Q1 2027 Thomas Cook (India) Ltd Earnings Call

August 4, 2026

Operator: Ladies and gentlemen, good day and welcome to Thomas Cook (India) Limited Q1 FY27 conference call hosted by Systematix Shares and Stocks (India) Limited. As a reminder, all participant lines will be in the listen only mode, there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. I now hand the conference over to Mr. Chaitanya Mahadik. Thank you, over to you, sir.

Operator: Ladies and gentlemen, good day and welcome to Thomas Cook (India) Limited Q1 FY 2027 Conference Call hosted by Systematix Shares and Stocks (India) Limited. As a reminder, all participant lines will be in the listen only mode, there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. I now hand the conference over to Mr. Chetan Mahadik. Thank you, over to you, sir.

Speaker #1: Ladies and gentlemen, good day and welcome to the Thomas Cook Ltd. Q1 FY27 Conference Call, hosted by Systematic Share and Stocks. As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. I now hand the conference over to Mr. Chetan Mahadev from Thomas Cook (India) Ltd.

Speaker #1: Thank you, and over to you, sir.

Speaker #2: Yeah, thank you, Zania. Welcome, everyone, and thank you for joining us today on the Thomas Cook (India) Limited Q1 FY27 earnings conference call. From the company, we have with us Mr. Mahesh Iyer.

Operator: Yeah. Thank you, Saniya. Welcome everyone, and thank you for joining us today on the Thomas Cook (India) Limited Q1 FY27 earnings conference call. From the company, we have with us Mr. Mahesh Iyer, the Managing Director and Chief Executive Officer and the senior management team. We would like to begin the call with brief opening remarks from the management and following which we will have the forum open for an interactive Q&A session. I would now like to invite Mr. Mahesh Iyer to make the initial remarks. Thank you and over to you, sir.

Chetan Mahadik: Yeah. Thank you, Saniya. Welcome everyone, and thank you for joining us today on the Thomas Cook (India) Limited Q1 FY 2027 earnings conference call. From the company, we have with us Mr. Mahesh Iyer, the Managing Director and Chief Executive Officer and the senior management team. We would like to begin the call with brief opening remarks from the management and following which we will have the forum open for an interactive Q&A session. I would now like to invite Mr. Mahesh Iyer to make the initial remarks. Thank you and over to you, sir.

Speaker #2: The Managing Director and Chief Executive Officer, along with the senior management team, are present. We would like to begin the call with brief opening remarks from management, following which we will have the forum open for an interactive Q&A session.

Speaker #2: I would now like to invite Mr. Mahesh Iyer to make the initial remarks. Thank you, and over to you, sir.

Speaker #3: Thomas Cook for the earnings call Q1 FY27 financial and operating performance. Before we begin, I would like to introduce the management team joining me on the call today.

Mahesh Iyer ): Thomas Cook for the earnings call Q1 FY27 financial and operating performance. Before we begin, I would like to introduce the management team joining me on the call today. I have with me on the call Vikram Lalvani, Managing Director and CEO of Sterling Holiday Resorts, K. S. Ramakrishnan, Managing Director of DEI, Vishal Suri, Managing Director of SOTC, Debasis Nandy, who's the Group CFO, Brijesh Modi, who is the CFO at Thomas Cook (India) Limited, and Urvashi Butani, who heads investor relationships. Coming to our performance. The Q1 of FY27 was in many ways a good test of the resilience of our business. It reinforced that our performance is increasingly being shaped by decisions within our control, that is where we choose to allocate our capital, the customer segments, and market we prioritize, and our ability to execute with discipline while continuing to invest for future growth.

Mahesh Iyer: Thank you for joining us all on Thomas Cook for the earnings call Q1 FY 2027 financial and operating performance. Before we begin, I would like to introduce the management team joining me on the call today. I have with me on the call Vikram Lalvani, Managing Director and CEO of Sterling Holiday Resorts, K. S. Ramakrishnan, Managing Director of DEI, Vishal Suri, Managing Director of SOTC, Debasis Nandy, who's the Group CFO, Brijesh Modi, who is the CFO at Thomas Cook (India) Limited, and Urvashi Butani, who heads investor relationships. Coming to our performance. The Q1 of FY 2027 was in many ways a good test of the resilience of our business. It reinforced that our performance is increasingly being shaped by decisions within our control, that is where we choose to allocate our capital, the customer segments, and market we prioritize, and our ability to execute with discipline while continuing to invest for future growth.

Speaker #3: I have with me on the call Vikram Lalvani, managing director and CEO of Sterling Holiday Resorts, K.S. Ramakrishnan, managing director of DEI, Vishal Suri, managing director of SOTC, Deveshish Nandi, who is the group CFO, Brijesh Modi, who is the CFO at Thomas Cook India Limited, and Urvashi Bhutani, who heads investor relationships.

Speaker #3: Now, coming to our performance, the first quarter of FY27 was in many ways a good test of the resilience of our business. It reinforced that our performance is increasingly being shaped by decisions within our control—that is, where we choose to allocate our capital, the customer segments and markets we prioritize, and our ability to execute with discipline while continuing to invest for future growth.

Speaker #3: I'm pleased to share that this was reflected across almost every part of our portfolio. Our India businesses, led by foreign exchange, MICE, and corporate travel, continue to deliver healthy momentum and stable operating performance.

Mahesh Iyer ): I'm pleased to share that this was reflected across almost every part of our portfolio. Our India businesses, led by foreign exchange, MICE, and corporate travel, continue to deliver healthy momentum and stable operating performance. Sterling Holidays delivered strong growth during the quarter, reflecting sustained demand, disciplined execution, and the strength of its leisure hospitality business. Importantly, the impact of the conflict in West Asia was limited to a few businesses with direct exposure to the region, primarily Desert Adventures, our destination management business in the Middle East, DEI, and parts of our long-haul outbound travel portfolio. While these businesses weighed on our reported performance, the diversified nature of our portfolio helped absorb much of the disruption with the broader business continuing to perform steadily and demonstrating the resilience of our operating model. Consolidated revenue for the quarter stood at INR 21,530 million, a decline of 12% year-on-year.

Mahesh Iyer: I'm pleased to share that this was reflected across almost every part of our portfolio. Our India businesses, led by foreign exchange, MICE, and corporate travel, continue to deliver healthy momentum and stable operating performance. Sterling Holidays delivered strong growth during the quarter, reflecting sustained demand, disciplined execution, and the strength of its leisure hospitality business. Importantly, the impact of the conflict in West Asia was limited to a few businesses with direct exposure to the region, primarily Desert Adventures, our destination management business in the Middle East, DEI, and parts of our long-haul outbound travel portfolio. While these businesses weighed on our reported performance, the diversified nature of our portfolio helped absorb much of the disruption with the broader business continuing to perform steadily and demonstrating the resilience of our operating model. Consolidated revenue for the quarter stood at INR 21,530 million, a decline of 12% year-on-year.

Speaker #3: Sterling Holidays delivered strong growth during the quarter, reflecting sustained demand, disciplined execution, and the strength of its leisure hospitality business. Importantly, the impact of the conflict in West Asia was limited to a few businesses with direct exposure to the region, primarily Desert Adventures, our destination management business in the Middle East, DEI, and parts of our long-haul outbound travel portfolio.

Speaker #3: While these businesses weighed on our reported performance, the diversified nature of our portfolio helped absorb much of the disruption, with the broader business continuing to perform steadily and demonstrating the resilience of our operating model.

Speaker #3: Consolidated revenue for the quarter stood at 21,530 million rupees a decline of 12% year on year excluding the business impacted by the geopolitical disruptions our India operations remained stable on a year on year basis.

Mahesh Iyer ): Excluding the business impacted by the geopolitical disruptions, our India operations remained stable on a year-on-year basis. Excluding the GCC-based subsidiaries, that is DEI and Desert Adventures, the consolidated results of the group registered a growth of 8% at an EBIT level for the quarter, highlighting the resilience of our underlying businesses. Profit before tax for the quarter stood at INR 885 million, down 21% YOY, primarily due to the underperformance of Desert Adventures and DEI, our Middle East operations. With that context, let me take you through the performance of each of the businesses and the key drivers that shaped the quarter. Starting with foreign exchange business, which delivered a positive performance during this year. With this segment's revenue growing by 6%, EBIT by 8%, and EBIT margins at a healthy 45.3%.

Mahesh Iyer: Excluding the business impacted by the geopolitical disruptions, our India operations remained stable on a year-on-year basis. Excluding the GCC-based subsidiaries, that is DEI and Desert Adventures, the consolidated results of the group registered a growth of 8% at an EBIT level for the quarter, highlighting the resilience of our underlying businesses. Profit before tax for the quarter stood at INR 885 million, down 21% year-on-year, primarily due to the underperformance of Desert Adventures and DEI, our Middle East operations. With that context, let me take you through the performance of each of the businesses and the key drivers that shaped the quarter. Starting with foreign exchange business, which delivered a positive performance during this year. With this segment's revenue growing by 6%, EBIT by 8%, and EBIT margins at a healthy 45.3%.

Speaker #3: Excluding the GCC-based subsidiaries, that is, DEI and Desert Adventures, the consolidated results of the group registered a growth of 8% at an EBIT level for the quarter, highlighting the resilience of our underlying businesses.

Speaker #3: Profit before tax for the quarter stood at 885 million rupees, down 21% year-over-year, primarily due to the underperformance of DMS, DEI, and our Middle East operations.

Speaker #3: With that context, let me take you through the performance of each of the businesses and the key drivers that shaped the quarter. Starting with the foreign exchange business, which delivered a positive performance during this year.

Speaker #3: With which segments revenue growing by 6% EBIT by 8% and EBIT margins at a healthy 45.3%. If you look at the LRS data that was published by RBI for the period April 26 and May 2026 across the three relevant categories that is education, travel related foreign exchange and remittance the education industry saw a decline of 27% travel related forex saw a decline of 8% and remittance decline by 14%.

Mahesh Iyer ): If you look at the LRS data that was published by RBI for the period 26 April and 20 May 2026, across the three relevant categories, that is education, travel-related Forex, and remittance, the education industry saw a decline of 27%, travel-related Forex saw a decline of 8%, and remittance declined by 14%. Correspondingly, to give you a like-to-like comparison, our travel segment for the same period largely aligned with the industry trend, which is a decline of about 8%. However, our education portfolio actually grew by 17%. Our overall retail portfolio delivered an 8% YOY growth in turnover for the quarter, outperforming the underlying market. Following a relatively softer April and broadly stable May, June delivered a stronger performance than the previous year, reflecting improved business sentiments. Our education portfolio remained a key growth driver, with turnover increasing by 36% year-on-year.

Mahesh Iyer: If you look at the LRS data that was published by RBI for the period 26 April and 20 May 2026, across the three relevant categories, that is education, travel-related Forex, and remittance, the education industry saw a decline of 27%, travel-related Forex saw a decline of 8%, and remittance declined by 14%. Correspondingly, to give you a like-to-like comparison, our travel segment for the same period largely aligned with the industry trend, which is a decline of about 8%. However, our education portfolio actually grew by 17%. Our overall retail portfolio delivered an 8% year-on-year growth in turnover for the quarter, outperforming the underlying market. Following a relatively softer April and broadly stable May, June delivered a stronger performance than the previous year, reflecting improved business sentiments. Our education portfolio remained a key growth driver, with turnover increasing by 36% year-on-year.

Speaker #3: Correspondingly, to give you a like-to-like comparison, our travel segment for the same period largely aligned with the industry trend, which is a decline of about 8%. However, our education portfolio actually grew by 17%.

Speaker #3: Our overall retail portfolio delivered an 8% year-on-year growth in turnover for the quarter, outperforming the underlying market. Following a relatively softer April and broadly stable May, June delivered a stronger performance than the previous year, reflecting improved business sentiments.

Speaker #3: Our education portfolio remained a key growth driver, with turnover increasing by 36% year-on-year. This performance was supported by continued investments in our distribution and stronger partnerships across leading NBSCs.

Mahesh Iyer ): This performance was supported by continued investments in our distribution and stronger partnerships across leading NBFCs. We also witnessed encouraging traction from our Study Buddy Card program launched in partnership with Visa during the quarter. Our corporate business portfolio recorded 9% growth in turnover, driven by higher wallet share from our existing relationships, new client acquisitions, and continued expansion of our corporate relationships. Our digital channels continued to gain traction during the quarter, reflecting our continued investment in strengthening our omni-channel proposition. Digital penetration improved to 23.5% compared to 20.4% last year, supported by higher customer engagement across our website. Transaction increased by 38%, TC Pay app, where our bookings increased threefold, and WhatsApp channel, which saw a strong traction of 80+% growth over the comparable period. We also continue to expand our digital distribution through quick commerce platform, Blinkit, enhancing convenience and accessibility for customers.

Mahesh Iyer: This performance was supported by continued investments in our distribution and stronger partnerships across leading NBFCs. We also witnessed encouraging traction from our Study Buddy Card program launched in partnership with Visa during the quarter. Our corporate business portfolio recorded 9% growth in turnover, driven by higher wallet share from our existing relationships, new client acquisitions, and continued expansion of our corporate relationships. Our digital channels continued to gain traction during the quarter, reflecting our continued investment in strengthening our omni-channel proposition. Digital penetration improved to 23.5% compared to 20.4% last year, supported by higher customer engagement across our website. Transaction increased by 38%, TC Pay app, where our bookings increased threefold, and WhatsApp channel, which saw a strong traction of 80+% growth over the comparable period. We also continue to expand our digital distribution through quick commerce platform, Blinkit, enhancing convenience and accessibility for customers.

Speaker #3: We also witnessed encouraging traction from our Study Buddy Card program, launched in partnership with Visa during the quarter. Our corporate business portfolio recorded 9% growth in turnover, driven by higher wallet share from our existing relationships, new client acquisitions, and continued expansion of our corporate relationships.

Speaker #3: Our digital channels continued to gain great traction during the quarter, reflecting our continued investments in strengthening our omni-channel proposition. Digital penetration improved to 23.5%, compared to 20.4% last year, supported by higher customer engagement across our website. Transactions increased by 38%, TCP app bookings increased threefold, and the WhatsApp channel saw strong traction with 80-plus percent growth over the comparable period.

Speaker #3: We also continue to expand our digital distribution through quick commerce platform Blinkit, enhancing convenience and accessibility for customers. We saw a 34% increase in the number of cards sold via this platform and are now present in 12 cities.

Mahesh Iyer ): We saw 34% increase in the number of cards sold via this platform and are now present in 12 cities. We continue to drive our emphasis on customer proposition on the product front, too. We launched our One Currency Card with zero markup and zero cross-currency conversion charges, offering customers greater value and protection against currency volatility. We also expanded our Borderless Forex Card portfolio to 28 currencies with the addition of 16 new global currencies and launched a 10% value-back proposition for our customers. On the network side, we continue to optimize our retail footprint while simultaneously strengthening our presence at key travel hubs. During the quarter, we operationalized new foreign exchange counters at Delhi Airport Terminal 1 and Terminal 2, while continuing to optimize our branch network to enhance productivity and improve operational efficiency. Moving on to the travel segment.

Mahesh Iyer: We saw 34% increase in the number of cards sold via this platform and are now present in 12 cities. We continue to drive our emphasis on customer proposition on the product front, too. We launched our One Currency Card with zero markup and zero cross-currency conversion charges, offering customers greater value and protection against currency volatility. We also expanded our Borderless Forex Card portfolio to 28 currencies with the addition of 16 new global currencies and launched a 10% value-back proposition for our customers. On the network side, we continue to optimize our retail footprint while simultaneously strengthening our presence at key travel hubs. During the quarter, we operationalized new foreign exchange counters at Delhi Airport Terminal 1 and Terminal 2, while continuing to optimize our branch network to enhance productivity and improve operational efficiency. Moving on to the travel segment.

Speaker #3: We continue to drive our emphasis on customer proposition on the product front too. We launched our One Currency Card with zero markup and zero cross-currency conversion charges, offering customers greater value and protection against currency volatility.

Speaker #3: We also expanded our borderless forex card portfolio to 28 currencies with the addition of 16 new global currencies, and launched a 10% value-back proposition for our customers.

Speaker #3: On the network side, we continue to optimize our retail footprint while simultaneously strengthening our presence at key travel hubs. During the quarter, we operationalized new foreign exchange counters at Delhi Airport Terminal 1 and Terminal 2, while continuing to optimize our branch network to enhance productivity and improve operational efficiency.

Speaker #3: Moving on to the travel segment, the travel business reported revenue of ₹17,106 million during the quarter, a decline of 14% year on year.

Mahesh Iyer ): The travel business reported a revenue of INR 17,106 million during the quarter, a decline of 14% year-on-year. Having said that, our India B2B and B2C businesses continue to demonstrate healthy momentum with declines largely confined to business directly impacted by the conflict in West Asia. Coming to our B2C portfolio, Q1 is typically a peak period on the leisure holiday side. Demand for short-haul and domestic destinations strengthened progressively as the quarter advanced, as seen in the month-on-month trend. Both segments delivered a strong June, highlighting improved travel sentiment and customers' continued preference for shorter and regional travel. Our domestic segment saw a 29% increase during the quarter. We continue to witness encouraging traction in the spiritual travel segment. Increasing demand for pilgrimage circuits, premium spiritual experiences, and destinations such as Kailash Mansarovar reinforces our confidence in the fast-growing category.

Mahesh Iyer: The travel business reported a revenue of INR 17,106 million during the quarter, a decline of 14% year-on-year. Having said that, our India B2B and B2C businesses continue to demonstrate healthy momentum with declines largely confined to business directly impacted by the conflict in West Asia. Coming to our B2C portfolio, Q1 is typically a peak period on the leisure holiday side. Demand for short-haul and domestic destinations strengthened progressively as the quarter advanced, as seen in the month-on-month trend. Both segments delivered a strong June, highlighting improved travel sentiment and customers' continued preference for shorter and regional travel. Our domestic segment saw a 29% increase during the quarter. We continue to witness encouraging traction in the spiritual travel segment. Increasing demand for pilgrimage circuits, premium spiritual experiences, and destinations such as Kailash Mansarovar reinforces our confidence in the fast-growing category.

Speaker #3: Having said that, our India B2B and B2C businesses continue to demonstrate healthy momentum, with the decline largely confined to business directly impacted by the conflict in West Asia.

Speaker #3: To our coming to our B2C portfolio Q1 is typically a peak period on the leisure holiday side. Demand for short haul and domestic destination strengthened progressively as the quarter advanced as seen in the month on month trend.

Speaker #3: Both segments delivered a strong June, highlighting improved travel sentiment and customers' continued preference for shorter and regional travel. Our domestic segment saw a 29% increase during the quarter.

Speaker #3: We continue to witness encouraging traction in the spiritual travel segment. Increasing demand for pilgrimage circuits, premium spiritual experiences, and destinations such as Kailash Mansarovar reinforces our confidence in this fast-growing category.

Speaker #3: Through our bhakti and darshan platforms we remain well positioned to capture this fast growing segment. The short haul business delivered a 6% growth and if I have to exclude the Middle East which was flat or rather due to substantially during this quarter the increase in our short haul portfolio is 21%.

Mahesh Iyer ): Through our Bhakti and Darshan platforms, we remain well-positioned to capture this fast-growing segment. The short-haul business delivered a 6% growth, if I have to exclude the Middle East, which was flat or rather due to substantially during this quarter, the increase in our short-haul portfolio is 21%. Destinations such as Japan, Korea, China, saw a combined increase of 38% year-on-year, while Vietnam and Cambodia delivered more than twofold growth on a year-on-year comparison. On the long-haul side, demand remained subdued during the quarter owing to the conflict in Middle East, with sales declining 28% year-on-year. In fact, if you look at the monthly trend, which we have presented this time, the performance was almost at par with the last year in April and improving in month-on-month in May. However, as the situation unfurled, we could see a corresponding impact on the performance too.

Mahesh Iyer: Through our Bhakti and Darshan platforms, we remain well-positioned to capture this fast-growing segment. The short-haul business delivered a 6% growth, if I have to exclude the Middle East, which was flat or rather due to substantially during this quarter, the increase in our short-haul portfolio is 21%. Destinations such as Japan, Korea, China, saw a combined increase of 38% year-on-year, while Vietnam and Cambodia delivered more than twofold growth on a year-on-year comparison. On the long-haul side, demand remained subdued during the quarter owing to the conflict in Middle East, with sales declining 28% year-on-year. In fact, if you look at the monthly trend, which we have presented this time, the performance was almost at par with the last year in April and improving in month-on-month in May. However, as the situation unfurled, we could see a corresponding impact on the performance too.

Speaker #3: Destinations such as Japan, Korea, and China saw a combined increase of 38% year on year, while Vietnam and Cambodia delivered more than twofold growth on a year-on-year comparison.

Speaker #3: On the long-haul side, demand remained subdued during the quarter owing to the conflict in West Asia, with sales declining 28% year-on-year.

Speaker #3: In fact, if you look at the monthly trend which we have presented this time, the performance was almost at par in April last year, and has been improving month on month in May.

Speaker #3: However, as the situation unfurled, we could see a corresponding impact on the performance too. As we continue to scale our travel business, technology remains a key enabler of our customer engagement and operational efficiency.

Mahesh Iyer ): As we continue to scale our travel businesses, technology remains a key enabler of our customer engagement and operational efficiency. We continue to strengthen our digital ecosystem across both customer-facing and backend platforms. Our AI-powered initiative, including conversational chatbots, AI-enabled quality monitoring, AI-assist solutions, and voice automation capabilities, are helping improve customer engagement, enhance service quality, and drive productivity across operations. Reflecting the growing adoption of our digital platforms and AI-led journeys, digital penetration reached 21% in Q1 FY 2027. Coming to the B2B side of the travel business, which accounts 63% of the reported travel numbers, there was a decline of 13% to INR 11,192 million. Let me provide a more nuanced analysis of the B2B segment, starting with segments that performed well. Our MICE portfolio recorded a healthy 14% year-on-year growth and EBIT turnover increasing to INR 5,420 million.

Mahesh Iyer: As we continue to scale our travel businesses, technology remains a key enabler of our customer engagement and operational efficiency. We continue to strengthen our digital ecosystem across both customer-facing and backend platforms. Our AI-powered initiative, including conversational chatbots, AI-enabled quality monitoring, AI-assist solutions, and voice automation capabilities, are helping improve customer engagement, enhance service quality, and drive productivity across operations. Reflecting the growing adoption of our digital platforms and AI-led journeys, digital penetration reached 21% in Q1 FY 2027. Coming to the B2B side of the travel business, which accounts 63% of the reported travel numbers, there was a decline of 13% to INR 11,192 million. Let me provide a more nuanced analysis of the B2B segment, starting with segments that performed well. Our MICE portfolio recorded a healthy 14% year-on-year growth and EBIT turnover increasing to INR 5,420 million.

Speaker #3: We continue to strengthen our digital ecosystem across both customer-facing and backend platforms. Our AI-powered initiatives, including conversational chatbots, AI-enabled quality monitoring, AI-assist solutions, and voice automation capabilities, are helping improve customer engagement, enhance service quality, and drive productivity across operations.

Speaker #3: Reflecting the growing adoption of our digital platforms and AI-led journeys, digital penetration reached 21% in Q1 FY 2027. Coming to the B2B side of the travel business, which accounts for 63% of the reported travel numbers, there was a decline of 13% to ₹11,192 million.

Speaker #3: Let me provide a more nuanced analysis of the B2B segment, starting with the segments that performed well. Our MICE portfolio recorded a healthy 14% year-on-year growth, with turnover increasing to ₹5,420 million.

Speaker #3: As highlighted in our previous earnings call, we were seeing a robust pipeline building for the second half of the year, despite corporates initially adopting a cautious wait-and-watch approach.

Mahesh Iyer ): As highlighted in our previous earnings call, we were seeing a robust pipeline building for H2 of the year, despite corporates initially adopting a cautious wait-and-watch approach. We are now witnessing that deferred demand translating into business, which is clearly reflected in our current quarter's performance. The MICE business witnessed a dynamic demand trend during the quarter. Following a strong April, activity moderated in May owing to the timing of certain large events before rebounding sharply in June. The stronger finish to the quarter reflects improved execution of our order pipeline. During the quarter, we successfully managed over 110 groups, ranging in size from 50 to 2,400 delegates, underscoring our ability to execute events across diverse scale and customer requirements. The business continued to maintain a balanced portfolio with approximately 23% of the turnover generated from domestic MICE and 77% from international, providing us a well-diversified demand base.

Mahesh Iyer: As highlighted in our previous earnings call, we were seeing a robust pipeline building for H2 of the year, despite corporates initially adopting a cautious wait-and-watch approach. We are now witnessing that deferred demand translating into business, which is clearly reflected in our current quarter's performance. The MICE business witnessed a dynamic demand trend during the quarter. Following a strong April, activity moderated in May owing to the timing of certain large events before rebounding sharply in June. The stronger finish to the quarter reflects improved execution of our order pipeline. During the quarter, we successfully managed over 110 groups, ranging in size from 50 to 2,400 delegates, underscoring our ability to execute events across diverse scale and customer requirements. The business continued to maintain a balanced portfolio with approximately 23% of the turnover generated from domestic MICE and 77% from international, providing us a well-diversified demand base.

Speaker #3: We are now witnessing that deferred demand translating into business, which is clearly reflected in our current quarter's performance. The MICE business witnessed a dynamic demand trend during the quarter, following a strong April activity, moderated in May owing to the timing of certain large events, before rebounding sharply in June.

Speaker #3: The stronger finish to the quarter reflects improved execution of our order pipeline. During the quarter, we successfully managed over 110 groups, ranging in size from 50 to 2,400 delegates, underscoring our ability to execute events across diverse scale and customer requirements.

Speaker #3: The business continued to maintain a balanced portfolio, with approximately 23% of turnover generated from domestic MICE and 77% from international, providing us a well-diversified demand base.

Speaker #3: Coming to our corporate travel portfolio, which I must highlight here is reported on a net basis, we saw an increase of 7% in revenue to ₹350 million, with gross turnover crossing ₹7 billion, an increase of 15% year-on-year.

Mahesh Iyer ): Coming to our corporate travel portfolio, which I must highlight here is reported on a net basis, saw an increase of 7% in revenue to INR 350 million, with gross turnover crossing INR 7 billion, with an increase of 15% YOY. Corporate travel maintained a consistent growth trajectory throughout the quarter. Following a stable April, momentum strengthened in May and remained healthy in June, reflecting sustained business travel demand, higher wallet share from existing clients, and continued client execution. We added seven new accounts across sectors including financial services, automobile, IT, insurance, and education. Air transactions volume grew by 14%, international air volumes increased by nearly 17%, and hotel volumes grew by 33%, reflecting healthy business travel demand and continuous focus on customer acquisition. On the DMS portfolio, we reported a 31% decline to INR 5,422 million. Of this, the India DMS portfolio remained stable during the quarter.

Mahesh Iyer: Coming to our corporate travel portfolio, which I must highlight here is reported on a net basis, saw an increase of 7% in revenue to INR 350 million, with gross turnover crossing INR 7 billion, with an increase of 15% year-on-year. Corporate travel maintained a consistent growth trajectory throughout the quarter. Following a stable April, momentum strengthened in May and remained healthy in June, reflecting sustained business travel demand, higher wallet share from existing clients, and continued client execution. We added seven new accounts across sectors including financial services, automobile, IT, insurance, and education. Air transactions volume grew by 14%, international air volumes increased by nearly 17%, and hotel volumes grew by 33%, reflecting healthy business travel demand and continuous focus on customer acquisition. On the DMS portfolio, we reported a 31% decline to INR 5,422 million. Of this, the India DMS portfolio remained stable during the quarter.

Speaker #3: Corporate travel maintained a consistent growth trajectory throughout the quarter. Following a stable April, momentum strengthened in May and remained healthy in June, reflecting sustained business travel demand, higher wallet share from existing clients, and continued client execution.

Speaker #3: We added seven new accounts across sectors, including financial services, automobile, IT, insurance, and education. Air transaction volume grew by 14%, international air volumes increased by nearly 17%, and hotel volumes grew by 33%, reflecting healthy business travel demand and continuous focus on customer acquisition.

Speaker #3: On the DMS portfolio, we reported a 31% decline to ₹5,422 million. Of this, the India DMS portfolio remained stable during the quarter. This period is a traditionally lean quarter for the India inbound business.

Mahesh Iyer ): This period is a traditionally lean quarter for the India inbound business. On the international DMS side, revenues declined by 33% for the quarter. Asian Trails, which covered the Asia Pacific region, delivered a stable performance supported by growth in China and improving contributions from Cambodia, Malaysia, and Singapore. Private Safaris in Southern Africa and East Africa continued to grow, with revenue growing by 17% and 4% respectively. The broader decline in the performance was largely attributable to the geopolitical disruption impacting Desert Adventures operations, where revenue declined by 89%, coupled with softer inbound tourism trends in the US, which weighed on the overall performance of the Allied TPro, where the top line declined by 40%. Total travel segment EBIT declined by 50% year-on-year to INR 405 million. It is important to note that majority of the decline stems from our Desert Adventures business in the Middle East.

Mahesh Iyer: This period is a traditionally lean quarter for the India inbound business. On the international DMS side, revenues declined by 33% for the quarter. Asian Trails, which covered the Asia Pacific region, delivered a stable performance supported by growth in China and improving contributions from Cambodia, Malaysia, and Singapore. Private Safaris in Southern Africa and East Africa continued to grow, with revenue growing by 17% and 4% respectively. The broader decline in the performance was largely attributable to the geopolitical disruption impacting Desert Adventures operations, where revenue declined by 89%, coupled with softer inbound tourism trends in the US, which weighed on the overall performance of the Allied TPro, where the top line declined by 40%. Total travel segment EBIT declined by 50% year-on-year to INR 405 million. It is important to note that majority of the decline stems from our Desert Adventures business in the Middle East.

Speaker #3: On the international DMS slide, revenues declined by 33% for the quarter. Asian Trails, which covered the Asia Pacific region, delivered a stable performance supported by growth in China and improving contributions from Cambodia, Malaysia, and Singapore.

Speaker #3: Private safaris in Southern Africa and East Africa continued to grow, with revenue increasing by 17% and 4% respectively. The broader decline in performance was largely attributable to the geopolitical disruption impacting Desert Adventures operations, where revenue declined by 89%, coupled with softer inbound tourism trends in the US, which weighed on the overall performance of the LIT Pro, resulting in a top-line decline of 40%.

Speaker #3: Total travel segment EBIT declined by 50% year on year to ₹405 million. It is important to note that the majority of the decline stems from our Desert Adventures business in the Middle East. While business volumes were immediately impacted by the geopolitical situation, the associated cost base could not be adjusted at the same pace. As a result, the impact on profitability during the quarter was more pronounced.

Mahesh Iyer ): While business volumes were immediately impacted by geopolitical situation, the associated cost base could not be adjusted at the same pace. As a result, the impact on profitability during the quarter was more pronounced. Before I hand over the call to Vikram for his comments on Sterling Holiday Resorts, I would like to conclude by saying that this quarter reaffirmed the resilience of our core India businesses and our strength of diversified portfolio. While geopolitical developments continue to influence part of our international operations, we remain encouraged by the momentum across our domestic and short-haul business and by the strategic investments we have made over the past few years. As we move through the year, our focus remains on executing consistently, responding with agility, and continue to build a stronger, more resilient business for the long term. With this, I hand over the call to Vikram.

Mahesh Iyer: While business volumes were immediately impacted by geopolitical situation, the associated cost base could not be adjusted at the same pace. As a result, the impact on profitability during the quarter was more pronounced. Before I hand over the call to Vikram for his comments on Sterling Holiday Resorts, I would like to conclude by saying that this quarter reaffirmed the resilience of our core India businesses and our strength of diversified portfolio. While geopolitical developments continue to influence part of our international operations, we remain encouraged by the momentum across our domestic and short-haul business and by the strategic investments we have made over the past few years. As we move through the year, our focus remains on executing consistently, responding with agility, and continue to build a stronger, more resilient business for the long term. With this, I hand over the call to Vikram.

Speaker #3: Before I hand over the call to Vikram for his comments on Sterling Holidays, I would like to conclude by saying that this quarter reaffirmed the resilience of our core India businesses and the strength of our diversified portfolio.

Speaker #3: While geopolitical developments continue to influence part of our international operations, we remain encouraged by the momentum across our domestic and short-haul business, and by the strategic investments we have made over the past few years.

Speaker #3: As we move through the year, our focus remains on executing consistently, responding with agility, and continuing to build a stronger, more resilient business for the long term.

Speaker #3: With this, I hand over the call to Vikram.

Speaker #1: Thanks, Mahesh. Good afternoon, everyone, and thank you for joining us today. My name is Vikram Lalvani, I'm the MD & CEO of Sterling Holiday Resorts Ltd., and I'm also joined by Mr. L.

Vikram Lalvani: Thanks, Mahesh. Good afternoon, everyone, and thank you for joining us today. My name is Vikram Lalvani. I'm the MD CEO of Sterling Holiday Resorts Limited, and I'm also joined by Mr. L. Krishnakumar, who is the CFO of the company, and we are based in Chennai. It is my pleasure to welcome you to discuss our sterling performance for Q1 FY27. Q1 FY27 represents a defining milestone in Sterling's journey. It has been our best quarter ever across all quarters, and we've demonstrated 26 consecutive profitable quarters as well. While it is our strongest operating and financial quarter in the company's history, we believe its significance extends well beyond the numbers. It reflects the emergence of a business that has fundamentally transformed itself over the last couple of years into a scalable, profitable, and a resilient hospitality platform.

Vikram Lalvani: Thanks, Mahesh. Good afternoon, everyone, and thank you for joining us today. My name is Vikram Lalvani. I'm the MD CEO of Sterling Holiday Resorts Limited, and I'm also joined by Mr. L. Krishnakumar, who is the CFO of the company, and we are based in Chennai. It is my pleasure to welcome you to discuss our sterling performance for Q1 FY 2027. Q1 FY 2027 represents a defining milestone in Sterling's journey. It has been our best quarter ever across all quarters, and we've demonstrated 26 consecutive profitable quarters as well. While it is our strongest operating and financial quarter in the company's history, we believe its significance extends well beyond the numbers. It reflects the emergence of a business that has fundamentally transformed itself over the last couple of years into a scalable, profitable, and a resilient hospitality platform.

Speaker #1: Krishnakumar, who is the CFO of the company, and we are based in Chennai. It is my pleasure to welcome you to discuss our sterling performance for the first quarter of FY27.

Speaker #1: Q1 FY27 represents a defining milestone in Sterling's journey. It has been our best quarter ever across all quarters, and we've demonstrated 26 consecutive profitable quarters as well.

Speaker #1: While it is our strongest operating and financial quarter in the company's history, we believe its significance extends well beyond the numbers. It reflects the emergence of a business that has fundamentally transformed itself over the last couple of years into a scalable, profitable, and resilient hospitality platform.

Speaker #1: Today, I would like to focus my remarks around seven key themes, the first one being record operating and financial performance. Q1 FY27 represents the quarter in Sterling's history where virtually every business metric improved simultaneously.

Vikram Lalvani: Today, I would like to focus my remarks around seven key themes. First one being record operating and financial performance. Q1 FY27 represents the quarter in Sterling's history where virtually every business metric improved simultaneously. Revenue from operations reached INR 1.7 billion, growing 21% year on year. EBITDA increased 21% to over INR 620 million, while maintaining an industry-leading EBITDA margin of 37%. Profit before tax grew faster, 30% year on year, taking our PBT margins to 28%, an expansion of 200 basis points over the same period last year. Operating cash free cash flow also increased by 30%, reinforcing that our earnings are translating into strong cash generation and even hence a stronger balance sheet. Our profitability continues to grow faster than revenue, demonstrating improving operating leverage, disciplined cost management, and increasing maturity of our business model. Our financial position is stronger today than any other time of the past.

Vikram Lalvani: Today, I would like to focus my remarks around seven key themes. First one being record operating and financial performance. Q1 FY 2027 represents the quarter in Sterling's history where virtually every business metric improved simultaneously. Revenue from operations reached INR 1.7 billion, growing 21% year-on-year. EBITDA increased 21% to over INR 620 million, while maintaining an industry-leading EBITDA margin of 37%. Profit before tax grew faster, 30% year-on-year, taking our PBT margins to 28%, an expansion of 200 basis points over the same period last year. Operating cash free cash flow also increased by 30%, reinforcing that our earnings are translating into strong cash generation and even hence a stronger balance sheet. Our profitability continues to grow faster than revenue, demonstrating improving operating leverage, disciplined cost management, and increasing maturity of our business model. Our financial position is stronger today than any other time of the past.

Speaker #1: Revenue from operations reached ₹1.7 billion, growing 21% year on year. EBITDA increased 21% to over ₹620 million, while maintaining an industry-leading EBITDA margin of 37%.

Speaker #1: Profit before tax grew by 30% year-on-year, taking our PBT margins to 28% and representing an expansion of 200 basis points over the same period last year.

Speaker #1: Operating cash and free cash flow also increased by 30%, reinforcing that our earnings are translating into strong cash generation and, hence, an even stronger balance sheet.

Speaker #1: Profitability continues to grow faster than revenue, demonstrating improving operating leverage, disciplined cost management, and increasing maturity of our business model. Our financial position is stronger today than at any other time in the past.

Speaker #1: Sterling remains debt-free, with cash reserves exceeding ₹3.7 billion, providing significant strategic flexibility to invest in expansion, technology leadership, guest experience, and future growth opportunities.

Vikram Lalvani: Sterling remains debt-free with cash reserves exceeding INR 3.7 billion, providing significant strategic flexibility to invest in expansion, technology, leadership, guest experience, and future growth opportunities. A strong balance sheet is not an objective by itself. It's an enabler. It gives us the confidence to invest these opportunities and create long-term shareholder value without compromising on financial discipline. Taken together, these results reinforce a simple but a powerful message, which I would like to tell you. This is not a quarter driven by one exceptional initiative. It was a quarter where every growth engine delivered. Point number two, quality of earnings continued to strengthen. Our occupancy improved 700 basis points to 77%, despite a significant increase in available inventory year-on-year. At the same time, our average room rates also increased by 10% and to an all-time high of INR 7,809.

Speaker #1: A strong balance sheet is not an objective by itself; it's an enabler. It gives us the confidence to invest in these opportunities and create long-term shareholder value, without compromising on financial discipline.

Speaker #1: Taken together, these results reinforce a simple but powerful message, which we would like to share with you: this was not a quarter driven by one exceptional initiative; it was a quarter where every growth engine delivered.

Speaker #1: Point number two: Quality of earnings continued to strengthen. Our occupancy improved by 700 basis points to 77%, despite a significant increase in available inventory year-on-year.

Speaker #1: At the same time, our average room rates also increased by 10% to an all-time high of ₹7,809. Together, this drove a 20% increase in total revenue—one of the clearest indicators of revenue productivity in our industry.

Vikram Lalvani: Together, this drove a 20% increase in total RevPAR, one of the clearest indicators of revenue productivity in our industry. Room revenues increased 29%, and food and beverage continued to grow over 15%. Demand continues to outpace supply additions, supported by stronger commercial execution, disciplined revenue management, scalable distribution through Sterling ONE, and an increasing influence of the Sterling brand. Point number three, our portfolio strength and visible growth pipeline. Today, Sterling operates over 78 resorts, hotels, and retreats with nearly 3,800 rooms in over 65 destinations. Our year-on-year growth has been 28% in terms of number of resorts and hotels and 17% in terms of number of rooms. That's also making us one of the fastest-growing players in the listed space. We have a visible development pipeline of over 35 resorts, hotels, and retreats, representing more than 2,000 additional rooms spanning leisure resorts, experiential destinations, and business hotels.

Speaker #1: Room revenues increased 29%, and food and beverage continued to grow over 15%. Demand continues to outpace supply additions, supported by stronger commercial execution, disciplined revenue management, scalable distribution through Sterling One, and an increasing influence of the Sterling brand.

Speaker #1: Point number three: our portfolio strength and visible growth pipelines. Today, Sterling operates over 78 resorts, hotels, and retreats, with nearly 3,800 rooms in over 65 destinations. Our year-on-year growth has been 28% in terms of the number of resorts and hotels, and 17% in terms of the number of rooms, thus also making us one of the fastest growing players in the listed space.

Speaker #1: We have a visible development pipeline of over 35 resort hotels and retreats, representing more than 2,000 additional rooms spanning leisure resorts, experiential destinations, and business hotels.

Vikram Lalvani: Our growth has been guided by an asset-light approach that balances owned, leased, and managed properties while maintaining capital efficiency. Point four, customer excellence, our strongest competitive advantage. Our net promoter score remains above 81%. Sterling Kanha has received Tripadvisor's prestigious Best of the Best Award for the fourth consecutive year, placing it amongst the very select group of resort properties globally, top 1%, and making Sterling the only resort brand to receive this distinction 4 years in a row and in succession. In addition, 28 Sterling resorts received Tripadvisor's Travelers' Choice Awards, rating us in top 10% globally amongst all accommodations. Even more encouraging is that 12 resorts have now earned this recognition for 3 consecutive years, while 21 resorts have been recognized for this for 2 consecutive years. Point number five, responsible growth by creating shared value.

Speaker #1: Our growth has been guided by an asset-right approach that balances owned, leased, and managed properties while maintaining capital efficiency. Point four, customer excellence: our strongest competitive advantage—our Net Promoter Score remains above 81%.

Speaker #1: Sterling Kana has received TripAdvisor's prestigious Best of the Best award for the fourth consecutive year, placing it amongst a very select group of resort properties globally—the top 1%—and making Sterling the only resort brand to receive this distinction four years in a row and in succession.

Speaker #1: In addition, 28 Sterling resorts received TripAdvisor's Travelers' Choice Awards, ranking us in the top 10% globally amongst all accommodations. Even more encouraging is that 12 resorts have now earned this recognition for three consecutive years, while 21 resorts have been recognized for this for two consecutive years.

Speaker #1: Point number five: responsible growth by creating shared value. At Sterling, we believe that business success and societal impact are not mutually exclusive. In fact, they strengthen one another. As we continue to scale Sterling, we are equally committed to building stronger and healthier communities around us.

Vikram Lalvani: At Sterling, we believe that business success and societal impact are not mutually exclusive. In fact, they strengthen one another. As we continue to scale Sterling, we are equally committed to building stronger and healthier communities around us. Over the last 2 years, through our CSR initiatives, we've invested over INR 2 crores towards strengthening dialysis infrastructure across the country. We have installed 38 dialysis machines across 7 Indian states, supported 19 hospitals, and created an annual dialysis capacity of approximately 57,000 life-saving treatments, as well as created local employment opportunities within these healthcare ecosystems. This is what doing good by doing well truly means. Point number six, strong tailwinds delivered despite some meaningful headwinds. India continues to benefit from powerful structural tailwinds in tourism, especially domestic demand and organized hospitality.

Speaker #1: Over the last two years, through our CSR initiatives, we've invested over ₹2 crore towards strengthening dialysis infrastructure across the country. We have installed 38 dialysis machines across seven Indian states, supported 19 hospitals, and created an annual dialysis capacity of approximately 57,000 life-saving treatments, as well as created local employment opportunities within these healthcare ecosystems.

Speaker #1: This is what "doing good by doing well" truly means. Point number six: strong tailwinds delivered despite some meaningful headwinds. India continues to benefit from powerful structural tailwinds in tourism, especially domestic demand and organized hospitality.

Speaker #1: At the same time, rising operating costs, challenging supply chains due to global events, and potential climate-related disruptions are headwinds that are coming our way.

Vikram Lalvani: At the same time, rising operating costs, challenging supply chains due to global events, and potential climate-related disruptions are headwinds that's coming our way. Delivering our strongest ever quarter despite these challenges reinforces our confidence in our execution capabilities. Point number seven, our balance sheet is absolutely strong. Our development pipeline provides excellent visibility, and we continue to invest in digital transformation, artificial intelligence, and strategic enablers for the next phase of growth, as well as investing in leadership and the brand architecture as we scale. Combined with disciplined capital allocation and our asset right strategy, we believe Sterling is well-positioned for sustained value creation. Before I hand it over to Ram of DEI, I would like to state a few comments in my closing remarks. A few years ago, our objective was to transform the business. Today, our objective is to compound that transformation.

Speaker #1: Delivering our strongest ever quarter, despite these challenges, reinforces our confidence in our execution capabilities. Point number seven: our balance sheet is absolutely strong. Our development pipeline provides excellent visibility, and we continue to invest in digital transformation, artificial intelligence, and strategic initiatives as enablers for the next phase of growth, as well as investing in leadership and the brand architecture as we scale.

Speaker #1: Combined with disciplined capital allocation and an asset-right strategy, we believe Sterling is well positioned for sustained value creation. Before I hand it over to Ram of DEI, in my closing, I would like to state a few comments in my closing remarks.

Speaker #1: A few years ago, our objective was to transform the business. Today, our objective is to compound that transformation. With one of the strongest balance sheets in the sector and an expanding national footprint, a visible pipeline, industry-leading customer advocacy, and disciplined capital allocation, we believe Sterling is exceptionally well positioned to deliver sustainable growth and enduring shareholder value.

Vikram Lalvani: With one of the strongest balance sheets in the sector and expanding national footprint, a visible pipeline, industry-leading customer advocacy, disciplined capital allocation, we believe Sterling is exceptionally well-positioned to deliver sustainable growth and enduring shareholder value. Over the last five years, Sterling has built the foundations of a high-quality hospitality company. Over the next five years, our ambition is to translate this foundation into superior growth, stronger returns, increasing cash generation, and sustained stakeholder value creation. We firmly believe that our journey has just begun. Thank you, and we look forward to some of your questions as we go along. Thank you. Over to you, Ram.

Speaker #1: Over the last five years, Sterling has built the foundations of a high-quality hospitality company. Over the next five years, our ambition is to translate this foundation into superior growth, stronger returns, increasing cash generation, and sustained stakeholder value creation.

Speaker #1: We firmly believe that our journey has just begun. Thank you, and we look forward to some of your questions as we go along. Over to you, Ram.

Speaker #2: Thank you, Vijran. Good afternoon, ladies and gentlemen. My name is K.S. Ramkrishnan, and I am the MD of DEI. We've had a fairly challenging quarter, as you all have seen and heard.

K. S. Ramakrishnan: Thank you, Vikram. Good afternoon, ladies and gentlemen. My name is K.S. Ramakrishnan. I'm the MD of DEI. We've had a fairly challenging quarter, as you all have seen and heard. We've posted INR 1,307 million of revenue in Q1 2027, as compared to INR 2,097 million in Q1 2026. This has led to obviously, from an EBIT of INR +106 million in the last year same quarter, we've gone to INR -152 million EBIT for this quarter. Obviously, this has been directly related to our 50% dependence of our overall global business falls in the Middle East, which has been heavily impacted due to the ongoing geopolitical issues that seems to have not improved during the quarter. We're hoping and praying that gets better as we go along.

Speaker #2: We've posted 1,307 million rupees of revenue in the quarter 1 to 27 as compared to 2,097 million in quarter 1 26. This has led to obviously from a positive EBIT of 106 in the last year same quarter we've gone to a 152 million negative EBIT for this this quarter.

Speaker #2: Obviously, this has been directly related to our 50% dependence on our overall global business, which falls in the Middle East and has been heavily impacted.

Speaker #2: Due to the ongoing geopolitical issues, which seem to have not improved during the quarter, we are hoping and praying that things get better as we go along.

Speaker #2: This was also compounded by the revenue drop, which has been compounded by a few other business decisions that we took, of closing some non-profitable sites in China—namely Universal—and some end-of-contract terms in the Bahamas.

K. S. Ramakrishnan: The revenue drop also has been compounded by a few other business decisions that we took of closing some non-profitable sites in China, namely Universal, and some end of contract terms in Bahamas that we stopped. Given this as a challenge, the management of DEI took an immediate action of working on cost optimizations. We have constantly reduced our losses by reducing sites that do not make profits to be completely closed. Our labor control has been fully enhanced and brought to a fairly reasonable optimization that we'll see in the coming quarters. The overheads have been strongly better. We've again worked strongly on getting some sustainable changes on the overheads from a long-term basis. This will help us when business comes back.

Speaker #2: Given this as a challenge, we have the management of the US is in immediate action of working on cost optimizations. We have constantly reduced our losses by making sites—reducing sites that do not make profits to be completely closed. Laying the control has been fully enhanced and brought to a fairly reasonable optimization that's been seen in the coming quarters.

Speaker #2: The overheads have been significantly improved. We've again worked hard on making some sustainable changes to the overheads on a long-term basis. This will help us when business comes back.

Speaker #2: We've also added to it renegotiating some of the terms with the Middle Eastern partners due to the situation, and we have got some positive response that helps us to optimize and makes our cost much better.

K. S. Ramakrishnan: We've also added to it renegotiating some of the terms with the Middle Eastern partners due to the situation, we have got some positive response that helps us to optimize and makes our cost much better. Hopefully, we'll have better results in the coming quarters. We shall up it the volumes for our tech to go in full steam to make it better. That's all from my side. Thank you.

Speaker #2: Hopefully, we will deliver better results in the coming quarters. We shall await the volumes for our tech to go in full steam to make it better.

Speaker #2: That's all from my side. Thank you.

Speaker #3: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone phone.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Chetan Mahadik from Systematix. Please go ahead.

Operator: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Chetan Mahadik from Systematix. Please go ahead.

Speaker #3: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #3: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Chetan Mahadik from Systematics.

Speaker #3: Please go ahead.

Speaker #4: Yeah, hi. Thank you for the opportunity. A few questions, firstly on travel. Excluding the impact of the geopolitical disruptions, how has the underlying demand trended in July and, say, early August across the outbound leisure?

Operator: Yeah, hi. Thank you for the opportunity. A few questions. Firstly, on travel. Say, excluding the impact of the geopolitical disruptions, how has the underlying demand trended in July and say early August across the outbound leisure?

Chetan Mahadik: Yeah, hi. Thank you for the opportunity. A few questions. Firstly, on travel. Say, excluding the impact of the geopolitical disruptions, how has the underlying demand trended in July and say early August across the outbound leisure?

Speaker #1: Chetan, any more questions, or was that the only question we had?

Mahesh Iyer ): Chetan, any more questions or that's the only question you had?

Mahesh Iyer: Chetan, any more questions or that's the only question you had?

Speaker #4: Yeah, on travel, I have one more. That is, say, customers, if you see, have shifted from Europe and westbound destinations towards Japan, Vietnam, and China.

Mahesh Iyer ): Yeah. On travel, I have one more. That is, say customers, if you see, have shifted from Europe and westbound destination towards Japan, Vietnam, and China. Do these newer destinations carry comparable margins or does it change significantly? These were on travel first, yeah.

Chetan Mahadik: Yeah. On travel, I have one more. That is, say customers, if you see, have shifted from Europe and westbound destination towards Japan, Vietnam, and China. Do these newer destinations carry comparable margins or does it change significantly? These were on travel first, yeah.

Speaker #4: So do these newer destinations carry, say, comparable margins, or does it change significantly? These were on travel first, yeah.

Speaker #1: So Chetan, let me address both the questions. Your first question on the long-haul trend: while it's kind of a little early to say that we are seeing a shift in the trend as far as long-haul is concerned, because the impact of the war is not fully absorbed.

Mahesh Iyer ): Chetan, let me address both the questions. Your first question on the long-haul trend. While it's kind of a little early to say that we are seeing a shift in the trend as far as the long-haul is concerned, because the impact of the war is not fully absorbed. What happens is there are statements that are made, and there are these missiles that fly at odd days, and that kind of makes it difficult for customers to make a decision or firm up their decision on travel. What I can definitely confirm is that the desire to travel continues to be very strong, and the Europe and the westbound market is always going to remain stronger in times to come also.

Mahesh Iyer: Chetan, let me address both the questions. Your first question on the long-haul trend. While it's kind of a little early to say that we are seeing a shift in the trend as far as the long-haul is concerned, because the impact of the war is not fully absorbed. What happens is there are statements that are made, and there are these missiles that fly at odd days, and that kind of makes it difficult for customers to make a decision or firm up their decision on travel. What I can definitely confirm is that the desire to travel continues to be very strong, and the Europe and the westbound market is always going to remain stronger in times to come also.

Speaker #1: You know, what happens is there are statements that are made, and there are these missiles that fly at odd days. And that kind of makes it difficult for customers to make a decision or form their decision on travel.

Speaker #1: What I can definitely confirm is that the desire to travel continues to be very, very strong, and the Europe and the westbound market are always going to remain stronger in times to come also.

Speaker #1: At this point in time, what we have witnessed in July and some of the trends in August are reflecting a better outcome in terms of conversion as compared to what we saw in the period from April to June.

Mahesh Iyer ): At this point in time, what we have witnessed in July and some of the trends in August are reflecting a better outcome in terms of conversion as compared to what we saw in the period April to June. Yes, that trend is definitely looking better. Whether this will all translate into a higher outcome as compared to what we had on the comparable period last year, it's a little too early days to say. To your second question on the short-haul side, yes, what we are also witnessing is the demand from the westbound long-haul flights or long-haul travel is now moving to short-haul destinations. That part of the business, as I mentioned before in my commentary also, is seeing double-digit growth, and we continue to witness similar trends even today.

Mahesh Iyer: At this point in time, what we have witnessed in July and some of the trends in August are reflecting a better outcome in terms of conversion as compared to what we saw in the period April to June. Yes, that trend is definitely looking better. Whether this will all translate into a higher outcome as compared to what we had on the comparable period last year, it's a little too early days to say. To your second question on the short-haul side, yes, what we are also witnessing is the demand from the westbound long-haul flights or long-haul travel is now moving to short-haul destinations. That part of the business, as I mentioned before in my commentary also, is seeing double-digit growth, and we continue to witness similar trends even today.

Speaker #1: So yes, that trend is definitely looking better. Whether this will all translate into a higher outcome as compared to what we had in the comparable period last year—it's a little too early to say.

Speaker #1: To a second question on the short haul side yes what we are also witnessing is the demand from the westbound west west haul westbound long haul flights or long haul travel is now moving to short haul destinations and that part of the business as I mentioned before in my commentary also is seeing double digit growths and we continue to witness similar trends even today.

Speaker #1: From a margin perspective, they are very similar to the kind of margins we make on the long-haul products. It is only important to mention here that the average ticket price differs.

Mahesh Iyer ): From a margin perspective, they are very similar to the kind of margins we make on the long-haul products. It is only important to mention here that the average ticket price differs on the long-haul side versus short-haul. The delta between the two will be anywhere between 20% to 25% in terms of our average ticket value for a transaction.

Mahesh Iyer: From a margin perspective, they are very similar to the kind of margins we make on the long-haul products. It is only important to mention here that the average ticket price differs on the long-haul side versus short-haul. The delta between the two will be anywhere between 20% to 25% in terms of our average ticket value for a transaction.

Speaker #1: On a long haul side versus short haul, the delta between the two will be anywhere between 20% to 25% in terms of average ticket value for a transaction.

Speaker #4: Understood. Understood. And next, only the forex part. So, we recently operationalized the Delhi airport counters while optimizing some branch locations. So, going forward, do we strategize to acquire more airport counters than, say, more traditional kinds of branches?

Mahesh Iyer ): Next on the Forex part. We recently operationalized the Delhi Airport counters while optimizing some branch locations. Going forward, do we strategize to acquire more airport counters than, say, more traditional kind of branches?

Chetan Mahadik: Next on the Forex part. We recently operationalized the Delhi Airport counters while optimizing some branch locations. Going forward, do we strategize to acquire more airport counters than, say, more traditional kind of branches?

Speaker #1: Chetan, I think I have alluded to this at some point in time in my previous conversation. Look, airport is not a focus strategy per se, but we are very opportunistic in that market.

Mahesh Iyer ): Chetan, I think I've alluded to this at some point in time in my previous conversation. Look, airport is not a focus strategy per se, but we are very opportunist in that market. If there is a counter where we can be present at a price point that is, I would say, rewarding from a commercial perspective, we will go into it. We don't step into airports for brand visibility or advertising because that's not the model we operate in. I think we have a very good brand, well-reckoned and trustworthy in the market, we don't need to really go out there and put those monies at airports to advertise. We take a very calibrated, calculated move in terms of the airports that we enter.

Mahesh Iyer: Chetan, I think I've alluded to this at some point in time in my previous conversation. Look, airport is not a focus strategy per se, but we are very opportunist in that market. If there is a counter where we can be present at a price point that is, I would say, rewarding from a commercial perspective, we will go into it. We don't step into airports for brand visibility or advertising because that's not the model we operate in. I think we have a very good brand, well-reckoned and trustworthy in the market, we don't need to really go out there and put those monies at airports to advertise. We take a very calibrated, calculated move in terms of the airports that we enter.

Speaker #1: If there is a counter where we can be present at a price point that is, you know, I would say, rewarding from a commercial perspective, we will go into it.

Speaker #1: We don't step into airports for brand visibility or advertising, because that's not the model we operate in. I think we have a very good brand—well-recognized and trustworthy—in the market.

Speaker #1: So we don't really need to go out there and put those monies into airports to advertise. So we take a very calibrated, calculated move in terms of the airports that we enter.

Speaker #1: So, if you look at our entry into Delhi airport, this is something that we thought fits the commercial construct that we have and made commercial sense for us to remain invested.

Mahesh Iyer ): If you look at our entry into Delhi Airport, this is something that we thought it fits the commercial construct that we have and made commercial sense for us to remain invested, that's why we went into Delhi Airport. Otherwise, as a model, we are not going at it. Yes, if there are airports that come at terms that are mutually beneficial to us, we will definitely evaluate that.

Mahesh Iyer: If you look at our entry into Delhi Airport, this is something that we thought it fits the commercial construct that we have and made commercial sense for us to remain invested, that's why we went into Delhi Airport. Otherwise, as a model, we are not going at it. Yes, if there are airports that come at terms that are mutually beneficial to us, we will definitely evaluate that.

Speaker #1: That's why we went into Delhi airport. But otherwise, as a model, we are not going at it. Yes, if there are airports that come at terms that are mutually beneficial to us, we will definitely evaluate that.

Speaker #4: Okay. And lastly, on the hospitality business—our ARR has seen a healthy growth of around 9 to 10%. So, apart from any real rate growth, was it driven by a geographic mix shift, or any of our slightly premium or theme-based restaurants, or something else?

Mahesh Iyer ): Okay. Lastly, on our hospitality business. Our ARR has seen a healthy growth of around 9% to 10%. Sir, apart from any real rate growth, was it driven by a geographic mix shift in any of our slightly premium theme-based restaurants or something else?

Chetan Mahadik: Okay. Lastly, on our hospitality business. Our ARR has seen a healthy growth of around 9% to 10%. Sir, apart from any real rate growth, was it driven by a geographic mix shift in any of our slightly premium theme-based restaurants or something else?

Speaker #1: So one let me ask let me take that. Average room rates grew by 10% but simultaneously even the volume grew. And to almost 77%.

Mahesh Iyer ): One, let me take that. Average room rates grew by 10%. Simultaneously, even the volume grew to almost 77%. One, it obviously was the summer period. Domestic is our key source of business, and we leveraged domestic as a key source of business as well. Over a period of time as we kept expanding as well, Sterling has added different, I would say in a simple form, different classes of hotels. It has different levels or different segmentation. We've moved away from just being a mid-scale player towards upper upscale, and upper mid-scale as well. What happens in such situations, your ability to expand the rates as and when the demand is increasing, actually that enables us actually do so in a much more fungible manner.

Vikram Lalvani: One, let me take that. Average room rates grew by 10%. Simultaneously, even the volume grew to almost 77%. One, it obviously was the summer period. Domestic is our key source of business, and we leveraged domestic as a key source of business as well. Over a period of time as we kept expanding as well, Sterling has added different, I would say in a simple form, different classes of hotels. It has different levels or different segmentation. We've moved away from just being a mid-scale player towards upper upscale, and upper mid-scale as well. What happens in such situations, your ability to expand the rates as and when the demand is increasing, actually that enables us actually do so in a much more fungible manner.

Speaker #1: One, it obviously was the summer period, and we had domestic as our key source of business, and we leveraged the domestic as a key source of business as well.

Speaker #1: Over a period of time, as we kept expanding as well, Sterling has added different, I would say in simple form, different classes of hotels.

Speaker #1: So, it has different levels or different segmentation. So, we've moved away from just being a mid-scale player towards upper upscale, upscale, and upper mid-scale as well.

Speaker #1: So, what happens in such situations is that your ability to expand the rates as and when the demand is increasing actually enables us to do so in a much more fungible manner.

Speaker #1: So that's how we've actually managed to leverage and get this average rate growth, simultaneously with the volume growth. So both of them actually grew simultaneously, and that's why the total revenue per available room also grew by almost 20%.

Mahesh Iyer ): That's how we've actually managed to leverage and get this average rate growth simultaneously with the volume growth. Both of them actually grew simultaneously, and that's why the total revenue per available room also grew by almost 20%.

Vikram Lalvani: That's how we've actually managed to leverage and get this average rate growth simultaneously with the volume growth. Both of them actually grew simultaneously, and that's why the total revenue per available room also grew by almost 20%.

Speaker #4: Got it, sir. Got it. Thank you, and all the best.

Mahesh Iyer ): Got it, sir. Thank you. All the best.

Chetan Mahadik: Got it, sir. Thank you. All the best.

Speaker #2: Thank you. The next question is from the line of Anil Shah from Insightful Investments. Please go ahead.

Operator: Thank you. The next question is from the line of Anil Shah from Insightful Investing. Please go ahead.

Speaker #4: Sure. Hello. Am I audible? Yeah. Yeah. No you know I my question is on digital imaging. You know I'd ask this question in a different format in in in terms of a much more shorter period time last quarter whether you know our EBITDA or EBIT loss had peaked.

Anil Shah: Sure. Hello. Am I audible?

K. S. Ramakrishnan: Yes, Anil. Go ahead.

Mahesh Iyer: Yes, Anil. Go ahead.

Anil Shah: Yeah. My question is on digital imaging. I asked this question in a different format in terms of a much more shorter period time last quarter, whether our EBITDA or EBIT loss had peaked. Obviously, it's worsened from the Q4 levels. On a more sustainable basis, my question on digital imaging is, given, A, what's the capital employed in this business, both from a CapEx perspective in terms of a regular CapEx or regular upgradation of the technology and instrumentations, et cetera, and the OpEx involved and the management bandwidth, what is the best case ROCE that we can really make and what's the best EBIT that we can make on a normalized basis? Because obviously, from what I understand, there is a lot of capital also involved in this particular business, and so is a lot of OpEx.

Speaker #4: Obviously it's worsened from the Q4 levels. But on a more sustainable basis my question on digital imaging is given you know A what's the capital employed in this business both from a you know a CapEx perspective on in terms of a regular CapEx or regular upgradation of the technology and the you know instrumentations etc.

Speaker #4: And the OPEX involved and the management bandwidth what is the best case ROC that we can really make and what's the best EBIT that we can make on a normalized basis because obviously I you know from what I understand there is a lot of cap you know capital also involved in this particular business and so is a lot of OPEX.

Speaker #4: So if you could just throw some more light on a medium- to longer-term perspective on digital imaging as such.

Anil Shah: If you could just throw some light more on a medium to longer term perspective on digital imaging as such.

Speaker #3: Okay. I'll take one part of it and ask Debashi to help me with the ROS, etc. From a capital perspective, our biggest, largest capital that we've deployed in the last five years probably is only on a technology upgrade that we've gone through.

K. S. Ramakrishnan: Okay, I'll take one part of it and ask Debasis to help me with the rest, et cetera. From a capital perspective, our biggest, largest capital that we've deployed in the last 5 years probably is only on our technology upgrade that we've gone through. All right? On a regular day-to-day basis, the capital requirement is not so large, if I may address that. The largest that we put is on the technology upgrade that is going to be sustainable and be delivering more than required in the next 5 to 7 years. That's one piece of it. It's not intensive that way.

Speaker #3: All right. So, on a regular day-to-day basis, the capital requirement is not so large, if I may address that. And the largest that we put is a cap on the technology upgrade that’s going to be sustainable and delivering more than required in the next five to seven years.

Speaker #3: So that's one piece of it. So it's not intensive that way. From a day to day operational level we are we spend less than about probably say it's it's not very large.

K. S. Ramakrishnan: From a day-to-day operational level, it's not very large from an operational level on the CapEx, because most of our contracts are such that we go and operate in a premise which is already ready and done by our partner. There's no large set up costs, et cetera, except for some hardware and the software that's pre already invested. Debasis, you can fill me up with the rest if you want to.

Speaker #3: From a from an from an operational operational level on the CapEx because most of our contracts are such that we go and operate in a premise which is already ready and done by our partner.

Speaker #3: So there's no large setup cost, etc., except for some hardware and the software that's already pre-invested. Debashi, you can fill me in on the rest if you want to.

Speaker #1: Yeah, yeah, sure. So Anil, if you look at the segment results, you'll see that the net assets employed in the photo imaging services—which is essentially EI—there is ₹243 crore, so that's the total value of net assets.

Debasis Nandy ): Yeah, sure. Anil, if you look at the segment results, you'll see that the net assets employed in Digiphoto Imaging Services, which is essentially DI, is about INR 243 crores. That's the.

Debasis Nandy: Yeah, sure. Anil, if you look at the segment results, you'll see that the net assets employed in Digiphoto Imaging Services, which is essentially DI, is about INR 243 crores. That's the.

Anil Shah: INR 243, yeah.

Speaker #1: ₹243 crore is the net asset.

Debasis Nandy ): INR 243 crore is the net asset.

Debasis Nandy: INR 243 crore is the net asset.

Speaker #4: Right.

Anil Shah: Right.

Speaker #1: As far as your as far as the other question is on what would be the likely in a in a in a normal quarter or normal year where we do not have the situ geopolitical risk etc.

Debasis Nandy ): As far as your asset, the other question is on what would be the likely in a normal quarter or a normal year.

Debasis Nandy: As far as your asset, the other question is on what would be the likely in a normal quarter or a normal year.

Anil Shah: Yeah

Debasis Nandy ): Where we do not have the strategic geopolitical risks, et cetera, what should be the expected sort of EBIT rates? Typically, in a normal year, DI should be working in the range of the EBIT ratio should be in the range of about 6% to 7% on sales. Okay. We can honestly do the math on that and figure out what's the sort of return on capital that we can expect.

Debasis Nandy: Where we do not have the strategic geopolitical risks, et cetera, what should be the expected sort of EBIT rates? Typically, in a normal year, DI should be working in the range of the EBIT ratio should be in the range of about 6% to 7% on sales. Okay. We can honestly do the math on that and figure out what's the sort of return on capital that we can expect.

Speaker #1: What should be the expected sort of EBIT rates? So typically you know in a normal year DI in a it should be working in the range of at a the EBIT ratio should be in the range of about six seven percent on sales.

Speaker #1: Okay, and so you can honestly do the math on that and figure out what's the sort of return on capital that we can expect.

Anil Shah: In terms of what we have, INR 243 crore is the net capital that we've deploying on this business. Obviously, a reasonably large part of that was upgradation, which we did in the last few years, if I'm right.

Speaker #4: For a while, you know, I mean in terms of what we have, 243 crores is the net capital that we've deployed on this business.

Speaker #4: Obviously, a reasonably large part of that was upgradation, which we did in the last few years, if I'm right.

Debasis Nandy ): Correct. Yeah.

Debasis Nandy: Correct. Yeah.

Speaker #1: Correct.

Speaker #4: And do you think, from the next few years' perspective, there is a lot of spend on CapEx or on upgradation that is yet to happen? Because, you know, this part of technology is constantly evolving and you need to be right up there.

Anil Shah: You think from the next few years perspective, is there a lot of spend on CapEx or on upgradation that is yet to happen? Because this part of technology is constantly evolving, and you need to be right up there. Is there a constant spend that we need to do there?

Speaker #4: So, is there a constant spend that we need to do there?

Speaker #3: Sure. So the sorry. So the business that we are doing the business we are in is in imaging and we capture emotions of guests and deliver that.

K. S. Ramakrishnan: So the-

Debasis Nandy ): No.

Debasis Nandy: No.

K. S. Ramakrishnan: Sorry.

K. S. Ramakrishnan: No, go ahead.

Debasis Nandy: No, go ahead.

K. S. Ramakrishnan: the business we are in is in imaging, and we capture emotions of guests and deliver that. We are not a technology company per se. Okay? We have only built technology that helps us deliver that seamlessly. For whatever number that Debasis put, more than 50% and 60% of that amount has been not just the upgrade, but the revamp of that will last for next 5 to 10 years. There won't be any ongoing cost of any substantial nature, near to what's already been done so far.

Speaker #3: We're not a technology company per se, okay. We have only built technology that helps us deliver that seamlessly. If, for whatever number that Debashi put, more than 50–60 percent of that amount has been just in not just the upgrade but the revamp of that, that will last for the next five to ten years.

Speaker #3: So there won't be any ongoing cost of any substantial nature, near to what's already been done so far.

Speaker #1: So Rob, if I may add to that. Anil, you know DI has been in existence for more than twenty years now. For the first about fifteen years of its lifecycle, it worked on a particular technology, which it had obtained from a third party.

Debasis Nandy ): Ram, if I may add to that. Anil, DEI has been in existence for more than 20 years now. Okay. For the first about 15 years of its life cycle, it worked on a particular technology which it had obtained from a third party. There were some updations on that, but not an upgradation, so to say. Only in 2020 or 2021, we realized that we are falling behind, and we need to develop a new technology. Which, as Ram pointed out, would last for another, I think, about 10 years or so. There will be periodic sort of inputs to be given into technology, but that is not every year or every few years. It's probably every 10, 12 years that we need to probably upgrade the technology.

Debasis Nandy: Ram, if I may add to that. Anil, DEI has been in existence for more than 20 years now. Okay. For the first about 15 years of its life cycle, it worked on a particular technology which it had obtained from a third party. There were some updations on that, but not an upgradation, so to say. Only in 2020 or 2021, we realized that we are falling behind, and we need to develop a new technology. Which, as Ram pointed out, would last for another, I think, about 10 years or so. There will be periodic sort of inputs to be given into technology, but that is not every year or every few years. It's probably every 10, 12 years that we need to probably upgrade the technology.

Speaker #1: And you know they had there are some updations on that but not a upgradation so to say. And only in the in the in twenty twenty or twenty twenty one we realized that we are falling behind and we need to develop a new technology.

Speaker #1: Which, as Ram pointed out, would last for another at least about ten years or so. So there will be periodic sort of inputs to be given into technology, but that is not every year or every few years.

Speaker #1: It's probably every 10, 10 to 12 years that we need to probably upgrade the technology.

Speaker #4: And what would be a target, you know, IRR or ROC that we really want to generate? Because the peak EBIT that we've done in the last six years is, you know, around ₹50 crores or something on this business.

Anil Shah: What would be a target IRR or ROCE that we really want to generate? Because at peak EBIT that we have done in the last 6 years is around INR 50 crore or something on this business. I am presuming that was one of the more normal year in the world.

Speaker #4: And I'm presuming that was, you know, one of the more normal years in the world.

Speaker #1: Yeah. So, I mean, from the time we have acquired DI, honestly there have been only two normal years in the world. We acquired them in late 2019.

Debasis Nandy ): Yeah. From the time we have acquired DEI, honestly, there have been only 2 normal years in the world. We acquired them in late 2019, and the only 2 normal years was about, I think, about 2023 and 2024. Those were the 2 normal years that we found. To come back to your question.

Debasis Nandy: Yeah. From the time we have acquired DEI, honestly, there have been only 2 normal years in the world. We acquired them in late 2019, and the only 2 normal years was about, I think, about 2023 and 2024. Those were the 2 normal years that we found. To come back to your question.

Speaker #1: And the only two normal years were, I think, about '23 and '24. Those were the two normal years that we found.

Speaker #1: But to come back to your question yeah to come back to your question. Yeah. Yeah. Coming to that exactly. So we will we go by the overall target of delivering a twenty percent ROE.

Anil Shah: What kind of

Debasis Nandy ): Yeah. Coming to that. Exactly. We go by the overall target of delivering a 20% ROE. That's our long-term goal. It is true that every business has to deliver at least that much, because it cannot be that one business delivers more and one business delivers less. That's the sort of return that we're looking for.

Debasis Nandy: Yeah. Coming to that. Exactly. We go by the overall target of delivering a 20% ROE. That's our long-term goal. It is true that every business has to deliver at least that much, because it cannot be that one business delivers more and one business delivers less. That's the sort of return that we're looking for.

Speaker #1: That's a long term goal. And you know it is not it is not that it is true that every business has to deliver at least that much because this cannot be that one business delivers more and one business delivers less.

Speaker #1: So that's the sort of return that we're looking for.

Speaker #4: Yeah. And you know this EBIT obviously does not you know you've not reduced the corporate overheads in this EBIT because it's a it's a it's a segmental EBIT.

Anil Shah: Yeah. This EBIT obviously, you've not reduced the corporate overheads in this EBIT because it's a segmental EBIT.

Debasis Nandy ): Yeah, the segment doesn't have much of. DEI has no common expenses or support expenses. Everything is absorbed in the segment results. The DEI, the structure that we have for DEI is that it's headquartered in Dubai and spread across Asia and a big bit of US and stuff like that. We do not ascribe any of DEI's expenses as common expenses. Okay. Entire expenses of DEI is absorbed in that particular segment.

Debasis Nandy: Yeah, the segment doesn't have much of. DEI has no common expenses or support expenses. Everything is absorbed in the segment results. The DEI, the structure that we have for DEI is that it's headquartered in Dubai and spread across Asia and a big bit of US and stuff like that. We do not ascribe any of DEI's expenses as common expenses. Okay. Entire expenses of DEI is absorbed in that particular segment.

Speaker #1: Yeah. But the segment doesn't have much, so DI has no common expenses or support expenses. Everything is absorbed in the segment results. The structure that we have for DI is that it's headquartered in Dubai.

Speaker #1: And it's spread across Asia, and, you know, a bit of other—big bit of US and African stuff like that. But we do not ascribe any of DI's expenses as common expenses.

Speaker #1: Okay. So, the entire expenses of DI are absorbed in that particular segment.

Speaker #4: Right. Right. Fine. And you know just coming to the travel part of the business somebody asked you about you know July etc. So from a fullier perspective assuming you know things I mean even as we speak things are not really absolutely normal you know there is there is a on and off the switch is still on as far as the war is concerned.

Anil Shah: Right. Fine. Just coming to the travel part of the business, somebody asked you about July. From a full year perspective, assuming things, even as we speak, things are not really absolutely normal. There is the on and off, the switch is still on as far as the war is concerned. Assuming that we assume this to be normal, what kind of growth in travel are we looking for from a FY27 perspective in terms of top line? What kind of EBIT margins range you would like us to work with?

Anil Shah: Right. Fine. Just coming to the travel part of the business, somebody asked you about July. From a full-year perspective, assuming things, even as we speak, things are not really absolutely normal. There is the on and off, the switch is still on as far as the war is concerned. Assuming that we assume this to be normal, what kind of growth in travel are we looking for from a FY 2027 perspective in terms of top line? What kind of EBIT margins range you would like us to work with?

Speaker #4: But assuming that we assume this to be normal you know what kind of growth in travel are we looking for from a FY twenty seven perspective in terms of top line and what kind of EBIT margins range if you would like us to work with?

Speaker #1: So, Anil Mahesh again. You know we've kind of spoken about this in the past. I mean, maybe this is not the right time for me to give you a guidance on what will be the FY27 outcome, as you rightly said.

Mahesh Iyer ): Anil, Mahesh again. We've kind of spoken about it in the past. Maybe this is not the right time for me to give you a guidance on what will be the FY27 outcome. As you rightly said, we are still in the midst of the war, we see new statements emerging every day which determines which way the flow of traffic or aircraft will fly. Those uncertainties continue to haunt us. Just alluding to the point that I made previously to the question that was asked by Chetan, I think from a long-haul perspective, we are seeing some positive shift in the trend.

Mahesh Iyer: Anil, Mahesh again. We've kind of spoken about it in the past. Maybe this is not the right time for me to give you a guidance on what will be the FY 2027 outcome. As you rightly said, we are still in the midst of the war, we see new statements emerging every day which determines which way the flow of traffic or aircraft will fly. Those uncertainties continue to haunt us. Just alluding to the point that I made previously to the question that was asked by Chetan, I think from a long-haul perspective, we are seeing some positive shift in the trend.

Speaker #1: We are still in the midst of the war, and we see new statements emerging every day, which determine which way the flow of traffic or aircraft will fly.

Speaker #1: So those uncertainties continue to haunt us. But, you know, just alluding to the point that I made previously through the question that was asked by Chetan, I think from a long-haul perspective, we are seeing some positive shift in the trend, and that is.

Anil Shah: Okay.

Mahesh Iyer ): That is, whatever deficit that we were seeing previously, the deficit percentages have come down. If you were looking at a 28% and 30% deficit on the long haul side, now currently they are trending slightly lower than that kind of levels. Obviously, we are also seeing momentum or growth on the short-haul and the domestic side of it. As I qualified and said, the short-haul average ticket price or the average value of a package is lower than that of a long haul. There is that mixed impact that will come into play. Currently, very difficult for me to give you a forward-looking statement as to what my exit FY27 will be. Reasonable to expect that if the situations remain constant, we should be better in H2 as compared to H1.

Mahesh Iyer: That is, whatever deficit that we were seeing previously, the deficit percentages have come down. If you were looking at a 28% and 30% deficit on the long haul side, now currently they are trending slightly lower than that kind of levels. Obviously, we are also seeing momentum or growth on the short-haul and the domestic side of it. As I qualified and said, the short-haul average ticket price or the average value of a package is lower than that of a long haul. There is that mixed impact that will come into play. Currently, very difficult for me to give you a forward-looking statement as to what my exit FY 2027 will be. Reasonable to expect that if the situations remain constant, we should be better in H2 as compared to H1.

Speaker #1: That whatever deficit that we were seeing previously the the deficit percentages have come down. So if you were looking at a twenty eight thirty percent deficit on the long haul side now currently they are trending slightly lower than that kind of levels.

Speaker #1: Obviously, we are also seeing momentum or growth on the short-haul and the domestic side of it. But as I qualified and said, the short-haul average ticket price, or the average value of a package, is lower than that of a long-haul.

Speaker #1: So, there is that mixed impact that will come into play. Currently, it is very difficult for me to give you a forward-looking statement as to what my exit FY27 will be.

Speaker #1: But reasonable to expect that if the situations remain constant, we should be better in H2 as compared to H1.

Speaker #4: Sure. All right. Thank you, sir. Thank you so much.

Anil Shah: Sure. All right. Thank you, sir. Thank you so much.

Speaker #2: Thank you. The next question is from the line of Madhur Rathi from Counter Cyclical Investments. Please go ahead.

Operator: Thank you. The next question is from the line of Madhur Rathi from Counter Cyclical Investments. Please go ahead.

Speaker #5: Sir. Thank you for the opportunity. Sir. I wanted to understand regarding our travel segment. If I look at the past two years we've grown cumulatively between FY twenty four and FY twenty seven by twenty percent.

Madhur Rathi: Sir, thank you for the opportunity. Sir, I wanted to understand regarding our travel segment. If I look at the past two years, we've grown cumulatively between FY2024 and FY2026 by 20%. I think a lot of that would be also price increases, not the long haul, short haul mix, but just the price increases of the end packages that we are providing. Our margins have declined at the same rate. How should I look at the margins of this segment, and what will drive either improvement in the take rates or EBIT margins of the segment going forward? Sir, second question was, with the TCS rate reduction, if you could help us understand how is the pricing scenario? Are customers more accepting our packages right now versus maybe 1 year back?

Madhur Rathi: Sir, thank you for the opportunity. Sir, I wanted to understand regarding our travel segment. If I look at the past two years, we've grown cumulatively between FY 202024 and FY 202026 by 20%. I think a lot of that would be also price increases, not the long haul, short haul mix, but just the price increases of the end packages that we are providing. Our margins have declined at the same rate. How should I look at the margins of this segment, and what will drive either improvement in the take rates or EBIT margins of the segment going forward? Sir, second question was, with the TCS rate reduction, if you could help us understand how is the pricing scenario? Are customers more accepting our packages right now versus maybe 1 year back?

Speaker #5: And I hope—I think a lot of that would be also price increases, not the long-haul/short-haul mix, but just the price increases of the end packages that we have provided.

Speaker #5: But our margins have declined at the same rate. So, how should I look at the margins of the segment, and what will drive either improvement in the take rates or EBIT margins of the segment going forward?

Speaker #5: And sir, the second question was, with the TCS rate reduction, how is the pricing now? If you could help us understand, how is the pricing scenario? Are customers more accepting of our packages right now versus maybe one year back?

Speaker #1: Okay, so Madhur, let me try and break this question into two parts and try to respond to you. Question one was in terms of our revenue growth.

Mahesh Iyer ): Okay. Madhur, let me try and break this question into two parts and try and respond to you. Question one was in terms of our revenue growth. If you look at our revenue growth, the nature of the business is very cyclical, seasonal by nature. There's no straight line. If you look at the gross output for a full year and compare it, you will see the growth. You must also keep in mind that we never had a good stable year where all cylinders have fired, which means all geographies have operated at the same level. We had some or the other disruptions in some markets, an overperformance in one market is kind of underpinned by underperformance in some other markets. That has been the situation that we are currently in.

Mahesh Iyer: Okay. Madhur, let me try and break this question into two parts and try and respond to you. Question one was in terms of our revenue growth. If you look at our revenue growth, the nature of the business is very cyclical, seasonal by nature. There's no straight line. If you look at the gross output for a full-year and compare it, you will see the growth. You must also keep in mind that we never had a good stable year where all cylinders have fired, which means all geographies have operated at the same level. We had some or the other disruptions in some markets, an overperformance in one market is kind of underpinned by underperformance in some other markets. That has been the situation that we are currently in.

Speaker #1: You know, if you look at our revenue growth, the nature of the business is very cyclical. It's seasonal by nature, so there's no straight line.

Speaker #1: If you look at the gross output for a full year and compare it, you will see the growth. But you must also keep in mind that we never had a good, stable year where all cylinders have fired.

Speaker #1: Which means all geographies have operated at the same level. We had some other disruptions in some markets. So, an overperformance in one market is kind of underpinned by underperformance in some other market.

Speaker #1: So that has been the situation that we are currently in. And if you look at the case in point, in the current quarter also, while the India business has remained fairly stable, we were impacted largely by the Middle East markets, where, you know, we had a ₹200 crore shortfall in our top line sales.

Mahesh Iyer ): If you look at the case in point in the current quarter also, while the India business have remained fairly stable, we were impacted largely by the Middle East markets, where we had an INR 200 crore shortfall in our top-line sales, which has kind of impacted our overall profitability for the quarter. To your reference on take rates, and presuming you're talking about gross margins, I think gross margins across the travel portfolio has remained stable. In fact, it's grown in some of our outbound segments from the comparable period and for the financial year FY2026. Currently, if I look at FY2027, the margins are actually looking better. From an EBIT margin point of view, again, slightly uncertain at this point in time to give you a guidance on what kind of margins, but internally, we are working in a range of about 4% to 5%.

Mahesh Iyer: If you look at the case in point in the current quarter also, while the India business have remained fairly stable, we were impacted largely by the Middle East markets, where we had an INR 200 crore shortfall in our top-line sales, which has kind of impacted our overall profitability for the quarter. To your reference on take rates, and presuming you're talking about gross margins, I think gross margins across the travel portfolio has remained stable. In fact, it's grown in some of our outbound segments from the comparable period and for the financial year FY 202026. Currently, if I look at FY 202027, the margins are actually looking better. From an EBIT margin point of view, again, slightly uncertain at this point in time to give you a guidance on what kind of margins, but internally, we are working in a range of about 4% to 5%.

Speaker #1: Which has kind of impacted our overall profitability for the quarter. And to your reference on take rates—and presuming you're talking about gross margins—I think gross margins across the travel portfolio have remained stable.

Speaker #1: In fact, it's grown in some of our outbound segments from the comparable period. And for the financial year FY26 and currently, looking at FY27, the margins have actually been looking better.

Speaker #1: From an EBIT margin point of view, again, it's slightly uncertain at this point for me to give you guidance on what kind of margins.

Speaker #1: But internally, we are working in a range of about 4 to 5%. That's the kind of range of EBIT margin that we are working with.

Mahesh Iyer ): That's the kind of range of EBIT margin that we are working with. That's the guidance I can give you at this point in time. There are uncertainties in the market. An impact in one of the business could take the overall performance down, impacting the EBIT margin in a comparative basis. On a standalone basis, if you were to measure, let's say, an outbound business out of India and look at the EBIT margin, they will translate in that 4%, 5% range that I spoke about.

Mahesh Iyer: That's the kind of range of EBIT margin that we are working with. That's the guidance I can give you at this point in time. There are uncertainties in the market. An impact in one of the business could take the overall performance down, impacting the EBIT margin in a comparative basis. On a standalone basis, if you were to measure, let's say, an outbound business out of India and look at the EBIT margin, they will translate in that 4%, 5% range that I spoke about.

Speaker #1: That's the guidance I can give you at this point in time. Again, there are uncertainties in the market, and impact in one of the businesses will take the overall performance down, impacting the EBIT margin on a comparative basis.

Speaker #1: But on a standalone basis, if you were to measure, let's say, an outbound business out of India and look at the EBIT margin, they will translate into that 4% or 5% range that I spoke about.

Speaker #5: How can we expect to see an improvement? I understand that our gross margins or take rates are stable right now, but how do we improve this going forward on a mid-term basis?

Madhur Rathi: How can we expect to see an improvement? I understand that our gross margins or take rates are stable right now, how do we improve them going forward on a mid-term basis? Are there any drivers or this will become stable and based on whatever geography or whatever there is up and down seasonality in whichever geography, our EBIT margins would go up and down? I'm trying to understand on that front.

Speaker #5: Are there any drivers, or is this—this will become stable and, based on whatever geography or whatever, there are ups and downs, seasonality; in whichever geography, our EBIT margins would go up and down.

Speaker #5: So, I'm trying to understand on that front.

Speaker #1: No, so Madhur, I think there's no one-size-fits-all kind of an answer to it, because we are looking at different business models. One is a B2B business, the other is a B2C business.

Mahesh Iyer ): Madhur, I think there's no one-size-fits-all kind of an answer to it because we are looking at different business models. One is a B2B business, the other is a B2C business. You can extract your price, some amount of pricing advantage you have on the B2C side. A lot of it is not available on the B2B because we are competing with other operators in that same space. Yes, wherever it's a B2C bent, we have some leverage on the market. Please also be mindful that input costs have gone higher because the airline costs are higher, Forex rates have changed on the side of being expensive.

Mahesh Iyer: Madhur, I think there's no one-size-fits-all kind of an answer to it because we are looking at different business models. One is a B2B business, the other is a B2C business. You can extract your price, some amount of pricing advantage you have on the B2C side. A lot of it is not available on the B2B because we are competing with other operators in that same space. Yes, wherever it's a B2C bent, we have some leverage on the market. Please also be mindful that input costs have gone higher because the airline costs are higher, Forex rates have changed on the side of being expensive.

Speaker #1: You can extract, you know, some amount of pricing advantage you have on the B2C side. A lot of it is not available on the B2B side because you are competing with other operators in that same space.

Speaker #1: So yes, wherever it's a B2C bend, we have some leverage on the market. But please also be mindful that input costs have gone higher, because the airline costs are higher.

Speaker #1: Forex rates have changed, on the side of being expensive, so we have to be competitive in the marketplace. And some of the tactical calls that we keep taking from time to time are to keep the demand cycle going, because there is a capacity that we've invested in.

Mahesh Iyer ): We have to be competitive in the marketplace and some of the tactical calls that we keep taking from time to time to keep the demand cycle going, because there is a capacity that we've invested in, and we have to keep the capacity engaged. That's what we do. Just to give you a long answer in a short word, is that our focus is to keep ourselves true to the margin that I mentioned, which is the range of 4% to 5%. There will be these quarterly seasonal variations that you will see, the long-term strategy is to ensure that our take rates across B2B and B2C hover around the 14%, 15% range.

Mahesh Iyer: We have to be competitive in the marketplace and some of the tactical calls that we keep taking from time to time to keep the demand cycle going, because there is a capacity that we've invested in, and we have to keep the capacity engaged. That's what we do. Just to give you a long answer in a short word, is that our focus is to keep ourselves true to the margin that I mentioned, which is the range of 4% to 5%. There will be these quarterly seasonal variations that you will see, the long-term strategy is to ensure that our take rates across B2B and B2C hover around the 14%, 15% range.

Speaker #1: And you have to keep the capacity engaged. So that's what we do. So again you know just to give you a long long answer in a short word is that our focus is to keep ourselves true to the margin that that I mentioned which is the range of four to five percent.

Speaker #1: There will be these quarterly seasonal variations that you will see. But the long-term strategy is to ensure that our take rates across B2B and B2C are around the 14–15% range.

Speaker #5: Got it. And sir, on the TCS—the TCS reduction—how is the impact of the same, like on the pricing and customer acceptance? Are customers more accepting?

Madhur Rathi: Got it. Sir, on the TCS reduction, how's the impact of the same on the pricing and customer acceptance? Are customers more accepting?

Speaker #1: So honestly, to be very frank, I haven't seen a big impact coming out of the TCS. Yes, it's been brought down to a stable five percent.

Mahesh Iyer ): Honestly, to be very frank, I haven't seen a big impact coming out of the TCS. Yes, it's been brought down to a stable 5%. It's a cash outgo, and not necessarily a price, because that is going to be claimed by the customer by filing his returns and stuff like that. I think people have taken it in their stride. Is there a positive impact of it? I can't put a finger on it and say yes. Yes, it does help because 5% seems lower as compared to the previous rates that we were operating at.

Mahesh Iyer: Honestly, to be very frank, I haven't seen a big impact coming out of the TCS. Yes, it's been brought down to a stable 5%. It's a cash outgo, and not necessarily a price, because that is going to be claimed by the customer by filing his returns and stuff like that. I think people have taken it in their stride. Is there a positive impact of it? I can't put a finger on it and say yes. Yes, it does help because 5% seems lower as compared to the previous rates that we were operating at.

Speaker #1: It's a cash outgo, not necessarily a price, because that is what we claimed by the customer by filing his returns and stuff like that.

Speaker #1: So I think people have taken it this way, right? Is there a positive impact to it? I can't put a finger on it and say yes.

Speaker #1: But yes, it does help because five percent seems lower as compared to the previous rate that we were operating at.

Speaker #5: Got it. Sir, I wanted to understand—if we see our travel segment, it is by and large flat since FY19. And I do understand that there have been disruptions.

Madhur Rathi: Got it. Sir, I wanted to understand that if we see our travel segment, it is by and large flat since FY19. I do understand that there have been disruptions, but sir, even so, it seems that there is some challenge in growing this division. What are, in your best judgment, minus once all the geopolitical issues stabilize, what is the expectation from this division? At what rate can this business grow over the next five years?

Madhur Rathi: Got it. Sir, I wanted to understand that if we see our travel segment, it is by and large flat since FY 2019. I do understand that there have been disruptions, but sir, even so, it seems that there is some challenge in growing this division. What are, in your best judgment, minus once all the geopolitical issues stabilize, what is the expectation from this division? At what rate can this business grow over the next five years?

Speaker #5: But sir, even so, it seems that there is some challenge in growing this division. So, what are, in your best judgment—once all the geopolitical issues stabilize—what is the expectation from this division?

Speaker #5: At what rate can this business grow over the next five years?

Speaker #1: So Madhur, again, I'll come back to the point that I made. You know, again, it's not about one size fits all here, because there are multiple parts to this business.

Mahesh Iyer ): Madhur, again, I'll come back to the point that I made. Again, it's not about one size fits all here because there are multiple parts to this business. There is a B2B and a B2C side to the business. Again, within the B2B, there are DMS, which are inbound-focused business, and then I have India-focused B2B business, which is corporate and MICE. If you look at our corporate and MICE business, we have been registering a 12%, 15% growth year on year. If I look at the B2C businesses, and again, post the pandemic, I think there is a shift in terms of how customers travel. The long-haul side of the portfolio, which used to be a larger portfolio, has shrunk. What we are seeing is the growth coming in the short-haul and the domestic side of it.

Mahesh Iyer: Madhur, again, I'll come back to the point that I made. Again, it's not about one size fits all here because there are multiple parts to this business. There is a B2B and a B2C side to the business. Again, within the B2B, there are DMS, which are inbound-focused business, and then I have India-focused B2B business, which is corporate and MICE. If you look at our corporate and MICE business, we have been registering a 12%, 15% growth year-on-year. If I look at the B2C businesses, and again, post the pandemic, I think there is a shift in terms of how customers travel. The long-haul side of the portfolio, which used to be a larger portfolio, has shrunk. What we are seeing is the growth coming in the short-haul and the domestic side of it.

Speaker #1: There is a B2B and a B2C side to the business. Again, within the B2B, there are DMS, which are inbound-focused business. And then I have India-focused B2B business, which is corporate and MICE.

Speaker #1: So if you look at our corporate and MICE business, they have been registering a 12–15% growth year on year. If I look at the B2C businesses, again post the pandemic, I think there is a shift in terms of how customers travel.

Speaker #1: The long-haul side of the portfolio, which used to be a larger portfolio, has shrunk. And what we are seeing is the growth coming in the short-haul and the domestic side of it.

Speaker #1: Obviously because the ATVs on these domestic and short haul are lower. They don't reflect as growth on the overall portfolio. I mean that's one of the reason why the overall growth when you compare twenty nineteen to twenty twenty five or twenty six you don't see that kind of number.

Mahesh Iyer ): Obviously, because the ATVs on these domestic and short-haul are lower, they don't reflect as growth on the overall portfolio. That's one of the reasons why the overall growth, when you compare 2019 to 2025 or 2026, you don't see that kind of number. Again, keep in mind that when you look at 2019, most of the DMS companies that we acquired were loss-making then. Over the last three, four years and post-pandemic, more specifically between 2023, 2024, and 2025, a lot of these businesses have undergone transformation. Their revenues have been growing at about 8% to 12% YOY. We are seeing some of those benefits actually to flow down. If you look even at the current quarter, with the exception of the Middle East markets and the US market, the other three units actually fared well. Their revenue actually grew by 8% and 12%, respectively.

Mahesh Iyer: Obviously, because the ATVs on these domestic and short-haul are lower, they don't reflect as growth on the overall portfolio. That's one of the reasons why the overall growth, when you compare 2019 to 2025 or 2026, you don't see that kind of number. Again, keep in mind that when you look at 2019, most of the DMS companies that we acquired were loss-making then. Over the last three, four years and post-pandemic, more specifically between 2023, 2024, and 2025, a lot of these businesses have undergone transformation. Their revenues have been growing at about 8% to 12% year-on-year. We are seeing some of those benefits actually to flow down. If you look even at the current quarter, with the exception of the Middle East markets and the US market, the other three units actually fared well. Their revenue actually grew by 8% and 12%, respectively.

Speaker #1: Again keep in mind that when you look at twenty nineteen most of the DMS companies that we acquired were loss making then. Over the last three four years and post pandemic more specifically between twenty three twenty four and twenty five a lot of these businesses have undergone transformation.

Speaker #1: Their revenue has been growing at about 8% to 12% year-over-year, and we are seeing some of those benefits actually flow down. I mean, if you look even at the current quarter, with the exception of the Middle East markets and the US market—

Speaker #1: The other three units actually performed well. Their revenue grew by 8% and 12%, respectively. So we have seen growth that has come in.

Mahesh Iyer ): We have seen growth that has come in, but there are pockets where there has been impact. Overall, when you start looking at the overall pocket, you don't see the comparison in terms of growth. If I have to plot each of that and put a five-year graph to it, you will actually see the growth trends.

Mahesh Iyer: We have seen growth that has come in, but there are pockets where there has been impact. Overall, when you start looking at the overall pocket, you don't see the comparison in terms of growth. If I have to plot each of that and put a five-year graph to it, you will actually see the growth trends.

Speaker #1: But there are pockets where there has been impact. So overall, when you start looking at the overall pocket, you don't see the comparison in terms of growth.

Speaker #1: But if I have to plot each of those and put a five-year graph to it, you will actually see the growth trends.

Speaker #5: Answer just to add to that. If I if you look at FY nineteen the travel services stock line was six thousand sixty crores. And then we entered a period of degrowth because of COVID.

Debasis Nandy ): Also just to add to that, if you look at FY19, the travel services top line was INR 6,060 crores. Then we entered a period of degrowth because of COVID. That impacted the next three years. We actually went down from INR 6,060 crores in FY19 to in FY22, the number had gone down to, I'm not even talking of FY21, which is a peak period, but FY22 was INR 1,047. It did grow by more than 80%. Then we sort of climbed back. If I look at FY26, which is the last financial year, we moved up to INR 6,700 crores. Now you can always argue that we actually went from 6,000 to 6,700 in a matter of six or seven years.

Debasis Nandy: Also just to add to that, if you look at FY 2019, the travel services top line was INR 6,060 crores. Then we entered a period of degrowth because of COVID. That impacted the next three years. We actually went down from INR 6,060 crores in FY 2019 to in FY 2022, the number had gone down to, I'm not even talking of FY 2021, which is a peak period, but FY 2022 was INR 1,047. It did grow by more than 80%. Then we sort of climbed back. If I look at FY 2026, which is the last financial year, we moved up to INR 6,700 crores. Now you can always argue that we actually went from 6,000 to 6,700 in a matter of six or seven years.

Speaker #5: And so the that impacted the next three years. So we actually went down from six thousand sixty crores in FY nineteen to in FY twenty two the number had gone down to I'm not even talking of FY twenty one which is a peak period.

Speaker #5: But FY twenty two was the one thousand forty seven. So we degrew by more than eighty percent. And then we sort of climbed back.

Speaker #5: And if I look at FY twenty six which is the last financial year we moved up to six thousand seven hundred crores. Now you can always argue that we actually went from six thousand six seven seven in the matter of six or seven years.

Speaker #5: But we must also consider there was a very abnormal period of three years in between, which pulled us down, and we managed to go back.

Debasis Nandy ): We must also consider there was a very abnormal period of three years in between, which pulled us down, and we managed to grow back. I think you have to take it in the right perspective. Just taking two points from a chart is not the right way to look at it. I can also look at it in a different way if you allow me. I can also look at FY23 figure of INR 3,600 crores versus today's figure of INR 6,700 crores. It will reflect a three-year growth of roughly about INR 3,100 crores. It's the charts and Excel, you can interpret the way you like, actually. It's very easy to do this.

Debasis Nandy: We must also consider there was a very abnormal period of three years in between, which pulled us down, and we managed to grow back. I think you have to take it in the right perspective. Just taking two points from a chart is not the right way to look at it. I can also look at it in a different way if you allow me. I can also look at FY 2023 figure of INR 3,600 crores versus today's figure of INR 6,700 crores. It will reflect a three-year growth of roughly about INR 3,100 crores. It's the charts and Excel, you can interpret the way you like, actually. It's very easy to do this.

Speaker #5: I think we have to take it in the right perspective. Just taking two points from a chart is not the right way to look at it.

Speaker #5: I can always also look at it in a different way. If I if you allow me. I can also look at FY twenty three figure of three thousand six hundred crores versus today's figure of six thousand seven hundred crores.

Speaker #5: So it will reflect a three year growth of you know roughly about three thousand one hundred crores. So it is it's you know the chart charts and Excel you can you know interpret the way you like actually.

Speaker #5: So it's very easy to do this. But actually, to be reasonable, you should compare a normal year—which FY19 was—to FY26, which again was a normal year by and large.

Madhur Rathi: Actually, to be reasonable, to compare a normal year, which FY19 was to FY26, which again was a normal year by and large, is more sensible than to basically compare.

Madhur Rathi: Actually, to be reasonable, to compare a normal year, which FY 2019 was to FY 2026, which again was a normal year by and large, is more sensible than to basically compare.

Speaker #5: It is more sensible, then, to basically compare to a normal.

Speaker #1: Normal year. I'm sorry, I have to interrupt. But FY26 is by no stretch of imagination a normal year. You may remember that the year started off with the Paradigm attack, followed by the India-Pakistan war.

Debasis Nandy ): I'm sorry, I have to interrupt. FY26 is in no stretch of imagination a normal year. You may remember that the year started off with the Pahalgam attack, followed by the India-Pakistan war. Followed by the Middle East, the disturbances in the Middle East.

Debasis Nandy: I'm sorry, I have to interrupt. FY 2026 is in no stretch of imagination a normal year. You may remember that the year started off with the Pahalgam attack, followed by the India-Pakistan war. Followed by the Middle East, the disturbances in the Middle East.

Speaker #1: Okay. Followed by the Middle East, you know, the disturbances in the Middle East. And yeah, airspace issues. And of course, Mr. Trump was there right through this period.

Madhur Rathi: Yes.

Debasis Nandy ): Airspace issues. Of course, Mr. Trump was there right through this period. FY26 is one of the worst years we faced in terms of geopolitical disturbances.

Debasis Nandy: Airspace issues. Of course, Mr. Trump was there right through this period. FY 2026 is one of the worst years we faced in terms of geopolitical disturbances.

Speaker #1: So, FY26 is one of the worst years we have faced in terms of disturbances—in terms of geopolitical disturbances.

Speaker #5: Understood sir. Now sir lastly sir in our financial services segment sir now many new online technology based disruptors have come up. Bookmai Forex and so on.

Madhur Rathi: Understood, sir. Sir, lastly, sir, in our financial services segment, sir, many new online technology-based disruptors have come up, BookMyForex and so on. Sir, is there any threat of disruption in the Forex booking side of the business?

Speaker #5: Sir, so do you— is there any threat of disruption in the Forex booking side of the business?

Speaker #1: So Madhur I I won't comment on any of the competition. I can only comment on what we do. I think I I think if you look at our commentary to the market we've said our digital adoption is close to about twenty four percent.

Mahesh Iyer ): Madhur, I won't comment on any of the competition. I can only comment on what we do. I think if you look at our commentary to the market, we've said our digital adoption is close to about 24%. We are present in all the digital channels that a customer wants to access our services. 24% of our transactions today are done digitally, whether it's a WhatsApp journey, whether it's an app journey, or it's a website journey. The customer can seamlessly interact with us. For us, competition was there yesterday, it's going to be there today, and it's going to be there tomorrow. I think we've stood our ground in terms of the product and offerings that we bring, and we've always been, I would say, market makers than followers.

Mahesh Iyer: Madhur, I won't comment on any of the competition. I can only comment on what we do. I think if you look at our commentary to the market, we've said our digital adoption is close to about 24%. We are present in all the digital channels that a customer wants to access our services. 24% of our transactions today are done digitally, whether it's a WhatsApp journey, whether it's an app journey, or it's a website journey. The customer can seamlessly interact with us. For us, competition was there yesterday, it's going to be there today, and it's going to be there tomorrow. I think we've stood our ground in terms of the product and offerings that we bring, and we've always been, I would say, market makers than followers.

Speaker #1: So we are present in all the digital channels that a customer wants to access our services, and 24% of our transactions today are done digitally.

Speaker #1: Whether it's a WhatsApp journey, whether it's an app journey, or it's a website journey, the customer can seamlessly interact with us. You know, for us, competition was there yesterday.

Speaker #1: It's going to be there today, and it's going to be there tomorrow. I think we've stood our ground in terms of the product and offerings that we bring.

Speaker #1: And we've always been, I would say, market makers rather than followers. So, some of the things that we bring to the market, the market actually follows us.

Mahesh Iyer ): Some of the things that we bring to the market, the market actually follows us. I think we have an edge, sir. We are one of the oldest company in this space, one of the most trusted brands. The product portfolio that we have is one of the most robust that we have, and we keep innovating in our product portfolio also, which kind of keeps us ahead of the market. I think that's where I will mark my statement. I wouldn't make any comparison to competition.

Mahesh Iyer: Some of the things that we bring to the market, the market actually follows us. I think we have an edge, sir. We are one of the oldest company in this space, one of the most trusted brands. The product portfolio that we have is one of the most robust that we have, and we keep innovating in our product portfolio also, which kind of keeps us ahead of the market. I think that's where I will mark my statement. I wouldn't make any comparison to competition.

Speaker #1: So I think we have an edge there. We are one of the oldest companies in this space, one of the most trusted brands. The product portfolio that we have is one of the most robust that we have.

Speaker #1: And we keep innovating in our product portfolio also, which kind of keeps us ahead of the market. So I think that's where I will park my statement.

Speaker #1: I wouldn't make any comparison to competition.

Speaker #5: All right, sir. Thank you so much and all the best.

Madhur Rathi: Right. Sir, thank you so much and all the best.

Speaker #1: Thank you.

Mahesh Iyer ): Thank you.

Mahesh Iyer: Thank you.

Speaker #6: Ladies and gentlemen, before we take the next question, we would like to remind participants that you may press star and one to ask a question.

Operator: Ladies and gentlemen, before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Shivam Gupta from Trinetra Asset Managers. Please go ahead.

Speaker #6: The next question is from the line of Shivam Gupta from Trinetra Asset Managers. Please go ahead.

Speaker #5: Thanks, sir. In the last call—hello, am I audible?

Operator: Hi, Shiv. In the last call. Hello, am I audible?

Shivam Gupta: Hi, Shiv. In the last call. Hello, am I audible?

Speaker #1: Shivam, can you speak a little louder, please?

Mahesh Iyer ): Shivamm, can you speak a little louder, please?

Mahesh Iyer: Shivamm, can you speak a little louder, please?

Speaker #5: Hello yeah.

Mahesh Iyer ): Hello. Yeah.

Shivam Gupta: Hello. Yeah.

Speaker #1: Yeah. Yeah it's good. Right.

Mahesh Iyer ): Yeah.

Mahesh Iyer: Yeah.

Mahesh Iyer ): Is it good now?

Shivam Gupta: Is it good now?

Mahesh Iyer ): Yeah, it's good. Go ahead.

Mahesh Iyer: Yeah, it's good. Go ahead.

Speaker #5: In an earlier call, management had guided that double-digit earnings would be routine by FY27, assuming normal conditions. After the Q1 decline, do you still believe this is possible?

Mahesh Iyer ): In your earlier call, management has guided double-digit earning growth in FY27. Was achievable under normal condition. After the Q1 decline, do you still believe this is possible?

Shivam Gupta: In your earlier call, management has guided double-digit earning growth in FY 2027. Was achievable under normal condition. After the Q1 decline, do you still believe this is possible?

Speaker #1: Shivam, I wish I could answer that question for you at this point in time. It's just one quarter in FY 2027. You know, despite the headwinds that we saw, we've had a good set of numbers.

Mahesh Iyer ): Shivam, I wish I could answer that question to you at this point in time. In just one quarter in FY27, despite the headwinds that we saw, we've had a good set of numbers, a stable set of numbers in some of our markets. Difficult to gauge that at this point in time, but our endeavor will be to still deliver a good outcome for the full year. That's what I can tell you. I really don't have an answer to say what will be my full year forecast at this point in time, given the environment which we operate in currently.

Mahesh Iyer: Shivam, I wish I could answer that question to you at this point in time. In just one quarter in FY 2027, despite the headwinds that we saw, we've had a good set of numbers, a stable set of numbers in some of our markets. Difficult to gauge that at this point in time, but our endeavor will be to still deliver a good outcome for the full-year. That's what I can tell you. I really don't have an answer to say what will be my full-year forecast at this point in time, given the environment which we operate in currently.

Speaker #1: A stable set of numbers in some of our markets. Difficult to gauge that at this point in time. But our endeavor will be to still deliver a good outcome for the full year.

Speaker #1: That's what I can tell you. I really don't have an answer to say what will be my full-year forecast at this point in time.

Speaker #1: Given the environment in which we currently operate.

Speaker #5: Okay. Any second, like excluding DEI and Desert Adventure, the group EBIT grew by 8%. Could you share the revenue and EBIT impact from these two GCC businesses separately?

Mahesh Iyer ): Okay. Second, excluding DEI and Desert Adventure, the group EBIT grew by 8%. Could you share the revenue and EBIT impact from these two GCC business separately?

Shivam Gupta: Okay. Second, excluding DEI and Desert Adventure, the group EBIT grew by 8%. Could you share the revenue and EBIT impact from these two GCC business separately?

Mahesh Iyer ): Yeah. Can you reach out to Urvashi? She is the head of our investor relations, and she will share all those details with you. Just to give you a broad number, I think Ram alluded to it when he spoke about his drop in EBIT. That was a 10 crore profit last year, which dropped to 15 crore loss this year. That's a delta of 25 crores. As for Desert Adventure is concerned, I don't have the exact number. Ballpark, I guess it's about 8 or 9 crores, that's about 90 million. Anyway, Urvashi will share the final numbers with you.

Mahesh Iyer: Yeah. Can you reach out to Urvashi? She is the head of our investor relations, and she will share all those details with you. Just to give you a broad number, I think Ram alluded to it when he spoke about his drop in EBIT. That was a 10 crore profit last year, which dropped to 15 crore loss this year. That's a delta of 25 crores. As for Desert Adventure is concerned, I don't have the exact number. Ballpark, I guess it's about 8 or 9 crores, that's about 90 million. Anyway, Urvashi will share the final numbers with you.

Speaker #1: Yeah, can you reach out to Urvashi, who is the head of our investor relations, and she will share all those details with you? But just to give you a broad number, I think Ram alluded to it when he spoke about his drop in EBIT.

Speaker #1: That was a ten crore profit last year, which dropped to fifteen crore loss this year. So that's a delta of twenty-five crores. As for the Desert Adventures piece is concerned, I don't have the exact number.

Speaker #1: Ballpark, I guess it’s about eight or nine crores—that’s about ninety million. But anyway, sir, Urvashi will share the final numbers with you.

Speaker #5: Okay sir. Thank you.

Mahesh Iyer ): Okay, sir. Thank you.

Shivam Gupta: Okay, sir. Thank you.

Speaker #6: Thank you. The next question is from the line of Soumya S from Insightful Investments. Please go ahead.

Operator: Thank you. The next question is from the line of Soumya S. from Insightful Investing. Please go ahead.

Speaker #7: Hi. Thank you for the opportunity. So my question was regarding DEI. As as you've seen that the EBIT for this quarter has you know reduced on a Q one Q basis.

Soumya S.: Hi. Thank you for the opportunity. My question was regarding DEI. As you've seen that the EBIT for this quarter has reduced on a Q1Q basis, and the management has spoken about cost optimization measures, as well as closing certain parks which were non-profitable. In the last call, it was told that the cost optimization gets implemented with a lag of around 30 to 60 days. I was just wondering if it'll be possible to see an impact in the Q2 result that will be coming up in a few months.

Soumya Shidhore: Hi. Thank you for the opportunity. My question was regarding DEI. As you've seen that the EBIT for this quarter has reduced on a Q1Q basis, and the management has spoken about cost optimization measures, as well as closing certain parks which were non-profitable. In the last call, it was told that the cost optimization gets implemented with a lag of around 30 to 60 days. I was just wondering if it'll be possible to see an impact in the Q2 result that will be coming up in a few months.

Speaker #7: And the management has spoken about cost optimization measures, as well as closing certain parts which were non-profitable. In the last call, it was mentioned that the cost optimization gets implemented with a lag of around 30 to 60 days.

Speaker #7: So I was just wondering if it will be possible to see an impact in the Q2 result that will be coming up in a few months.

Speaker #1: Ram, do you want me to take the question, or would you like to come in?

Mahesh Iyer ): Ram, you want me to take the question or you want to comment?

Mahesh Iyer: Ram, you want me to take the question or you want to comment?

Speaker #7: Yes.

Speaker #5: Yeah I can tell you will definitely see some difference in the Q two for sure. You're right. It the lag takes about a month or two and absolutely correct.

K. S. Ramakrishnan: Yeah, I can tell. You'll definitely see some difference in the Q2 for sure. You're right. The lag takes about a month or two, and absolutely correct. That's what I said in the last quarter, and you will see that difference. We also must keep in mind that the revenue has to go up. It's going up, but it's a little slow. To answer you, in a nutshell, yes, you will see differences in the cost optimization. A drastic corrections you will see on that one. Mahesh, you can add to it if I missed something.

Speaker #5: That's what I said in the last quarter, and you will see that difference. We also must keep in mind that the revenue has to go up.

Speaker #5: It's going up, but it's a little slow. But to answer you in a nutshell, yes, you will see differences in the cost optimization.

Speaker #5: A drastic correction you will see on that one. Manish, you can add to it if I missed something.

Speaker #1: Yeah, so Soumya, I just want to add to what Ram just said. I think we have implemented some of those cost measures, or cost reduction measures.

Mahesh Iyer ): Yeah. Soumya, just to add to what Ram just said, I think we have implemented some of those cost measures or cost prudence measures and some cost optimization measures also. We expect some of those benefits to come in Q2 and Q3 of FY27. I think the more important aspect is while the cost is one side of it, the business is built on revenue, and 50% of the dependency is on the Middle East market. If you look at the Middle East market currently, during the period, which is April, June, our recovery on that market was sub 20% or so. July is slightly better. We are looking at more like a 30%, 35% recovery. The recovery in the revenue will largely determine as to how the quality of the earnings will look in the subsequent quarters.

Mahesh Iyer: Yeah. Soumya, just to add to what Ram just said, I think we have implemented some of those cost measures or cost prudence measures and some cost optimization measures also. We expect some of those benefits to come in Q2 and Q3 of FY 2027. I think the more important aspect is while the cost is one side of it, the business is built on revenue, and 50% of the dependency is on the Middle East market. If you look at the Middle East market currently, during the period, which is April, June, our recovery on that market was sub 20% or so. July is slightly better. We are looking at more like a 30%, 35% recovery. The recovery in the revenue will largely determine as to how the quality of the earnings will look in the subsequent quarters.

Speaker #1: And some cost optimization measures also. We expect some of those benefits to come in Q two and Q three of FY twenty seven. But I think the more important aspect is while the cost is one side of it the business is built on revenue.

Speaker #1: And fifty percent of the dependency is on the Middle East market. So if you look at the Middle East market currently, you know, during the period which is April to June, our recovery on that market was sub-twenty percent or so.

Speaker #1: July is slightly better. We are looking at more like a thirty percent thirty five percent recovery. And the recovery in the revenue will largely determine has to how the quality of the earnings will look in the subsequent quarters.

Speaker #1: So, we are focused on—while the cost is one side of it—and we would have done most of what we need to do.

Mahesh Iyer ): We are focused on while the cost is one side of it, and we would have done most of what we need to do, I think the revenue side of it has to fire. That's currently our focus.

Mahesh Iyer: We are focused on while the cost is one side of it, and we would have done most of what we need to do, I think the revenue side of it has to fire. That's currently our focus.

Speaker #1: I think the revenue side of it has to fire, and that's currently our focus.

Speaker #7: Understood sir.

Soumya S.: Understood.

Soumya Shidhore: Understood.

Mahesh Iyer ): Yes. Just that. Yeah. Go ahead, Soumya. You had a question?

Mahesh Iyer: Yes. Just that. Yeah. Go ahead, Soumya. You had a question?

Speaker #5: Yes, and just to add, yeah.

Speaker #1: Go ahead, Soumya. You had a question?

Speaker #6: Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Mahesh Iyer for closing.

Operator: Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Mahesh Iyer for closing comments.

Speaker #5: Let me hold on.

Mahesh Iyer ): Thank you, ladies and gentlemen, for joining this call of Thomas Cook (India) Limited Group. As I said, the quarter was kind of marked with a lot of events that happened around us. Despite that, our India businesses and our hospitality business did exceedingly well during the quarter. We remain quite hopeful of the resilient nature of our business model and continue to do prudent capital allocation and management of our business to ensure that we maximize shareholder value. Thank you.

Mahesh Iyer: Thank you, ladies and gentlemen, for joining this call of Thomas Cook (India) Limited Group. As I said, the quarter was kind of marked with a lot of events that happened around us. Despite that, our India businesses and our hospitality business did exceedingly well during the quarter. We remain quite hopeful of the resilient nature of our business model and continue to do prudent capital allocation and management of our business to ensure that we maximize shareholder value. Thank you.

Speaker #1: Thank you, ladies and gentlemen, for joining this call of Thomas Cook India Limited Group. As I said, the quarter was kind of marked with a lot of events that happened around us.

Speaker #1: Despite that, our India businesses and our hospitality business did exceedingly well during the quarter. We remain quite hopeful about the resilient nature of our business model.

Speaker #1: And continue to do prudent capital allocation and management of our business to ensure that we maximize shareholder value. Thank you.

Operator: On behalf of Systematix Shares and Stocks, that concludes this conference. Thank you for joining us. You may now disconnect your lines.

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Q1 2027 Thomas Cook (India) Ltd Earnings Call

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