"Are you applying to other companies?" — how to answer this honestly

This question came up in two of my HR rounds and I fumbled both times. Sharing what I figured out for anyone else who finds it awkward.

Why interviewers ask it: They're checking two things — how serious you are about their company specifically, and whether they're likely to lose you to a competing offer before you join.

The wrong answers:

• "No, I'm only applying here" — almost always a lie, and interviewers know it. If you're a serious job seeker you're applying in multiple places.
• "Yes, I'm applying everywhere" — sounds desperate, makes them feel like they're just one option in a spray-and-pray strategy.

What actually works: Be honest but specific. "Yes, I'm actively exploring a few opportunities — including [role type] at a couple of other companies — but I have a genuine interest in this role specifically because [one real, researched reason]." This signals: you're in demand (good), you're not randomly applying (good), and you've thought about why this role fits (good).

If you have another offer: Mention it calmly if relevant. "I do have an offer from [company type], but I haven't accepted it yet because I wanted to see how this conversation went first." This is not bragging — it's useful information that often speeds up the process in your favour.

How did others handle this one?