fiscal 2026 fourth quarter and full year earnings webinar today's event will be hosted by company's leadership team comprising rajesh mago our co-founder and group chief executive officer mohit kabra our group chief operating officer and deepak bora our group chief financial officer as a reminder this live event is being recorded by the company and will be made available for replay on our ir website shortly after the conclusion of today's event at the end of these prepared remarks, we will also be hosting a Q&A session. Furthermore, certain statements made during today's event may be considered forward-looking statements within the meaning of the safe harbor provision of the U.S. Private Security Litigation Reform Act of 1995. These statements are not guarantees of future performance, are subject to inherent uncertainties and actual results may differ materially. Any forward-looking information relayed during this event speaks only as of this date and company undertakes no obligation to update the information to reflect change circumstances additional information concerning these statements is contained in the risk factors and forward looking statements section of the company's annual report on form 20f filed with the sec on june 16 2025 copies of these filings are available from the sec or from the company's investor relations department i would like to now turn over the call to rajesh over to you rajesh Thank you, Vipul.
Welcome everyone to our fourth quarter and full year call for fiscal 2026. Before we take you all through the quarter details, I would like to step back a bit and remind everyone about some fundamental structural changes that have emerged post-COVID that has been shaping the travel market in India. When the world opened in 2022, the rebound that initially looked to be pent-up demand coming out of the quiet phase due to pandemic soon formed a new baseline. This robust shift in demand is reflected in our reported numbers where gross bookings went from approximately 3.2 billion in fiscal year 22 to 6.6 billion in fiscal year 23 and a record 10.4 billion in fiscal year 26, compounding at roughly 34% over four years. This was a good combination of post-pandemic recovery and behavior shift among Indian travelers, well supported by some key structural macro changes in the Indian economy. Major reasons for this robust demand shift are, first is rising and aspirational middle class. As per a Bain study, the middle income household with annual income between $4,500 to $1,000 35,000 has been growing at a robust high single-digit annual growth rate and is likely to further grow at an accelerated pace from 200 million in 2022 to 300 million in 2032, a growth of 50% in 10 years. India also added over 70 million passport holders in the last five years. Tier 2 and Tier 3 cities are now major growth drivers, a traveler from Indore or Coimbatore today has the same aspiration and increasingly the same purchasing power as one from Mumbai or Delhi five years ago. This is a massive multi-year addressable market expansion and we are only in its early innings. Second, travel has shifted from occasion to habit. Our data shows booking frequency per user is rising year on year. Indians are no longer saving up for one big annual holiday they are taking multiple trips a year three to six trips a year across leisure religious and extended weekend categories is becoming the new normal for india's connected earning class the experiential economy is real and is a big opportunity the cohort driving this is also the one with the longest consumption runway ahead as per colinjan international's 2024 research, Indian millennials annual travel spend was at about $6,000, making travel their single largest discretionary expense at 34% of annual spending. These millennials are not yet in their peak earning years. These millennials are not yet in their even peak earning years. The per-trip wallet will only expand with time. Third, the growth of world-class physical infrastructure the demand story compounds if supply keeps pace as we all know new airports run routes expressways premium rain train corridors the government's infrastructure investment is creating supply that means this demand every new airport is a new market for us every new direct international route is a new booking opportunity india's expanding highway network and airport capacity are making travel faster easier and more reliable across the country better road and air connectivity is opening up smaller cities and tourist destinations reducing travel time and helping unlock tourism local spending and regional economic growth on aviation operational airports have doubled from 74 in 2014 to 157 in 2024 improving access beyond major metros and making travel more affordable and widespread especially for tier 2 and tier 3 cities. This is expected to further expand to 400 airports by 2047, providing a multi-decade opportunity. India's highway network has expanded sharply, with national highways rising from 91,287 kilometers in 2014 to about 1,46,145 kilometers in 2024, while construction speed increased to 33.8 km per day in 2023-2024. Similarly, listed hotel companies are projected to add over 70,000 keys to India's hotel sector by fiscal year 2030, according to CBRE. Majority of new additions are being built into undersupply tier 2 markets and spiritual tourism corridors, both of which are future growth opportunities. Homestays have emerged as a flexible, scalable supply addition as well, now actively supported by governments vacation rentals and boutique home stays are capturing outsized growth because they align with experiential itineraries that favor local immersion over standardized services the physical infrastructure story only is half the job done in today's digital age unless the digital infrastructure has kept pace with it india has come a long way on digital infrastructure development as well as well with internet penetration touching about a billion people with high quality bandwidth becoming affordable with data costs falling from rupees 269 per GB in 2014 to about 9 rupees per GB in 2024. On top of this is the payments infrastructure. UPI processed 640 million transactions daily in 2025, clearing over 16 billion transactions in a single month by late 2025. The combined effect is that checkout friction, historically one of the largest causes of booking abandonment, has largely been addressed. A traveler in a tier 3 city with a mid-range Android device can now search, compare, book, and pay in under 5 minutes without a credit card. We have also witnessed Indian market showing resilience to bounce back fairly quickly as the disruption starts to go away. Last year was another such year as it was impacted by many disruptions pretty much every quarter. But the interesting part was that the travel demand remained resilient and robust during the unimpacted months of the year, reflecting the continued strength of underlying consumer sentiment and disruption growth trajectory of industrial companies. We at MMIT continue to outpace industry growth despite disruptions with healthy momentum across segments.
Rajesh, you might just need to come a little closer because you're fading out at times.
Is it fine now? Yes, it's much better. While our international business started to get impacted in March due to Middle East conflict, the domestic business remained strong. For the reported quarter, March was impacted due to West Asia conflict.
January and February witness strong year-on-year growth on steady-state basis.
Encouraged by structural changes in the market and consumer behavior to spend more on travel, we remain confident of revenue growth in the 20s, during normal periods, and when external headwinds arise, we rely on the strength and resilience of our platform, which offers multiple travel services, serves diverse demand segments to still deliver healthy growth compared to the industry the other big transformational shift in the digital world is being caused by ai at micmatria we see ai not merely as a productivity tool but as a foundational layer that that can redefine travel discovery planning booking servicing and loyalty as shared earlier we have been on our journey to embed gen ai all through the consumer journey leveraging our own proprietary data besides launching myra conversational interface continuing with the journey we launched an upgraded and more powerful and intelligent version of myra where a traveler can now on complete consumer journey right from planning to making payments within myra using multilingual voice feature it also now enables seamless natural interactions across flights hotels buses trains cabs and end-to-end itinerary planning positioning itself as a true travel companion. What makes India uniquely exciting in the AI era is also the diversity and scale of consumer behavior. AI allows us to bridge language, trust, and discovery barriers in ways that were previously impossible. Over the last quarter, Myra has scaled to over 50,000 plus conversations every day and is now embedded across the entire customer journey from inspiration and discovery to booking and post-sales port. Over the last few days, this number has further scaled to over 80,000 conversations per day. For Myra, adoption is broad-based. Over 45% of usage comes from Tier 2 and smaller cities with voice emerging as a key interface. Voice interactions are 50% higher in non-metro markets with 70% of queries in English and prompts that are 40% longer and more complex than text inputs, highlighting deeper engagement and richer intent capture. Regional languages are also gaining traction, contributing 10% of voice volume today. Myra has now expanded to seven additional Indian languages, significantly widening accessibility. Almost 15% of conversations now happen at the trip planning stage, where users are still exploring destinations and options. This allows us to influence decision making much earlier and guide users towards more relevant higher value outcomes. This deeper engagement is translating into measurable business impact. Users interacting with Myra across discovery, support and booking stages demonstrate 10% higher conversion rates compared to traditional filter led journeys. By making discovery more intuitive and personalized, Myra is reducing friction, and accelerating decision-making. During the quarter, Myra assisted over 200,000 bookings directly. Customers engaged with our AI agent, got their queries resolved, and completed a transaction. We are also continuing to enhance our existing consumer journey flow with the use of AI. Our smart search feature is now enabling intent-led discovery at scale. Smart search is semantic free text search capability that lets customers describe what they want naturally. For example, family stay near Baga Beach with Jain food or rooftop pool hotel in Jaipur with spa access. Through this feature, customers now receive contextually precise, explainable results. This feature delivers much higher conversion versus traditional filter-based journeys, clearly demonstrating that understanding intent outperforms matching keywords. We have also enabled user reviews through voice. With this feature, we are seeing a fundamental shift in review quality. Voice reviews are generating a lot more content per submission compared to typed reviews. Customers describe their stays naturally, in detail, in their own language. This richer signal feeds directly into our knowledge graph, improving the quality of AI-generated summaries, safety scores, and contextual recommendations for future travelers. Voice is becoming the default input for Indian customers increasingly, and we are building our content infrastructure around that reality. We continue to drive AI-based interventions in our RedBus brand too. Apart from customer support, handling through AI chatbots, which have scaled up and yielded about 33% efficiencies, we are now introducing VoiceBots to replace legacy IVR systems. We are witnessing an initial CSAT additionally. We have scaled up the AI chatbot Ray in the pre-booking user journey as well. Adoption has scaled meaningfully. Regional language users show 2x engagement compared to English users, indicating clear resonance among high intent and regional audiences. Around 6% of total queries come via voice as input. Overall, Ray is emerging as an assist layer that improves decision, confidence before booking, and deepens engagement in core booking funnels. This is reflected in an overall strong growth in bus ticketing segment driven not just by top metros, but the tier two cities across the country. Overall, we are on our journey to make MakeMyTrip an AI native org with engineering, customer support, supply onboarding, content generation, and marketing functions leading the race while other corporate functions are catching up on AI adoption real fast, making the org more agile and efficient. We have started to see meaningful impact in certain areas as well. For instance, about 60 to 70% of the new code is being written by AI tools now. Similarly, AI is also driving meaningful efficiency gains on on our customer service function, about 55% of our call center flight and hotels customer queries are being now resolved by digital voice agent. Aim is to keep solving for the long tail and corner use cases as we go along to ultimately have minimal human intervention on customer service without compromise on quality of experience for the customer. India remains one of the most underpenetrated travel markets globally relative to its population and income trajectory over the next decade we believe india could become one of the largest travel opportunity markets in the world online travel is a multi-billion dollar structural growth opportunity and make my trip intends to play a central role in enabling that journey as we look ahead our priorities remain clear driving an AI and proprietary data-led transformation change in the org to drive the future growth at MMYT, keep innovating to further strengthen the core offerings with supply-side modes, and scale our new offerings to the customer's first choice to be the customer's first choice as one-stop shop for all travel needs, both for our retail and corporate customers, leverage unique positioning of our three strong brands and other distribution channels to expand customer reach leverage ai tools to drive efficiencies across the org to help drive operating leverage with this let me now hand over the call to mohit for the business highlights of the quarter thanks rajesh and hello everyone the reported financial year presented a challenging operating environment with several external factors impacting
in travel demand across quarters. The reported quarter was also marred by the West Asia conflict, which has impacted westbound international travel and with increasing fuel costs has also led to an increase in domestic airfares in a highly price conscious market. We were able to partially mitigate the impact of these headwinds by promoting domestic travel with a variety of transport options to suit the varying travel budgets of our customers and promoting eastbound travel within our international travel offerings india continues to offer a deep and growing domestic travel opportunity supported by improving infrastructure which is helping open travel demand beyond the traditional destinations while we are dialing up traditional leisure destinations like goa kerala rajasthan and kashmir we are now actively promoting the relatively under-explored destinations of the northeast we are also tapping into the potential of pilgrimage plus pleasure trips combining visits to pilgrimage destinations with activities or holiday options in or around those destinations short duration drive down holidays or breaks are also gaining popularity and we are curating more of such options for our customers across the length and breadth of the country this is done this is being done by curating relevant supply strengthening partnerships and targeting customers with more contextual offerings as well as curating destinations and products where the travel confidence and affordability remains strong. For customers who are finding increasing airfares as a deterrent to travel, we have dialed up our ground transport offerings to retain or spur up domestic travel demand. We have added new supply to take the private bus inventory to an average of 46,000 daily schedules during the reported quarter. To channel new supply of routes to to higher demand categories or sectors, we have revamped the route suggestions module for our suppliers of bus services. This enables them to figure out routes that have unmet demand and add more inventory on those routes. As a result, our bus ticketing volumes for the quarter grew by 27.6% year-on-year, and for the full year, grew by 32.9% year-on-year. And the intercity cabs business, which is a relatively new business, has also seen growth at over 20 percent demand on a variety of these routes was also aided by regional festivals during the quarter as the result of providing variety of transport options that suit the travel budgets of our varied customers we were able to deliver strong volume growth of 15.2 percent in our accommodation business which includes hotels homestays and holiday packages. It might be relevant to call that as per HPS analog research, the occupancy in the accommodation industry during the reported quarter is likely or slightly negative on a year-on-year basis. This year-on-year growth of 15.2% is also notable as it has come in in a quarter which has been impacted by the high base of KUMB-related one-time demand in the same quarter of last year. Long weekends and drive-down holidays are emerging as important growth drivers as more consumers or customers increasingly look for short-haul, convenient, and value-oriented travel options. We recorded our highest-ever domestic hotel check-ins on 24th January weekend, crossing 200,000 room nights on a single day for the first time. one particularly notable trend is the rise of spiritual and pilgrimage tourism accommodation bookings for spiritual destinations have continued to demonstrate strong momentum even after the commitment of last year highlighting the structural rise of pilgrimage and faith-based tourism in india pilgrimage has always been embedded in india's culture we are witnessing now a growing wave with more and more indians across age groups actively choosing spiritual travel as part of their lives. This also reflects that travel in India is increasingly emotional, cultural, and experience driven, and not just transactional. We continue to differentiate ourselves through unmatched spread and selection, offering customers a breadth of inventory across destinations, price points, as per their travel needs. This extensive choice, combined with a strong platform experience, allows us to serve a wide range of travel preferences more effectively. We now have over 100,000 accommodation options available on the platform, covering more than 2,050 cities in the country. During the last year, we sold room nights for over 12,000 new properties for the first time on our platforms. In the homestay segment, we continue to invest in building the category and are enhancing our product proposition to improve customer experience and broaden the appeal of these kind of stays. We believe this remains an important long-term opportunity, and we are focused on strengthening the value proposition for both travelers as well as our supply partners. We launched quick commerce and food delivery serviceability status on relevant property page details for many of such accommodations. Surfacing availability of essentials and food delivery upfront improves trip planning convenience for our customers and reduces the pre-booking anxiety. We also enhanced visibility of caretaker and on-site support information across these listings. Clearer disclosure of presence, availability, and responsibilities helps the guests better assess the stay experience and on the ground and provide on-ground assistance. Our holiday packages business and home stays business continued to scale well. During the quarter, we completed our acquisition of the majority stay in Flamingo Transfer, World, a regional group holiday packages business based out of Gujarat in India. Flemingo has a strong presence in the state of Gujarat, Maharashtra, Rajasthan, and Madhya Pradesh with curated group tours known for regional focus, customized experiences, and servicing of international travelers. This is going to add to our strength of the holidays business, particularly on the international side. Coming to our A-ticketing business, This was impacted by a combination of supply side and geopolitical factors. During the first three quarters, the domestic aviation market was affected by geopolitical issues and capacity constraints, leading to limited growth despite underlying demand remaining healthy. In the fourth quarter, the West Asia conflict has created uncertainty and impacted westbound traffic from India. This has impacted both international air ticketing as well as international accommodation business for us. Some of this uncertainty is continuing in the current quarter as well. Elevated crude oil prices and a depreciating rupee are weighing on international travel, though both higher airfare and softer discretionary demand for outbound trips. This is also leading to profitability pressures for the airlines, and some of the airlines have already curtailed their international capacity. During the reported quarter, both domestic and international flight departures witnessed degrowth as compared to the same quarter last year. While domestic flown passenger market for the quarter declined by 1.5% year-on-year, the decline in the international passenger traffic was even higher at 6% year-on-year. We continue to grow in line with the industry while maintaining our leading market share in the air-decating business. Just as our bookie of travel services, including multiple transport options is helping us meet the travel budgets of our varied retail customers our differentiated demand segments are also helping us drive better than industry growth while the west asia crisis has had a higher impact on retail demand corporate demand continues to remain strong our corporate travel businesses via both our platforms that is my biz and quest to travel saw not only growth from existing accounts but also new acquisition our active customer count on MyBiz is now over 76,800 corporates compared to 64,000 of them during the same quarter last year. Similarly, for Q2T, the active customer count has now reached 548 large corporates compared to 507 such corporates during the same quarter last year. Across the two platforms, we now service over 1,500 large corporate customers. Lastly, we made a strategic minority the investment and visa servicing agreement with ATLIS, a visa processing platform. This investment will allow MakeMyTrip travelers to benefit from a streamlined visa application process, as well as create an opportunity for MakeMyTrip to cross-sell its travel offerings to the customer base of ATLIS. Before I hand over the call to Deepak to present the financial summary, I would like to call out that we remain cautiously optimistic in view of the ongoing geopolitical issues. Just as COVID offered us a silver lining in terms of utilizing the team to invest in new platforms to tap into corporate and small travel agent demand, we are now investing in an AI-first approach to build AI-enabled platforms for the future. This will span across our investments in product innovation, personalization, supply partnerships, service reliability, and building platform native revenue streams to drive traffic monetization. It will also be important to call out that we have built a playbook to manage demand volatility with a disciplined approach on optimizing costs in line with market conditions and ensuring operating leverage in our business. This along with our diversified business model, strong brand equity and deep customer relationships should keep us well positioned to capture the next phase of growth as demand conditions improve. With this, let me now hand over the call to Deepak for financial highlights of the quarter.
Thanks Mohit and hello everyone. We started January on a strong note with healthy growth across the businesses. In February, our growth rate moderated and was broadly in line with our expectations given the higher base from Coom-related demand in the same period of last year. March was impacted by the conflict which created pressure on demand. Even so, overall growth for the quarter remained decent and demonstrated the resilience of our business. For the full year, IFRS revenue grew by 10.7% YOY in constant currency. Our results from operating activities, which is equivalent to EBIT, was at $156 million in FY26, witnessing a strong growth of 30.1% YOY. Even in an impacted year, we continue to improve our unit economics through better mix, operating discipline, and steady execution across the platform. As a result, overall profitability for the year improved meaningfully. adjusted operating profit margin expanded to 1.82 percent of gross booking in fy26 compared to 1.71 percent in fy25 importantly even in a quarter that was impacted by external events we were able to maintain profitability which reflects the strength of our business model and benefits of discipline cost management moving on to our segment results for the quarter our air ticketing adjusted margin stood at 99.3 million registering a yoi growth of 10.7 yoi in constant currency while the volume declined due to disruption we achieved robust growth in adjusted margin on the back of a strong ancillary attach and better unit economics for the hotels and packages segment we recorded strong volume growth of 15.2 percent yoi with standalone hotels growing faster at 15.5 percent yoy on the back of a strong demand in domestic hotel segments international hotel segment growth was impacted this quarter due to the conflict like international air as explained last quarter we are witnessing a mixed shift between uh the hotel segment by gst reduction leading to a lower sp in line with this the shift our gross booking growth was at 10.8 percent yoy in constant currency and adjusted margin growth was at 11.5% YOI in constant currency. For the full year, hotel and packages adjusted margin growth was at 15.7% YOI in constant currency. In our bus ticketing business, the adjusted margin stood at 41.1 million, registering a YOI growth of 17.1% in constant currency terms. This is little lower than the trend due to the impact of one-time KUMB related demand in quarter four of last year. our ancillary business which is part of other segment is scaling up well this is helping us get a larger share of wallet of our customers by building the attach of ancillary business as a result adjusted margin from other segment came in at 25.4 million in quarter four of 26 witnessing a strong growth of 27.1 percent yoy in constant currency for the full year f526 adjusted margin from others was at $95 million, witnessing a growth of 37.1% YOY in constant currency. Moving on to the expense side, most expenses came in line. Marketing and sales promotion expense for the quarter was at 5.2% of gross booking compared to 5.6% in the previous high season quarter. As a result, our adjusting operating profit for the quarter was at $46.5 million with a margin at 1.82 percent of gross booking the non-cash interest cost on our zero coupon convertible bonds for the quarter in the pnl was at 27.6 and also a one-time gain of 30.6 million due to the change in carrying value of 2028 convertible bonds and we had a translation related foreign currency loss at 17.7 million which has been a significant which has been significant due to the sharp depreciation of INR by 4.45% drop over the last quarter. Consequently, reported PAT for the quarter was 24.3 million. The adjusted net profit came in at 33.8 million. We have a strong balance sheet and our cash flow generation continues to be robust. For the full year of FY26, we generated 182.5 million cash from operating activities. We were able to convert 97% of adjusted operating profit into cash flow from operating activities. As part of our capital allocation strategy during the quarter, we repurchased 0.9 million ordinary shares for an aggregate amount of approximately 50.3 million during this quarter. Total utilization for buyback program, including buyback of convertible bonds during the full year was 96.4 million out of the 100 million plan allocated for buybacks. This was the highest in the market buyback in a single year. Another 22 million deployment was made for the investment made in Flamingo and a minority stake in Atlas. We ended the quarter with a cash and cash equivalent of over 782 million. As outlined in our March announcement, we completed our internal restructuring to combine all our key brands operating in India under a single entity with the merger of Redbus India into MakeMyTrip India. These steps were undertaken to enable the company to evaluate a potential listing of the overall India business at the appropriate stage which will strengthen our brand further in India and allow access to a differentiated and new pool of capital across institutional and retail investors. A potential listing requires several customary work streams to be completed including regulatory, financial, legal, tax, audit, governance, disclosure and market readiness preparation we are working on each of these with our advisors and shall keep periodically updates shared with the market with that i would like to turn the call to vipul for q a thanks deepak any participant who wish to ask question can click on the raise hand button on their screen and we will take the questions one by one uh the first question is from the line of Manish Hadoukia of Goldman Sachs.
Manish, you may please ask your question now.
Thank you. Just checking, you're able to hear me okay, right? Yes, please go ahead. Perfect. Thank you. Hi, good evening team and thank you for taking my questions. A few questions. Firstly, thanks for the elaborate color on the overall environment right now. Given the headwinds have persisted in the June quarter as well and given the West Asia conflict only started in the month of March, is it like fair to assume that things will probably get worse in the near term from a numbers perspective, whether it's GBV or revenue growth, at least in the June quarter, before they start getting better. And a related question to that, this disruption in demand to outbound travel, particularly westbound travel, does that have a negative impact on margins or on margins the impact is not material? That's my first question, please.
Hi, Manish. Maybe I can take the second question first. So as far as margins are concerned as you would have seen even in the reported quarter we have not seen any impact you know across segments so we've largely maintained similar kind of you know margin levels across our across our segments and we expect that that will continue even even even through the upcoming quarter um on the on the first one you know the the west asia crisis continues to impact us right and we are almost like you know more than halfway into the into the into the first quarter of the next fiscal year as well so we do believe yes there will be impact on the impact on the on the growth trajectory however we should just keep in mind that this is also a seasonally better quarter on travel and therefore we are trying to kind of you know make as much as possible by dialing up domestic travel offerings and providing increasing you know variety of travel options to customers on the domestic front uh to try and capture the demand or move the demand from international to domestic to the best extent possible.
Thanks, Mohit. And maybe just a quick follow-up on that. And I'm sorry if I missed, if you already disclosed it. But if you can just remind us, for this quarter, what was the growth in your overall outbound portfolio versus domestic, maybe at a revenue or GBV level? If I recall correctly, I think outbound travel is about 27-28% of your overall revenue. So if you can just maybe give us the mix of growth between domestic and outbound, that'll be helpful.
Yeah, actually, considering that because of the West Asia crisis, you know international has been significantly impacted the mix hasn't moved you know or gotten any better during this quarter so it's largely kind of you know remained stable and therefore like i was saying large part of growth has been domestically maybe maybe manisha i can just add to the first question a little bit more color for you because he while there is um and there is obviously middle east crisis and that is continuing i think what is different from what it was in march and what it is in now uh is that in march when it when war started it was a general overall sentiment drop you know a lot of the cancellations happening and a lot of the flights not operating and so on and and and now what the situation is that actually a lot of the flights are back operational now so it's not that about 65 to 70 percent in the gcc region the flights are operational. Now it has moved from a complete disruption to inflationary-led issues, given the oil and energy prices crisis leading to 80-year prices going up. So what this particular thing does is that the essential travel continues and the leisure and the discretionary drops. So to that extent there will be some travel happening and we can see that uh even on our platform some bookings happening uh so that will be a nuanced difference between march and what is happening now and we'll see how it sort of goes uh and the second very important thing that we are seeing is that uh particularly in the beginning of may onwards we we started seeing as mohit was alluding to the seasonality kicking in, which effectively means that, you know, historically also we have seen that when people are looking for if there is a problem in a particular destination, they quickly make their plans, they change their plans to the other alternative destinations. And because of which international, we have seen Southeast Asia and Southeast bookings going up and the shift happening on the booking on the domestic travel site. So I think it's going to be a bit of a mixed bag. And we'll see overall, you know, where do we sort of land. But it is not completely a doomsday scenario is what I wanted to highlight.
Very clear. My second question is on your press release from the month of March, where you did talk about you evaluating a potential listing in India. Yeah. One, is there like a timeline that you have in mind, like six months, 12 months is like an outer limit within which you want to list? And second, if you were to list in Make My Trip India, any early thoughts and color or how you're thinking about the potential fungibility of Make My Trip India versus Make My Trip Limited and shareholders of Make My Trip Limited currently, how do they participate in that? So any early color, I know it might be too early, but any thoughts you can share?
Yeah, to be honest, you know, Manish a little too early in the process, like we have called out, you know, the India listing is more, you know, a long term kind of a strategy kind of, you know, priority, considering that, you know, make my top score business is in the India market, right? So we are kind of, you know, like Deepak has called out, you know, this involves multiple streams to be kind of worked upon. And that work is ongoing. But do we have a clear, indicative timeline? Probably not yet. But we'll keep you posted as we kind of keep getting closer to it. Also, in terms of the existing listing and the potential India listing, clearly India does not allow dual listing as such. And therefore, to begin with, there will be multiple listings that we will have within the group uh and and that's that's very very likely of a longer term we'll kind of aim towards moving a to a singular fungible structure you know subject to the regulatory and you know kind of you know rules and regulations uh from a point of view of making sure that the stakeholder valuation is optimized right so we'll keep that in mind but we'll we'll share more color as we as we get closer to the process very clear just last question if i can sneak in rajesh thank you so much for all the color on ai and initiatives there um any anything that you can
maybe share on in the last few months all the development around agentic commerce and you talked about talked about your own myra where you can also complete payments but do you think there are any advantages that frontier models bring where maybe there's a possibility that you know online travel traffic could shift to them if them if agentic commerce evolves to a place where consumers may not come to OTA so maybe your thoughts on in what scenario could agentic commerce be negative for make matter for the OTA industry in general that'll be helpful thank you yeah so you know and let's see how it evolves Manish but our view right now is and we've studied it very very deep and we continue to as you saw and that is what I was just trying to sort of give a lot more sort of deep color and the way we are looking at ai from an opportunity
standpoint as well but to answer your specific question um you know i i think we should keep in mind specific to the ota model there are few fundamental modes that it brings to the uh to the table which is which is going to be i mean never say uh never it's not going to be an impossible task to disrupt where it's going to be really highly challenging task. And those sort of four big modes are, you know, fragmented supply underneath. I mean, you know, imagine the supply that is in the hotel and accommodation space, including the homestays. It's really, really fragmented. And there is a lot of heavy lifting that we need to do as OTAs. And we've been doing it over the years for it to come on online to sort of leverage the power of online platform. And then there is fulfillment and experience on the post-sale side in terms of just handling the customer in case of any needs that after he completes or she completes the transaction that they might have. And there's so much of disruption that takes place in the travel space in general uh you know and i think there is another sort of very uh deep work that has happened where otas have done a uh in the ota uh you know there is a deep funnel work that uh that has happened in the ota model especially in the emerging markets is is the payment side uh where um it's kind of underestimated the number of options and the number of uh you know sort of promotional activities that goes on with the commercial alignment and the arrangements with multiple sort of partners at the uh on the payments front um and uh last but not the least which is more specific to make my trip and then maybe the rest of uh you know the players in the market is that we've also consciously built capabilities to make uh our platform like super comprehensive with potentially every single service being offered and tightly sort of coupled and decoupled at the same time you know as the need be from a consumer point of view now when you bring in all of these elements together you know it is it is hard to sort of imagine that a for a desired result for the customer it is going to be an easy thing for an involved sort of buying experience like travel for just to do a quick and dirty job on agentic e-commerce and bringing, you know, both the supply and the demand side at the same place without, you know, any friction. So I guess it's not going to be an easy thing to do. It's going to take a lot. And, you know, do we see any of the horizontal players sort of venturing into it at this point in time? in fact they have already stated that they want to probably focus a lot more on the on the planning and the discovery uh step of the overall journey and not necessarily go deep because it's not easy and probably not their dna to go really deep in the funnel uh having said this um you know we on make my trip will leave no stone unturned is the the kind of uh sort of positioning and direction that I was trying to call out as part of my section in the script to ensure that leveraging this technology, whatever it takes, that we continue to be the first place of choice for all the new users for travel when they come online, as well as for the existing users to make sure that we end up providing a stellar experience. even in the sort of new transformational phase, if you will. So I guess, you know, so we've got our strategies in place on both sides, watching the space very carefully and see, you know, how we sort of react to it or partner in that scenario if we need to be, but also keep building our own capabilities um with a lot of sort of investment and and focus on it very clear thank you back to you people thanks manish uh the next question is from the line of sachin salgankar of bank of america sachin you may please ask your question thanks vipul and congrats management on a great set of numbers in terms of you know what was turning out to be a very difficult quarter
I have three questions. First question is, you know, to some of the comments, what management said in terms of travel moving from, let's say, west of India to east of India. I presume the ticket size for Southeast Asia versus Europe is a bit low. So in that context, you know, we should expect a bit of an impact. And again, the domestic traffic does indicate that the month of April is turning out to be soft as compared to what we historically saw so the question out here is you know is this led by a higher fuel price increase and if so then you know should we see a bit of an impact uh in overall usage as fuel price continues to increase and rajesh mohit would be great to get a sense that what happened last time when fuel price increase in terms of impact from a demand point of view that's the first question let me pause here yeah sure such it actually both the observations are not off such and i must say um you know so your first observation saying from west moment to east and i highlighted that and what's happening but is the ticket price is going to be
lower relatively the answer is yes some part of that gets uh uh you know sometimes compensated because you extend the stay uh depending upon your budget option but uh but relative to the Western side, which is like a mid-haul to long-haul kind of a holiday versus a relatively shorter stay holiday, or even if the same duration holiday, the ticket size is going to be lower. So to that extent, and I was saying that not necessarily that we are saying that there is not going to be any impact, there is going to be some impact, but part of it is getting mitigated by this shift number one and number two on the domestic market so now coming to your second part of the question um off late now you know as i was saying it earlier in march it was more sentiment driven you know and the real disruption the flights were not flying uh you know uh at all and then some impact of the sentiment was there starting with march and and spilled over in april and therefore your observation that april was also relatively slower is also correct but and that's what i was mentioning earlier that starting may we started to see seasonality kicking so we've started to see that momentum coming back and now i attribute that to and that again i was just trying to allude to uh in uh in our script as well in that we have seen uh the bounce back happening very very quickly as well now imagine if there was a sentiment which was quite bad in march and april there was a bit of a uh you know sort of it continued in april but starting may we've started to seeing that uh sort of general sentiment improving and people starting to book and and travel uh you know like anecdotally yesterday was the highest booking uh account for hotels for us on the on our platform just very anecdotally now now to what extent will it be impacted international definitely relatively higher than the domestic market but on an overall basis we are hoping that some you know impact will get mitigated with some of these positive trends that we are seeing now historically just the last question that you asked that actually we have seen when the fuel prices had gone up if i recall well to $90 to even closer to $100 a barrel, depending upon which airline you talk about. I think they were able to sustain it historically with some increase in prices and, you know, absorbing some of the cost and some of it, you know, passing it on to the consumer. And demand was not terribly impacted. But I think the key point here is not necessarily, you know, going up for a week and coming down significantly. If it stays at that level for a little longer period, that is when the impact starts to sort of clearly become more visible. As anecdotally, you have seen Air India announcing that from June onwards, they would be reducing number of flights. so this april may june quarter because it's a high season quarter i think they're generally directionally going to run the same number of flights but you know uh come middle of june end of june onwards there's going to be some reduction spice jet has reduced some flights but indigo hasn't right right so it's also a function of how you know strong is is a particular rail line that is operating in the market um but uh uh you know historically we've seen you know uh if if the demand sentiment continues then uh even up to as high as about 90
a barrel kind of a number 90 to 100 was um not necessarily uh leading to a huge impact but like i said the key is going to be how long it kind of stays at that at that level correct if i may just add sorry if i may just add you know for the budget conscious customer uh like i had mentioned you know we are also trying to make sure that we provide enough and more transport options so you know those who are finding uh you know flight prices to be kind of a lot more expensive and what they would have preferred it to be kind of trying to dial up you know ac bus options or say you know cab options for them so as to just make sure that
you know the overall travel budget is not impacted and the travel demand is not going to be lost and similarly finding you know more pocket friendly options on on eastbound kind of international travel versus westbound thanks very quickly and very quickly my second and third question second question you guys have uh not changed your ebitda guidance adjusted a bit as a percentage of gmb i presume that indicates uh you know for a foreseeable future it could be in range of 1.8 to 2 percent uh and this is despite you know the mixture happening in favor of high margin hotel um and it's understandable given where things are so just wanted to confirm and you know moit would love to get your thoughts on how to think about a medium term margin out there and third question is more a clarification on some of the earlier comments uh from what i understand you know there will be two listings uh u.s listed and india listed for some point and eventually at some point in future the u.s entity might be delisted uh subject to regulations is that uh what you guys meant i just wanted to clarify on that thanks yeah sure on the first one you're right uh such in view of the current you know volatility in the travel demand i think we kind of want to continue to remain in the 1.82 percent kind of a you know margin uh guidance uh and it will be good to kind of you know remain there because i think we'll need a little more you
stability in the in the in the travel environment before we kind of revisit this guidance so you're kind of absolutely right on that and secondly yes on the on the potential india listing uh like i've said you know india does not offer dual listing right and therefore uh in a manner of sorts you know the the currently listed uh you know entity of mauritius will also remain on the u.s forces while we'll kind of take india entity to uh to india capital markets over a longer term period there are a variety of ways through which you know fungibility can be created and we'll try and put a place and structure that kind of facilitates that but
beyond that if you really look at it even from an investor's point of view you know a large part of our investor base actually has the ability to invest both in india as well as in u.s and therefore to a large extent that fungibility in some form and shape exists even today got it thank you and all the best thanks sachin thank you thanks sachin the next question is from the line of vijit jain of city uh vijit you may please ask your question now yeah thanks uh can you hear me yes yes please go yeah thank you so just uh you know double clicking on your comments on trend since may um so a you know i'm mindful that you last year uh from may um you know macro had started to go south uh and uh so to your comment also on yesterday being the highest gbv number for hotels ever uh i guess two questions one does it mean broadly speaking there's a more accelerated shift and mix to hotels from air and second question related to that in the comment on you know traffic shifting from west to east is there enough capacity on east to you know kind of support some kind of a search there if it continues to persist for some time relatively if you see you know the capacity is not kind of as constrained on the eastern side
for eastbound travel and therefore we are leveraging that on the overall kind of trends for the current quarter that we are in, you're right that last year May and June were subdued because of macro events. We continue to see that kind of relatively subdued impact continuing on international. Domestic is something that we are kind of continuing to dial upon and like I had kind of, you know, mentioned during my call out, we have been able to drive or spread up demand on the domestic side through a variety of things, which is kind of, you know, going much deeper and wider in terms of accommodation options across the length and breadth of the country, opening up a lot more kind of leisure destinations, pilgrimage destinations, you know, to offer greater variety to customers, dialing up a lot of short duration, you know, uh you know drive down kind of you know uh opportunities on the travel side and also kind of making sure that you know in in many routes which are not very long in terms of travel distance providing kind of you know cabs and buses as an alternative to flights you know just to kind of meet the budget kind of you know uh aspirations of the various travelers so these are all things that we're kind of using to dial up the domestic demand and we hope uh We'll continue to keep delivering demand much ahead of industry growth in the accommodation segment. So if you look at it just as an indication, even in Q4, which is the reported quarter, the overall occupancy has actually remained flattish or might even go negative by estimates. And therefore, overall growth for the accommodation industry has been almost flattish, whereas we have posted almost like 15% plus growth even in the reported quarter. so we hope to continue to be on that trajectory and keep delivering much better growth on the domestic side while international continues to be under pressure. You might just see that until about some time back or until about five or six quarters back, international was leading the growth charter for us and that has turned around a little bit.
But I think that's the advantage of you know being present across uh across kind of you know travel options uh as well as transport options uh that we can dial up one versus the other based on based on prevailing conditions but so with just a little clarification on that so in general for you guys air has been always a pretty important kind of funnel into your hotels business right and to what you mentioned uh hotels have done well in 4q and are continuing to do well despite all the various headwinds we see on the air side right so is there you know if you can give me a color of you know how your
overall funnel has changed over time you know what what is your overall mix of you know people directly coming onto your platform to book hotels first and foremost and those kinds of things that will be super helpful to understand and then i'll just have a follow-up question on ai if i can or that visit you know uh considering the positive of time maybe i'll just kind of you know suggest that we should look at the overall transport options and then kind of look at that opposite you know the the accommodation kind of you know opportunity rather than look at purely versus flight uh flight segments right so that's the reason i was calling out that we should look at probably entire set of transport options including buses and cabs and there you would see that the
overall growth on transport continues to be healthy it is that air kind of you know growth in air or flights uh is lagging so that's helping us you know uh do much better got it and also widget uh sorry sorry just uh just uh the pointed response to what you were saying and it's very important is that the question that whether air is critical for us air funnel is very important for the answer is absolutely as it continues to be it is just the market situation what Mohit is trying to highlight from a consumer point of view if for certain segment of consumers if air is expensive they'll move to an alternative mode of transport and we are seeing that that happening on our platform and therefore you will see the rest of the the segments growing the you know the growth rate is pretty robust whether you see quarter or or you see it for the full year um and by the way you know despite all these and uh headwinds and i we didn't really call that out that number out this time around in the script but our market share on domestic aviation market despite everything given that we are growing we always end up doing better than the industry is at 30.8 percent so in this quarter we've actually gained 0.2 percentage 0.2 percent as well so so it continues to be very important it's just the midterm to long-term view and you know as i was highlighting as part of the physical infrastructure development airport infrastructure development is also happening at a very robust uh pace right so uh and that is going to be the one of the important sort of mode of transport to drive growth for the country, if you start to look at it from mid-term to long-term standpoint, it's just, you know, sort of cycle headwinds that we have right now. So in that context, the consumers tend to shift.
Got it. Rajesh, my next question, my last question is on AI stuff that you guys discussed, including Mayra. Now, you know, when we look at the developments on this term increasingly being used as a harness and I've seen some, you know, reports suggesting that when you build a harness around AI and use your own proprietary data, the experience in terms of quality of responses is much better in other use cases, right? so i'm just wondering in is it measurable for you guys you know you you now have launched my right it is front and center on the main app when you are you a fully combining all of your first party and proprietary data in that already and can you measure the responses versus what i'd get out of
a generic say gpt query and then if i can sandwich another related question is it possible to quantify the cost efficiencies that you could get in customer support and engineering in interest of time this will be the last question yeah of course yeah sorry so very quickly very quickly very good question uh you know the answer to the first question uh are we using proprietary data in fact i had mentioned that very clearly as well along with the llms and marrying the two because and just to ensure that uh there's a hardness layer on top of it to make sure that the results or the responses on Myra are relevant and more accurate? The answer is 100% yes. We've been doing that. Otherwise, and that is what, you know, this new launch was. In fact, and I guess the second part of your question is about measurement. Yes, we are able to measure that. We have, you know, clear metrics defined on measurement, specifically on quality of conversation, Something called good conversation versus not so good conversation. There's a clear quality metric attached to it. And we've seen some of those sort of data points I've tried to sort of highlight as well. For example, the fact that the conversion on queries starting at Myra to the normal funnel is better because it is deeply engaged and you are able to find all the answers etc in one go is better by 10 percentage points clearly indicates that you know you know while it's a journey but but the quality has been improving and we'll continue to keep sort of progressing well on this this journey and keep you all updated on that and on the cost side you will you will see this reflecting slowly and Now, there are a few things that we have already given, whether it is productivity improvement on consumer service side, also on the new code development, all of this is going to eventually reflect somewhere. Now, on the P&L, it's just going to be a bit of a lag effect because it's going to be a journey where there is going to be AI tooling cost, and then there is going to be efficiency kicking in. At some point in time, efficiency is going to show bigger impact than the additional cost that is coming from the AI tools. So I think we need to be a little bit patient to see the results, but we are super confident the results will start to reflect in the in the near future thank you and best of luck thank you thank you thank you thank you widget this was our last question over to rajesh for your closing remarks all right thank you vipul and thank you everyone thank you everyone for a good set of questions and your patience for listening in uh i know it was a little longish as the three of us were presenting, but thanks again for your patience and look forward to see you again in the next quarter.
Thank you, Rajesh. The call is now over. You may please disconnect.
