays and pilgrimage air travel, supported by our widespread offering across hotels and ground transport.

This has helped us deliver strong growth in our hotels and packages business with adjusted margin growth of 21.3% year-on-year in constant currency terms. This was led by stand-alone hotel booking volumes growing just over 20% or 20.2% year-on-year despite the weakness on the international demand side. This was coupled with strong growth in our ground transport business.

Our bus ticketing business delivered strong adjusted margin growth of 22.4% year-on-year in constant currency, supported by strong volume growth of 23.9%. Similarly, our intercity cabs business grew in the 40s, albeit on a smaller base. This strong performance in an impacted quarter demonstrates the strength of our diversified and comprehensive bouquet of travel services, which is helping drive growth much ahead of the industry and also driving increased customer engagement.

Our ability to serve multiple accommodation and transport options across price points allows us to ensure that we curate travel experiences customized to the budget options of our customers. As customers book multiple travel segments on our platforms, we also gain better understanding of their travel preferences, and this helps us get better and better at offering more relevant, connected and personalized travel solutions. Let me share some more details on the holidays and packages segment.

To drive the growth in hotels, we have significantly scaled up the breadth of stay options we offer in India to improve the coverage across destinations, price points and travel needs. We now have over 11,000 accommodation options available on the platform, covering over 2,070 cities in the country. We continue to innovate and solve for unique requirements of the Indian traveling customer.

To better serve families and travelers, we have made it easier to discover multi-bedroom properties along with better understanding of room layouts, which is resulting in higher booking confidence with more relevant room combinations being showcased during the booking process. We also launched probably an industry-first feature around guaranteed early check-in or guaranteed late checkout, a facility which is a paid feature enabling travelers to have assured room access aligned with their travel schedules right at the time of booking.

This feature is helping address one of the most common pain points for travelers. This is even more relevant for Indians traveling overseas as the landing or takeoff times for most of our international connections have a significant gap with the usual check-in or checkout times offered by hotels in those destinations. One of the long-standing pain points in the accommodation segment has been inability to optimize hotel reward programs, both for travelers as well as for accommodation service providers.

As we entered the new fiscal year 2027, we're trying to address this with the launch of OneCircle. OneCircle is our cross-network hotel rewards program. Initially spanning over 13,000 properties across Indian and international destinations, OneCircle will enable travelers to earn and redeem rewards seamlessly across a large network of hotels, homestays and villas.

This will help them access wider array of properties on a single reward program, driving loyalty and repeat of stays across our accommodation ecosystem. Equally importantly for our hotel partners, OneCircle provides access to a broader base of loyal travelers, which can help drive both new always as well as repeat demand to their properties. We believe this will allow our domestic hotel partners to showcase their properties as well as drive demand, particularly from India's fast-growing Tier 2 and Tier 3 markets.

For our international hotel partners, this will be of great relevance in cities which see high travel demand from India. In Home, we continue to invest and build the category and are enhancing our product proposition to improve customer experience as well as drive the appeal of such properties. We launched our Star Host program to recognize and reward hosts who consistently deliver outstanding guest experiences.

Hosts meeting defined quality benchmarks across guest ratings, responsiveness, booking performance and content quality are rewarded the Star Host badge, which is prominently surfaced across search results, property pages and host profiles to improve trust and discovery. The Star Host badge also helps customers spot properties from these hosts and book with confidence, particularly in case of new properties.

Our holiday packages business continues to scale well and we are witnessing a shift towards shorter duration and nearby gateways in line with the current market trends. On the outbound side, destinations across Southeast Asia and Far East are driving the growth charter. Leveraging on the opportunity, we scaled up our group tours to over 15 destinations and generated about 90 departures or operated about 90 departures across Vietnam, Singapore, Georgia, Almaty, et cetera.

During the quarter, we continued to build our tours and attractions business by strengthening customer acquisition, expanding our experiences portfolio and investing in platform-led differentiation. Our international experiences portfolio now spans across 1,100 cities, spanning 139 countries with a catalog of over 250,000 tours and attractions covering sightseeing, tickets, buses, performances, day trips, food experiences and unique local activities.

Building on this portfolio, we have launched domestic experiences as well, spanning across 50-plus Indian cities, offering 3,000-plus products and strengthening our presence in a segment where we see significant growth potential in the future. This will help broaden our addressable market while strengthening our position as a one-stop platform for relevant travel experiences across both domestic and international destinations. 1/4 of our tours and activities are currently being bought while the customers are on a trip.

This highlights the strong relevance being built with the platform for our customers while they are on the ground and looking for last mile things to do. As mentioned, we delivered strong growth in our bus ticketing business, driven by robust growth in the private bus inventory in line with the summer holiday demand.

During the quarter, we reinitiated our partnership with PhonePe, which is helping us expand our distribution footprint and reach a larger base of high-intent digital customers, which bodes well for our new customer acquisition initiatives in the Indian travel market.

We introduced several product enhancements to further strengthen the customer proposition. We introduced Comfort Score, a customer-generated rating based on seat and sleep comfort over the previous 6 months as the market continues to move towards premium experiences with an increasing shift towards sleeper buses, Comfort Score provides customers with a clear signal of expected seat quality, helping position the bus travel more of a comfort and hospitality-led experience rather than a purely transportation choice. Coming to our bus air ticketing business segment.

During the quarter, domestic departures were flat year-on-year, but international flight departures witnessed a degrowth of 13%. In line with our call-out strategy, we continue to maintain a leading 30% share of the market of the domestic air ticketing industry. We also continue to enhance the product features or offerings in this segment.

We recently launched a new addition to our flexibility suite of products called Price Drop Protection, which eases the fare anxiety of the customers and gives them confidence to book early without having to guess if they should wait for a better fare in the future. We also launched Visa Guide on the listing page to help users understand destination-specific visa policies and processes. During the quarter, after a hiatus of about 2 years, we reintroduced seamless native flight booking experience on PhonePe powered by our Goibibo brand.

This enables PhonePe customers to search, book and manage flights directly within the PhonePe app. This partnership strengthens our distribution strategy by expanding our reach among high-intent customer base and driving incremental demand beyond our own homegrown channels. Let me now share some color on our non-B2C corporate demand platforms that is myBiz and Quest2Travel, both of which saw growth coming in not only from existing accounts but as well as from acquisitions.

Our active SME and MSME corporate customer count on myBiz has grown by almost 19% year-on-year to over 79,000 customers. The count for our large corporates on our Quest2Travel platform has now increased to over 550 accounts.

Overall, this was a strong operating quarter despite the challenging external environment, and we'll continue to dial up our ability to serve the traveling customers across the entire travel ecosystem to capture demand linked with market trends. With this, let me now hand over the call to Dipak for sharing the financial highlights of the quarter.

Thanks, Mohit, and hello, everyone. Before I begin the financial highlights, I want to call out the significant Y-o-Y currency movements during the quarter, which has impacted our reported numbers. Our functional and operating currency is in INR, but we report in USD. As USD and INR significantly depreciated during the quarter compared to same quarter last year, due to this, our reported Y-o-Y growth numbers look much lower than the actual growth. This is largely due to translation related and has no bearing on the operations of the company. In quarter 1, there was an impact of around 10% due to currency movement.

And accordingly, our constant currency growth numbers are the best representation of our financial and operating health of the company. Gross booking value for the quarter grew 19.9% Y-o-Y in constant currency terms, and the IFRS revenue grew 16.1% Y-o-Y in constant currency coming at $285.6 million. The quarter performance was supported by strong growth in hotels and packages and bus ticketing business, which helped offset the softer operating environment in air ticketing.

Adjusted operating profit for the quarter was $51.4 million, with profitability margins maintained at 1.8% of gross booking. Moving on to our segment results. Our air ticketing adjusted margin stood at $98.5 million, registering a growth of 10.8% Y-o-Y in constant currency terms. While the volume declined marginally due to macro headwinds, we achieved robust growth in adjusted margin on the back of a strong ancillary attach and better unit economics.

For the Hotels and Packages segment, we recorded strong volume growth of 19.9% Y-o-Y with stand-alone hotels growing faster at 20.2% Y-o-Y on the back of strong demand in domestic hotels segment. We benefited from the shift in leisure demand towards domestic travel, including short duration and drive down holidays.

Our expanding supply across established and emerging domestic markets allowed us to participate effectively in this shift. International hotel segment growth was impacted this quarter due to the conflict like international air. Hotels and Packages gross booking growth was at 19.6% Y-o-Y and adjusted margin growth was at 21.3% Y-o-Y in constant currency coming at $134.5 million.

Ground transport continued to grow at a strong pace during the quarter. Elevated airfares supported increased consideration of more affordable ground transport options, while supply additions, wider route coverage and the continued development of India's highway infrastructure supported the category's structural growth.

Bus ticketing adjusted margin was at $51.8 million for the quarter, registering a strong growth of 32.4% in constant currency terms. Our ancillaries business, which is part of the other segment is scaling up well, helping us get a larger share of wallet of our customers by building the attach of ancillary services. As a result, adjusted margin from other segment came in at $24.9 million, witnessing a strong growth of 27.2% Y-o-Y in constant currency terms. Moving onto expense side, most expenses came in line.

Marketing and sales promotion expense for the quarter was 5.4% of gross booking compared to 5.2% in the previous quarter, which is in line with seasonality. At the same time, the initial benefits from our AI-led productivity initiatives are becoming now visible with efficiencies in personnel and general and administrative costs offsetting the higher marketing intensity and enabling us to maintain our overall profitability margins. The noncash interest cost on our 0 coupon convertible bonds for the quarter in P&L was $29.3 million, and the translation-related foreign currency loss was $5.1 million.

Consequently, reported PAT for the quarter was $9.1 million. The adjusted net profit before tax came in at $52.2 million. We have a strong balance sheet and our cash flow generation continues to be robust. We ended the quarter with a cash and cash equivalent balance of $794 million. We also deployed $7.8 million in the buyback program during the quarter. Further to the update in the last earnings calls, our wholly owned subsidiary, MakeMyTrip India Limited, has confidentially filed a pre-filed Draft Red Herring Prospectus on 17 July with SEBI and stock exchanges in relation to the proposed initial public offering and listing of the equity shares of MMT India.

Upon completion of the proposed initial public offering, MMT India will continue to be a subsidiary of MakeMyTrip and will be included in MakeMyTrip's consolidated financial statements. The net proceeds received by MakeMyTrip Mauritius from the sale of shares in MMT India will further strengthen the cash position and are expected to be utilized for long-term growth, strategic inorganic initiatives and repurchases of different classes of securities, including convertible securities by MakeMyTrip.

We expect the proposed initial public offering and listing of MMT India to also enhance brand visibility and support our ability to incentivize and promote talent in a competitive technology recruitment landscape.

Subject to regulatory approvals, both entities may evaluate alternatives in medium term to enable our respective shareholders to enjoy the benefits of a security at MMT India level that is fungible and listed across India and U.S. capital markets. We are working with our advisers and shall keep sharing periodical updates. With that, I would like to turn the call to Vipul for Q&A.

Thanks, Dipak. [Operator Instructions] We already have a couple of questions. We will -- the first question is from the line of Sachin Salgaonkar of Bank of America.

Congrats management for a good set of numbers. I have 3 questions. First question, unfortunately, this entire Iran conflict continues. In that context, I want to understand what's happening on the ground from a domestic air supply easing. And again, government has passed a bit of higher fuel prices to consumers.

So are we seeing impact on overall travel consumption spend. So basic question out here is, obviously, the base is favorable. So should we continue to see a constant currency growth of 20% plus? Or are there other factors like a domestic air supply, which is impacting this growth?

Maybe I can respond to that, Sachin. And as far as the air industry is concerned, at least on the domestic side, see the DGCA data is kind of available on a monthly basis, and it is showing that the change in seasonality and every time between JAS and say, AMJ, JAS being a slightly flatter season on kind of leisure travel, which usually kind of see some amount of compression on the number of segments being grown. It does look like that the overall drop in segments is likely to be higher than what was kind of generally has been historically.

So we don't know. I mean we are just kind of 1 month into the quarter, but we'll have to kind of take it by the week, by the month. However, like we called out in the call, kind of focusing on a variety of transport options, just not kind of banking on air transport or flights per se, trying to see how we can kind of unlock or drive demand across transport options and therefore, kind of help suit the travel options to the customers' budgets.

But it is needless to mention that flights continues to be such a large part of the travel category, a little uncertainty or degrowth on flights does have an impact on the overall kind of growth for the industry. And therefore, it's kind of a little difficult to predict what kind of growth do we look at for every quarter.

Last quarter had a similar kind of a structure and year-on-year kind of a framework, and we have come almost close to the kind of growth expectation that we had set out for ourselves -- and we are hopeful that we'll kind of remain on the trajectory even in the quarters to come. One quarter could be better or worse off. But overall, directionally, that will be the intent to kind of keep it largely in line with the trajectory.

And we continue to focus a lot more on growth from non-flight segment. So I think the focus or narrative at least in the short term will have to be more around growth from non-flight segments, which is either holidays, hotels and packages or bus ticketing or other transport options.

And, if I can just build a little bit more on what Mohit just said, Sachin, we tried to sort of highlight some of that dramatic shift on our call as well. See, the good news is that it is not necessarily entire which used to be the case perhaps some time back that everything is sort of dependent on only air travel.

And I think for the last couple of quarters where the disruption has been continuing off and on, we've seen sort of that shift developing into some kind of a pattern with our customers on our platform as well, where people are happily making alternative choices. If the air travel is expensive, then internationally expensive, then you end up picking up domestic destination or short-haul destination where relatively it is cheaper or you just take an alternative mode of transport and maybe just go for a nearby staycation and all, but not necessarily completely abandoned travel as far as leisure is concerned.

And we saw that sort of playing out even in this quarter. That is point number one. Point number two, also, I think it's worth mentioning that while the disruption cycle would disturb the sentiment initially, and we saw in a couple of weeks, there was a relief on when the MOU was signed and the oil prices dropped significantly, like significantly and very quickly, we saw the recovery also happening swiftly as well.

So these are some of the noticeable trends that are sort of pointing to the fact that the underlying desire or intent to travel is not necessarily changing. That is a bit of a structural shift that has happened, and that, coupled with the fact that we are a comprehensive platform able to service every possible travel service is kind of helping.

And that to Mohit's point, that directionally, we continue to keep sort of navigating these short-term headwinds and keep at least from an execution standpoint, make sure that we stay on course on whatever is our directional targeted growth that we had shared. The only exception could be 1 quarter here and there. But in general, we should be sort of continue to keep driving that.

My second question is on the disruptions what we are seeing. And clearly, on the back of it, your inducements are high. So when we think about marketing spend as a percentage of GMV, should we actually now expect slightly higher than the guided range or at the higher end? Or as Dipak mentioned in his opening remarks, should we see some AI-led benefits, which keeps marketing spends under control?

On the marketing side, Sachin, no significant change from what the trending has been over the last few quarters. And there will be small kind of changes coming in from the shift in mix, particularly as the airline mix goes down, as you know, the spending is slightly higher on the higher margin categories. And therefore, this is largely in line with the mix of the business. Therefore, as you see the overall the bottom line also the 1.8% kind of continues to be delivered as a percentage of gross bookings in terms of AOP. So largely in line.

And when it comes to AI, I think the larger focus is more on driving much better personalization or much better curation of options or discovery for our customers and also kind of impacting the post-sales experiences, not necessarily kind of looking at sharply bringing any specific reduction in the customer action cost through that.

Clear. And last question on your India listing and congrats on filing -- upon filing so fast. One of the comments what your press release also had was you may evaluate alternatives in medium term to enable shareholders to enjoy fungibility between the 2 names. Can you give more color in terms of what kind of fungibility are we thinking about? And by medium term, what are some of the key events that need to happen for that fungibility to come?

Sure. I think the first important event is for the IPO to go through and then we kind of start looking at it post that. Clearly, a few options that are kind of available. One of the options is to kind of look at a potential kind of an ADR or say there are also options inverting of the structure or a merger of the structure is possible, whether with the NCLT route with the RBI route. In fact, actually, today's articles also carry that the parliamentary committee is also looking at inverting of the structure and they would kind of come up with very specific recommendations around this.

So like we've been saying in the past, we have been evaluating a variety of such options and also been kind of passing on our recommendations wherever possible. So we'll keep an open eye to it. The whole intent is ISP kind of -- while India does not have a dual listing kind of structure currently in place, we want to kind of keep pressing for that or kind of want to get to a structure which is as close to it as possible in line with what the regulatory environment is. So that's what it is.

Also, most of these efforts we have to start once the -- once the India listing kind of happens and it settles down and then we can start working on some of these parts. It's just that we're kind of keeping an early eye also kind of trying to see if any regulatory kind of changes can help us in this time.

Thank you, Sachin. The next question is from the line of Manish Adukia of Goldman Sachs.

My first question is a follow-on from the previous question response, Mohit. So when you talk about fungibility, is it safe to say that you would start the process for that fungibility soon after the IPO happens? Or would there be a few other consideration factors before you will take a call on whether you want to enable fungibility or not?

And my second question on the same topic is from the convertible bond standpoint, which combined is about $1.6 billion that you have at the Make Mauritius level, in the event where you talked about potentially inverting or merger of the structure, what would happen to those convertible bonds?

Yes. Sure, Manish. Like I said in my previous response, this is something that we can only kind of undertake or kind of think about in real terms once the India listing goes through, right? And therefore, we need to understand. And again, what we have done currently is only a confidential filing. There will be an opportunity to do an updated filing or a public filing. And therefore, there is kind of get involved in kind of taking this process through.

And like I also mentioned, there are kind of looking like there are moving parts to this piece and the regulatory kind of environment may not necessarily remain what it is today. So we'll keep an eye open on all possibilities, including the ones that I called out. Now could there be variables which would kind of impact this? Depending upon the time line involved, there could be multiple variables which could be impacting this.

But the overall objective largely remains the same. The underneath objective remains the same. If we can facilitate our investors to kind of participate between the 2 listed options, right, in a much more seamless manner without having to exit from one to get to the other. So that's the broader thought process.

With respect to your question on the convertible bonds, the first round of bonds, which is in 2028 kind of maturing bonds, that $200 million, that's kind of reasonably well into the money. So that should not kind of really kind of have any impact as such. But the second round of bonds which we have issued last year, which is close to about $1.4 billion, that is still not in the money, right? And potential India listing, which also means that for the group as a whole, it would mean a strong addition to the cash that we have on the balance sheet, which keeps us well prepared to handle both a redemption or conversion as might kind of happen on the bond issue in the previous year.

So I think from that point of view, this listing kind of only helps in remaining even more prepared, although the cash on the balance sheet currently also is reasonably strong at over $800 million. So overall, good situation to be in with or without the kind of IPO proceeds.

Very clear. Maybe just a quick follow-on. I mean, again, I'm just trying to push my luck here. In terms of just the fungibility and completely appreciate that the process can only start once the India IPO actually goes through. But from a time line perspective, is there like a realistic time line that how long that could take like 6 months, 1 year, 2 years after the IPO or it's very hard to call that out given just the number of variables involved?

I think the regulatory changes that we have proposed come through, it could happen in a very short span, right? That's the least I can say. But we'll have to keep in mind how the regulatory environment is at that point in time. And therefore, like I said, since it's quite a few quarters away, it will be more relevant to speak of it on a periodical basis as we have more color around it.

No, I appreciate that color, Mohit. My second question is on just the EBITDA or operating profit growth in dollar terms, it's in the single-digit range, not too dissimilar from the revenue growth profile in dollar terms, right?

So like at least for the quarter, we are not seeing any operating leverage play out. Why should that be the case? I mean when the business in underlying constant basis is growing at 20% in rupee terms, why should cost grow at the same pace and there should be no operating leverage in the business?

No, interesting observation, Manish. And like I think Dipak pointed out, it is important to kind of look at the growth in constant currency, not in USD, right? Like you called out, it is more single digit in constant currency. And like yourself called out in the subsequent part of your question, it's close to kind of the 20% mark when you look at it in constant currency terms.

Now you also need to kind of keep it in mind that the profitability is not necessarily a key challenge for us right now in the current environment where the industry growth is muted. In fact, if you look at it, the largest segment, which is flights is actually seeing a degrowth in the market, right, almost minus 2%, which is almost -- it has been unprecedented, right? And while you're riding through such a rough environment, one is to kind of try and optimize on the profitability.

The other is to try and make most of the market conditions and actually increase your lead in terms of market share. As a market leader as an aggressive kind of in the segment, is very clear that we want to kind of press on building market share during these turbulent times rather than kind of focus on building profitability.

It will be a decent range on the profitability side at about 1.8. We'll be happy to kind of remain there or gradually increase this, but we want to make the most of these uncertain times in terms of increasing our lead or increasing our market share across segments. And as you know, most of the other domestic OTAs are heavily skewed on the ticketing side.

And therefore, this provides us a much better opportunity to kind of invest behind customer acquisition, invest behind growth opportunities or tech capabilities in terms of handling such growth and make the most of it. And therefore, we're kind of gearing towards that rather than trying to drive more operating leverage. This also comes with the fact that we are doing a sizable investment on the AI side to kind of continuously keep building on the tech capabilities to drive future growth.

And there are some newer segments as well, Manish. There are new segments as well as like attractions. At any point in time, we will have at least a couple of new segments that we would have invested behind. And it's important to sort of keep investing in for future growth as well and not necessarily sort of every penny try to sort of add to the profitability, given the overall market condition because there's significant headroom still across the board on overall sort of many segments being online, low penetrated.

And therefore, I think it's from our point of view, a very balanced strategy. Wherever we see an opportunity, we end up redeploying it. Wherever then the opportunity -- I mean, there will be time and phase where the headroom will keep reducing and then you will see that it is sort of more flowing through the bottom line rather than relatively just incrementally lower addition to the bottom line right now.

The next question is from the line of Aditya Suresh of Macquarie.

So 2 questions. First is on cash from operations, that was down due to some working capital impacts this quarter. Can you just help us understand why that was the case? That's one. Second is your volume trends are strong, right? Like hotels at 20%, bus at 24%, 25%. Can you speak about the market share you're seeing in volume terms in these categories?

So let me -- maybe, Dipak, you can take?

Yes, I'll take the first question, Mohit. So if you see -- you're right, your observation, the working capital deployment has taken up cash. And this is because if you see we have a corporate business, which we do the B2B corporate business and myBiz-based business, that has been growing relatively quite fast. Over the last 12 months, the growth has been very high. And the expansion in the working capital has happened because in line with the growth we have achieved in the business, with a normal DSO terms, which remains in that business as a multiplier of that, that has expanded the working capital.

And some working capital gets expanded because of seasonality in this quarter because you tend to receive advances from customers for bookings for the next quarter. Now you know July, August and September is a low seasonality and you receive lesser advances, so it shows up in lesser advances from customers. So that has impacted the working capital, but it's a seasonality feature and in line with the growth of our corporate business.

Yes. Coming to your second one, Aditya, on the strong growth on the volumetric side, yes, absolutely like we called out, we're trying to drive market share gains across non-flight segment, right, whether it is hotels, whether it is alternative accommodations represented in our stand-alone hotels growth number, which kind of includes both. And similarly, on ground transport, whether it is our bus segment or our intercity or outstation cabs business, all are reporting kind of very strong growth numbers.

Unfortunately, unlike in the air ticketing business where DGCA kind of comes out with a market report, the size of the market and the moving market share is a little difficult to kind of calculate in the accommodation or in the ground transport category.

And -- but I think I would just say the growth that we've called out over here compared to what we expect the growth in the respective segments to be, which is likely to be more in like potentially single digit to maybe like double digit overall in the respective segments. Clearly, is that our market shares would have improved significantly through the quarter as well.

The next question is from the line of Parash Jain of HSBC.

I have 2 questions, and one of that has partially been answered. First, with respect to Indian subsidiary raising capital, is there any tax implication involved in taking that money out for repayment of convertibles? Or I mean, I just wanted to understand how that mechanism will work?

And secondly, with respect to the different businesses growth, with the capacity cut by the Indian airlines, when you talked about 30% market share, maybe if you can share some color in the international business, how much is it with the Indian carriers versus the non-Indian carriers? And are you seeing a shift in market share in those segments?

Maybe I'll start on that and Rajesh or Dipak can add. But when it comes to the filing that we have done, it's a confidential filing, it will be difficult for us to share more color right now in terms of likely addition of funds and at which entity level, et cetera. But suffice to say -- sorry.

Please go ahead.

Suffice to say it will be addition for the group as a whole, right? And therefore, I don't see too much of a concern over there in terms of using it for a variety of requirements, whether it is organic or inorganic growth or whether it is for repurchase or redemption of the convertible notes. So in either of these cases, it should kind of pretty easily be usable irrespective of how it is raised. So that was the first part.

Now when it comes to good growth, like I said, on the ground transport side, I've already called out the strong growth both in bus ticketing in the 30s and kind of travel market in the 40s. Now when it comes to the international air travel, if that was the other part of your question, we kind of work equally well across airlines, whether it is domestic airlines or whether it is international airlines. Two things which are impacting over there.

One, like Rajesh had called out in his part of the earnings script that initially, there was a significant impact coming in from the availability of flights or kind of the flight scheduling. And secondly, due to the significant increase in crude oil pricing situation overall, the prices or fares in these sectors, international sectors have gone up very significantly.

Both of these are kind of impacting. In fact, if you also would have picked up some of the Indian carriers are kind of trying to prune down their kind of services, particularly the wide-bodied kind of aircraft. So that is also likely to kind of have an impact going forward. So some of these are like ongoing challenges, which we'll have to keep navigating around. But we kind of keep -- remain focused on driving growth as per kind of market trends, whether it is on the international side or on the domestic side.

The next question is from the line of Prateek Kumar of Jefferies.

My first question is on your AI initiatives. So you said Myra is handling 8 million conversations and AI is now resolving around 50% of the customer calls. But how do you think is this translating into business outcomes, particularly from conversion customer acquisition cost or customer satisfaction? And are these investments heating up certain bps of operating leverage, which you mentioned earlier?

Yes, Prateek, maybe I can take that. As far as the booking, end-to-end booking is concerned on Myra, I mean, there are 2 separate cases that you mentioned, right? One is, of course, customer service that we had shared as part of the script as well. And the other one is just the booking conversational interface where now the new version of Myra, which we launched recently also takes care of end-to-end discovery till the payments to actually closing the booking in the single interface as well.

Now Myra has 2 sort of avatars, if you will. One part of which is the heavy use right now and growing actually quite -- scaling up quite well from a consumer adoption standpoint is when customers invoke Myra for taking assistance when they are already in the funnel, which is the current booking interface. That part is sort of helping improve the conversion. on the funnel side incrementally because you are able to sort of answer all the open questions that the customer might have, which is then helpful for the customer to quickly close the booking.

So that part is from a consumer adoption standpoint, scaling well as well as improving conversion. As far as end-to-end booking, which is just a very recent launch, it's early days on that, and that is going to be largely start with Myra and don't really go to the existing funnel and complete the transaction completely on Myra in the same interface, either using text chat or voice complete voice interaction or voice come text chat. That part is early. So there, the traction has started to just about started to come.

We will have to see, I think 1 quarter, 2 quarters down the line, we should be able to give you more color on that. So this one is more on the customer-facing side, which is basically helping the consumer experience overall, making it smoother, convenient, personalized, which effectively improves conversion.

On the other side, which is the customer service, where our voice bot is handling almost about 50% of the total calls now frictionless completely on its own, no human intervention. That is the one which is sort of helping on reducing the outsourcing cost quite significantly. And that's sort of reflecting in our overall SG&A improvement, if you really see, while the business keeps growing, our SG&A and a significant portion of the SG&A is the outsourcing cost is not growing at all.

In fact, we've had some goodness that has come in, in there and likely to come in more because we do think this whole 50% can go to about 65%, 70% without just too much of additional work on the development side, while the balance being the complexity of the use cases might still remain hybrid or sort of with human interaction.

So I think on an overall basis, it will be fair to say that the journey of seeing some of the productivity gains have started to reflect slowly and gradually in the overall performance, overall financial performance of the company. While on the booking interface, we will see how it's sort of especially the end-to-end booking scale up along with the consumer adoption over the next few quarters. And once we have more sort of data around it, we will continue to keep sharing with you.

Yes. The third question was a related question was like are these investments also eating into the operating leverage you mentioned earlier in the call?

Actually, not really. But again, if you really see the overall and I think Dipak was trying to make that point as part of his commentary, we've been able to -- of course, there has been investments. And over the last several quarters, we've been able to optimize on 2 counts.

One, using the hybrid of open source and frontier models to optimize the cost per se of the token because AI, our focus is, like I was saying as part of my commentary, is the core focus area where we are trying to become absolutely AI first or AI native across the organization. And so we've worked quite a lot on sort of optimizing our cost, just sort of balancing the usage of the models.

And on the other side, the productivity gains has started to show. So right now, it's sort of whatever is the incremental cost on the AI front is almost offsetting -- the gains are almost offsetting the increase in cost, both from a cost optimization, both from acting on the cost optimization side of it itself as well as some of the productivity gains put together. And we think that we should be able to sort of keep that under control with this strategy of ours even in future.

I have one other question on -- is there any change in booking patterns or like booking curve change versus pre-conflict levels, this pre-conflict?

This consumer spending -- yes, pre-Middle East conflict, I would have thought. Yes, Prateek?

Yes, of course, yes.

Yes, yes. So some behavioral shifts that we have noticed. One of them, I was again mentioning earlier, these short-term getaways have picked up significantly. because of the fact -- some part of it is because of the fact that overall air travel cost is becoming expensive. So therefore, why not look for an alternative because they still want to travel out. That behavior is not sort of changing.

And therefore, a lot more short-term weekend getaways, whether it is just a weekend or a long-ish kind of weekend when there is some festival holiday or some other holiday that gets combined with the weekend and drivable distance holiday patterns.

And that we've seen significantly going up using ground transport, any mode of ground transport, including self-driving, taking intercity cab or taking a luxury bus, et cetera. So that is one pattern that has changed.

The second, not specific to this conflict, but post-COVID, the significant sort of new segment that has emerged even more specifically focusing specifically from Gen Z cohorts is they're traveling in groups, and the use case could be celebration use case, whether it is birthday or any festival celebration, just getting together and traveling and the choice of the accommodation will be more homestays than hotel for that particular specific use case.

So some of these sort of new segments, particularly post-COVID have emerged, and they continue to sort of keep growing. And because of which, as we've been sort of highlighting in the past that our Homestay supply has also been significantly growing. The market is also growing, and we have also been acquiring and growing our homestays sort of overall inventory on our platform.

Thanks, Prateek. We are almost out of time. This was our last question. Over to you, Rajesh, for the closing comments.

Thanks, Vipul, and thank you for all the relevant questions. Thanks for your patience listening in quietly and look forward to stay in touch with you. We'll come back to you in the next quarter. Thanks.

Thank you, Rajesh. Thank you, everyone. We are now at the end of the hour. You may please disconnect the call. Thank you.

Hello, everyone. I'm Vipul Garg, Senior Vice President, Investor Relations at MakeMyTrip Limited, and welcome to our fiscal 2026 Fourth quarter and full year earnings webinar. Today's event will be hosted by company's leadership team, comprising Rajesh Magow, our Co-Founder and Group Chief Executive Officer; Mohit Kabra, our Group Chief Operating Officer; and Dipak Bohra, 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. [Operator Instructions] 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 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 20-F 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 full year 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 4 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.

First is rising and aspirational middle class. As per a bra 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 2022, a growth of 50% in 10 years. India also added over 70 million passport holders in the last 5 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 5 years ago. This is a massive multiyear 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. 3 to 6 trips a year across leisure, villages 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 Coin 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, Suran routes, expressways, premium 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 2027, providing a multi-decade opportunity. India's highway network has expanded sharply with national highways rising from 91,287 kilometer in 2014 to about 1,46,145 kilometers in 2024, while construction speed increased to 33.8 kilometer per day in '23,'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.

The majority of new additions are being built into undersupplied Tier 2 markets and spiritual tourism corridors, both of which are future growth opportunities. Home stays have emerged as a flexible, scalable supply addition as well, now actively supported by Governments. Vacation rentals and boutique home stays are capturing outsized growth because they are aligned 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 in it. India has come a long way on digital infrastructure development as well as well with Internet penetration touching about a billion people with high quality bandwidth becoming affordable with data costs falling from INR 269 per GB in 2014 to about INR 9 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, 1 of the largest causes of bookings abandonment has largely been addressed. A traveler in a Tier 3 city with a mid-range Android device can now search, compare, book and pay in under 5 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 search year as it was impacted by many disruptions pretty much every quarter but 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 destruction and the structural growth trajectory. We at MMYT continue to outpace industry growth despite disruptions with healthy momentum across segments.

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

Sure, sure. Sorry. Is it fine now?

It's 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, we witnessed strong year-on-year growth on a 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 MakeMyTrip, we see AI not merely as a productivity tool but as a foundational layer that can redefine travel discovery, planning, booking, servicing and loyalty. And 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 the traveler can now 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-sale spot 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 nonmetro markets with 70% of queries in Hinglish and prompts that are for 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. Myra has now expanded to 7 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 searches, semantic free tech search capability that lets customers describe what they want naturally. For example, family staying near Baga Beach with Jain food or rooftop pool hotel in Jaipur with spa access.

Through this feature, explainable results, this feature delivers much higher conversion versus traditional filter-based earnings, 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 voice bots to replace legacy IVR systems. We are witnessing an initial C stack additionally. We have scaled up the AI chatbot Ray in the prebooking 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 funnel. This is reflected in an overall strong growth in bus ticketing segment driven not just by top metros, but mid Tier 2 cities across the country.

Overall, we are on our journey to make MakeMyTrip and 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 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 agent.

The 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 multibillion-dollar structural growth opportunity, and MakeMyTrip intends to play a central role in enabling their 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 moats and scale our new offerings to the customers' 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 3 strong brands and other distribution channels to expand customer reach, leverage AI tools to drive efficiencies across the world 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 cost 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 bearing travel budgets of our customers and promoting east bound travel within our international travel offerings.

India continues to offer a deep and growing domestic level opportunity supported by improving infrastructure, which is helping open travel demand beyond the traditional distributions. While we are dialing up traditional leisure destinations like Goa, Kerala, Rajasthan and Kashmir, we are now actively promoting the relatively underexplored 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 gaining 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 on products where the travel confidence and affordability remains strong.

Our customers who are finding increasing air fares 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 on 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 a 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, home stays and holiday packages. It might be relevant to call that as per HPS Analog 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, in a quarter which has been impacted by the high base of Kumbh-related onetime 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. And 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 Kumbh event 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 way 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 250 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 home stay 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 of both travelers as well as our supply partners.

We launched quick commerce and food delivery serviceability status on relevant property-based details of many of such accommodations, surfacing availability of essentials and food delivery upfront, improve strict planning convenience for our customers and reduces the prebooking anxiety. We also enhanced visibility of caretaker and on-site support information across these listings. Clearer disclosure of presence, availability and responsibilities, helps the guests, better assist experience and on the ground and provide on ground assistance.

Our holiday packages business and home stay business continue to scale well. During the quarter, we completed our acquisition of the majority stake in Flamingo Transport, a regional group holiday packages business based out of Gujarat in India. Flamingo has a strong presence in the state of Gujarat, Maharashtra, Rajasthan and Madhya Pradesh with curated group tours known for regional focus, customized experiences and servicing of international travelers. This is going to add to our strength of the holidays business, particularly on the international side.

Coming to our air ticketing business. This was impacted by a combination of supply side and geopolitical factors. During the first 3 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 west bound 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 travel. 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.

While 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 a booking 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 Quest Travel saw not only growth from existing accounts but also new acquisition. Our active customer count on MyBiz now over 76,000 during the same quarter last year. Similarly, for Q2, the active customer count has now raised 548 large corporates compared to 507 such corporates during the same quarter last year. Across the 2 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 MakeMyTrip travelers to benefit from a streamlined visa application process as well as create an opportunity for MakeMytrip to cross-sell its travel offerings to the customer base of Atlas.

Before I hand over the call to Dipak 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, 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 Dipak 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 Kumbh-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% Y-o-Y in constant currency. Our results from operating activities, which is equivalent to EBIT was at $156 million in FY '26, witnessing a strong growth of 30.1% Y-o-Y.

Even in an impacted year, we continue 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 FY '26 compared to 1.71% in FY '25. 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 our disciplined cost management.

Moving on to our segment results. For the quarter, our air ticketing adjusted margin stood at $99.3 million, registering a Y-o-Y growth of 10.7% Y-o-Y in constant currency. While the volume declined due to disruption, we achieved robust growth in adjusted margin on the back of a strong ancillary attach and better unit economics. For the Hotels and Packages segment, we recorded strong volume growth of 15.2% Y-o-Y with stand-alone hotels growing faster at 15.5% Y-o-Y 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 mix shift between the hotel segment by GST reduction, leading to a lower ASP. In line with this, the shift our gross booking growth was at 10.8% Y-o-Y in constant currency and adjusted margin growth was at 11.5% Y-o-Y in constant currency. For the full year, hotel and packages adjusted margin growth was at 15.7% Y-o-Y in constant currency.

In our bus ticketing business, the adjusted margin stood at $41.1 million registering a Y-o-Y growth of17.1% in constant currency terms. This is a little lower than the trend due to the impact of onetime Kumbh-related demand in quarter 4 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 4 of '26, witnessing a strong growth of 27.1% Y-o-Y in constant currency. For the full year FY '26, adjusted margin from others was at $95 million, witnessing a growth of 37.1% Y-o-Y 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 booking compared to 5.6% in the previous high season quarter. As a result, our adjusted operating profit for the quarter was at $46.5 million with a margin at 1.82% of gross bookings. The noncash interest cost on our zero coupon convertible bonds for the quarter in the P&L was at $27.6 million and also a onetime 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 FY '26, 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 MakeMyTrip 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 advisers and shall keep periodically updates shared with the market.

With that, I would like to turn the call to Vipul for Q&A.

[Operator Instructions] The first question is from the line of Manish Adukia of Goldman Sachs.

You are able to hear me okay, right?

Yes, please go ahead.

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 like fair to assume that things will probably get worse in the near term from a numbers perspective, whether it's GDV 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 across segments. So we've largely maintained similar kind of margin levels across our segment, 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 are 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.

And maybe just a quick follow-up on that and 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 GDV 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 will be helpful.

Yes. Actually, the -- 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 domestic led.

And maybe, Manish, I can just add to the first question a little bit more color for you because see, while there is 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 now, is that in March, when war started, it was a general overall sentiment drop, 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 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 historically also we have seen that when people are looking for it, 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 booking on the domestic travel side.

So I think that it's going to be a bit of a mixed bag. And we see overall where do we sort of land, but it is not completely a doomsday scenario is what I wanted to highlight.

Very clear. 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 6 months, 12 months, is there like an outer limit within which you want to list? And second, if you were to list MakeMyTrip India, any early thoughts and color on how you're thinking about the potential fungibility of MakeMyTrip India versus MakeMyTrip Limited and shareholder of MakeMyTrip Limited currently? How do they participate in that? So any early color? I know it might be too early, but any thoughts you can share?

To be honest, Manish, a little too early in the process. Like we have called out, the India listing is more a long-term kind of a strategy kind of priority considering that MakeMyTrip's core business is in the India market, right? So we are kind of like Dipak has called out, this involves multiple streams to be kind of worked upon. And that work is ongoing. But do we have 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 have within the group, and that's very likely. However, longer term, we'll kind of aim towards moving to a singular fungible structure subject to the regulatory and kind of rules and regulations from a point of view of making sure that the stakeholder valuation is optimized, right? 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 OTA. So maybe your thoughts on -- in what scenario could Agentic commerce be negative for MakeMyTrip or for the OTA industry in general, that would be helpful?

Yes. So let's see how it evolves, Manish. But our view right now is, and we've studied it very, very deep, and we continue to, as you saw in that, 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 OTA model, there are a few fundamental moats 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 really highly challenging task.

And that's -- and those sort of 4 big moats are fragmented supply underneath. I mean imagine the supply that is in the hotel and accommodation space, including the home stays, it's really, really fragmented. And there is a lot of heavy lifting that we need to do as OTAs and we've been doing it over the years for it to come online 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 handholding 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 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 go on with the commercial alignment and arrangements with multiple sort of partners on the payments front.

And last but not the least, which is more specific to MakeMyTrip than maybe the rest of the players in the market is that we've also consciously built capabilities to make our platform like 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 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 will -- 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 MakeMyTrip will leave no stone unturned as the kind of sort 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 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 -- so we've got our strategies in place on both sides, watching the space very carefully and see 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.

The next question is from the line of Sachin Salgaonkar of Bank of America.

Congrats on a great set of numbers in terms of what was turning out to be a very difficult quarter. I have three questions. First question is 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 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, it would be great to get a sense that 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.

Yes. Sure, Sachin. Actually, both the observations are not off, Sachin, I must say. So your first observation saying from West movement to East, and I highlighted that and what's happening. But if the ticket price is going to be lower relatively, the answer is yes. Some part of that gets 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 a 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 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, 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. But -- and that's what I was mentioning earlier, that starting May, we started to see seasonality kick in. 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 sort of it continued in April. But starting May, we've started seeing that sort of general sentiment improving and people starting to book and travel.

Like anecdotally, yesterday was the highest booking account for hotels for us on our platform, just very anecdotally. [Technical Difficulty] quarter will be somewhat impacted. Now to what extent will it be impacted? International, definitely relatively higher than the domestic market. But on an overall basis, we are hoping that some 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 they were able to sustain it historically with some increase in prices and absorbing some of the costs and some of the -- some of it passing it on to the consumer and demand was not terribly impacted. But I think the key point here is not necessarily 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 come middle of June, end of June onwards, there's going to be some reductions.

SpiceJet has reduced some flights, but IndiGo hasn't, right? So it's also a function of how strong is the particular airline that is operating in the market. But historically, we've seen 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.

Sachin, 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 flight prices to be kind of a lot more expensive than what they would have preferred it to be, we're kind of trying to dial up AC bus options or, say, cab options for them, so as to just make sure that the overall travel budget is not impacted and the travel demand is not [Technical Difficulty]. And similarly finding more pocket-friendly options on eastbound kind of international travel versus west bound.

Very clear. Very quickly, my second and third questions. Second question, you guys have not changed your EBITDA guidance suggested a bit as a percentage of GMV. I presume that indicates for the foreseeable future it could be in the range of 1.8% to 2% and this is despite the mix shift happening in favor of high margin hotel and it's understandable give where things are. So just wanted to confirm and here Mohit, would love to get your thoughts on how to think about medium term margin our there. And third question is more a clarification on some of the earlier comments. From what I understand, there will two listing, US 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 meanth? I just wanted to clarify on that.

On the first one, you are right, Sachin, in view of the current volatility in the travel demand. I think with kind of [indiscernible] 1.8% to 2% kind of margin guidance and it will be good to kind of remain there because I think we 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 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 U.S. bourses while we kind of take India entity to India capital markets.

Over a longer-term period, there are a variety of ways through which fungibility can be created, and we'll try and put a place and structure that kind of facilitates that. But beyond that, if you really look at it, even from an investor's point of view, a large part of our investor base actually has the ability to invest both in India as well as in the U.S. And therefore, to a large extent, that fungibility in some form and shape exists even today.

The next question is from the line of Vijit Jain of Citi.

Can you hear me?

Yes, please go ahead.

So just double-clicking on your comments on trends since May. So, a, I'm mindful that last year from May, macro had started to go south. And so to your comment also on yesterday being the highest GDV number for hotels ever, I guess two questions. One, does it mean broadly speaking, there's a more accelerated shift in 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?

Vijit, 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're kind of continuing to dial upon. And like I kind of mentioned during my callout, 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 drive down kind of opportunities on the travel side. And also kind of making sure that in many routes, which are not very long in terms of drivable distance, providing kind of cabs and buses as an alternative to flights just to kind of meet the budget kind of 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 a reported quarter, the overall occupancy has actually remained flattish or might even go negative per estimates. And therefore, overall growth for the accommodation industry has been almost flattish, whereas we have posted almost like 15% plus growth even in the reported quarter.

So we hope to kind of continue to kind of be on that trajectory and keep delivering much better growth on the domestic side while international continues to be under pressure. You might just see that until about some time back or until about 5 or 6 quarters back, international was kind of leading the growth charter for us, and that has kind of turned around a little bit. But I think that's the advantage of being present across kind of travel options as well as transport options that we can dial up one versus the other based on prevailing conditions.

So Mohit, just a little clarification on that. So in general, for you guys, air has been always a pretty important kind of funnel into your hotels 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 -- if you can give me a color of how overall funnel has changed over time?

What is your overall mix of people directly coming on to your platform to book hotels first and foremost in 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.

Considering the paucity of time, maybe I'll just kind of suggest that we should look at the overall transport options and then kind of look at that opposite 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. It's just that a kind of growth in of flights is lagging. So that's helping us do much better.

Just the pointed response to what you were saying, it's very important is that the question that whether air is critical for us, air funnel is very important for us. The answer is absolutely yes, it continues to be. It is just the market situation, what Mohit is trying to highlight from a consumer point of view, for certain segment of consumers, air is expensive, will move to an alternative mode of transport. And we are seeing that happening on our platform. And therefore, you will see rest of the segments growing. The growth rate is pretty robust, whether you see quarter or you see it for the full year.

And by the way, despite all these headwinds, and we didn't really call out -- 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 percentage -- 0.2% as well. So it continues to be very important. It's just a midterm to long-term view. And as I was highlighting as part of the physical infrastructure development, airport infrastructure development is also happening at a very robust pace, right?

So -- and that is going to be one of the important sort of mode of transport to drive growth for the country if you start to look at it from a midterm to long-term standpoint. It's just the sort of temporary 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 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, right? So I'm just wondering is it measurable for you guys? You now have launched Myra. It is front and center on the main app. When you -- 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 get out of a generic say, ChatGPT query? And then if I can sandwich another related question, is it possible to quantify the cost efficiencies that you could get in customer report and engineering?

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

Yes, of course.

Yes. Sorry. So very, very quickly, which is a very good question. 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 2 because -- and just to ensure that there is a harness 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 this new launch was. In fact, and I guess the second part of your question is about measurement.

Yes, we are able to measure that. We have clear metrics defined on measurement, specifically on quality of conversation, something called good conversation versus not so good conversation. There's a clear quality metric attached to it. And we've seen some of those sort of data points I've tried to sort of highlight as well. For example, the fact that the conversion on query starting at Myra to the normal funnel is better than -- 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 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 like whether it is 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. And it's just going to be a bit of a lag effect because there is -- 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 sort of show bigger impact than the additional cost that is coming from the AI tools, right? So 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.

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 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.

Hello, everyone. I'm Vipul Garg, Senior Vice President, Investor Relations at MakeMyTrip Limited, and welcome to our fiscal '26 3rd Quarter Earnings Webinar. Today's event will be hosted by the company's leadership team comprising Rajesh Magow, our Co-Founder and Group Chief Executive Officer; Mohit Kabra, our Group Chief Operating Officer; and Dipak Bohra, 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 statements is contained in the Risk Factors and Forward-looking Statements section of the company's annual report on Form 20-F filed with the SEC on June 16, 2025. Copies of these filings are available from the SC 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 leisure travel in India witnessed strong brand recovery, barring temporary disruption in December caused by new and stricter flight duty time limitation rules, FDL for pilots. The festive season and a series of long, we can fuel 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 exceed driven by a confluence of economic, social and technological factors. Our focus remains on delivering spare value and seamless booking experience and support to our customers with constant product innovations leveraging AI. We see AI as a very welcome in [ potivetech ] 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 is the ability to offer highly ionized experience. We have developed AI models using LLM and vast amounts of in-house proprietary data to power Myra to help customers [indiscernible] with it from planning to eventually booking detract.

We believe, over time, our product will be more relevant and effective because of our own proprietary data for travelers [indiscernible] has now scaled to over 50,000 conversations daily with over 72% of conversations being termed as good conversations, around 15% of the conversations happen during this stage or trip planning abling us to influence destination and product choice much earlier in the customer life cycle. Myra is also helping us drive penetration into smaller cities with it. It's vernacular voice capabilities over 45% of Myra users are coming from Tier 2 cities and beyond with voice-led interactions being 50% higher in nonmetro cities. AI Is also helping us improve post-sales customer experience through actual assistant, providing instant 24/7 support to travelers.

Our AI voice and chat bots 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 a Gen AI Power Digital Performance Analytics summary in audio playbook format in India 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 the air ticketing business. Air market supply growth bounced 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 degrowing 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 time lines, permitted length of stay, acquired 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 the positive impact on both conversions and Visa attach rates. Our accommodation business, which includes hotels, home stays and holiday packages delivered a strong 20.3% volume growth year-on-year.

Growth was driven by strong demand for leisure travel with higher highest-ever check-ins recorded on 25th December, along with wedding season demand and [indiscernible] events. The reduction of GST on hotel rooms under the INR 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 rathmetic consequence of the tax change and not a sign of any structural weakness in this segment. We continue to drive deeper penetration into India.

We now have 97,000 plus accommodation options available on the platform covering 250-plus cities in the country, 2,050 plus cities in the country. We are also driving online penetration in this segment with strong demand coming from Tier 2 cities and beyond. During the quarter, we sold properties in over 1,950 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 Gen AI 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 operated by women filters, we are bringing a confidence driven ecosystem for a segment that travels 25% more in groups. These features are already live across 100 cities, 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 unit 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 buoyant throughout Q3 fiscal year '26 with private inventory crossing 45,000 daily schedules by the end of quarter compared to 40,000 daily setups 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, were both our platforms, myBiz and Quest2Travel, is witnessing strong growth on the back of new customer acquisition. The active corporate customer count on my base is now over 77,500 plus compared to 64,000 customers during the same quarter last year. And for Quest2Travel, 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 pay at the start of the year. I'm happy to report that our integration with H&P is now complete with flights and hotels resulting with flights and hotels, resulting in H&P becoming a complete travel and expense management solution now.

With this, let me now hand over the call to Mohit for financial highlights of the quarter.

Thanks, Rajesh. Hello, everyone. The highlight of the quarter was our strong performance in October, November where we capitalized on the improved travel sentiment by launching our first-of-a-kind festival travel card travel comrade. It saw the widest level 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 lower end of the quarter, which was the disruption of flight operations, particularly during the first night of the December month. significantly impacted trial plans and bookings during that period.

While the situation has now stabilized, but 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 rate ticketing adjusted margin stood at $107.9 million registering a 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 flowing basis, we saw slight market share gains with our share now increasing to just over 31% during the quarter. On the Hotels and Packages segment, we recorded strong volume growth of 23% year-on-year with stand-alone hotels growing even faster at 20.6%. This was largely on the back of strong demand aided by the recent rationalization of GST rates for hotel price 7,500 where the GST rate has been reduced from 12% to 5%. Business resulted in strong room line growth of over 23% in the nonpremium price segment.

As a result of this mix shift, as explained by Rajesh, we saw a slightly muted as booking growth year-on-year at about 15.9%. The adjusted margin in the stand-alone retail business was in line with the GMV growth. It is encouraging that this tax rationalization initiative of the Government of India has had a positive impact on driving up volumes in the hotel segment. 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, existing margin stood at 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 volume of our customers by building the attach of a variety of ancillary services. As a result, adjusted margin from other segment 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 in the mix is also translating into marginally EBITDA profitability for us. Our additional operating margin has improved from 1.6% of gross bookings during the same quarter last year to 1.82% of gross bookings during the current reported quarter. We are glad to report our first $50 million plus adjusted operating product just update in the quarter with the actual number standing at $50.7 million. The noncash interest cost on our 0 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. [indiscernible] imported part for the quarter was $7.3 million.

The adjusted net profit came in at about $51.4 million with registered 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 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 2013 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 inequivalent up 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.

[Operator Instructions] The first question is from the line of Aditya Suresh of Macquarie.

So 2 questions. First is on the stand-alone sales segment. There's telling been a very strong acceleration in kind of your number of hotel room nights booked. Could you further break down that by maybe a premium segment the budget segment and also international in terms of the growth you're seeing there? And then in relation to that is, are there any changes to the underlying take rate you've seen as this like is changing?

Maybe I can take that. Like I just called out, the whole GST rationalization which just kind of come in end of September was expected to kind of be affiliate for growth in the hotel segment, and we have actually seen this coming through. So while our overall stand-alone hotel room nights have grown at about 20.6%, the room bank growth in the nonpremium segment, which is the budget to kind of mid pricing, that has been much stronger at about 23% year-on-year. So we clearly saw that benefit coming through. In terms of overall margins, I think our margins have largely stayed in line at about 17.7%. So there's no real kind of significant change in the margin structure per se.

Like we've been calling out, we want to kind of keep the margins in the kind of teens category, the high-teens category, and we're kind of pretty comfortable in having a stable regime on the margin side.

And then the second piece is on ancillary services are. You see really strong revenue growth. Is it not possible for you to quantify the underlying margin you're seeing here? Because I assume that [indiscernible] to EBITDA or EBIT. Can you just like talk through and give any color on kind of the underlying margin for the growth you've seen in once services?

So I mean, the growth in the other segment or ancillaries has been a continuing trend. If you look at it over the last few years and -- this is also coming in from the fact that we have been adding a lot of new services on the platform, like, over the last few years. And over a period of time, each one of them is scaling up well. So just to give you an example, a couple of years back, 2 years back, we in the intercity cab segment, you giving up the airport transfers, we have started dialing up real ticketing, particularly for the high-speed air conditioned trains, there also market share is kind of now gone up closer to about 4%, 5%. So -- and apart from this, we've also been adding a lot of nontravel, I mean, non-transport kind of ancillaries, whether it is by size, insurance, whether it is ForEx, whether it is kind of sponsorship and ad tech on the platform.

Visa service is something that Rajesh called out. So all these put together, we believe, and this year, we had also kind of added a new segment of tools and activities. Now again, this is something which is very interesting because, guess what, a lot of these customers, travel customers book their core travel bookings with us, but there is a requirement of in-destination services as well, largely on tours and activities, and building that on the platform helps us kind of retain them even for these services with us. So with this increasing kind of spread of other travel or travel-related services, which we are going on adding, we do believe that the other segment will keep kind of delivering good growth for us. And at some point in time, maybe 5, 7 years down the line, some of these segments could kind of become meaningfully to be reported on their own basis.

But yes, there are some segments which are more transport related and there, the margins are largely in line with the industry. And for some of the others, this is a significant fall down to the profitability. So like I said, when we look at profitability, we'll largely look at it at a platform level. And therefore, we'll largely report kind of margins at a segment level, but report expenses and profitability at a platform level.

The next question is from the line of Sachin Salgaonkar of Bank of America.

I have 3 questions. First question, a follow-up to Aditya's question. Mohit, when you look at the Y-o-Y growth in hotel business, it was 17% last quarter. It's now 9%, which has gone below 10% this quarter. Understand the impact [indiscernible], you also understand the impact of rupee depreciation. But how to think about it? Is there some kind of a one-off out here? How should one think about a normalized growth from this business. This business was growing at 20-odd percent plus in subsequent -- in previous quarters. So should we see the growth resuming back to that number? Should I say over 3 questions? Or should that...

Yes. Sorry, we just kind of explain this a little better because there's something which kind of is more like a one-off starting in this particular quarter onwards, right? Because the GST rationalization almost happened at the end of the previous quarter. And important to kind of explain this. At a very high level, if you really look at it, we have reported more than 3% growth in the -- on the volume side. Now if you look at the price segment, which is below INR 7,500, there's been a GST reduction of almost 7% and almost 2/3 or 70% plus of our volumes coming from this particular price segment.

So roughly about a blended impact of about 5% plus goes through purely on account of the GST related impact on the gross booking value. And therefore, like I said, gross booking growth year-on-year in constant currency has actually come in at about 15.8%. And therefore, we kind of factor in this additional 5% impact, which came in on the JV side then our growth actually kind of pretty much remains in line with the volume. So I thought I'll just try and share the overall impact coming in with the GST vitalization. Otherwise, there's no real one-off impact. So it's because [indiscernible] because we didn't -- we had a different GST rate in the previous year on a year-on-year basis looks slightly different.

Sorry, Sachin, if I may just ask you to clarify. I heard you saying 9% numbers, which number are you referring to? .

So Rajesh, I was reporting to the reported hotels and packages revenue, which is $133.2 million, 3Q '24 it was $121.9 million. So it sort of implies a 9% Y-o-Y growth.

No. That's true. And therefore, I was just trying to bake in the currency kind of impact as well. in calling out the constant currency growth. .

So no, I get it, Mohit, now that we end up seeing numbers on a reported currency basis. Going ahead, we should sort of look at a similar kind of a growth, a slight increase from these levels, right?

Absolutely. At least for the 4 quarters now beginning of this quarter that we reported, this GST impact would be there. Constant currency impact would largely be dependent on how the kind of currency kind of plays out in the coming quarters. But the GST impact would largely remain on these lines. .

Second question on IndiGo. We all know they've been asked to cut 10% of capacity. Our general checks in the market indicate that till date other airlines are not able to sort of fully offset that capacity impact. So as we head into calendar '26, how should we look at the domestic air traffic growth for industry? Do we see that normalizing? Or do we still have a bit of an impact out there for full year '26?

So maybe I can take that, Sachin. This particular disruption was not even factored in. It came from nowhere to be honest, because these rules were always there, but I don't think anyone anticipated that this would cause this kind of a disruption, and therefore, the reduction of supply will happen and largely happened with Indigo because that's the largest airline in the market. Now our sense is that at least the estimates that we see based on our conversations, that while things might have just from a disruption standpoint, stabilized, but in this running quarter , it should come back to again the positive territory, and I'm talking about daily departures getting back to because December, it was negative growth of minus 5% on daily departures on an overall basis.

The estimates are now suggesting that it should be back to the positive zone, but albeit at either a flat or a 1% or 2% year-on-year positive growth. And as things progress and more we get out of this particular issue where the roster settled down, the pilots come on board, et cetera, slowly and gradually, this will continue to keep improving. Outside of this, nothing else changes because the new planes, schedules, whichever were coming, the supply coming, that will continue to keep coming. We also learned that even the even with Air India, the refurbishment of the planes roles is also happening at an accelerated pace, along with the fact that they also keep -- they're also getting sort of new planes on a regular basis as well. So that is likely to continue.

So I think the overall picture in all fairness will be more clearer I would say maybe the next seasonal quarter, which is April, May, June quarter, when the summer schedules are filed. And I think we will be in a better position to see overall, what kind of supply schedules are being filed factoring in this temporary issue that happened because of the new rules on [ plyDuty ] travel for pilots and the new infusion or the refurbish planes that are coming in. So I think we'll have to pay it net-net one more quarter, and I've already given you the this quarter sort of estimates that are -- that the industry is talking about.

And my third question is on Agentic AI and maybe 2 parts to question. One would love to understand the feedback on Myra since you guys launched. And second, in a market like U.S., we're actually seeing Google and ChatGPT launch their Agentic AI on travel. Now hopefully and subsequently perhaps at some point, it might come into India. So as and when that comes, how should we think that from a MakeMyTrip perspective? Is it a new competition for MakeMyTrip where consumers now have an option to go towards these LLM and book their ticket despite the fact that at the back-end fulfillment perhaps could be done by, let's say, make MakeMyTrip only?

Yes. So let's talk about that. So firstly, progress on Myra. Very encouraging, I must say. In fact, some of that I was sort of mentioning that in the script as well, but I'll give you more color. So there are a few metrics that we've been tracking. The first one is, how is the interactions, the number of interactions are growing. So from let's say, a couple of months ago, about 20,000, 25,000 interactions a day. We have now touched about 50,000 transactions interactions a day, not transactions a day, but interactions are day on Maya, which is 2x growth in 2 ones. And we are sort of seeing pretty much day-on-day we economy growth on that.

So clearly, good traction coming out. And then on the quality metric side, we also measure what we call as good conversation and also the quality score of the interaction. And that is also progressively improving. So we now have a quality score of about 3.9% on a scale of 1 to 5 and about 72% of the conversations or good quality conversation. So it's not like -- just to give you a sense of what the good quality conversation is that the interaction is sort of happening with more and more back and forth sort of question answer rather than just asking sort of a 30,000 feet level query and then just going off the interface. And that number is about 72%. The other 2 very important and encouraging metrics that we are tracking. One is -- and that was one of our hypothesis as well. One is about the new users. So we are seeing out of these 50,000 interactions, about 20% interactions are happening from the users never transacted before.

And that is largely coming from Tier 3, Tier 4 cities which is exactly what we were sort of aiming to get where the voice board is being largely used in vernacular language or the spoken language that consumers prefer coming in from whichever city, whichever state that they are coming from. So -- and then last but not the least, I would say, which is sort of -- will be a perfect segue to your second part of the question, that the trip planning part because that was another thing that the OTAs had not really been globally, focusing on the top end of the funnel, which is the trip planning piece. On Myra, we have seen at least about 23% or 24% of the interactions are related to more trip planning and not necessarily immediate travel. So all these metrics are pointing towards quite promising, encouraging sort of trends, and we will continue to keep monitoring. And in parallel, obviously, we are working very hard to further improve the product as well.

So that journey is also in progress. Now coming to your point on what Google might have launched in North America and when it comes to India, et cetera. Our take is as follows. What is happening is, like I just mentioned earlier. But as far as transactions and fulfillment and the kind of traveler who is willing to who's made up his mind or her mind and coming to just book the transaction and get done with it. I don't think that is going to get any way sort of potentially disrupted. And trip planning was the piece, which was not being done by OTAs in any case, right? So then it remains to see -- to be seen that if they launch, let's say, their own Gen AI tool for trip planning, whether they will attract more traction. And I think in all probability, there is a possibility that they will attract traction. And then the customers from conventional search will move to using AI tools for doing trip planning.

And to my mind, is a large part of that is going to be share shift happening from a conventional search to the AI tools. But our counter to that, to an extent, will also be our own Gen AI tool for trip planning as well. But the thing to watch out for will be, how do we sort of continue to keep protecting our direct traffic, which is -- majority of that is on our app, as you know, that they continue to keep coming to us directly or we end up sort of keep growing that direct traffic as a percentage of the overall traffic. And the share of the paid traffic from any of these sort of new actors of the surge engines, we don't end up sort of increasing the share of the paid traffic from there. I don't really see, at least at this point in time, basis our conversation and basis the kind of development that has happened, including the development that is in progress. that there is anyone who is trying to talk about getting to really deep in the funnel and also looking at even the fulfillment post-sales activities, et cetera.

Because those are the moats that will continue to stay with the OTAs. I think the planning is the only piece where there is definitely potential possibility given the richness of the data that we will have based on the LLM, they might get more traction. But a counter to that, for that will be our sort of life-to-date customer base and the direct traffic contribution that we already have and how powerful and popular is the brand that MakeMyTrip go every [indiscernible] side and are we able to sort of protect that progressively or not. So our sort of energies, investment, resources, et cetera, would be channelized towards that as we continue to watch this space and then accordingly sort of if we need to tweak our strategies as we go along. We are seeing this as more sort of the overall Gen AI and I called that out as well, specifically has more opportunity than that. And I don't think -- and even historically, even in the conventional search sort of space, this debate was always that whether Google is our competition or Google is the competition for OTAs as in all, OTAs or not.

And I don't think and that debate might still come back but the reality is that like in the past, I think there are clear distinct modes and the advantages that the OTAs bring to the table. And I think they are a very clear and distinct sort of objective and the business model that the horizontals or the generic search engines have that is even with this evolution of this new technology, there's going to be a significant overlap going forward either.

Very small clarification, Mohit, we saw the NCLT approval for MakeMyTrip and the redBus merger, which, in a way, sort of removes any legal or regulatory overhang from a potential India IPO point of view. So any revised time lines we should look from an IPO point of view? That's it for me.

Not really. I think so we can going to think of that, we'll kind of come back separately. This, as you know, we've been kind of in this restructuring process. In a couple of years back, we had done a legal and restructuring where you mean got the OTA business to come together. And now all the key operating businesses have been brought under a single legal entity. But yes, it does speciate an eventual IP at some point in time to that extent. But no really kind of change in thought process over there. .

The next question is from the line of Manish Adukia of Goldman.

I wanted to just go back to the growth discussion we were having in the earlier part of the call. So I understand, Mohit, what you explained in the volume being extremely strong, 20% plus and GBV, 15% because of GST. But why should revenue growth get impacted. Do you get paid from the hotels basis, the GBV or the actual revenue that you recognized. And I would have imagined that if growth is faster in mid- to premium -- sorry, mid- to budget hotels, technically, your take rate should expand because you typically would have higher take rates in mid-to budget compared to premium hotels. So am I able to reconcile the revenue slowdown? I understand [indiscernible] but I'm able to understand the revenue base. So if you can just explain that, that will be great. That's my first question.

Just to kind of repeat it, Manish. Yes, if you really look at our margins largely coming on the booking value, right? And therefore, the impact in a manner of salt kind of flows both into the booking value as well as into the overall margin, absolute margin that we get. So the percentage doesn't change, but the absolute margin that we get kind of gets impacted as well. But I think like we have been calling this arrive last quarter, when this change had come in, we were calling it out as a significant positive because see, this just helps unlock kind of volumes or demand, particularly at the price point, which is very sensitive, right? Customers are kind of pretty price sensitive in the mid- to kind of budget segment. .

And therefore, this is an important analog. And therefore, if we look at it, the growth has actually kind of accelerated very nicely through this quarter. In fact, not just only in hotels, but across segments. Despite domestic air being at a very marginal kind of a growth for us. and for the industry. Our overall segment growth across all segments that we report also stood at about 22%. So I think I'm kind of more taking encouragement from the fact that the segment growth or the volume line growth continues to be strong. The rest is largely kind of a play out of the changes in the landscape, and they will get kind of in a normalized over a 4-quarter period.

Very helpful. And your air growth, of course, in the quarter was impacted by what happened with IndiGo and hotels were extremely strong, partly driven by the GST cut on volume. But would the hotel volume growth in our opinion have been even faster without the indigo disruption? Like I mean, I'm just trying to think that from here on, even on volume, is there room to accelerate in the foreseeable future?

Needless to mention, Manish, actually, flights is a lead indicator, right? It kind of -- if you look at the entire travel plans, for most years, they start with a flight booking and then everything else follows, right? So I think what we are trying to do is that whatever is the significant kind of adverse impact coming in from the disruption on the flight side, to a large extent, we are trying to mitigate it through other modes of transport. And therefore, if you see, we have been dialing up or kind of have seen good growth on the [indiscernible] side, also on intercity cabs, et cetera. So I think the -- clearly could have benefited without the disruption on the flight side.

And if I really look at it very briefly in terms of how the growth has panned out between the months during the quarter, clearly, December was a month of much slower growth for us and therefore, kind of again indicated the same. So would have helped. But I think given the circumstances the hotel growth was very, very encouraging.

No, absolutely. And just a couple of other follow-up questions from earlier. On the overall spend on marketing and promotion at 5.6%, one of the highest we've seen in recent periods. Again, is there like some bit of like one-off there? I mean should it go back to the sub-5% number you've in the past indicated? And again, is part of that a function of the fact that, again, when budget or mid hotels grow faster and they probably have a higher component of marketing promotion that impacted. So I just want to understand the outlook also on that number. And I just have one last follow-up question after that.

Yes, absolutely, no one-offs. In fact, 2 parts to it. One, I would say is the very fact that low-margin businesses like air ticketing have seen an adverse impact on growth, right? And therefore, the growth has come in predominantly from higher margin businesses. Now what that means is clearly you're kind of getting a much better improvement in the blended margin for the business as a whole. So if you were to look at adjusted margins across segments, and then look at it probably as a percentage of gross bookings, then it would look much more healthier et the customer location cost also.

So it's completely linked to the mix shift and then within that mix shift, then also the fact that there is slightly more accentuation towards the budget to kind of mid segment of hotels, where, again, the customer action cost tends to be slightly higher. So I think purely reflective of the mix. And therefore, if you really see, despite the 5.6%, it has had no impact in terms of the adjusted operating number that continues to be 1.8% plus as a percentage of gross bookings. So I just wanted to call that out. And it's very difficult, like I said, the mix and the blended margins very different, say, until about a year back, much very different in this 1-year period due to these run-offs that have got played out.

Then maybe just my last question, taking a step back and looking at the overall business, constant any revenue growth in the quarter, which was a fairly noisy quarter, which, in my opinion, is a very good outcome. But when we think about, let's say, over a 1- to 3-year outlook, is it fair to say that to deliver 20% growth, you have to continue to reinvest in business and margins don't expand, which means over a period of time, your EBITDA growth broadly tax revenue growth? Because I would have thought that in a country like India, revenues are growing operating costs probably grow at a lower pace.

Is that something that may not play out? I mean, is it not an operating leverage story anymore? And margins will largely be in line to where they are? Or how should we think about the growth outlook versus the EBITDA growth outlook -- revenue growth was EBITDA? That's my last question.

Sure. If you look at over the last 5, 10 years, we clearly called out a substantial portion of the margin improvement that was supposed to come in, leveraging volumes and leveraging penetration and building a market leadership in each of the segments of the business. That's largely played out between I say, I would say by 2024, right? So -- and thereafter, we have been calling out that in our customer can but are actually in efficient right now, and we don't really look at kind of dialing them down we'd rather kind of keep focusing on driving up growth and looking at growing in the 20s.

And that opportunity is getting deferred despite the market growth coming down very significantly, at least in this year, right, across quarters, so I think the -- I would say, as part of our objectives in setting the mix where we are seen is where the accommodation mix is still in 40s, right? So till the time we remain in the 40s and say closer or a sub 50% mark, we do believe our adjusted operating margins are kind of pretty healthy. I've always given the example of the global players and how they're kind of the best-in-class margins play out. And if we just kind of superimpose our mix over there, this margin percentage looks very healthy. So I think we will really need now the mix going beyond the 50% on any significant kind of improvement on the adjusted operating margins to play out.

Until then, I think the operating leverage will likely come in more from the more fixed than variable cost, which again is very small. So in our case, the fixed costs are just about probably like about 20%, 25% of the overall expenses. And therefore, the improvements are going to be much smaller in nature. In line with what we have seen in the last years or so compared to what we have seen in the 5 years before that.

The next question is from the line of Vijit Jain of Citi.

So my question, in the hotel segment, with the GST cut, did demand somewhat shift also from higher ticket size to sub-7,500 category, and within that, given that you called out that growth did accelerate here. So is that because in general, you have better selection in that category and therefore, some market shift market share shift might have happened from others from offline or other channels to you. Is that something that happened here?

As you know, on the premium side, we pretty much have all the kind of hotels that are available in the country on the platform. So most of our expansion actually keeps happening more in the mid- to premium kind of more in the mid to budget or more in the budget segment, right, from a price point of view where we keep adding more and more kind of hotels on the platform [indiscernible] been a number of hotels in that particular [indiscernible], which still need to be kind of contracted and put on the platform. except for maybe new hotels, which come at us all pricing. So that improvement in the book of offerings in the budget segment, we'll keep increasing, not all about that. .

But this is more, I think, what we saw during the quarter was more on account of the significant is differential, which has now emerged in the sub-7,500 versus sales in the 7,500 to 9,000 or 10,000 price range because they are now suddenly a significant kind of impact coming in from the steep change in the GST rate. So that's seeing a lot more of the volume and are coming through in the sub-7,500 price range. In fact, a lot of the hotels who were on the marginal side, just about the 7,000 price would have also wanted to kind of bring the prices in line for the overall customer benefit to play out. So that's what's kind of playing out, and that's what we have seen largely on expected lines. And like I said, there has been a little bit of a share shift.

From a volume point of view, we have seen roughly about close to about 3 shift happening from premium, super premium to maybe more like the mid- to kind of budget segment. And again, on the overall mix also roughly about 4% to 5%, whether in terms of gross putting value or in terms of adjusted margins. So yes, but this is very much on expected lines. Like I was saying, the real underneath benefit of it is it's really helped unlock demand in the overall hotel [indiscernible].

My second question, shifting on your comments earlier, Rajesh on Agentic AI and LMS and those things. I'm just wondering if trip planning is what moves to LLM and trip planning is arguably on search versus [indiscernible] offers much better experience. Does that mean that it could accelerate further your online shift in categories like international or other packages and stuff where traditionally people have used agents because it's complex and make it easier, could that conversely actually help online shift in India?

No, I think it's an interesting date with it, I must say. We are quite possible. See, listen, in any case, overall across the categories, not necessarily on travel and within travel also all segments directionally going in that direction only from off-line to online. And can we say that the digital agents tomorrow or even on the trip planning, it is becoming more popular I don't know whether the trip learning per se, because I could also argue that even historically, the people are going to Google and searching and doing some bit of planning there, right, or going to TripAdvisor to do some trip planning, specifically all coming to OTAs to do some part of the planning, et cetera. .

So I don't know whether that per se will sort of trigger this shift. But I think what is potentially -- what can potentially trigger is actually what we have built, which is Myra is a digital agent because it is interactive because you can ask the question in your language that you are comfortable, and you can look for complex secondaries, ask as many questions as you want and you will get accurate answers. And then along with that, the booking will also be stretched in a very smooth manner. That might actually help because the hypothesis is that you're going to a travel agent or human travel agent to ask for as [indiscernible] specifically for customization, right? And now you can achieve that customization on the digital agent as well, almost as effectively, if not better.

As you could do it with the other alternative, right, so that you were doing it or you were using it earlier I think that might actually help do the shift or accelerate the shift better. I'm not sure only trip planning. The only trip planning where tripling could help is that where overall sort of inspiration for travel goes because that, in any case, is happening. The consumer behavior is changing and spending more and more on travel in any case. So you go on your preferred either the social media channel for inspiration and then come to let's say, horizontal search and/or [indiscernible] MakeMytrip to do trip planning and you find it easier and smoother [indiscernible] more and more, whether it is domestic or is there any easy sort of travel use case or a complex travel use case. That potentially can definitely have -- but specific to international travel, I think Analog might be the digital added more, which is answering all the questions and also stitching the booking experience together and also post sales and trip in a single interface, that might actually help sort of trigger that shift.

And my last question, on the total marketing spend, which I think to Manish's question earlier, you mentioned how mix shift has contributed to it rising to 5.6%. So as air recovers maybe from the summer season onwards, or maybe even marginal recovery Q-o-Q in the March quarter, does it trend -- does your total spend trend back towards what you've previously said 5% to 5.5%?

Most likely, it should start kind of reflecting the mix because like I said, there's nothing in terms of a runoff over year, and therefore, it should start depleting the mix depending upon what kind of changes we see over there. .

The last question, we will take line of [indiscernible]

So just a couple of questions. One is the net take rate on air is about 7% this quarter, 7.2% last quarter. Is that a normal number? Or is this running higher than a normal range of like 6.5% or so?

Yes, I think we generally kind of trends to range around this smart. It can be about 0.5 percentage point lower or higher depending upon what kind of fares of prevailing -- depending upon the kind of lag between booking versus clone, et cetera. So nothing exceptional out over here. .

And then the second question is going back to the hotels and packages business. So when we think of the constant currency bookings growth of 15%, I think you explained it as volume growth of 20% and then 5 points of impact from GST but then apart from volume and GST impact is also pricing with all these hotel companies report like pretty decent ADR growth. So for you, the price -- net pricing growth is like 0 almost, right? So I guess there is some price growth and the negative mix impact, which is canceling each other. But if I just think about going forward, let's say, next 1 year, where you mentioned for the next 4 quarters, this GST impact will hit you. Are we thinking of broadly an algorithm where your constant currency GBV growth will be like 5 percentage points below your volume growth like it was this quarter? Or does that gap sequentially keep reducing? Maybe if I can share a 1-year view as well as a 2, 3-year view.

[indiscernible] and it is only just a 1-year impact because the comparable number for the previous year is at a different kind of GST rate. So therefore, it's just more an optical thing than anything which is kind of actually impacting the business. So this is more optical and don't see any real impact as such over here. Sorry, I missed the first part of the second question. What was...

I got that, Mohit. Maybe I'll just quickly address that. [indiscernible] to your point on hotel companies reporting higher price rise and all, you should just be mindful on one thing. See, what you're looking at it is only a few data points, like, let's say, listed companies reporting some. And again, their areas have also not significantly gone high. On our platform, across the segments we are selling [indiscernible] right? And on a blended basis, where there is a possibility in one particular segment in certain cities, some -- because of the demand supply gap, et cetera, some price movement would have happened.

But as a general trend on a blended basis across the segments, if we look and even if we sort of look at different, different segment hotels, whether it's a budget hotel segment or a segment or a premium and then super premium kind of segment, we haven't really seen any price increase, which is extraordinary or out of the ordinary now happening. So it's actually that era is over. It is actually pretty stable now. And you would only see either because of seasonality, there will be some movement or there will be there will be an inflationary increase year-on-year, right?

So I don't think we should jump to conclusion that the average selling price for a particular room night across the board. The rates have only in pretty much every segment. I thought I'll just clarify that because on our platform, we also have out of our hotel and packages business about 10% home stays. Now home stale pricing and year-on-year and across segments. And therefore, on a blended basis across the board and pan-India basis, if you would see, there is no significant price increase on the -- except for the seasonality impact that we've seen.

Got it. Maybe just one last follow-up on domestic hotels business. So at least some of the listed OTA players, we don't see anyone else having any meaningful hotel business right now. So at least in the domestic segment, is that a fair conclusion that there is not really much competition? And when we look at like the broader industry data, hotel, domestic plus international there, we see -- I guess you have competition from these global players. But let's say at least on the domestic segment, would it be fair to conclude that you would be the one dominating and then not a competition?

Reasonably, fair to say, but just keep in mind that the overall online penetration in the segment is still in the early stages. So there's a long headroom over there, but fairly in the right direction. .

In the interest of time, this was our last question. We'll now hand over to Rajesh for his closing comments.

Thank you, Vipul, and thank you, everyone, for your patience. And we look forward to see you next quarter.

Thank you, everyone. You may now disconnect the call.

Welcome to our fiscal '26 Second Quarter Earnings Webinar. Today's event will be hosted by the company's leadership team comprising Rajesh Magow, our Co-Founder and Group Chief Executive Officer; Mohit Kabra, our Group Chief Operating Officer; and Dipak Bohra, 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 Statements section of the company's annual report on Form 20-F 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 Pahalgam 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 markets 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, camps and international air witnessed robust growth. Consequently, we saw a robust growth in our hotels and [ ACCO ] 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 unpenetrated 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, middle income households. Analysts estimate that the combined fiscal and monetary stimulus from these measures could unlock additional consumer spending of $3 billion to $3.5 billion during the latter 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 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, 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 journey, 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 1 in 4 users come back seeking help across multiple categories, from 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 for 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 2 and Tier 3 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 electricity and linguist diversity very widely. Myra's voice-led 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 presales 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 high conversion rate compared to traditional agent and traditional agent-led assistance for users who interact with it.

We are expanding the bot's capabilities with a new agentic seller person 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 GenAI 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, interruptions and accurately interpret queries including complex sections like date change, web check-in, cancellations, et cetera.

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 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 gateways 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 and expanding supplier 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 auctions available on the platform, covering 2,000-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 to 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 as well in advance.

Our international hotel business continues to report strong growth driven by rising air connectivity and the accelerated shift from off-line 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 India travelers.

Our holidays package business grew in line with seasonality. We continue to strengthen our product proposition. We have launched curated packages to Vietnam with exclusive direct flights starting December 9, 2025. We have scheduled multiple flights for the upcoming winter season, as Fokko currently has no direct connectivity from India. The direct service will cut travel time from around 8 hours by connecting routes to just about 5 hours, making our air line far more accessible for Indian only holidaymakers.

Indian travelers today are looking for designations that offer unique experiences, easy access and great value. For cockpits, the bill, but has remained relatively underexplored due to the lack of direct connectivity. We are making this unique destination directly accessible for Indians planning their international holidays this winter.

Our homestay business continues to scale well and we'll 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 revamp the food and dining module across both supply and consumer products. The new flow enables us to provide rich details on new availability, pricing, cuisines, variety and timings, along with cook availability and associated charges for customized means.

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 moyancy in new bus addition with reduction of GST for procurement of buses announced in September.

During the quarter, we have onboarded Gujarat and Odisha 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 stand-alone Android and iOS applications.

We continue to strengthen our customer proposition within our trains business during the quarter. We launched the food on train feature in partnership with Zomato that's 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 nontransacting users. Early results have been promising with strong conversion in our funnel engagement. Notably, a significant share of users are placing orders up to 2 hours prior to station arrival, an order 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 Corporate customer count on myBiz is now over 75,500 plus compared to 59,000 customers during the same quarter last year. And for Quest2Travel, the active customer account has reached 527 corporates compared to 462 customers in the same quarter last year.

Before I conclude, there is 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 head and will drive the future growth agenda of the company.

We also welcome Dipak Bohra, who joins us as Group CFO. Dipak is a chartered accountant, comes with 30 years of rich experience in the field of finance. Dipak 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 onboard, Dipak and hello, everyone. The last 2 months of the previous quarter that in May and June were impacted by a series of external events and the weak sentiment for domestic air travels 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 2, which is generally a low season quarter was also impacted by excessive rainfall, particularly in some of the North Indian states and union territories like Jammu & Kashmir, Laddakh, Himachal Pradesh, et cetera, 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 our one-stop shop approach across travel services to drive growth why accommodation other transport segments like bus ticketing to make the most of the overall bounce back travel demand during the quarter.

As a result, the highlights of the quarter were hotels and packages adjusted 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, the stand-alone hotels adjusted margin growth accelerated from 18.5% in the previous quarter to 23.1%. In the nonflight 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 a 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 convertible sernior notes maturing in 2030. The entire net proceeds from the offerings were used for repurchase of large shares.

On the second slide, 2025, we completed the repurchase and cancellation of 34.4 million Class B shares. Out of $3.1 billion raised, about $1.4 billion were raised through 2030 zero coupon convertible notes. And while these notes have no interest costs 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 3 years until July 2028.

As a result, $24.3 million has been recognized as interest costs 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. A result of the sharp weakness in INR versus the USD during the current quarter, we have recognized the foreign currency loss of $14.3 million during the quarter.

Both these items that is interest in ForEx cost 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 reported 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 adjusted 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 than the market in market share. Volumes in this segment grew by over 16% year-on-year, which is almost 2.5x 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 $105.8 million during the quarter. We have witnessed strong growth despite Q2 being a seasonally slow quarter for leisure travel. The growth for stand-alone hotels was even better by 23.1% year-on-year.

The mix of international hotels and packaging revenue reached 23.4% during the quarter, up from 21.4% same quarter last year. Now bus ticketing business, adjusted margin stood at $37.7 million, registering a strong year-on-year growth of 44.1% in constant currency terms.

Most of our internal services such as travel insurance, ForEx, et cetera 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, a strong growth of 29.7% year-on-year in constant 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 5.2% 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 ended 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 marked by short-term supply side challenges, we believe the GST benefits have come in at a very appropriate time, a reduction in rates for procurement of new buses as well as reduction in GST for hotel stays up to a price point of 47,500 will help reform the travel demand -- for 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 optional discipline continue to push on 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.

Thanks, Mohit. [Operator Instructions]

The first question comes from the line of Sachin Salgaonkar of Bank of America.

Can you hear me?

Yes, go ahead.

I have 3 questions. First question is on the air capacity issue basis. Our understanding, it looks like most of the Air India planes are back and not all Indigo planes are back. So just wanted to understand where are we on the air capacity issue? And how should we expect demand going ahead, particularly for the December quarter?

Yes. Maybe I can take that, Sachin. So as I think it was there in my script, I was reading out. So in the current quarter, what is expected is that as far as domestic air market is concerned, that the daily departures will get back to about 3,200 plus, which is similar to the same period last year. That is as far as domestic. Now this data is obviously -- this is the -- it's quite informed data this basis, the inputs that we have from the we have from the airlines, which I think it's a good start.

Ideally, obviously, we wanted it to grow, but as you know, this quarter, there was a dip 2, 3 percentage points. But now if it gets back to the same level, it's a decent start, and this is also -- it is because of the -- because of what you mentioned, right?

So some planes are coming back and the others are coming back slowly. But very interestingly, worth also mentioning is that this is as far as domestic air market is concerned, but for international air in this quarter as compared to the same quarter last year, the number of departures actually went up about 30 departures daily departures went up.

And out of that, the two main noticeable countries where it went up significantly was actually Thailand and UA, which are effectively the sweet spot for us and also for the overall Indian travel market for outbound. So as far as international is concerned, it's doing well. It's back. As far as domestic is concerned, constraints still remains, hoping it will lift soon.

Very clear. And there are 2 parts elements going into the December quarter, right? One, what you highlighted right now, which is not the entire supply is up, but on the second hand, we are actually seeing benefits coming from a GST perspective. I would love to understand from you actually, are these because on the face of it, clearly, you should see GST benefits. But in terms of advanced booking and others, are we seeing this December turning out to be slightly better as compared to, let's say, December last year, purely on the back of more money in the hands of consumers?

Yes, I would say, Sachin, I think it's a decent start, but in all fairness for our category, specifically for travel, while for the other nontravel categories, a lot of the shopping and the consumption picks up before Diwali. For travel, it picks up actually after Diwali. And therefore, we will have to just wait and watch for a little bit more time. But early signs are clearly there. Like I think we should just look at this overall consumption both story, mostly looking at an overall GST reduction that has been announced sort of across the categories, which effectively put small money into your pockets.

And that coupled with the fact that there is more desire to travel. I'm quite optimistic that travel as a category will also benefit out of this overall sort of GST reduction and more disposable income in consumers hands.

Sachin, let me just add, as you know, the advanced purchase window, particularly in India on travel is not very high. And as a result, it's kind of a bit more bookings, which happened in the last week or so ahead of scheduled travel. And therefore, it's kind of slightly difficult to call out in terms of future bookings in our kind of a market. But like Rajesh called out, it's a very positive development. And if you look at it from an Indian traveler point of view, our kind of average ASP on the hotel accommodations tends to be below the 7,500 kind of price point on which the GST reduction has been announced. So therefore, this will actually benefit bulk of the bookings. So to that extent, it should be a very positive development on driving kind of travel demand overall in the coming quarters.

Very clear. Second question, marketing expenses clearly increased and moved to 5.2% as a percentage of gross bookings. I just wanted to confirm that this is mainly on the back of a slower consumer spend and less to do with competitive intensity. Is that a fair observation? .

See, I'll just call out that if you -- it's also got to kind of look at the overall marketing and sales conversion spending in tandem with our kind of segment margins. And like I called out across the Board, across segments, we have actually seen margins strengthening and particularly in weaker seasonality like Q2, this tends to happen. And both on a quarter-on-quarter basis as well as a year-on-year basis, we have actually improved margins and therefore, to some extent, that's also been kind of -- that's also got deployed. But with the improved mix across segments and the improved margins across segments, this actually is kind of pretty much in line in terms of the call out that we had made.

Got it. And then on this -- the improvement in margin, is it seasonal? And should it normalize going ahead? Or we should see the take rate improvement continuing both that they had and hotels going ahead? .

To some extent, it remains seasonal because depending upon high and low seasonality, there is, at times, a little bit of a variation. And then all the more so in the current fiscal year because like we have been talking, the mix of air has been reducing. I mean for unwanted reasons because the overall market is supply constrained and here is the least kind of margin in terms of segmental margins per se. Therefore, overall margins have only improved, right? And that is something that we kind of taken care of. Going forward, if fair rebounces, the blended margin might kind of go down a little bit, but across categories, we still kind of expect margins to remain largely in line with what they have been.

Yes. Got it. Third question on buyback. I just wanted to understand whether you guys have repurchased any stock in this quarter. And I know historically, you guys said that there is a thought process to opportunistically look to buy back. So I was looking to understand any buyback happened in this quarter?

So Sachin, nothing that has happened through the quarter as would have got reported and therefore, we called out that we've not kind of been able to do any buybacks in the current quarter. But we made certain changes to the buyback program. One, we've kind of now made it slightly more longer term kind of extending the buyback program up to fiscal year ending 31st March 2030, so that we have a window over for the next 4.5 years.

The current buyback program had a balance left of over $114 million. We've increased that to $200 million and also increase the annual limit, which was earlier about $60 million or so to about $100 million, so that we can deploy a little more on the buyback program.

And we've also included the the 2030 notes, the recently issued convertible notes mature in 2030 in the program so that we could kind of also buy back the CPs, which were recently issued. So making it more comprehensive across the -- across shares as well as both the convertible note offerings, which we have done in the past. So that's what I wanted to share. So I think we'll keep looking for opportunistic buybacks across shares and notes in the remainder part of the year.

And Mohit, just to clarify, is it across both Class A and Class B shares? Are you at some point in the future if you want to buy C strip shares, this could be done as a part of this buyback?

Actually, since the Class B shares handled by one investor and the strategic investor. We have not included that, so that there is absolute clarity that we're looking at repurchase program deployment in the normal course happening for Class A or for the convertible notes. Should we be kind of doing any repurchase programs on the Class B shares, we'll call it out specifically in that particular period, just like we did it in the previous quarter.

Got it. And lastly, obviously, with this incremental $43 million kind of a finance cost going ahead as well, from a positive net income. Is it fair to say that going ahead, we should see sort of a negative net income, although your free cash flow doesn't change. But optically, you do see a sort of a negative net income at the company going ahead also? .

No, absolutely. And therefore, I had called out the nuance around this. And as you know, these are actually zero coupon bonds. So it's more kind of in a manner of so notional interest cost, which is kind of being charged to the P&L, basis the effective interest methodology under IFRS. But as such, there is no real interest being paid whether in cash or in any other form. So I just wanted to call that out.

Next question is from the line of Manish Adukia from Goldman Sachs.

So my first question is on the overall growth profile of the business now. 1/4 of your business is from the domestic air in terms of revenue contribution, and that's not growing at all for almost 2 quarters in a row. But despite that, you have 20% overall revenue growth because other segments are doing well. Now when we think about medium to long-term growth outlook, where you said Indian market grows 8% to 10% and you can go 2x you're already in line with the medium, long-term growth outlook. But as domestic air improves, shouldn't we expect that the 20% revenue growth number further accelerates from here? Or you think that the bus segment, et cetera, outbound may decelerate from the current base, so even though domestic air may improve overall growth on revenues for the company probably remains around 20% level. So just wanted to get your puts and takes around that debate. .

Happy Diwali, Manish as well. And great question. And I think one of the advantage is that we kind of keep calling out for ourselves is that we are a one-stop shop in terms of travel services or ancillary services. And what that allows us is just in days, there is kind of weakness in any particular segment, there is an ability to try and drive incremental growth through the other segments. And similarly, if you look at it on the demand side also, having kind of multiple platforms are getting, say, across retail, B2B and corporate kind of demand, there's opportunity to kind of leverage is demand segment depending upon whether there is weakness in any of them and therefore, dial up the other ones.

So I think we'll continue to do that. Hopefully, if you really see, despite these tough macro conditions, we've still been able to kind of post the -- post growth in the 20s. And therefore, like we had mentioned in the last quarter also, we do remain positive and hopeful that we'll be growing in the 20s for the full fiscal year despite the the one-offs for the first half of the year. And hopefully, if we kind of air kind of domestic air in particular bounces back, we hope that we are able to inch up the overall growth from being at the low end of 20s to kind of being more closer to the mid-end of the '20s. So let's see. It's very difficult to call out how each of the segments will kind of behave whether on the supply side or the demand side, but yes, the overall strategy is to kind of keep driving growth in the 20s in medium to long term.

Sure. And maybe a follow-up on that. I think you're seeing growth in the 20s for the full fiscal year and to confirm is, despite the fact that March quarter should have a very strong base because of Kumbh last year, which would have impacted almost all your segments quite positively. So despite that, for the full year, Q1 19%, Q2, 20% and you're saying overall full fiscal still should end up 20% despite this, just to confirm. .

Absolutely, Manish. And I know there are these kind of one-offs that we had in the previous quarter on the positive side, and we have had a few negative kind of one-offs in this year, particularly in H1, but we are still keeping fingers crossed and hoping that we'll kind of continue to grow in the -- to grow in the 20s.

Right. My second question is on competition and at an overall level, right? I mean, used to be your largest shareholder until a few years ago, and now they have acquired a significant minority stake in one of your competitors, and at least a publicly available data on n bus volumes, of course, of a low base, they seem to have grown faster than you over the last 3 or 4 quarters. So anything to read into that? And how should we think about any new entrants ability to also maybe expand into the hotel segment and potential competitive intensity in that going forward? Your thoughts there would be helpful. .

Couple of thoughts over there. One, overall, I would say it's always good to see increasing industrial investments in the travel industry as such, right? So it's a welcome sign. In fact, if you look at it from a -- from our own kind of vantage point of view, just last quarter, we had almost done like a $3.1 billion transaction, but that was essentially to kind of repurchase Class B shares, right? And while we are initially budgeted to deploy at close to about $100 million from the balance sheet, but we didn't have to do this and we have the significant interest that we saw on the primary offerings to fund the repurchase.

So I think clearly, there is increasing interest in the overall travel industry. And if you look at it, overall, India, again, is a very kind of a very large market growing well and then there is also kind of an opportunity for driving online penetration. Although I would say that the segments which kind of, I would say, initially of online penetration have changed. So 10 years back, it might have been more accommodation, which was maybe in the early single digits of online penetration. And therefore, same competitive intensity growing much higher in that segment about a decade back.

But today, those segments have changed. And if you know, as we have been calling out, we have ourselves been pretty aggressive in terms of driving online penetration, adding a lot more new segments and new travel services, ancillary services on the platform. So I don't really see any big concern. And the other fact is also that over the last few years, if you look at it, we have continuously invested behind driving online penetration across segments, whether it is transport, whether it is accommodation or whether it is other ancillary travel services, we have been doing that on a consistent basis. And whenever any other players in the market have also done that, we have generally ended up gaining on account of the overall expense because ultimately, these are category driving spend.

And as a market leader, you tend to gain if the overall kind of investments in driving online penetration goes up. So we think of it more on those terms and remain pretty much kind of stay on course on our own -- driving our own agenda, which is largely to say that we keep driving growth much ahead of the industry growth at a significant multiple and we continue to be market leader across kind of travel segments, whether it is transport, whether it is accommodation or ancillary services, making sure that both MakeMyTrip and Goibibo, they remain the top to OTA brands and redBus remains pretty much the top ground transport brand for all Indian travelers. So that's the broader kind of response that I would have. We don't see much of change.

No, I think you've covered it all. I'll maybe just add one more point. Manish, if you go back in history a little bit and go deeper, you would realize that the share shift, I mean, firstly, the investments have come in. It's not for the first time investment has not come in the travel and tourism market and specifically in the OTA segment have come in the past. Disruptive investments have also gone in the past. But if you really see from an OTA standpoint, you would see at least an Indian OTA market.

The share shift has happened in the say between the existing players and the new or challenges that sometimes appears and not necessarily, we've seen impact on either the growth rate or the market share gain over the years. And that's because of the fact that, one, of course, we will have to continuously keep executing our strategy as well and keep innovating for consumer experience all the time. But also the fact that over the years that the brand is -- and in the consumers' mind, all our 3 brands have got established very, very firmly and which obviously gives you sort of the benefit from a sort of dealing with any of the new competition perspective, et cetera, as well.

So I think we should just keep that thing also in mind I guess, both the points. One, that this is not the first time investment when investment comes in overall market grows, which is good news. And then historically, if you really go deeper, you would realize that the share shift has happened pretty much if at all, within the sort of existing players and the newcomers and then that cumulatively, it doesn't really change too much.

The next question is from the line of Aditya Suresh of Macquarie.

I have two questions. So first is just on the guidance in itself. So when we speak about 20%, can you just reiterate again at what line are you speaking about it on account terms, gross working adjusted revenue, overall revenue because I think there are distinctly different kind of dynamics, which are at play, depending on which trend you're looking at because even if I look at overall gross bookings, we're now the first 6 months, sub-10%, right? So can you sort of clarify that the guidance in itself, when you speak about 20%, what you're specifically referring to? .

Yes, Aditya, while there is no -- I mean we don't necessarily kind of going to put out a guidance, but more directionally, how are we kind of seeing growth coming in. And that's in terms of the adjusted margin that we report. So if you look at through the script also, we have called out the adjusted margin growth, and it's slightly on that metric that we kind of are going to look at it. And the simple reason being adjusted margin is kind of the number, which is kind of called out in line with how kind of OTA revenues are looked worldwide across segments because we do have some segments where we report on a gross basis, say, for instance, on the package side.

And similarly, we do have kind of a certain amount of customer equation spends, which are otherwise can be treated as deductions from revenue from an IFRS basis point of view. So it is an adjusted margin basis that we are calling out. And if you look at it, adjusted margin across segments, then this is broadly the trajectory that we're kind of looking at. Now this might come in in terms of different adjusted margin growth across segments. But holistically, all the segments put together is where we are kind of looking at remaining in the 20s.

And then just specifically on hotels, right? So for this quarter, when I look at this in account terms, your number of bookings up 80% gross booking value was up 13%. IFRS 7 is up 5%, right? And I appreciate there are kind of foreign currency impacts here going on as well in that 5% revenue number that you're reporting. But clearly, there seems to be both as you're seeing more bookings, yes, but the value per booking is going down and also the take rate on that said booking is also going down, right? So can you like speak through that theme which you're observing?

Actually, not Aditya, maybe I'll just kind of give you once again, as I called out in the script also there's a lot of foreign currency translation impact, particularly in this quarter. Actually, the adjusted margin growth in our stand-alone hotels business, we just called out is at about 23.1% in the current quarter. And, it ended up significantly from the previous quarter, during which it was at about 18.5%.

So the adjusted margin growth has come in much stronger and generally tends to come in better than the overall volume growth. Now this does change depending upon how the ASPs are behaving and how the overall kind of margin is trending in the category. This particular quarter, actually, even from a margin point of view, we saw a margin improvement coming through both on a quarter-on-quarter basis as well as on a year-on-year basis. So actually, it's held pretty well. And therefore, maybe I'll just guide you back to those sections of the script that I just called out just from a clarification point of view.

Okay. And then in terms of the ancillary business, right, so here, obviously, kind of higher take rate segments also forth. You've had a few new product launches in this quarter. So for example, something like experiences in city, which I think is new for you all have a Visa offering as well. Can you maybe speak about some of these new kind of revenue streams within ancillary services?

Actually, on the ancillary side or the other segment, if you look at it over the last couple of years, we are continuously guiding a variety of ancillary services. So I started with, say, maybe ForEx like about 3 years back, we've dialed up in the city over the last 2 years or so, we have now also kind of in this particular year, we had called out specifically that we would be kind of focusing on adding a lot of tools and activities on the experience side as part of the other segment.

So yes, we'll continue to keep adding a lot more on this segment even going forward as well. So -- and you'll see that kind of called out. In fact, I had also -- in my script kind of called out that almost all the ancillary services, whether it is travel, insurance or ForEx, et cetera, have done well. And there are 2 kind of transport-led services in the other segment, which is largely cabs and more so intercity cabs and rails, which also have grown very well during the quarter. So the overall growth in the other category this quarter came in at about 29.7%. So broadly around the 30% mark. So continues to do very well.

The next question is from the line of Gaurav Rateria of Morgan Stanley.

Congrats on resilient performance in a tough macro environment. My first question is on your comment that you made that you would like MakeMyTrip to be the default search engine for travel. It's a pretty interesting comment. And also, you shared quite a bit of interesting metric around your engagement in the AI assistant. When I look at the measure of success over time, I thought that it would be the overall traffic increasing base of new customer acquisition improving and better repeat rates. When you look at some of the early trends, how have these metrics fair?

A very good point. And thank you, firstly, and happy Diwali to you too as well. And Gaurav, I have to say upfront, and like I said, right, it's beta launch and the insights are very encouraging. And right now, the phase is only to collect insights and see how do we sort of do 2 things. One, keep fine-tuning the product and keep improving the interaction so that the experience for the end consumer is very relevant, very personalized, very to the context, et cetera. .

And the other is to also keep track and see how are they adopting to this new interface, specifically this Myra end-to-end, let's say, trip-planning tool that we were talking about. And the comment around we want MakeMyTrip to be the first port of call has always been there. But even in this new interface, more from trip planning perspective. So we've been perhaps the first port of call for the transactions, but also for the trip planning is our attempt the time around with this new interface.

And I think it has a lot of sort of promise that it offers, and we'll see how it goes. But in terms of the success metrics that you talked about, ultimately, those are the 2 metrics that you just called out. We will see new user acquisition because we are looking at going really deeper and pushing the adoption through voice feature as well as vernacular. And as I mentioned, right now, Hindi and a lot of the English conversations happening, but we are looking at adding more regional conversations.

And this time around, as we hear some of the quality of the calls and the handling by the -- by Myra, which is a digital agent it's very, very close to or even in some cases, better to the human agent.

So the LLM, this time around various models. And on top of that, the amount of work that happens with our own data to fine-tune with the grounding internally is producing fantastic results. in terms of just interaction with the consumer, even if you are like from hinterland and so on, right? So there is a lot of promise right now. but the consumer adoption journey is going to take time as it takes time for every new interface. And we will see how it goes.

And as and when, like we shared some early trends already, as and when we see some meaningful impact happening on this particular new interface that we launched, we will definitely come out and share -- having said that, if you keep this aside for a minute, because this is a new -- completely new interface that has been launched, very enhanced.

There are many other places where we've been leveraging AI. And there, we have started seeing the impact. We've started seeing the impact, for example, in post sales already the number of calls that are being now handled seamlessly without any human intervention, it's going up.

This is over and above the current sort of automated self-serves that we already had. There are -- there is a conversion improvement that we've seen in specifically in the hotels and accommodation side with the many AI-powered features using, let's say, enhanced videos, using video LLM, et cetera, and many other interventions with which have been -- what we've been doing in our current interface that is already there in the funnel.

And that has seen very minutely we go and look at whether the conversion rate, all literally on an AB framework that we've seen improvement. And it is only going to sort of continuously keep improving as we sort of not only make the right kind of interventions, but also make it a lot more relevant and a lot more sort of to the context to the consumers. So -- but on this particular one, we'll come back as and when we have more data on impact metrics, as you spoke about.

My second question is for Mohit. You've shared in the past profitability benchmark that you look to aspire, you've already reached that 1.8%. You had talked about 1.8% to 2% range. So in pursuit of balancing growth and profitability, how should we think about next 1 to 3 years in terms of this range, meaning what you said already? Or do you think there could be an upside to this range because you have already gotten to 1.8% in the current year? .

Yes, Gaurav, at least to begin with right now, like we've been saying, we do believe there is an opportunity to kind of dial up growth, particularly as say for instance, the domestic air ticketing district kind of bounces back to good growth. So that's something that we want to kind of keep in mind. And therefore, if you would ask me, at least in the shorter term, the focus would be a lot more will tilt towards kind of driving the growth agenda because even at 1.8%, like we have always called out, one of the rationales 1.8% to 2% was that even benchmark with the best-in-class in terms of the OTA margins globally with our kind of mix of segments between transport and accommodation with accommodation at about 40% ballpark.

We do believe we'll compare with the best. However, longer term, like when you say the next 3 years or so, over the next 3 years, particularly if the mix of accommodation, goes up in the overall adjusted margin pie, which is expected to, then I don't see a reason why we should not have the potential to kind of put out a slightly better number than what we've already called out. But let's see. In the next few years should be an interesting journey on that count. .

We've almost run out of time. This was the last question over to you, Rajesh, for your closing comments.

Thank you. Thank you, Vipul, and thank you, everyone, once again. Thank you for your patience and good line of questioning. As always, we look forward to see you next quarter. Thank you. .

Thank you, everyone.

Thank you, everyone.