Mach Travel Solutions Ltd Management Discussions

1. Global Economic and Geopolitical Landscape

The financial year 2025–26 has been among the most challenging periods for global commerce and travel since the COVID-19 pandemic. The escalation of hostilities in the Middle East, culminating in the Iran conflict of early 2026, has materially disrupted energy markets, global aviation corridors, and tourism flows. These developments unfolded against a backdrop of ongoing trade policy uncertainty and subdued economic momentum in advanced economies, even as Asia-Pacific maintained its structural growth trajectory.

1.1 Geopolitical Risk and Aviation Disruption

The military conflict involving Iran that emerged in late February 2026 triggered the largest supply disruption in the modern oil markets history. The maritime blockade of the Strait of Hormuz — through which approximately 20% of global crude oil passes — caused jet fuel prices to surge by an estimated 85–100% from pre-conflict levels, forcing airlines worldwide to impose emergency fuel surcharges and curtail route frequencies.

The aviation impact has been severe: full airspace closures were imposed over Iraq and Kuwait, with severe restrictions in UAE and Qatar corridors. Europe-Asia routes have been extended by 40–90 minutes due to rerouting, increasing per-flight operating costs materially. International tourist arrivals to the Middle East region are estimated to decline by 11–27% in 2026, representing a potential loss of approximately 38 million visitors and USD 56 billion in visitor expenditure.

1.2 Global Growth Trajectory

Despite the headwinds from geopolitical volatility, the fundamental consumer preference for experiential spending has proven resilient. Global GDP growth is projected to hold at approximately 3.2% in FY2027, supported by continued technology sector investment and private sector adaptability. The global MICE industry was valued at USD 937.43 billion in 2025 and is projected to reach USD 2,030.95 billion by 2034 at a CAGR of 9.0%, reaffirming the long-term structural demand for organized business events.

2. Indian Macroeconomic Environment

India continues to stand apart as the worlds fastest-growing major economy. Underpinned by structural advantages — a young demographic, a robust digital payments infrastructure (UPI/Aadhaar ecosystem), and expanding domestic consumption — Indias GDP growth is projected at 6.5–7.0% for FY26 by the Reserve Bank of India and 7.1% for CY2025 by the IMF. India accounted for approximately 16% of global incremental growth in recent years, according to the World Economic Forum.

2.1 Domestic Headwinds: Regional Security Events and Travel Disruptions (FY26)

FY26 was materially impacted by the India-Pakistan military confrontation that followed the Pahalgam terror attack of April 2025 (26 tourists killed) and Indias Operation Sindoor response in May 2025. The subsequent four-day conflict and ceasefire of 10 May triggered widespread travel disruptions: over 50% of hotel bookings in northern cities were cancelled, Kashmir saw a 90% drop in travel bookings, and the Char Dham Yatra registered a 26% decline in its opening week. Pakistans closure of its airspace to Indian carriers further increased costs on international routes. For Mach, this necessitated deferral of Northern India group movements and an accelerated pivot to Southern and Western India corridors and domestic government mandates.

A secondary impact was the sharp fall in outbound demand to Turkey and Azerbaijan following their public support for Pakistan — Indian arrivals to Azerbaijan fell 70% and to Turkey by 38% year-on-year (June–August 2025), redirecting demand to Southeast Asia, the Gulf, and European alternatives. The Indian Rupee breaching INR 95/USD further elevated the cost base for international MICE programmes.

H2 FY26 saw a meaningful recovery. Industry data confirmed the October–March period as ‘quite strong for domestic travel and MICE post-tensions, with foreign tourist arrivals reaching 56 lakh by August 2025 and domestic visits exceeding 303 crore for the year. Machs H2 was anchored by the Punjab Tirth Yatra mandate, the New Zealand MICE contract, IFFI 2025 hospitality, and the pipeline recovery of deferred BFSI and insurance incentive programmes across Bali, Kenya, Argentina, and Mexico. As at April 2026, the ceasefire holds, though Pakistans airspace remains closed to Indian carriers and rerouted flight paths continue to add 40–90 minutes to Europe and Central Asia itineraries — an ongoing cost consideration for outbound MICE planning.

2.2 Looking Ahead: Indias Medium-Term Growth Outlook

Real GDP growth for FY27 is projected in the range of 6.8–7.2% by most multilateral agencies. India is on trajectory to become a USD 5.1 trillion economy by FY2027 and a USD 6.8 trillion economy by 2030. The governments sustained emphasis on infrastructure — targeting 350 operational airports by 2047, expansion of the highway network to over 2 lakh km, and development of convention infrastructure — provides a structurally supportive environment for the organized travel and MICE industry.

3. Industry Overview

3.1 The Global MICE Industry

The global MICE (Meetings, Incentives, Conferences, and Exhibitions) industry represents one of the most resilient and high-value segments of the global travel economy. The global MICE market was valued at USD 937.43 billion in 2025 and is projected to nearly double to USD 2,030.95 billion by 2034, growing at a CAGR of 9.0%. Europe remains the dominant region at approximately 51.71% of global spend, but Asia-Pacific — and India specifically — is the most strategically significant growth theatre.

3.2 The Indian MICE Market

Indias MICE industry is at a structural inflection point. The successful hosting of the G20 Presidency in 2023, combined with the 300,000 sq. metre Yashobhoomi convention complex in Delhi-NCR and the ‘Meet in India initiative, has repositioned India from a fringe to a mainstream global business events destination.

The India MICE Tourism Market was valued at USD 37.75 billion in 2025 and is projected to reach USD 66.91 billion by 2030 at a CAGR of 12.13%. Government and PSU-led events are the fastest-growing sub-segment (12.14% CAGR). The Union Tourism Ministrys e-Conference Visa, clearing in under 48 hours for 169 countries, has removed a critical bottleneck for international delegate inflows. Budget 2025–26 allocated INR 2,541.06 crore for tourism infrastructure development.

3.2.1 Structural Trends Reshaping the Indian MICE Landscape

Hybrid Event Adoption: Over 60% of large corporate conferences in India are expected to adopt hybrid formats by 2026, enabling wider global participation while maintaining the premium value of in-person engagement.

Tier-II City Emergence: Non-metro cities now contribute 35–40% of domestic MICE activity, supported by improved regional airport connectivity under UDAN and the proliferation of convention-grade resort properties.

Sustainability Mandates: Carbon-conscious logistics, paperless operations, and ESG reporting are transitioning from optional to client-mandated requirements for event organizers.

Government MICE Bureaus: The Union Ministry of Tourism is establishing city-level convention promotion bureaus as independent bodies, creating structured procurement channels for organized event management firms.

Indias Global MICE Ambition: India currently contributes approximately 5.7% of the global MICE market and has set a national target to grow this to 10% within five years.

3.3 Corporate Travel Market

Indias corporate travel market is undergoing a structural transformation driven by the proliferation of Global Capability Centres (GCCs) and the rapid adoption of managed travel platforms by mid-market enterprises. According to Deloitte, Indias corporate travel sector is projected to grow at 10.1% CAGR, reaching USD 20.8 billion by FY2030 from approximately USD 10.4 billion in FY2024. The broader business travel market reached USD 41.6 billion in 2024 and is projected to reach USD 80.5 billion by 2033 (CAGR: 7.22%).

India hosts over 1,700 GCCs employing approximately 1.9 million professionals, projected to grow to 2,100–2,200 GCCs by 2030. These are among the highest-frequency corporate travel spenders, directly expanding Machs addressable corporate client base. The overall India travel market is projected to reach USD 125 billion by FY27.

3.4 Online Travel Market (OTA Ecosystem)

Indias online travel market was valued at USD 23.34 billion in 2025 and is projected to reach USD 38.58 billion by 2031, growing at a CAGR of 8.74%. Mobile-first behaviour is now structural: mobile accounts for 65.37% of all travel bookings, growing at ~14.39% CAGR, driven by smartphone penetration exceeding 944.7 million wireless data users and UPI-enabled frictionless payments.

Leisure travel accounts for 66.74% of the online travel market, while ‘bleisure (business trips extended for leisure) is the fastest-growing traveller type at 11.46% CAGR. OTAs accounted for approximately 65% of gross booking value in the Indian market. This behavioural evolution creates a significant cross-sell opportunity for Machs planned ‘Mach Travel portal.

3.5 Indias Cruise Tourism Sector

The Cruise Bharat Mission (CBM), launched on 30 September 2024 by the Ministry of Ports, Shipping, and Waterways, backed by a USD 5.4 billion infrastructure commitment, targets doubling sea cruise passengers from 4.71 lakh in FY2024 to 1 million by 2029, while growing river cruise passengers from 0.5 million to 1.5 million. The mission expands international cruise terminals from two to Ten, and river cruise terminals from 50 to 100, across three implementation phases (2024–2029).

Indias cruise market is currently valued at USD 139 million and projected to reach USD 323 million by 2030. Indias 7,500 km coastline and 14,000+ km of navigable inland waterways provide a unique dual-mode cruise opportunity that is largely untapped. Mach Travel Solutions Limited, as a key distributor of Cordelia Cruises, is directly positioned to capture growing corporate and incentive demand within this segment.

4. Company Overview: Mach Travel Solutions Limited (formerly known as Mach Conferences and Events Limited)

Mach Travel Solutions Limited (Formerly known as Mach Conferences and Events Limited) (‘Mach or ‘the Company) is publicly listed and holds over 21 years of operational experience in the MICE and travel industry. The Company holds certifications from IATA, GBTA, PATA, IATO, ADTOI, OTOAI, SK?L International, JATA, ICPB, EGAC and NIMA. In FY26, Mach accelerated its strategic transformation from a MICE-specialist into a fully integrated, technology-enabled travel corporation, formalized through the proposed rebranding to ‘Mach Travel Solutions Limited across five integrated business verticals.

4.1 Business Verticals at a Glance

5. Operational Performance Review: FY 2025–26

5.1 MICE Operations and International Footprint

Despite a material slowdown in H1 FY26 attributable to geopolitical disruptions, Machs MICE vertical rebounded strongly in H2, confirming the resilience of its client relationships. The Company successfully organized events for over 30 elite brands across BFSI, insurance, automotive, cement, and healthcare sectors. International operations spanned four continents: Australasia (Auckland), South America (Argentina), Central America (Mexico), and Africa (Kenya).

5.2 Government Projects Division

Launched in Q3 FY25, the Government Projects Division rapidly became a significant revenue driver. Within four months of launch, the Division secured three major mandates, leveraging Machs compliance infrastructure and large-scale logistics capabilities.

5.3 B2C Spiritual Travel and Cruise

Machs exclusive helicopter-based Char Dham and Do Dham packages position the Company in the premium spiritual travel segment targeting HNIs and senior citizens. As a key distributor for Cordelia Cruises, Mach is well-placed to capture the accelerating growth in Indias cruise tourism market, projected to reach USD 323 million by 2030, supported by the Cruise Bharat Missions USD 5.4 billion infrastructure investment.

6. Digital Transformation: ‘Mach Travel and Technology Roadmap

Machs digital transformation strategy is anchored by the planned launch of ‘Mach Travel — a comprehensive OTA portal offering flights, hotels, cruise bookings, spiritual tour packages, and visa services. The platform is designed to convert Machs captive audience of over 100,000 annual travellers into lifetime retail customers, aligned with the National Digital Tourism Mission.

The launch timing is strategically aligned with the rapid expansion of Indias online travel market (USD 23.34 billion in 2025, growing to USD 38.58 billion by 2031 at 8.74% CAGR), the mobile-first behavioural shift (65.37% mobile booking share), and the governments National Digital Tourism Mission.

6.1 The Rise of Agentic AI in Travel

The year 2026 has been characterized by the mainstreaming of ‘Agentic AI — intelligent digital agents capable of autonomously performing complex travel management tasks including itinerary construction, real-time fare optimization, expense reconciliation, and traveller risk monitoring. While 53% of high-value travel purchasers continue to prefer human interaction for complex decisions, AI adoption for personalization, policy enforcement, and predictive analytics is accelerating rapidly across corporate travel platforms. Machs AI integration roadmap positions the Company to capture the productivity and margin benefits of this technological shift.

7. Financial Performance Review

7.1 Balance Sheet Strength and Capital Structure

7.2 Key Financial Ratios and Analysis of Significant Changes (FY26 vs FY25)

In terms of Regulation 34 read with Schedule V (Part B) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the table below sets out the key financial ratios of the Company, on a consolidated basis, for FY26 as compared to FY25 (the immediately preceding financial year). Turnover-type ratios (Trade Receivables Turnover) and Return on Net Worth, which relate a profit-and-loss figure to a balance sheet figure, have been computed using the average of opening and closing balances; balance-sheet-only ratios (Current Ratio and Debt-Equity Ratio) have been computed on year-end balances, consistent with the balance sheet metrics presented in Section 7.3 above. Detailed explanations have been provided below the table for every ratio that has moved by 25% or more over the immediately preceding financial year.

Notes on ratios with a variance of 25% or more:

Note (i) – Trade Receivables (Debtors) Turnover Ratio: The ratio moderated from 8.21x in FY25 to 5.01x in FY26 (a decline of approximately 39%), largely on account of a base effect in the averaging methodology rather than any deterioration in collection efficiency. The Companys consolidated trade receivables as at 1 April 2024 were unusually low, at Rs14.44 Cr, reflecting its smaller pre-IPO scale of operations; receivables then expanded sharply to Rs42.95 Cr by 31 March 2025, coinciding with the Companys IPO (September 2024) and the scale-up of MICE and government-mandate business, which depressed the FY25 average-receivables base used in the denominator and correspondingly inflated the FY25 ratio. In FY26, trade receivables grew further but more moderately, to Rs49.03 Cr (up approximately 14% year-on-year), broadly in line with the growth in revenue and operations, particularly on account of milestone-linked billing under long-cycle government mandates such as the Rs92 Cr Punjab CMs Tirth Yatra programme, where collections are realised over extended execution periods (FY26 and FY27). Days Sales Outstanding accordingly increased from approximately 44 days in FY25 to approximately 73 days in FY26. Management continues to actively monitor receivable ageing and does not consider there to be any impairment in collectability.

Note (ii) – Current Ratio: The Current Ratio declined from 4.17x as at 31 March 2025 to 2.58x as at 31 March 2026 (a reduction of approximately 38%), though it continues to remain well above 1x and reflects a healthy short-term liquidity position. The decline is primarily attributable to a build-up in current liabilities as the Company scaled up operations: trade payables (other than dues to micro and small enterprises) increased from Rs6.11 Cr to Rs23.24 Cr, and other current liabilities (including advances against, and billing cycles associated with, large government and institutional mandates such as the Rs92 Cr Punjab CMs Tirth Yatra programme and IFFI 2025 hospitality mandate) increased from Rs9.33 Cr to Rs23.96 Cr. Current assets grew correspondingly by approximately 44% (from Rs97.58 Cr to Rs140.86 Cr), led by higher trade receivables and short-term loans and advances, but at a slower pace than current liabilities, resulting in the moderation of the ratio. The Companys virtually debt-free Debt-Equity Ratio and strong Interest Coverage Ratio (refer table above and Section 7.3) confirm that this movement reflects working-capital scale-up in line with business growth, rather than any liquidity or solvency concern.

7.3 Return on Net Worth (RoNW)

In accordance with the requirements of Schedule V (Part B) of the SEBI Listing Regulations, the Companys Return on Net Worth for FY26 as compared to FY25, computed on a consolidated basis as consolidated Profit After Tax divided by the average of opening and closing consolidated Net Worth for the year, is set out below:

Explanation for the change in Return on Net Worth: RoNW declined from 17.89% in FY25 to 12.99% in FY26 (a reduction of approximately 27%), primarily on account of the substantial expansion in the Companys Net Worth base following the completion of its Initial Public Offering in September 2024 (fresh issue of approximately Rs15.15 Cr) together with accretion from retained profits. As the IPO proceeds were received partway through FY25, the average Net Worth used to compute the FY25 ratio (Rs79.23 Cr) captured only a part-year impact of the enlarged capital base, whereas the FY26 average Net Worth (Rs115.98 Cr) reflects its full-year impact, together with a further year of retained earnings. Profit After Tax, in the same period, grew by a more modest approximately 6% year-on-year. The moderation in RoNW is therefore a natural, expected consequence of the equity base normalising to its full post-IPO level rather than any decline in underlying business profitability – as evidenced by the improvement in EBITDA Margin, PAT Margin and Interest Coverage Ratio over the same period (refer table in Section 7.4 above). Management remains focused on deploying the enlarged capital base towards working capital, technology infrastructure (including the upcoming Mach Travel OTA platform) and strategic acquisitions such as Travexel Events and Travel Private Limited, to drive sustainable, compounding returns for shareholders over the medium term.

8. Indian Outbound Tourism: Market Context

Indias outbound travel market continues to expand strongly. January 2026 data indicates total Indian departures stood at 29.33 lakh, representing a 9.06% increase versus the same period in 2025. The UAE remains the most popular destination at 27.3% of outbound departures. Leisure travel accounts for 37.8% of all foreign departures, while the 25–44 years age cohort represents 53.9% of all outbound travellers. Indias rise to 80th position on the Henley Passport Index, with e-visa access to over 160 countries, has substantially reduced barriers to outbound travel.

9. Risks, Threats, and Mitigation Framework

10. Opportunities and Strategic Outlook

10.1 Key Growth Opportunities

11. Internal Controls, Governance, and Human Capital

11.1 Internal Control Framework

Mach maintains a system of internal controls consistent with the requirements of the Companies Act, 2013 and SEBI (LODR) Regulations, 2015. The Board has constituted an Audit Committee to oversee the adequacy and effectiveness of financial controls.

11.2 Human Capital and Organizational Development

The Companys ‘Experiences Unforgettable brand promise is delivered through a team of over 200+ dedicated professionals. The Board was strengthened in FY26 through the appointment of Kaushik Ghosh as Director and Ranjan Ghosh as Additional Director, bringing decades of combined MICE, travel, and corporate governance experience. The Company continues to invest in industry certifications, technology training, and event management capability building.

12. Conclusion

The financial year 2025–26 has been a defining period for Mach Travel Solutions Limited. Navigating dual headwinds of regional geopolitical disruptions and global energy market volatility, the Company has demonstrated the resilience of its diversified business model — protecting margins, activating new revenue streams through the Government Projects Division, deepening its digital infrastructure, and acquiring strategic capabilities through Travexel.

The structural tailwinds for Machs business are compelling: a USD 37.75 billion India MICE market growing at 12.13% CAGR, a USD 20.8 billion corporate travel sector expanding at 10.1% CAGR, the governments USD 5.4 billion cruise infrastructure investment, and over 100 million aspirational Indian travellers as a new consumer segment. As the Company completes its identity evolution to Mach Travel Solutions Limited, management remains steadfast in its commitment to delivering exceptional, technology-enabled travel experiences and sustainable, compounding value for its shareholders.

FORWARD-LOOKING STATEMENTS AND DISCLAIMER

FORWARD-LOOKING STATEMENTS DISCLAIMER: Certain statements in this MD&A are forward-looking within the meaning of applicable securities laws. These involve risks and uncertainties and actual results could differ materially. Market size data is sourced from independent third-party research and is subject to revision. All financial data is unaudited unless stated otherwise.