Q1 2026 MakeMyTrip Ltd Earnings Call
You have joined the meeting as an attendee and will be muted throughout the meeting.
Vipul Garg: Hello, everyone. I am Vipul Garg, Senior Vice President, Investor Relations at MakeMyTrip Ltd. And welcome to our Fiscal 2026 First Quarter Earnings webinar.
Vipul Garg: Today's event will be hosted by company's leadership team, comprising Rajesh Magow, our co-founder and Group Chief Executive Officer, and Mohit Kabra, 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.
pulgar: Hello everyone. I am pulgar Senior vice president, investor relations at make my trip limited and Welcome to our fiscal 2026. First quarter earnings webinar,
Speaker Change: today's event will be hosted by companies leadership team comprising, Rajesh magu. Our co-founder and group chief executive officer and Mohit Cobra, 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 website shortly after the conclusion of today's event.
Vipul Garg: Furthermore, certain statements made during today's event may be considered forward-looking statements within the meaning of Safe Harbor Provision of 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.
Speaker Change: At the end of these prepared remarks, we will also be hosting a Q&A session.
Vipul Garg: Additional information concerning these statements is contained in the Risk Factors 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.
For more certain statements made, during today's event, may be considered forward-looking statements within the meaning of Safe Harbor. Provision of us, private Securities, litigation Reform, Act of 1995. These statements are not guarantees of future. Performance are subject to inherent uncertainties and actual results May differ materially any forward-looking information relayed during this event speaks only, as of this date and the company undertakes. No, obligation to update the information to reflect change. Circumstances. Additional information concerning these statements is contained in the risk factors, forward-looking statements section of the company's annual report on form 20f filed with the SEC on June 16th 2025 copies of
Rajesh Magow: I would like to now turn over the call to Rajesh. Over to you, Rajesh. Thank you, Vipul.
Speaker Change: 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.
Rajesh Magow: Welcome everyone to our first quarter call of fiscal 2026. The first quarter of the fiscal year is typically a high season for leisure travel and this quarter also started on a similar note with strong demand momentum and booking growth in mid-20s in the month of April. However, domestic demand was impacted due to the unfortunate incident in Pahalgaon leading to geographical escalations in the month of May and the tragic crash of a passenger airplane in June. While domestic demand for leisure travel was particularly weak for domestic leisure destinations for air travel and holiday packages, being a one-stop shop on travel allowed us to drive growth from other travel services, other modes of transport, as well as ancillary travel services, catering to non-leisure travel use cases.
Thank you, vipool. Welcome everyone to our first quarter call of fiscal 2026.
Speaker Change: The first quarter of the fiscal year is typically a high season for leisure travel.
Speaker Change: And this quarter also started on a similar note.
With strong demand, momentum and booking growth in mid 20s in the month of April.
However, domestic demand was impacted due to the unfortunate uh incident in Belgium, leading to geographical escalations in the month of May and the tragic rash of a passenger airplane in June.
Rajesh Magow: We also continue to drive growth in international travel, where online booking behavior is growing and the overall demand was relatively less impacted. And last but not the least, we managed to continue the growth momentum in our corporate office. As a result, despite the exceptional macro headwinds during the reported quarter, I am pleased to report that we delivered very good top-line growth on our hotels and packages, bus and ancillary business segments and also managed to grow market share in domestic air segment marginally from 30.6% to 30.8%. Our registered operating profit for the quarter was also at $47.3 million, witnessing growth of 21% year on year.
Speaker Change: While domestic demand for leisure travel was particularly weak for domestic Leisure. Destinations for air travel and holiday packages. Being a 1-stop shop on travel allowed us to drive growth from other travel Services, other modes of Transport as well as ancillary travel Services, catering to non-legal travel use cases. We also continue to drive growth in international travel where online booking behavior is growing and the overall demand was really relatively less impacted.
Speaker Change: And last but not the least, we managed to continue the growth momentum in our corporate offerings. As a result despite the exceptional macro headwinds during the reported quarter, I'm pleased to report that we delivered, very good Topline growth on our hotels and packages bus and ancillary business segments, and also managed to grow market share in domestic segment. Marginally from 30.6 to 30.8%
Speaker Change: Our registered operating profit for the quarter was also at 47.3 million, witnessing growth of 21%, year on year.
Rajesh Magow: We believe this impact is short-term in nature and doesn't materially alter our view of the travel sector's long-term growth prospects of the Indian travel and tourism market. India's travel sector is poised for strong, long-term growth driven by rising disposable income, infrastructure upgrades, and fundamental shift in consumer behavior to spend more on travel. Indian consumers are increasingly prioritizing experiential travel activities and experiences. There is a clear shift toward taking multiple holidays and short breaks throughout the year, signaling a structural change in travel consumption patterns which bode well for us. International outbound travel from India presents a significant growth opportunity as well, with more Indians eager to explore global destinations.
We believe this impact is short-term in nature and doesn't materially alter our view of the travel sectors. Long-term growth prospects of the Indian travel and tourism market. India travel sector is poised for strong long-term. Growth driven by Rising disposable income. Infrastructure upgrades and fundamental shift in consumer Behavior to spend more on travel. Indian consumers are increasingly prioritizing experiential, travel activities and experiences. There's a clear shift toward
Speaker Change: taking multiple holidays and short breaks throughout the year signaling. A structural change in travel consumption patterns, which board well for us.
Rajesh Magow: Short-haul markets are gaining traction driven by better air connectivity, simplified visa processes, and rising preferences for quick getaways. For Q1 fiscal year 26, our international air ticketing revenue grew by over 27% year-on-year, far outpacing industry growth. Similarly, our international hotel revenue grew by over 45% year-on-year. Our international business now contributes about 27% to the overall revenue, up from 24% during the same period last year.
International outbound, travel from India presents. A significant growth opportunity as well with more Indian. Eager to explore Global destinations short. All markets are gaining traction driven by better air connectivity. Simplified Visa processes and Rising preferences for quick. Get getaways.
Speaker Change: For q1 fiscal year. 26, our International Air ticketing Revenue grew by over 27% year on year.
Speaker Change: Our output outpacing industry growth. Similarly, our international hotels, Revenue grew by over 45% year on year.
Rajesh Magow: Let me now turn to the business segment, starting with the air ticketing business. As mentioned before, this quarter was impacted by operational disruptions, particularly for domestic market due to uncontrollable factors. However, we delivered above-market growth and gained share in our air business. As part of our ongoing efforts to enhance customer experience, we have launched a new version of our Zero Cancellation product for domestic fliers, designed to boost user confidence and repeat usage for frequent domestic flyers. We have also further streamlined the airport transfer booking process for domestic flights. Travelers can now conveniently reserve a cab of their choice from a wide range of options while booking their flight.
Our international business. Now contributes about 27% to the overall Revenue up from 24% during this same period last year.
Speaker Change: Particularly for domestic Market due to uncontrollable factors. However, we delivered above market growth and gained share in our are business.
Speaker Change: R0 cancellation product for domestic flights designed to boost user confidence and repeat usage of usage. For frequent domestic Flyers.
Rajesh Magow: For our international travelers, we also expanded our lounge offerings to include debauchers from 131 international airports. Customers can now conveniently purchase airport lounge access while booking their international flights, enhancing their pre-flight experience. Our accommodation business, which includes hotels, homestays and packages, delivered healthy growth despite a lower share of leisure bookings this quarter due to macro disruptions, particularly for our 100% leisure-focused packages business. Jammu and Kashmir, a key summer travel destination, saw a dip in tourist inflow this quarter due to the unfortunate incident in Palgaon that affecting our growth. Gross booking value of hotel and packages business grew by 15.3% on NIO in constant currency for Q1 FY26.
We've also further, streamline the airport transfer booking process for domestic flights Travelers. Can now conveniently reserve a cab of their choice from a wide range of options while booking their flight.
Speaker Change: For our International Travelers. We also expanded our Lounge offerings to include devices from 131 international. Airports customers can now conveniently purchase airport lounge. Access while booking their international flights enhancing their pre-flight experience.
Our accommodation business which includes hotels home stays and packages, delivered Healthy Growth, despite a lower share of leisure bookings. This quarter due to macro disruptions particularly for our 100% Leisure folks focused packages business.
Rajesh Magow: Cross bookings for stand-alone hotel business however grew by 19.4% year-on-year on consumer currency basis. While domestic leisure travel phase has been this quarter, other segments including corporate, travel and international outbound delivered strong growth. As we deepen our reach across the country, we see good traction from Tier 3 cities reflecting rising travel adoption in smaller cities. In line with this trend, we continue to expand our supply base in the domestic market. We now have 91,000 plus accommodation options available on the platform covering 2,000 plus cities in the country.
Speaker Change: Jammu and Kashmir is a key summer travel destination. So I'll dip into this in Globe. This quarter due to the unfortunate incident in Belgium that affecting our growth cross booking value of hotel and packages, business grew by 15.3% year, on year in constant currency or q1 fiscal year 26.
Speaker Change: Cross booking for Standalone Hotel business. However, grew by 19.4% year on year on constant currency basis.
Speaker Change: While domestic Leisure Travel faced. Edwin this quarter other segments including corporate travel and international, outbound delivered, strong growth.
Rajesh Magow: For international market, on the other hand, we have been expanding our international hotel supply through a direct contracting strategy focused on high demand outbound destinations. In the past year, we have added over 2,000 directly contracted hotels across 50 cities in 20 countries. These logistics collectively account for more than half of India's outbound travel.
Rajesh Magow: During the quarter, we partner with... Premier Inn, the UK's largest hotel chain, this addition further strengthens our international hotel portfolio with a brand known for its scale, reliability and value. Offering Indian travellers more relevant choices across key cities in the United Kingdom.
Speaker Change: As we deepen, our reach, across the country, we see good traction from tier 3 cities, reflecting Rising travel adoption and smaller cities in line with this trend, we continue to expand our supply base in the domestic Market. We now have 91,000 plus accommodation options available on the platform covering 2,000 plus cities in the country for international market. On the other hand we have been expanding our International Supply through a direct Contracting strategy focused on high demand outbound destinations. In the past year we have added over 2,000 directly contracted hotels across 50 cities in 20 countries. These zip the cities collectively account for more than half of India's outbound travel. During the quarter we partner with
Premiere in the UK's largest hotel chain. The addition further this addition for the strengthens our International Hotel portfolio with a brand known for its scale, reliability and value.
Speaker Change: Offering Indian Travellers more relevant choices across key cities in the United Kingdom.
Rajesh Magow: Our product strategy is built on deep consumer insights and leveraging GenAI. This is helping us transform hotel booking experience on our brand through a robust and comprehensive knowledge graph that integrates hotel data, reviews, images, location insights and user intent. This enables natural language search and context-aware recommendations as well. As the graph evolves, it will unlock more personalized and relevant results for our customers.
Our product strategy is built on deep consumer insights and leveraging Genai. This is helping us transform hotel. Booking experience on Our Brands through a robust and comprehensive Knowledge. Graph that indicates integrates Hotel data reviews, images, location, insights, and user intent.
Speaker Change: This enables natural language search and context aware recommendations as well.
Rajesh Magow: Recognizing the influence of food and hotel selection by Indian travelers, we have made dining-related content a key product priority on MakeMyTrip. From showcasing on-property dining options like rooftop lounges and specialty cuisines for premium travelers to highlighting availability of vegetarian and Jain meals in religious destinations, we've scaled food-related to over 21,000 properties across India. This allows us to deliver more context-aware hotel recommendations based on travelers' culinary preferences.
As the graph works, it will unlock more personalized and relevant results for our customers.
Speaker Change: Organizing the influence of food and hotel selection by Indian Travellers, we have made dining related content, a key product priority on, make my trip.
From showcasing on property dining options.
Rajesh Magow: Another emerging trend among Indian travelers is wildlife tourism. We have prioritized this insight by enriching our content and discovery signals. With increasing interest in nature-based experiences among families and small groups, the proximity of hotels to a national park, safari gate, or forest buffer zone has become a key factor in trip planning. For over 2,000 properties, especially near wildlife hotspots, we now assess these details prominently, driving higher engagement and conversion.
Like rooftop, lounges and special speciality Cuisines for premium, travelers to highlighting, availability of vegetarian and Jan meets in religious destination, we've scaled food related data coverage to over 21,000 properties across. India, this allows us to deliver more context, aware Hotel recommendations based on Travelers culinary preferences and other emerging Trend among Indian Travellers is wildlife tourism. We have prioritized this Inside by enriching our content and Discovery signals.
Rajesh Magow: In our holiday packages business, international outbound packages continue to scale well with Japan leading the growth, followed by Africa. For international, we continue to add destinations and options for travellers. We launch packages for Jordan with the start of direct flights from Mumbai on Royal Jordanian Airlines. We also launch packages for Tashkent.
With increasing interest in nature-based experiences, among families and small groups, the proximity of hotel to a national parks Safari gate or Forest buffer zone has become a key factor in planning for over 2,000 properties, especially near Wildlife hotspots. We now success these details prominently, driving higher engagement and conversion.
In our holiday packages business, International outbound packages, continue to scale. Well with Japan leading the growth followed by Africa or International. We continue to add destination and options for travelers. We launched packages for Jordan at the start of direct flights from Mumbai on Royal Jordanian Airlines. We also launched packages for tashka and
Rajesh Magow: Our homestay business continues to scale. We continue to build the category and expand our homestay supply. We added more supply in our top 18 pilgrimage cities led by Varanasi, Ayodhya and Thirupati, which witnessed a 103% increase in new rooms on the platform versus same quarter last year. The supply in business cities grew 46% year-on-year with notable growth in new rooms in Mumbai, Delhi, Bangalore, Hyderabad and Gurgaon.
Our home state business continues to scale, we continue to build the category and expand our home State Supply. We added more Supply in our top 18 Pilgrim, uh, cities led by Vanessa Yoda and therapy which witnessed a 103% increase in new rooms on the platform versus same quarter last year.
Rajesh Magow: Among international travelers, particularly solo travelers, families and groups, we have observed a rising preference for alternative accommodations such as hostels and apartments. To cater to this shift, we implemented targeted interventions to surface these property types to relevant customer cohorts in Europe and other key destinations. As a result, we saw an improvement in the share of alternative accommodation with our international business.
Rajesh Magow: In our bus business, growth further improved in Q1 fiscal year 26 with all regions growing in double digits. Our growth continues to be broad based with all regions growing in double digits with north and east outpacing traditional bus markets like south and west during the quarter. We are also noticing significantly higher growth from pilgrimage and tier 3 destination. Inventory addition remained buoyant throughout Q1-26 with private inventory crossing 44,000 daily schedules by the end of the quarter. This was driven by new bus addition by existing operators which are predominantly sleeper buses in long routes including the addition of 90 plus premium Volvo buses in the quarter.
I'm International Travelers, particularly solo. Travelers families and groups. We have observed the rising preference for alternative accommodations such as hostels and apartments, to cater to this shift. We implemented target targeted interventions to surface. These property types to relevant customer cohorts in Europe and other key destinations. As a result, we saw an improvement in the share of alternative accommodation with our international business.
Speaker Change: In our bus business growth further improved in q1 fiscal year, 26 with all regions growing in double digits. Our growth continues to be broad-based with all regions, growing in double digits, with not and East outpacing, traditional bus markets, like South and West during the quarter.
We are also noticing significantly higher growth from pilgrimage and tier 3, destinations.
Rajesh Magow: This trend of investment in new buses is likely to continue in the coming quarters.
Inventory Edition remained bored throughout q1 facility year, 26 with private inventory, Crossing 44,000, daily schedules by the end of the quarter. This was driven by newest edition by existing operators, which are predominantly slipper buses, in Long roads, including the addition of 90 Plus premium valuable buses in the quarter.
Rajesh Magow: For RTCs, government buses too, we saw significant increase in inventory with the acquisition of GS RTC, Gujarat State Roadways Transport Corporation and an almost 4x increase in digitized inventory from UPS RTC. This has resulted in RTC inventory crossing 40,000 daily schedules as of June.
This trend of investment in new buses is likely to continue in the coming quarter.
Rajesh Magow: Our international bus business continues to be promising. In Malaysia, which is a big market and where we are the market leader, with a healthy market share in online bus booking, we are adding more adjacent products such as ferries and activities. In other countries, we are in the market-making mode and seeing steady progress.
For rtc's government buses to. We saw significant increase in inventory with the acquisition of gsrtc. Gujarat State, Road roadways transport Corporation and almost 4X increase in digitized, inventory from upsc, uh, UPS RTC. This is resulted in RTC inventory Crossing 40,000 daily schedules as of June
Our International Bus business continues to be promising in Malaysia, which is a big market and where we are the market leader with a healthy market share in online bus booking. We are adding more adjacent products such as fairies and activities.
Rajesh Magow: We continue to strengthen the customer proposition within our trains business. This quarter, we launched an industry-first seat prediction feature, powered by a machine-learning-based forecasting model. By integrating real-time seat availability signals within the booking funnel and deploying targeted notifications, we have enabled more confident and timely booking decisions. For our CABS business, we continue to scale both airport transfer and intercity CABS.
In other countries, we are in the market market making mode and seeing steady progress, we continue to strengthen the customer proposition within our trains business. This quarter, we launched an industry first seat, availability prediction, feature powered by a machine learning based forecasting model by integrating real-time State, availability signals within the booking funnel and and deploying targeted notifications. We enable we have enabled more confident and timely booking decisions.
Rajesh Magow: During the quarter, we launched flight... track caps to ensure seamless airport to city ride for our customers. By using real-time flight data, we dynamically adjust cap pickup times, guaranteeing timely service whether a flight is delayed or arrives early. This initiative has improved our service reliability and has led to higher end peers.
Speaker Change: for our gaps business, we continue to scale both airport transfers and in the city caps during the quarter we launched flight
Track gaps to ensure seamless airport to City ride for our customers.
Rajesh Magow: We plan to enhance accuracy using data science, increase supply participation, and scale this across all our platforms. Our corporate travel business via both our platforms that is MyBiz and Quest2Travel is witnessing strong growth. Our active corporate customer count on MyBusiness is now over 66,500 plus compared to 59,700 customers during the same quarter last year. And for Quest2Travel, the active customer count has reached 515 large corporates compared to 458 customers in the same quarter last year.
By using real-time flight data, we dynamically adjust cap pickup times guaranteeing timely service weather of flight is delayed or arrives. Early, this initiative has improved our service reliability and has led to higher NPS, we plan to enhance accuracy using data science, increased Supply, participation and scale this across all our platforms.
Our corporate travel business via both our platforms. That is my business and quest to travel is witnessing strong growth.
Rajesh Magow: Looking ahead, we remain optimistic about the long-term growth prospects of the Indian travel. sector and are firmly committed to delivering sustained value to our customers, partners and stakeholders.
Our active corporate customer. Count on my business, is now over 66,500 plus compared to 59,700 customers during the same quarter last year and for Quest to travel the active. Customer count has reached 515 large corporates compared to 458 customers in the same quarter last year. Looking ahead, we remain optimistic about the long-term growth, prospects of the Indian travel.
Rajesh Magow: Before I conclude, I want to extend my sincere thanks to all our existing and new shareholders and investors for their trust and support in our recent capital race, which contributed to making it a very successful offer.
Speaker Change: Sector and are firmly committed to delivering sustained value to our customers partners and stakeholders.
Mohit Kabra: With this, let me now hand over the call to Mohit for the financial highlights of the quarter. Hi Rajesh and hello everyone. We started the quarter with strong growth of 25.3% during the pandemic. What stands out during the quarter is that within the Indian travel market, we were able to leverage our diversified mix to grow faster in other segments when domestic air-ticketing and holiday packages demand was noticeable. Secondly, dial up our corporate platforms when leisure demand was impacted. And lastly, drive operating leverage by affecting costly words when growth seems to have muted despite peak travel season.
Before I conclude, I want to extend my sincere, thanks to all our existing and new shareholders, and investors for their trust and support in our recent Capital race, which contributed to making it a very successful offering.
Speaker Change: With this. Let me now hand over the call to Mohit for the financial highlights of the quarter.
Hi Rajesh and hello everyone.
We started the quarter with strong growing growth of 25.3% during our period.
Speaker Change: which tapered off during May and June due to multiple macro challenges that Rajesh has already spoken about
What stands out during the quarter is that within the Indian travel Market.
Speaker Change: To leverage on there was quite mixed to grow faster in other segments.
Speaker Change: Investigating and holiday packages, demand was muted.
Secondly, dial up, our corporate platforms and Leisure demand was impacted.
Speaker Change: Also push International offerings when domestic demand was subdued.
And lastly Drive operating leverage by impacting costly words. When growth seems to have muted despite Peak Travel season narrative,
Mohit Kabra: Thank you for watching. For the reported quarter, revenue as per IFR is given by 7.8% year-on-year in constant currency to $268.8 million from $264.5 million in same quarter last year. Profit for the quarter was 25.8 million compared to 21 million during same quarter last year, raising 22.6% year-on-year growth. Adjusted operating profit, we saw a growth of 21% year-on-year and reached 47.3 million dollars compared to 29.1 million dollars in Q1 of last year. Moving on to our segment results, our air-ticketing adjusted margin stood at $97 million, registering a growth of 11.5% year-on-year in cost and currency.
Speaker Change: this performance, underscores the importance of our Diversified business portfolio, discipline financial management and operational agility.
To 4.5 million dollars in same quarter last year.
The growth was impacted due to a series of external events. A profit. For the quarter was 25.8 Million compared to 21 million during same quarter last year. Registering 22.6%, year-on-year growth registered operating profit.
Speaker Change: We start a growth of 21% year on year and reached 47.3 million compared to 39.1 million in q1 of last year.
Mohit Kabra: Take-aways for the air-ticketing business were in line at 6.8%. to maintain our market share despite the macro challenges at over 30%. Our international air ticketing business continues to grow faster than the market. volumes in this segment grew by over 21% year on year, which was almost three times the market growth of 7% during the quarter. PICSOP International Integrating Business Revenue has now reached an all-time high of 42% compared to 37% during the same quarter last year. In the hotels and packages segment, adjusted margin growth was 16.3% year on year in constant currency, resulting in an adjusted margin of $121.9 million during the quarter.
Moving on to our segment results our 8 heating adjusted margin stood at 97 million dollars registering a growth of 11.5% year on year in constant currency day, great for the 8 business were in line and 6.8% in the domestic care Market.
Speaker Change: We maintain our market share, despite the macro challenges at over 30%.
Speaker Change: Our International aging business continues to grow faster than the market.
Volumes in this segment, grew by over 21% year on year.
Speaker Change: Which was almost 3 times. The market growth of 7%.
Speaker Change: Through the quarter.
Mix of international, educating business Revenue has now reached an all-time high of 42% compared to 37% during the same quarter last year.
In the hotels and packages, segment existed. Margin growth was 16.3% year on year. In constant currency, resulting in adjusted margin of 121.9 million during the quarter,
Mohit Kabra: by because of domestic leisure travel being impacted despite the pandemic. Take rates for the quarter were in line at 17.7% in this segment. As Rajesh has already explained, we have also been increasing directly contracted international accommodation options, particularly in destinations where direct flight connectivity has been established and select long-haul destinations which are of great interest to India. As a result, the mix of international name hotels and packages revenue reached and all time high of 25.2% in this quarter, up from 21% during the same quarter last year. In our bus ticketing business, the adjusted margin stood at $42.6 million, registering a strong year-on-year growth of over 34.1% in constant currency terms. Take rates for the business were in line at 10.3%.
Speaker Change: Over the expected. As the holidays packages has was largely flat year on year.
By because of domestic Leisure Travel being impacted.
Speaker Change: Society.
Great for the quarter were in line at 17.7% in this section. As raj is already explained. We have also been increasing directly contracted International, accommodation options. Particularly in destinations where direct flight connectivity has been established in select long. Hold destinations which are of great interest to Indians
But 2% in this quarter up from 21% during the same quarter last year.
Mohit Kabra: The ground transport business includes rail and intercity cabs and is reported under the others category, business strong growth. Gross booking for the quarter is $271.8 million, witnessing a growth of 31.6% year-on-year in constant currency for the ground transport business. and others category such as travel insurance, forex etc. also grew very well during the quarter. As a result, adjusted margins from others category came in at $21.5 million, witnessing a strong growth of 47.4% year on year in constant growth. We remain focused on building operating cost efficiencies and driving operating leverage in R6 costs, including personal, family and general administrative expenses.
In our particular business, we exist in margin and stood at 42.6% million dollars registering a strong year-on-year growth of over 34.1% in constant. Currency terms, take credit for the business were in line at 10.3%.
A ground transport business which includes rail entity cabs and is reported under the others category distance. Strong growth gross booking for the quarter is 2871.8 million witnessing a growth of 31.6% year on year in constant currency for the ground transport businesses.
Most of the ancillary services.
Speaker Change: Supported under.
Speaker Change: Others category.
Was travel insurance, Forex Etc. Also grew very well during the quarter, as a result. Adjusted margin from others category, came in at 21.5 million witnessing, a strong growth of 47.4% year on year.
In constant currency.
Speaker Change: We remain focused on building operating cost efficiencies and driving operating. Leverage in our fixed costs, including personal selling and General Insurance.
Mohit Kabra: Similarly, our customer efficient cause that is our marketing and sales promotion expenses can be able to remain efficient. For the one and quarter three are generally higher than marketing expense quarters in line with the seasonality. In this quarter, we were able to partially roll this back through the tepid months of May and June. As a result, our customer exchange cost came in at 5.1% of gross booking value. All other expenses were in line and help does expand the overall adjusted operating margin from 1.64% of gross booking value during Q1 of last year to 1.8% of gross booking value during the current reported quarter.
Similarly, our customer acquisition cost. That is our marketing and sales promotion expenses
Speaker Change: Continue to remain efficient.
Speaker Change: For 1 and quarter 3 are generally.
Higher brand marketing, expense quarters in line with the seasonality.
In this quarter, we were able to partially roll this back through the tepid months of May and June as a result, our customer action course, came in at 5.1% of gross breaking value.
Speaker Change: All other expenses were in line and helped us expand the overall adjusted operating margin from 1.64% of gross booking value. During q1 of last year to 1.8% of gross booking value.
Speaker Change: Reported quarter.
Mohit Kabra: Thank you for watching.
Ended the quarter with cash and cash equivalents of 804 million.
And we'll continue to look for in organic investment opportunities during the year.
Mohit Kabra: Thank you very much. We have completed the repurchase and cancellation of 34.3 million Class B ships. As a result of the repurchase, we have a total of 95.4 million shares outstanding compared to 111.3 million shares outstanding as on 31st March, 2025. Trip.com is now the largest minority shareholder with approximately 16.9% voting shares in the company.
The quarter. We were also able to significantly dial Upon Our share. Repurchase initiated we raised additional capital of approximately 3.1 million dollars.
Speaker Change: Through primary offering of ordinary shares and zero coupon convertible Syrian out.
The entire net proceeds from the offerings were used for repurchase of Class B shares. After the completion of the reported quarter on 2nd July
Speaker Change: 2025, we have completed the repurchase and cancellation of 34.3 million Class B shares.
as a result of the repurchase, we have a total of 95.4 million shares outstanding compared to 219.3 million shares outstanding as on 30% March 2025
Speaker Change: How the largest minority shareholder with approximately 16.9% voting shares in the company?
Mohit Kabra: We would like to take this opportunity to thank our existing and new incoming investors who have participated in the AffordSafe primary auction.
Vipul Garg: With that, I'd like to turn the call back to Vipul for Q&A. Thanks, Mohit. Anyone wishing to ask a question can click on the raise hand options on their computer screen and we will take the questions one by one.
You would like to take this opportunity to thank our existing and new incoming. Investors who have participated in the opposite primary offerings.
Speaker Change: With that, I'd like to turn the call back to people for Q&A.
Sachin Salgaonkar: The first question is from the line of Sachin Salgaonkar of Bank of America. Sachin, you may please ask your question. Thanks, Vipul. Hi, management. Congrats on a good set of numbers in what was looking as, you know, a very difficult quarter. I have a few questions.
Speaker Change: Thanks Mohit. Uh, anyone wishing to ask a question, can click on the raise hand options on their, uh, computer screen? And we will take the questions 1 by 1. The first question is from the line of suchin, Salonga of Bank of America such in UA. Please ask your question now.
Speaker Change: Thanks for the, uh, my management. Congrats on a good set of numbers and what was looking at, you know, a very difficult quarter.
Rajesh Magow: First question, I know you as a company were targeting revenue and GMB growth of 20% or every year. Given the fact that 1Q is at a 16% growth on revenue, how should we think about the upcoming quarters in the sense that for full year are we still aiming at a 20% growth or we might see growth, you know, lower than 20 odd percent? So that's question number one, but let me pause here. Yes, Sachin. Maybe I can just take that. So if you really look at it across lines of businesses, you know, if I look at across all lines of businesses, the adjusted margin growth overall stands at close to about 18.8%.
Speaker Change: Uh, I have a few questions. Uh, first question, I know you as a company were targeting, uh, revenue and gmv growth of 20%, or every year. Given the fact that 1 Q is at a 16% growth, uh, uh, on Revenue. How should we think about the upcoming quarters, uh, in the sense that portfolio? Are we still aiming at a 20% growth, or we might see a growth, uh, you know, lower than 20 odd percent. Uh, so that's question number 1, but let me pause here.
Maybe I can just take that, so it will really look at it across, uh, lines of businesses. You know, if I look at across all lines of businesses, the existing margin growth overall.
Rajesh Magow: So we're kind of pretty close to the, you know, the 20% mark that we were kind of wanting to achieve. This is happening despite all the micro-events that we have already talked about during this quarter. We are still on target to be in the high teens to 20s in terms of overall growth for the year as well. So, Mohit, in a way, what you're saying is the next three quarters, the growth could be better than 1Q to achieve your full year target of 20%, right? Yes, we do expect that we should be able to dial back growth because like we said, you know, April started off with much better growth, but due to the events of May and June, which have kind of, you know, brought down the overall number for the quarter.
Speaker Change: Stands at close to about 18.8%. So we kind of pretty close to the, you know, the 20% Mark that we were kind of wanting to achieve and
Speaker Change: this is something.
Speaker Change: despite all the
Speaker Change: you know, the micro events that we have already talked about during the quarter,
I think that part of it is because comfort that we still on target to be in the High Teens to 20s in terms of overall growth for the year as well.
Speaker Change: So what you're saying, is the next 3, quarters, the growth could be better than 1 Q to achieve your full year Target of 20%, right?
Rajesh Magow: Got it.
Rajesh Magow: Sorry, Sachin, sorry, Sachin, if I may just add one important data point here. You know, while what Mohit said about the rest of the segments in our commentary, we covered that only domestic market was, you know, more impacted. I think we should look at constant currency growth number and the gap on constant currency, you know, from growth perspective is just 1.2%. So, 18.8% is actually growth for constant currency overall.
Yes, we do expect you know that we should be able to dial back growth because like we said, you know, operate started off with much better growth, but it is the events of May and June which are kind of, you know, brought down the overall number for the quarter. Got it. Um, the second, I'm sorry, sorry, sorry searching, sorry searching if I may just add 1 important data point here. Uh you know while what more it said about the rest of the segments, in our commentary, we covered that only domestic Market was uh you know more impacted I think we should look at constant currency growth number and the the Gap with non-constant currency. Uh, uh, you know, from growth perspective is just, uh, 1.2%. So, 18.8% is actually growth for constant currency overall,
Rajesh Magow: Thank you for that. Second question, I just wanted to gauge the consumer sentiment out here. I know because of the three one-off issues, be it India-Pakistan conflict, Iran-Israel, or to that matter even an Air India plane going down, clearly the near-term consumer sentiment was negative. So just wanted to understand, you know, as we head out of 1Q, are you seeing an improvement in the sentiment? I do understand, you know, from a seasonality perspective, 1Q, 3Q are strong. But keeping aside seasonality, do we see the consumer sentiment improving? And a related question perhaps is, you know, obviously, for last couple of years, we are seeing a bit of an air supply issue.
Rajesh Magow: If anything, that supply issue has again increased. So would love to get your thoughts in terms of how we should see that also. Yeah, maybe I can take that. So we've started seeing the sentiment of proving such an impact. If you look at the overall daily flown data, first in the domestic market, and then look at the international flown data, you would see the trends, you know, April, The daily flow numbers were actually pretty close to the average of the previous quarter and the impact was May and June. But if you really break that into literally day-on-day trend, you would see that the June numbers have started to come back.
Thank you for that. Um, second question, what just wanted to gauge the consumer sentiment out here? I know because of the 3 1 of issues, be it India. Pakistan conflict, Iran, Israel, or to that matter. Even an Air India plane going down. Clearly the near-term consumer sentiment was negative. Uh, so just wanted to understand, you know, as we head out of 1 Q, are you seeing an improvement, uh, in the sentiment? I do understand, you know, from a seasonality perspective, 1, Q3 Q are strong but keeping aside seasonality, do we see the consumer sentiment improving and a related question, perhaps. As you know obviously for last couple of years, we are seeing a bit of an Air Supply issue. If anything that supply issues again, increase so would love to get your thoughts in terms of how we should see at that. Also,
Speaker Change: Yeah, maybe I can take that session. So we've started seeing the the sentiment improving such an impact. If you look at the, um, you know, the overall daily flow data, um, first in the domestic market and then look at the international flowing data. Uh, you would see the trends, um, you know, um, April, uh,
Rajesh Magow: So we do see the overall sort of sentiment improving. We obviously see data on our platform in terms of booking trends for even leisure destinations and slowly and gradually coming back as well. So I do think, like I was just saying it as part of the commentary as well, that this is not, this is like a temporary disruption. I don't think it's going to sort of, you know, change the structural shift that was happening on consumer behavior on spending more as part of their discretionary income on travel or on any other experience. I don't think so.
Speaker Change: The daily flow numbers were actually pretty close to the average of, um, the previous quarter. And the impact was May and June, but if you really, uh, you know, break that into literally day on day trend, you would see that the June numbers have started to come back. Um, so we do see, uh, you know, uh, the overall sort of sentiment approving. We obviously see data on our platform in terms of booking trends for even Leisure destination, slowly and gradually coming back as well. Um so I do think like I was just saying it as part of the commentary as well that uh that this is not this is like a temporary disruption.
Rajesh Magow: And we've seen that sort of recovery already happening slowly and gradually. You know, obviously, it will pick up this running quarter is non-season travel quarter as well. But in that, you know, keeping that in mind, keeping seasonality in mind, we do see the sentiment coming back. We also keep doing our own sort of consumer sentiment survey and there also we've started to see the recovery trend, you know, week on week.
Rajesh Magow: And on the supply side, yes, there was a temporary disruption and this was completely this time around for a different reason, right? This was just more for the safety check for various planes and all the partners just being absolutely making sure that they had to double down on safety checks, etc., and because of it, some temporary announcements were made. But there also we have started to see planes coming back, the overall sort of daily departures coming back to track. It seems like this impact was in the quarter and we see the recovery happening and it should go back to the sort of same levels of April in terms of just the supply that was already there in the market.
Speaker Change: Happening. Um, slowly and gradually. Uh, you know, obviously the it'll pick up this, uh, uh, running quarter is, is non non-season travel quarter as well. But in that, you know, keeping that, um, in mind keeping seasonality in mind, we do. We do see, uh, the sentiment coming back. We also keep doing our own sort of consumer, um, sentiment survey. And there also, we've started to see, uh, the recovery Trend, uh, you know, week on week. Uh, and on the supply side, um, yes. There was a temporary disruption and this was completely this time around from a different reasons, uh, for a different reason, right? This was just more for the safety, check for various planes and all the, uh, Partners just, um, being absolutely making sure that, uh, that they had to double down on safety checks Etc. And because of it, some temporary announcements were made but there also we have started to see plane planes coming back. The overall sort of daily departures coming back to track.
um, that in any case relatively was
Impacted uh and we see that sort of coming back as well. So I don't think on the supply side anything um you know changes from what our narrative was let's say beginning of the the fiscal when we had reported our last quote last year results. Um,
Rajesh Magow: So, I don't really see any further situation deteriorating from what it was at the beginning of the crisis. Thank you, Rajesh.
Speaker Change: It it Remains the Same seems like it's impact, uh, was in the quarter. Uh, and um, we see the recovery happening and and it should go back to the sort of same levels, uh, of April. In terms of just the supply that was already there in the market. So I don't really see any further situation, deteriorating from what it what what what it was at the beginning of the fiscal.
Rajesh Magow: And my last question is on a potential IPO in India. And as you know, after Ctrip selling downstake and coming below 20%, few investors, you know, do have some expectations about a potential IPO in India. I know management in the past had reiterated listing in India as a medium term aspiration, but would love to get an incremental update from you guys. Anything we as analysts and investors need to watch out for us to get a sense that, you know, if indeed there is a thought process and there is a clarity about the potential IPO and, you know, what are some of the, you know, events to watch out from, from that perspective.
Thank you, Raj. And my last question is on a potential IPO in India. And as you know, after crip selling down stake and becoming below 20%, uh, few investors, you know, do have some expectations about a potential IPO in India. I know Management in the past had reiterated listing in India as a medium-term aspiration but would love to get, you know, an incremental update from you guys. Anything. So we as analysts and investors need to watch out for us to get a sense that, you know, if indeed there is a thought process and there is a Clarity, uh, about the potential IPO. And you know what are some of the, you know, events to watch out from from that perspective.
Rajesh Magow: As you can maybe I can take that and you're right and I think I just reiterate that it continues to be a mid-term opportunity for us to look at, like we have been calling out in the past, you know, the India capital markets is something that we'll definitely look at. as they materialize. And right now, like I've called out, we've only added further to the balance sheet from the quarter, and we're currently sitting at about $800 million of cash and cash equivalents.
Speaker Change: Maybe I can take that and now you're right. And I think I'll just reiterate that it continues to be a a midterm opportunity for us to look at uh like like we've been calling out in the past, you know, uh, the India Capital markets is something that will definitely look at.
Speaker Change: These funds.
uh the current exercise that we did, was largely, you know, more repurchase program
Speaker Change: And like we have always said, uh, you know, the current shareholding pattern that we have even we we repurchases wasn't really a, a return to any kind of, you know, Capital Market activity globally or within India. So I think, uh, the the the the eventual listing in India is going to be more linked to uh fundraised plans as the materialized and right now, like I've called on you.
Rajesh Magow: So unless we find a significant reason to deploy a large amount of funds, I think the India plans will be...
Gaurav Rateria: MakeDumbOpportunities.info Thanks guys and all the best. Thank you. Thanks Sachin.
Speaker Change: Added further to the balance sheet, through the quarter, and my currently sitting at about 800 million dollars of cash and cash equivalent. So unless you find a, a significant, you know, uh, the reason to deploy, uh, you know, uh, large amount of funds in the India plans,
Got it. Thanks guys. And all the best.
Speaker Change: Thank you.
Manish Adukia: The next question is from the line of Manish Adukia from Goldman Sachs. Manish, you may please ask your question. Ankur, Vipul, hi, good evening. Thank you for taking my questions. My first question is on, again, demand. So when I think about your international segment, which, again, has done like a really good quarter, air, you mentioned 27% and hotel 45%, and now the overall international segment is more than a quarter of your revenue. So one, just want to get a sense of, do you think this runway of 30% plus growth on a blended basis is still like a long way to go, and you can continue to deliver on this number for some more time?
Speaker Change: Thanks Sachin. Uh, the next question is from the line of Manisha dukia from Goldman Sachs. Manisha, please ask your question now.
Manisha Dukia: Hi. Good evening. Thank you for taking the questions. Uh, my first question is on again, demands when I think about your International segment, which again, has done like a really good quarter, uh,
Manisha Dukia: Are you mentioned 20% in hotel? 45%. And now the overall International segment is more than a quarter of your Revenue so 1 just want to get a sense of. Do you think this Runway of 30% plus growth on a blended basis?
Manish Adukia: And is it largely a function of you adding more supply, or is it also a function of, you know, continued shift to online on the international side? And a related question there is, you gave the monthly booking data for April, May, and June for your overall segments, air, hotel, and bus. Was the trend similar for international as well, where April was very strong, and then May and June worsened, or was the trend in international different?
Rajesh Magow: That was my first set of questions. Okay, maybe I can just start with that and then, Mohit, you please add. So, Manish, you're absolutely right, two reasons you've already actually called out, and it's a combination of the two. I'll give you one more reason, you know, on the international trend, two that you called out is underpenetrated online market, which is absolutely true, behavior is going more and more towards online booking. And the second is we are doing a lot of effort on adding supply on both the segments, directly contracted. Of course, you know, just working really hard to also picking up consumer insights to improve the product experience as well.
Manisha Dukia: April May and June for your overall segments are hotel and bus was the trend similar for international as well, where April was very strong. And then May and June 1st and or was the trend in international different. That was my first set of questions.
Manisha Dukia: Sorry. Go ahead. Okay. Maybe I can just start with that and and then move it. You please add. Um, uh, so Manisha. Absolutely right 2 Reasons. You've already actually called out and it's a combination of the 2. I'll give you 1 more reason.
Rajesh Magow: But I'll tell you one more macro reason for this, and that is about the overall sort of country growth, you know, consistently GDP growing, rising income, disposable income growing. Also, it's sort of leading to, you know, sort of international travel, the overall international travel growth as well. So that is the third macro reason. And it's likely to be, you know, there for the foreseeable future, these all these macro drivers, because there is headroom everywhere. So if the country continues to keep growing, and the incomes continue to keep rising, you will see more and more urban population tier one, tier two cities, especially, and look to, you know, sort of leverage and cash on the air connectivity, improving the direct flights, air connectivity, improving and also the ease of travel, thanks to the, you know, short haul destination, the visa is becoming very, very sort of easy, you know, easily available for people and smooth experience for getting those visas without any hassle.
Manisha Dukia: You know, on the, on the international Trend, 1 tool that you called out is under penetrated online Market, which is absolutely true. Behavior is going more and more towards online booking and the second is, we are doing a lot of effort on adding Supply, uh, on all the sector, uh, on on both the segments. So directly contracted, of course, you know, just working really hard to, uh, also picking up consumer insights to improve the product experience as well, but I'll tell you 1 more, uh, macro reason for this and that is about the overall sort of country growth. Uh, you know, consistently GDP growing, uh, Rising income disposable income growing. Uh, also, a sort of leading to, um, you know, sort of, uh, international travel, the overall international travel, uh, growth as well. So that is the third macro reason and it's it's likely to be uh, you know, there for the foreseeable future. Uh, these all these macro drivers. Um,
Rajesh Magow: All of these trends, if you really bring them together, would help the international, you know, travel segment to definitely grow.
Mohit Kabra: And you know, from our strategic sort of direction standpoint, we clearly doubling down on that. Maybe I can just add, Manish, I can go to two questions that you had. Yes, while Rajesh has already covered the depth of supply both for domestic and international, I would also say the overall width of supply because we keep on adding new ancillary services on the platform as well. So that's another, what I'll be another kind of source of incremental growth that we'll want to keep dialling upon. And of course, the continued shift from offline to online will be a driver as well.
Manisha Dukia: Uh, because there is Headroom everywhere. So if we in the country continues to keep growing, uh, and the, the incomes continue to keep Rising, you will see more and more urban population, Tier 1 tier 2 cities, uh, especially, uh, and look to, uh, you know, sort of Leverage and, and cash on. Um, the air connectivity. Improving the direct flights are connectivity, improving. And also the, uh, the ease of travel, thanks to the, you know, certain short. All this destination, the the Visa is becoming very, very sort of easy. Um, uh, you know, easily available for people and smooth experience for getting those visas without any hassles. Um, all of these Trends, if you really bring them together, would help uh, the international, um, you know, travel segment to definitely grow and, you know, from our strategic, sort of Direction standpoint, we clearly doubling down on that.
Speaker Change: Maybe I can just add uh Manisha I can go to 2 questions that you had yes by rajas is already covered the depth of Supply both for domestic International. I would also say the
Manisha Dukia: the, the overall width of Supply because we keep on adding new,
Manisha Dukia: Ancillary services on the platform as well. So that's another 1 I be another kind of in a source of you know incremental growth that we want to keep dialing upon.
Rajesh Magow: So just on the first question that you had, it's good. up in a driver's for growth, and on the second one, on international, you know, while domestic was very, very tippet growth in May and June, international wasn't as as impacted, even through May and June. And therefore, we were able to drive much better growth to the international offerings that we have on the blackboard. Thank you.
Manisha Dukia: And of course, the continued shift from offline to online, will be a driver as well. So just on the, on the first question that you had,
Manisha Dukia: This would be.
The kind of, you know, drivers for growth and on the second 1 on International, you know, while domestic was very, very tip. Good growth in, in May, in June International wasn't as as impacted, uh, even through May and June. And therefore, we were able to drive much better growth through the uh International uh offerings that we have on the platform.
Rajesh Magow: My second set of questions was on competition. So, one, if you can just maybe highlight the general competition landscape, particularly from airline direct, has there been any change? And second, from one of the other listed OTAs, which reported results, I think, last week, their growth, at least on headline, looked stronger than your reported growth. Anything that you can talk about in the competition dynamics that may have changed in the market, where any of the OTAs may have become slightly more aggressive than they were in the past? Would you love to get your thoughts? I can take the second one, probably, in terms of looking at the overall competitive dynamics and shares of various OTAs or intermediaries in the segment, we've generally seen the number 3, 4, 5 kind of changing places often, and this could be for multiple reasons.
Speaker Change: Thank you. Um my second set of question was on competition. So 1, if you can just maybe highlight, um, the general competition landscape, particularly from Airline direct have there been any change in second from 1 of the other listed OTAs Mexico, which reported results. I think, last week their growth at least on Headline looked stronger than your reported growth. Um, anything that you can talk about in the competition dynamics, that may have changed in the market where
Speaker Change: Um, any of the OTAs may have become slightly more aggressive than they were in the past? Would you know love to get your thoughts.
Speaker Change: I can take the.
uh, 1 of the, the
Speaker Change: probably uh, you know, so in terms of, if you're literally looking at the overall,
Speaker Change: Competitive Dynamics and, you know, shares of of the various uh OTAs or intermediaries in the in the in the segment.
Rajesh Magow: But what we are seeing largely across, what we are actually more targeting across various segments is, if you really look at it, on domestic air, we've got a very strong leading market share of close to over 30%, and therefore, that kind of a sizable share of the market, we are pretty realistic that we would tend to grow in line with the market, and it's OTAs with kind of marginal share in the segment, you could see a little bit of a trend changing, depending upon seasonality, depending upon competitive dynamics, but we are more focused on ensuring longer-term growth and longer-term market share, meaning holding at the 30% plus level.
We've generally seen, you know, the number 345 kind of, you know, changing places often. And you know, this could be for multiple reasons. Uh, what we are kind of, you know, seeing largely, uh, across what kind of, you know, actually more targeting across various segments, is if you really look at it on domestic area. We've got a very
Speaker Change: Strong leading market share of close to over 30% and therefore, and that kind of a, you know, sizeable, you know, share of the market.
You can share in the segment.
Rajesh Magow: So that's more on the overall change in kind of market participants and the report I from.
Rajesh Magow: Coming to overall competitive dynamics, no significant change as such, largely in line with what it has been for the last few quarters or for the last couple of years, including on the direct side. I think the lining of supply and direct is something which we have always said, all suppliers will be kind of, of course, looking at maintaining or kind of increasing their share Aditya Chandrasekar, Manik Taneja, Vijit Jain, Ankur Rudra, MakeMyTrip Ltd.
Speaker Change: A little bit of a, you know, kind of, you know, uh, Trend changing, uh, depending upon the reality depending upon competitive Dynamics, but we are more focused on ensuring, you know, longer term growth and longer term market, share remaining holding, you know, at the 30% plus level. So that's more on the on the overall, you know, uh, change in kind of, you know, Market participants in the, in the, in the reporters there from coming to overall competitive Dynamics. No significant change. As such, you know, money, you know,
Speaker Change: In.
Speaker Change: What it has been for the last few.
Speaker Change: Quarters for the last.
Years.
Speaker Change: Uh, including on the direct side, I think.
Speaker Change: the value of the
Speaker Change: uh, Supply direct is something which we have always said, uh, all suppliers will be
kind of, of course, looking at maintaining or kind of increasing their share of direct.
Rajesh Magow: Thank You.
Speaker Change: Uh, shares of the of the overall demand side, but we want to kind of make sure that, you know, we continue to, you know, gain a meaningful share of most of our suppliers. We are not looking at kind of, you know,
Doing 100% of any supplier but we would want to have a rightful share and, and also provide distribution at the most efficient level, and in the most, uh, effective kind of, you know, cost of distribution. And that's what make sure that, you know, a longer term kind of, you know, growth with each of the suppliers remains.
Mohit Kabra: Thank you, Mohit.
Uh, consistent.
Mohit Kabra: My last question, Mohit, to you is on just capital allocation. In the March quarter, we saw some buyback from public shareholders in June. Of course, you had that large share refreshes from Trip.com. But outside of that, I don't think we saw any buyback. You obviously have 800 million of cash in the books and you're netting significant cash.
Mohit Kabra: Is there like a formal buyback policy that you're looking at beyond what you've put in the letter that there's a maximum amount that you will allocate towards buyback? And from a buyback strategy perspective, is there like a certain share price number that you have in mind? And if it goes below that, you look to intervene and buyback? Or how are you thinking about that? Some color there would be.
Speaker Change: Thank you, my last question uh more to you is on just Capital allocation uh in the March quarter. We saw some buyback uh from public shareholders in June. Of course you had that large Chevy purchase from trip.com but outside of that I don't think we saw any buyback here. You have 800 million of cash in the books and you can find cash. Is there like a
Speaker Change: formal buyback policy that you're looking at beyond what you
have put in the you know letter that there's a maximum amount that you will allocate towards buyback. And from a buyback strategy perspective is there like
Mohit Kabra: Sure, happy to share some color. If you really look at it, during the primary offerings also, we had called out that we were looking to deploy up to about $200 million from the balance sheet to achieve the objectives of the overall repurchase program of Class B shares. It so happened that we were able to offsize the offerings and therefore we did not have to deploy from the balance sheet. Otherwise, the intent during this quarter was to largely deploy in terms of repurchase of Class B versus Class A because that kind of works even better from a company's standpoint and even from the point of view of the minority shareholders.
A certain share price number that you have in mind that if it goes below that you look to intervene and buy back or how you thinking about that. Uh, some color there would be helpful.
Mohit Kabra: If you look at it in terms of, you know, the overall size of the repurchase program, we've been able to significantly dip into it for the quarter, which is a transition that we've already reported. But we remain open to kind of, you know, dipping into further buyback, even in the rest of the year, because we haven't really deployed directly from the balance sheet through the quarter.
Speaker Change: No sure, happy to share some color. And, you know, if you really look at it, uh, during the primary offerings, also, uh, we had called out that we were looking to deploy up to about 200 million dollars from the balance sheet, you know, to kind of achieve the objectives of the of the overall, you know, repurchase program of Class B shares, right? Uh, it so happened that we were able to kind of, you know, oxidize the offerings. And therefore we didn't have to deploy from the balance sheet. Otherwise the intent during this quarter was to largely deploy, in terms of, you know, repurchase of Class B versus Class A because that kind of, you know, works even better from a company's standpoint and even from the point of view of the minority shareholders. So, that's been the objective that
Mohit Kabra: Now, in terms of a program, whether you want to get into a steady program, like we have said, at least at this stage, we want to kind of... keep it more like an opportunistic program and therefore we will deploy it as we believe there is a right opportunity to do so. But in the future years, we will remain open to kind of looking at a steady program as Thank you for taking my questions. All the best. Thank you very much.
If you really look at it in terms of, you know, the overall size of the repurchase program, we've been able to significantly dip into it through the quarter which is a transaction that we have already reported but we remain open. The kind of, you know, dipping into further buyback. Uh even in the in the in the rest of the year because we haven't really deployed directly from the balance sheet uh, through the quarter. Now, in terms of a
program, whether you want to get into in steady program, like we have said, at least at this stage, we want to kind of
Speaker Change: Keep it more like an opportunistic program and therefore, we'll deploy it as we believe. Uh, there's a right opportunity to do so, uh, but in the future here, we remain open to kind of looking at in steady program as well.
Speaker Change: Thank you for taking my questions, all the best.
Speaker Change: Thank you very much.
Manish Adukia: Thanks Manish.
Aditya Suresh: The next question is from the line of Aditya Suresh of Macquarie. Aditya you may please ask your question now. Thank you, Vipul. Thank you, Rajesh and Mohit, for taking my question as well. The first one is on hotels. I had two questions within hotels. So, one is, I mean, so your standard kind of room nights book was up about 18%. I'm just curious to understand, was there any kind of down trading, which you all witnessed in your platform through the quarter? So, Aditya, was there any kind of drop in the average room nights, the rate for room nights booked in the quarter?
Speaker Change: Thanks Manish. Uh, the next question is from the line of Aditi Suresh of Macquarie. Uh Aditi, you may please ask your question now.
Aditi: Thank you, Paul. Thank you. Raj was taking my question as well. Um, the first 1 is a hotel. I had 2 questions within hotels. So 1 is it kind of a real nice book with up about 18%? Uh, I'm just curious to understand was there any kind of down trading, which you all witnessed me a platform, uh, through the quarter?
Aditya Suresh: Yeah, no, I got it. I got it.
Rajesh Magow: So, very interesting question and very interesting sort of trend also that we noticed in the quarter. See, this is, you know, as you mentioned, this is supposed to be a, you know, high travel season quarter for leisure travel, for sure, and that was muted, you know, just because overall sort of sentiment was down, general expectation was that they, you know, there will be impact on ADRs, or there will be, you know, the prices might go down significantly and all. The reality was that that did not happen. You know, it was like, you know, small, literally one or two percentage point in certain segments drop, but nothing significant, nothing material.
Nothing significant. Nothing material.
Rajesh Magow: That's really interesting.
Rajesh Magow: Thank you for clarifying that, Rajesh. And then within hotels, again, can you clarify what proportion of your activity is mice related? And was that a bit of a growth tailwind here for you this quarter? Actually, overall corporate, because it was a non-leisure travel use case, so it was non-discretionary if you will, overall corporate and MICE is part of that corporate, actually has been growing very, very well for us and continue to keep sort of growing even in the quarter that we are reporting out. And MICE was no real exception, but pretty healthy growth there as well.
Aditi: That's really interesting. Thank you for clarifying that Rajesh. And then within hotels, again, can you clarify what proportions or activity is mice related. And was that a bit of a, a growth Tailwind here for you, this quarter?
Actually overall corporate overall corporate. Um, you know, because it was non Leisure Travel use case, right? So it was non-discretionary if you will overall corporate and mice is part of that corporate
Uh you know actually has been growing very very well for us and continue to keep sort of uh growing even in the in the quarter that we are reporting out and and my first no real exception uh but uh pretty Healthy Growth there as well.
Mohit Kabra: Okay, and then with ancillary services and bus, you've clearly demonstrated really strong growth in this quarter. But just on ancillary services and kind of what you all speak about outside of ground transportation, because there, I guess, your margin is a full drop down. Growth here is strong. What sort of headroom do you all think about in terms of growth and the growth potential? Could we kind of think about this 30% kind of pace of growth sustaining, say, for the next three, four, five years? Or how do you all think about that opportunity? Aditya Chandrasekar, Manik Jain, Aditya Chandrasekar, Manik Taneja, Vipul Garg, MakeMyTrip Ltd.
Speaker Change: Okay. And then with answering the services and and Buffs uh you you you you in a devastated, really strong growth uh in this quarter but just an answer is services and and kind of what you all speak about outside of ground ground transportation because they I guess your margin is a full drop down.
Uh, growth here is strong. Um what sort of Headroom do you all think about in terms of growth and the growth potential? Could we kind of think about this 30% kind of pace of growth sustaining safe, next 3, 4, 5 years? Or how do you all think about that opportunity?
Speaker Change: So, yeah. Um, I need to be kind of actually rolling out, like I said, you know, we kind of increasing the number of ancillary services that we are putting on the platform.
Speaker Change: And that is also another kind of, you know, driver for growth, particularly in the other segments because all of these kind of largely get clubbed and the others. And, uh, therefore not just the depth of Supply, but the width of Supply in terms of, you know, new services that you are putting on the platform, we can do a, a big opportunity. In fact, we have called out that this year. We also want to kind of dial up, activities and experiences, which again will
Speaker Change: others to the
go down and stand on basis.
Speaker Change: So uh, we kind of feel confident that with all the initiatives that we have kind of taken in the last few years and are continuing to take this will be a segment which will continue to grow faster. Uh, and possibly in the 30s, even in the in the years to come.
Mohit Kabra: Thanks Mohit.
Rajesh Magow: And if I may, Rajesh, if you can just clarify, so there have been changes in the board with MakeMyTrip's shareholding coming down, could you call out any key changes which have happened from a board composition perspective? Yeah, I'll let Mohit take that. Yeah, sure. So, you know, essentially, you know, the number of nominees from Trip.com has gone down, you know, by three. So they now have only two nominees on the board. And therefore, we've kind of, you know, brought in, you know, independence on the, on the on the board, apart from myself. So you've got two independents on the board.
Speaker Change: Thanks for and if I may if you can just clarify so there will be changes in the board uh with kind of trips. Um uh share link and you're coming down could you call out any key changes which have happened from a board composition perspective?
Yeah, I let know it take that. Yeah, sure. So, you know, essentially, you know, uh, the number of nominees from trip.com has gone down, you know, by 3. So they now have only 2 nominees on the board and therefore we've kind of uh, you know,
Mohit Kabra: And I've also kind of joined the board once again.
Mohit Kabra: So this has been the broad chain, nothing, nothing exceptional to call out.
Got in, you know Independence on the on the on the board apart from myself so you've got 2 Independents on the board uh and I have also kind of you know joined the board uh once again so this is with the blockchain. Nothing.
Speaker Change: Nothing exceptional to call out.
Rajesh Magow: Thank you and all the best. Thanks, Aditya.
Speaker Change: Thank you. Uh, all the best.
Speaker Change: by the way, the other 2 changes that we've kind of
Speaker Change: made is, you know, we've also uh, just as part of the board management
Speaker Change: We also kind of now, constituted nomination committee. Uh, we didn't have that earlier but now that we have, you know, uh quite a few independent uh directors on the board, we thought it would be appropriate to set up a nomination committee as well.
Speaker Change: so,
increasing the size of the audit committee from 2 independent members to 3 independent members.
Vijit Jain: The next question is from the line of Vijit Jain of Citi.
Vijit Jain: Vijit, you may please ask your question now. Thanks, Vipul. Hi, everyone. So, congratulations on the successful transaction last month. And also, I guess, in a challenging quarter, I see that your adjusted EBIT margins are now at the lower end of your guidance, despite, you know, the growth headwinds you saw in the quarter. So, my first question is, you know, how should one look at, you know, your margin guidance from here? You know, growth in the subsequent quarters, as you mentioned earlier, is going to pick up to achieve greater than 20% and you have all these cost measures that you've implemented.
Speaker Change: Thank you. The next question is from the line of Vig. Chair of City, vigit. You may please ask your question now. Thanks ruple. Hi everyone. Uh, so congratulations on the successful transaction last month and also, I guess, uh, in a challenging quarter. I see that you are registered debit. Margins are now at the lower end of your guidance. Uh despite you know, the growth headwinds you saw on the quarter. So my first question is, you know um uh how should 1 look at? Uh, you know uh your margins guidance from here you, you know, growth in the subsequent quarters, as you mentioned earlier, is going to pick up uh, to achieve greater than 20%.
Mohit Kabra: So, that's my first question. How should one look at that guidance in that context?
Mohit Kabra: And then I'll come back for other questions. You see the overall guidance kind of remains of wanting to get into that 1.8 to 2% range as a percentage of gross bookings, you know, on the on the adjusted operating margin. Now, of course, you know, within quarters, we'll kind of remain tactical, like, like I said, you know, while operating was a good growth, but therefore, you know, you know, we were going the normal course. But during May and June, we realized that, you know, growth was being tepid. And therefore, we've kind of dialed up on, on better kind of, you know, operating margins at the net level.
Speaker Change: %. And, uh, you have all these cost measures that you've implemented. So, uh, that's my first question. I should want to look at, uh, that guidance uh, in that context and then I'll come back, uh, for other questions. Please just the overall guidance, kind of, you know, remains of wanting to get into that, 1.8 to 2% range as a percentage of gross bookings, you know, on the, on the editor operating margin. Now, of course, uh, you know, within quarters. We'll kind of Romaine tactical. Like if, like I said, you know, uh, while supplement was a good growth growth but
Mohit Kabra: So I think we continue to keep doing tactical moves in line with how the market is behaving or how the to very broadly, I think we kind of want to settle down in that range of 1.8 to 2% on a full year basis, before we kind of you know, revisit the longer term objectives.
The best. And therefore, we've kind of dialed upon on better kind of, you know, operating margins at the net level. So I think we'll continue to keep doing tactical moves in line with how the market is behaving or how the
Mohit Kabra: Got it, Mohit. My second question is, just on the ANP spends, I know you've spoken about how you calibrated them, but when I look at the split of it, I would have normally thought that the customer incentive bucket is where you would have more immediate flexibility, and I do see that air-ticketing, customer-inducement spends kind of went up in the quarter, right? So, I'm just trying to understand, is that more to do with closer to the end of the quarter, where you were looking to also support growth, or if I'm looking at it a bit differently?
Speaker Change: very broadly. I think what kind of want to settle down in that range of what point, a to 2%, uh, on a full year basis. Uh, before we kind of, you know, revisit the the longer term Outlook got it. Mate, with my second question is, uh, just on the NP spends, right? I know, uh, and you you've spoken about how you calibrated them. Uh, but when I look at the split of it, I would have normally thought that, you know, the customer incentive bucket is where you would have more immediate flexibility. And I do see that are ticketing customer, inducements went kind of went up, uh,
Mohit Kabra: No, no, probably not in those lines. Actually, like I've always said, a large part of the sales promotion numbers which are put out on the ANP, therefore, marketing and sales promotion put together. I believe we've kind of come in at about 5.1 and like I've been saying, we find anywhere being closer to the 5% range, we have generally been kind of, you know, below the 5% mark, this quarter being an exceptional one in terms of what has played out in May and June, we have been slightly higher, it has also got to the fact that it's also linked into our adjusted margin also kind of blended is coming in very strong, you know, up at the earlier quarters in years, and therefore, to that extent, it comes in, you know, with a improvement in the blend of business, adjusted margin, it is a good expense to kind of incur.
Uh, in the in the quarter, right? So I'm just trying to understand. Um, you know, is that is that more to do with closer to the end of the quarter, where you were looking to, you know, also support growth or uh, you know, uh, if I'm looking at it a bit differently. Um, so that's not no, no, no, no, no probably not in those clients actually, like I've always said, you know, a large part of the
Speaker Change: uh, sales promotion number, which is put out on the, on the
Speaker Change: on the bridge, you know, between the Gap revenue and the adjusted margin that we report is based on
Speaker Change: Uh, you know, uh last distribution, right? You know, and there go probably may not be most kind of, you know representative particularly if you look at it in a snapshot basis, right? If you look at it only for 1 quarter or over a longer period of time, it is still more reflective you know? And therefore it is much better to look at the overall customer assistance.
Speaker Change: because, you know,
marketing.
Speaker Change: Put together.
Speaker Change: You kind of come in.
Speaker Change: Has been saying is the fine anywhere being closer to the 5% range. We have generally been kind of, you know, below the 5% mark this quarter being an exceptional 1. In terms of what has played out in in May and June we have been slightly higher. It is also got to the fact that it's also linked into our adjusted margin also kind of Blended bases coming in very strong, you know, compared to the earlier quarters and years and therefore to that extent.
Speaker Change: it comes in, you know, with the Improvement in the
end of business. And when we
Speaker Change: Registered margin. It is a good expense to
Mohit Kabra: So this is largely going in tandem with that. So largely in line with, you know, how we wanted to kind of play out from a longer term perspective, but yes, tactically, we'll kind of, you know, keep, you know, revisiting the overall customer efficiency expense, particularly the longer term impact in brand marketing expense, based on any, you know, specific one off, you know, macro situations that may that may play out for certain weeks or months.
Speaker Change: So this is largely going in tandem with that. So largely in line with, you know, how we wanted to kind of play out, uh, from a longer term perspective. But yes, technically, we'll kind of, you know, keep uh, you know, uh, revisiting the overall, uh, customer efficient expense, particularly the the longer term impacting brand marketing.
Speaker Change: uh, based on any
You know, specific 1-off, you know?
Mohit Kabra: And ordinarily, when I look at the monthly split you've given and thank you for providing that additional color in the filing and just also your commentaries around where growth was, you mentioned how international did very well and kind of offset some of the domestic leisure travel plane. Now, when I look at the hotel business, for example, and I see that the nights booked is pretty healthy, you've said that international has done well. But the realizations or the GBV bookings on the hotel side is lower versus the nights booked. So I'm just trying to understand, ordinarily, I would have thought international higher should mean in terms of tickets or nights would mean GBV would also see that upward pressure.
Speaker Change: Macro situations that may that may play out for certain weeks so much.
Rajesh Magow: So I'm just trying to understand that and related to it, I suppose, with both the May and June events, wouldn't international outbound have seen more pressure than the domestic leisure? Great question both Vijay and actually, the softening of the gross booking kind of growth percentage that you see largely comes in because of packages not doing well, like I had called out. If there are two segments which kind of didn't do well, it was domestic air and domestic holiday packages. So, this is largely the impact of holiday packages, you know, going down in the mix, you know, nothing else.
Speaker Change: Got it. And um, the, you know, ordinarily and when I look at your, you know, the monthly split, you've given and thank you for providing that additional color in the filing. Uh, and just also your, your commentaries around where growth was, you, you mentioned how International did very well. Uh, and um, you know, kind of offset some of the domestic leisure travel plane. Now, when I look at the hotel business, for example, and I see that, uh, the, uh, you know, night booked is, uh, you know, pretty healthy. You said that International has done well, uh, but the realization, so or the gbv bookings on the hotel side is lower versus the nights booked. So I'm just trying to understand ordinarily. I would have thought International higher should mean, uh, in terms of tickets or Knights would mean in uh GB. We would also see that upward pressure. So, uh, just trying to understand that and related to it. I suppose, uh,
Speaker Change: Uh, you know, with both the May and June events, uh uh, wouldn't International outbound have seen more pressure than the domestic leisure?
Just just yeah, great question is both and actually, uh, you know, the, the the softening of the gross booking kind of, you know, growth percentage that you see largely comes in because of, you know, package is not doing well. Like I had called out if there are 2 segments, which kind of, you know, didn't do well, it was domestic air and domestic holiday packages.
Rajesh Magow: And secondly, on the other question, on outbound, yes, there has been pressure and, you know, there have been, you know, kind of also issues around, say for instance, certain airspaces being, you know, kind of geographically being closed at certain points in time. But overall sentiment on international, we somehow kind of seems that that wasn't as weak as the as the overall sentiment on the domestic side. So, we have seen more kind of, you know, muted kind of, you know, growth on domestic. Internationally, we were able to kind of still see good growth. And like I said, I think it is also a little specific to us as a as a company, because while the overall growth on like, say, for instance, on the international side, like I called out was about 21%, whereas the market grew only about 7%.
Rajesh Magow: So, it is also specifically because we have been historically also over the last few years, driving international very strong, and that continues to be a thematic. And we were able to continue to do that even during this reported quarter.
Speaker Change: So this is largely the impact of holiday packages, you know, going down in the mix, you know, uh nothing else and secondly on the other question on outbound? Yes. There has been pressure and you know there have been uh, you know, kind of also issues around say for instance, certain air spaces being uh you know kind of geographically being being closed at certain points in time. But overall sentiment on International to be somehow kind of seems that that wasn't as weak as the as the overall sentiment on the domestic side. So we have seen more kind of, you know uh muted kind of, you know, growth on on domestic International. We were able to kind of still see a good growth. And like I said, I think it is also a little specific to us as a, uh, as a company. Because while the overall growth on like, say, for instance, on, uh, you know, the international side, like, I called out was about 21%, whereas, the market grew only about 7%. So it is also specifically,
Speaker Change: Because we have been historically also over the last few years driving International, very strong, uh, and that continues to be a thematic. And we were able to continue to do that even during this reported quarter
Vijit Jain: Got it, understood. And yes, I think those were my questions. Thanks once again and sorry, if I can, one last question though.
Vijit Jain: This is just to be in interest of time.
Vipul Garg: I would request you to come back in the queue.
Vipul Garg: Thank you.
Speaker Change: Got it understood. And um, yeah. So I think those were my questions. Uh thanks once again and sorry if I can 1 last question though, just to be in interest of time, I would request you to come back in the sure. Sure.
Vipul Garg: All right.
Vipul Garg: Sorry, Vijit.
Vipul Garg: We'll take it off.
Thank you. Sorry, it will take it offline.
Manik Taneja: The next question is from the line of Manik Taneja of Axis Capital. Manik, you may please ask your question. Hi, thank you for the opportunity and I hope I am audible.
Speaker Change: Uh, the next question is from the line of uh, manika of excess Capital manik, can you please ask your question now?
Mohit Kabra: So, while my question related to the customer acquisition cost has been answered, just a couple of bookkeeping questions with regards to the ESOP charge that we saw this current quarter and also on the ETR, if you could help us understand as to how should we be thinking about both these elements on a go-forward basis. Yeah, on the issue of course, like we've been saying, our endeavor is to kind of, you know, keep this within the 35 to $40 million kind of a bracket for the for the full fiscal year. Now, you know, how the kind of So, I think much more to kind of read out on the ESOC cost per se.
Speaker Change: Hi, thank you for the opportunity and I hope I'm audible. So my while my question related to the customer acquisition cost has been answered. Uh, just a couple of bookkeeping questions with regards to the ESOP charge that we saw this current quarter and also on the ETR if you could help us understand as to how should we be thinking about both these elements on a go forward basis?
Speaker Change: Yeah, on on Easter, of course, like we've been saying, uh, our Endeavor is to kind of, you know, keep this, uh, within the 35 to 40 million kind of a bracket for the, for the full fiscal year now.
Speaker Change: depending upon
what we kind of, you know,
Uh 2 weeks between quarter and you would have seen that in the in the previous years as well.
Mohit Kabra: On the ETR side, like you have said, we have another, we have already kind of recognized the deferred tax method and therefore there is full reversal of that which is happening in line with the profitability you know for the respective quarters.
Mohit Kabra: But going forward in another two years' time, I think we'll kind of get to full taxability.
Uh, so I think much more to kind of, you know, read out on the, on the ESOP cost per se on the 8 years, right? Like we have said, we have another, we have already kind of, you know, recognized the different Technical and therefore there is full reversal of that which is happening in line with the profitability. You know, for the respective quarters. Uh but going forward in other 2 years time. I think we'll kind of you know, get to uh full taxability as well.
Mohit Kabra: And Mohit, just with regards to, so while we did see some impact through May and June, and you're saying you're seeing some recovery on a day-to-day basis, if you were to hazard a guess between our hotels and packages business and the air business, which of the two segments do you essentially expect to essentially recover faster and get back to the normal trajectory in the forthcoming period? If I just look back in the quarter that has already been reported, we saw a bit of disruption in May and June. Hotels have done much better, as you can see from the reported numbers.
Speaker Change: So and uh, mhm, just with regards to. So while we did see some impact through May and June and you're seeing you're seeing some recovery on a day-to-day basis, if you were to Hazard, a guess between a hotels and packages business and the year business, which of the 2 segments, do you essentially expect to essentially recover faster and get back to the normal? Trajectory in the course, just look back in the quarter that has already been reported. We saw a bit of disruption in May and June
Rajesh Magow: So I think the trending is there to kind of look at.
you know, hotels has done, you know, much better and as you can see from the reported numbers, so I think the trending is there to kind of, you know,
Speaker Change: uh, look at
Rajesh Magow: So maybe if I can just add one more point on top of that, I think maybe the right way to think about would be mostly the use case, customer use case, rather than just looking at, you know, particular travel service, whether it is air booking or hotel or any of the other mode of transport. You know, the impacted segment was only leisure. And it was supposed to be a, you know, sort of high season quarter. Now, this running quarter is not supposed to be a high season quarter, because there are no summer vacations, there are no school holidays, and no college holidays, etc.
Speaker Change: also maybe, maybe if I can just add 1 more uh point on top of that, I mean, maybe the right way to think about would be mostly the use case customer use case, rather than just looking at
Speaker Change: uh, you know, a particular, uh, travel surveys, whether it is their booking or, or hotel, or any of the other mode of Transport, uh, you know, the, the impacted segment was only leisure
Rajesh Magow: So, if you keep the seasonality in mind, all of the boards should start rising. And we've seen that rising already, because relatively in any case, there's non-leisure travel use case that happens in this quarter.
Speaker Change: And it was supposed to be a, you know, sort of a high season quarter. Now this running quarter is not supposed to be a high season quarter because there are no summer vacations, there are no school holidays and no College holidays Etc.
Speaker Change: So that so Leisure. If you keep the seasonality in mind, all of the boards should start Rising uh and we've seen that Rising already because uh relatively in any case, there's non Leisure uh travel use case that happens in this quarter.
Manik Taneja: Also, Manik, usually, I mean, historically, we've seen that, you know, from a product point of view, if you really look at it, compared to standard bookings, you know, package bookings, generally take a little longer to kind of, you know, come back post any any macro disruption. So won't be surprised if you don't buy the next seasonality, peak seasonality of Q3 packages would come back strongly as well. Sure. Thank you for the response. Thanks, Manik.
Speaker Change: So money is usually
Speaker Change: In that.
Product point of view, if you really look at it compared to standard on bookings, you know, package bookings generally, take a little longer to kind of, you know, come back, post any, any macro disruption. So uh, won't be surprised if, you know, by the next seasonality Apex, seasonality of Q3, uh, packages would come back strongly as well.
Aditya Chandrasekar: The next question is from the line of Aditya Chandrasekar of UBS. Aditya, you may please ask your question now. in both hotels as well as buses. Thank you.
Thanks Mike. Uh the next question is from the line of Chandra. Shekar of UBS edita. You may please ask your question now.
Rajesh Magow: So maybe take the bus segment first, Aditya. And if you really look at the growth numbers that we've reported out on top of the scale and the size that we already have, I think it's testament of the fact that, you know, even at a very high base, we've been able to deliver a very robust growth rate, which effectively means that, you know, we are getting disproportionate or continue to get disproportionate share of the market. While, you know, whether it is Abhi Bus or any other player for that matter, because of the base, there's always a possibility that they may be gaining share.
Yeah, hi team. Thanks for the opportunity. Just a quick question related to, you know, what was already asked on competition? Um, I think you clearly stated that in are, in fact, you've gained a little bit of market share, uh, but can you just give some color on hotels and especially buses as well? Because uh, Mexico has been stating that, you know, has also gained market share within the online segment itself. Uh, so just wanted to understand how we should kind of, uh, think about our market share and both hotels as well as, uh, uh buses. Thank you. So, maybe take the bus segment first, have it there. And if you really look at the growth numbers that we've reported out on top of the scale in the size that we already have,
Rajesh Magow: But that share also happens, comes from, you know, essentially to our two sides. One is, you know, the offline market to online will continue to keep growing. And the second one is that, you know, there's a long tail of players. And if you end up sort of taking an aggressive approach, sometimes maybe with aggressive promotions, etc., you will definitely tend to on a low base get share, right? So I think we need to just look at this whole comparison. Thank you.
Speaker Change: uh, I think it's Testament of the fact that, uh, you know, even at a very high base, we've been able to deliver, uh, very robust growth rate, which is effectively means that, uh, you know, we are getting this proportionate, uh, or continue to get this proportionate share of the market, uh, while you know, um, whether it is a Weber or any other player for that matter, uh, because of the base, uh, there's always a possibility that there may be gaining share, uh, but that share also happens comes from uh,
Uh, you know, uh, essentially to, um, uh, 2 sides 1 is, you know, the offline Market to online will continue to keep growing.
And, uh, the second 1 is that, uh, you know, there's a long tail of, uh, players. And if you end up sort of, uh, taking an aggressive approach, sometimes, maybe with aggressive promotions, Etc. You would definitely tend to on a low base, get share, right? So I think we need to just look at uh, this whole comparison.
Speaker Change: Between all these factors in mind and try to, to look at it more, like to like more than and then maybe sort of, uh, you know, conclude 1 way or the other.
Speaker Change: And, and, and the hotel side, what we say that the hotels also. So, you know, as we have said, in the past, also, I think it will be fair to say that the Indian OTAs segment, there is, uh, um, no real, uh, other OTF player, which has any. And then, you know, on the lot of the public and the numbers are out there, uh, uh, any meaningful and we continue to run a hybrid continue to keep growing, uh, and, you know, our brand for hotel booking, also continues to become stronger and stronger by the quarter. Uh, so there so, therefore, the competition there for us is International Players. You know, whether it is booking or a good, uh, now given that they have more Global, uh,
Speaker Change: you know, sort of business model or a Playbook versus
Rajesh Magow: You know, our strategy to drive hotel business and consumer behavior is on the, you know, sort of promise to the consumer is very, very different than any other global player will do. And also the investments on the ground, on the ground, on the supply side are very, very different. So, you know, we have built our mode. All aspects of the business are very focused on Indian travellers and Indian market and now Middle East, rather than any of the other global players who would be competing, you know, in 20 other markets and having a global sort of platform.
Speaker Change: Um, very India and a regional Playbook, if I may call it because we've also gone to the Middle East now, um, you know, our strategy to drive Hotel business and the consumer behavior is uh, on the, you know, sort of promise to the consumer is very, very different than any of the global player will do. And also the Investments on the grounds are on the ground. On the supply side are very, very different. So, you know, we, we have built our remote,
Rajesh Magow: So they would definitely have more strength on, you know, bringing customers from the foreign countries to India, which is like inbound travel. And they're also given a GDPR-compliant platform now, at least for people on Indian, of Indian origin, we've started to get traction because that, you know, that was, you know, going to be our first strategic initiative to attract inbound travel into India. But as far as domestic and international are concerned, we continue to, you know, of course, theoretically compete, but continue to lead the show. Thank you and all the best. Thanks Aditya.
Speaker Change: For all aspects of the business, uh, uh, very focused on Indian Travellers, uh, and Indian market and now Middle East rather than, uh, any of the other Global player who will be competing, uh, you know, in 20 minutes and having a global sort of platform. Uh, so they would definitely have more strength on, uh, you know, bringing customers, uh, from the foreign countries, to the to India, which is like inbound travel. And there are also given our gdpr compliance platform now, at least for people on Indian are of Indian origin. We've started to get traction uh because that that you know, that was uh you know going to be our first strategic initiative to attract inbound travel into uh into India. But as far as domestic and international is our concerned, we continue to um you know, of course, theoretically compete. Uh but continue to lead the show.
Speaker Change: Thank you and all the best.
Gaurav Rateria: Hi, congrats on a great execution. I have two questions, one for Rajesh and one for Mohit. So for Rajesh, just want to check on how do you see AI-led search and booking for travel as an opportunity or as a threat? Can you highlight some initiatives which future-proofs our business or even kind of makes it a standout winner? Given competition may not have the depth and the bandwidth to invest in such kind of offering. Question for Mohit is that if you look at last three years as a trend on 1Q, the advertisement and promotion spend as percentage of gross booking has gone up from 1Q24 to 1Q25 and 1Q25 to 1Q26.
Speaker Change: Thanks, uh thanks. Uh, in the interest of time. Now, we will take the last question from
Mohit Kabra: So I'm just trying to correlate this to two or three factors. One is competition, which has largely been stable to benign. Second is share of repeat business, which I understand has been going up. And third could be the incremental investments in the new offering.
Mohit Kabra: So could you try and help me understand what could be the factor that is driving this up on a three-year basis? Thank you.
Speaker Change: Can you highlight some initiatives? Which future proofs are business or even kind of stand makes it a standout winner, given competition may not have the depth and the bandwidth to invest uh in such kind of offering and question for Mohit is that if you look at last 3 years, as a trend on 1 queue, uh, the advertisement and promotions spend, as percentage of gross booking has gone up from, uh, 1q 24 to 1/25 and 1/225 to 1 to 26. So, I'm just trying to correlate this to, uh, 2 or 3 factors. 1 is competition, which has largely been stable to benign. Second is share of repeat business, which I understand has been going up and third could be the incremental investments in the new offering. So could you uh try and uh you know uh helped me understand what could be the factor that is driving uh these uh up on a 3 year business. Thank you.
Rajesh Magow: Sure, Gaurav. Let me take that AI question. I was smiling because I don't know how, but I anticipated that you're going to ask the AI question. So, a compliment to you on that. So, Gaurav, like you rightly called out, right? So, one, of course, and we've also called out and for the last several quarters now that our strategy on product and technology has always been revolving around on one side deep consumer insights to cutting edge technology, whichever might be the new technology that might be emerging. And with that same theme, we've seen a lot of promise coming out of Gen AI and we've been investing significantly behind that and we will continue to keep investing.
Speaker Change: I sure got it. Let me let me take that to the. AI question. I was smiling because I I don't know how but I anticipated that you're going to ask the any questions. So uh compliment to you on that. Um so I got to like you rightly called out, right? So um 1 of course uh, you know and we've also called out in the and for the last several quarters now that uh our uh, strategy on product and Technology uh has always been revolving around uh on 1 side. Deep consumer, insights to Cutting Edge technology. Whichever might be the new technology that
Rajesh Magow: And we see it more as sort of leading the innovation through Gen AI rather than overtly getting paranoid about potential disruption. Now, theoretically, potential disruption can happen, but why would we not be in position to, given that we have massive data over so many years? Now, we have 83 million consumers who have transacted with us live to date on all our brands. And we have a huge amount of traffic coming every day on our platform and transaction related data, many other input signals from supply side, et cetera. All of that repository is only going to add more strength to our initiatives for us to be able to just come up with cutting edge innovation on enhancing the consumer experience, which is one of the main areas where we are investing behind leveraging Gen AI.
Like me emoji. And with that same theme, uh, you know, we've seen a lot of promise coming out of, uh, geni. And we've been investing, uh, significantly behind that and we will continue to keep investing. Uh, and we see it more. Uh, us sort of uh uh you know, leading the Innovation through Jai rather than overtly uh getting paranoid about potential disruption now, theoretically potential deception can happen. Uh but uh, why would we not be in position to given that we have massive data? Uh you know over the so many years. Now we have 83 million consumers who have transacted with us live today on All Our Brands uh and we have uh you know huge amount of traffic coming every every day on our platform. Uh and uh transactions related data many other input signals from supply side, Etc. All of that. Uh, repository is only going to
Rajesh Magow: And then the other area is, of course, the productivity, which is also a consistent theme across the board where people are looking at and seeing wherever there are productivity gain opportunities, we should leverage the technology. And I highlighted one odd or two odd features that we released even last quarter. So pretty much every quarter, there will be something or the other coming out, sort of following this strategy. And this is an evolving space, and we will continue to keep learning because here the models are changing literally by weeks. And the space is so evolving, and we'll also learn along the way.
Speaker Change: Add more strength to our initiatives, uh, for us to be able to just come up with, uh, uh, you know, um, Cutting Edge Innovation on enhancing the consumer experience, which is 1 of the main areas where we are, um, you know, sort of investing behind leveraging Genai. And then, the other area is, of course the productivity, which is, um, you know, sort of also, uh, consistent theme across the, uh, across the board where people are looking at and, and, and see.
Speaker Change: Where wherever there are productivity gain opportunities. We should we should Leverage The the technology and we are, um, you know, pretty much every, uh, and I highlighted 1, you know, sort of 1 knot or 2 odd features that we, uh, we released even the even last quarter. So pretty much every quarter. Uh, there will be something on the, on the other coming out. Um,
Rajesh Magow: But we will continue to keep behind it. And we do believe we are in a better position, given all the strengths that I called out, for us to be able to just directionally, strategically innovate better for consumers more than getting worried about the potential disruption. So that's really our take on Gen AI.
Mohit Kabra: And Moit, do you want to take the second question? And therefore, I would just say that apart from looking at, you know, the customer action cost as a percentage of gross bookings, where you could see slight kind of, you know, changes coming in in line with the change in the planted margin, but if you look at it as a percentage of, you know, the adjustment margin that we report, it has largely remained at about 47%, you know, across the last, you know, three years in Q1. So I would just kind of, you know, also urge you to look at, you know, this as a percentage of the overall adjustment margin, because based on, you know, the mixed improvement, our ability to kind of, you know, spend a little more will be there.
Speaker Change: You know, sort of, uh, following this, uh, strategy. Uh, and uh and and, and this is an evolving space. And we will continue to keep learning because, uh, here the models are changing literally by weeks. Uh, and, uh, and this, the space is so evolving. And we'll also learn along the way, but we will continue to keep invest behind it. And, and, and we do believe we are in better position. Um, given all these things that I called out, uh, for us to be able to just, um, uh, you know, sort of directionally strategically innovate, better for consumers, um, more than uh, you know, getting sort of um, worried about the, the potential disruption. So that's really our take on geni. Um, and Mohit. You want to take the second question?
Mohit: Yeah. Surely
Mohit: Report it is largely remain uh at about 47%, you know, across the last uh you know, 3 years in in q1. So I would just kind of you know, also urge you to look at you know this as a percentage of the overall registered margin because based on, you know, the the mixed improvements, our ability to kind of, you know, spend a little more will be there.
Gaurav Rateria: Thank you very helpful and all the best. Thank you, Gaurav.
Mohit: Thank you. Very helpful and all the best for future.
Rajesh Magow: This was our last question. Now, over to you, Rajesh, for closing remarks. Thank you. Thank you, Vipul, and thank you, everyone, for your patience and for your time to listen in to us and for all the good questions that you had, and see you in the next quarter. Thank you. Thank you everyone.
Rajesh: Thank you. Thank you. God of this was our last question. Uh, now over to you Rajesh for closing remarks.
Thank you. Thank you. And, and thank you everyone for your patience. And for your time, uh, to listen in to us. Uh, and for all the good questions that you had. Um, and few few in the next quarter, thank you.
Vipul Garg: This brings us to the end of the call. You may please disconnect. Goodbye.
Rajesh: Thank you, everyone. This brings us to the end of the call. You may please disconnect me.