Matrimony.com Limited (MATRIMONY) Earnings Call Transcript
August 11, 2026
Earnings Call Speaker Segments
Ladies and gentlemen, good day, and welcome to the Matrimony Q1 FY '27 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I would now hand the conference over to Mr. Jayram Shetty from ICICI Securities. Thank you, and over to you, sir.
Good evening, everyone. On behalf of ICICI Securities, I would like to welcome you all to Q1 FY '27 earnings call of Matrimony.com. From the company, we have Mr. Murugavel Janakiraman, MD and CEO. The call will begin with the brief management remarks followed by Q&A session. I would like to hand over the call to Mr. Janakiraman, sir, for his opening remarks. Over to you, sir.
Thank you, Mr. Jayram Shetty. Good evening, everyone. During our last interaction, we indicated that profit for the quarter would be more than double of that last year. I'm pleased to report that we have delivered on that guidance, with PAT increasing by 127% year-on-year. In Q1, on a consolidated basis, we achieved a billing of INR 136.0 crores, a growth of 7.8% quarter-over-quarter and 7.8% year-on-year. Revenue is at INR 130.5 crores, a growth of 11.7% quarter-over-quarter and 13.2% year-on-year. Key highlights for the matchmaking business in quarter 1 are as follows. Billing at INR 135.3 crores, a growth of 7.9% quarter-over-quarter and 8.0% year-on-year. Revenue at INR 109.5 crores, a growth of 11.7% quarter-over-quarter and 13.6% year-on-year. Matchmaking EBITDA reached INR 34.9 crores, which is 26.9%. Actually, there is a difference between the billing and GAAP revenue of around INR5-plus crores. If the billing be the same as revenue, the EBITDA would have touched even INR 40 crores. So I think matchmaking reached a certain level of threshold in terms of EBITDA margins. Anyway, the increase in billing will benefit in the subsequent quarters. We added 2.72 lakhs paid subscription during the quarter, a growth of 15.9% quarter-over-quarter and 3.7% year-on-year. APU for the matchmaking business dropped at 6.7% on a quarter-on-quarter and grew by 4.2% year-on-year. We facilitated over 25,500 success stories during the quarter. Now coming to the other business, our marriage services business and other businesses. Billings were INR 74 lakhs, a growth of 0.5% quarter-over-quarter and decline of 13.8% year-on-year. Revenue was INR 96 lakhs, a growth of 13.1% quarter-over-quarter, decline of 24.3% year-on-year. EBITDA level losses for the quarter was INR 3.8 crores as compared to loss of INR 5.7 crores in the last quarter. However, we expect the new other initiative, wedding services, the growth momentum will pick up this quarter and will scale up in the coming quarter. So we definitely see the growth momentum happening there as well. On the billing and the revenue outlook for quarter 2, matchmaking billing and revenue will have a double-digit growth year-on-year basis in quarter 2 and the profit also be triple digit in quarter 2 as well. And marriage sales billing is expected to be higher than quarter 1. And we are also doing a lot with AI. So we are using AI in many areas, using AI in automation, service improvement, product improvement and driving efficiency. So there are a lot of work happening on the AI side as well, which is helping us to drive efficiency and also improving the experience which we are providing to the customers. So let me hand over to Sushanta Swain, our VP Finance, to comment on the key profit highlights for the quarter and the next coming quarter as well. Sushanta, over to you.
Thanks, Muruga. Our EBITDA margin for the matchmaking business in Q1 is at 26.9% as compared to 22% in Q4 and 17.6% a year ago. Marketing expenses for the matchmaking business in Q1 were INR 46.5 crores compared to INR 43.5 crores in Q4 and INR 46.7 crores a year ago. Excluding marketing expenses, margins for matchmaking business is at 63%, and compared to in Q4, 59% and a year earlier. On a consolidated basis, EBITDA margin in Q1 is at 20.1% compared to 12.4% in Q4 and 11% a year ago. Tax rate for the quarter, 23.8%. PAT is at INR 19.1 crore, a growth of 96.2% quarter-on-quarter and 127.5% year-on-year. Share of loss from Astro-Vision, our associate company, is INR 9 lakh. Cash balance at the end of Q1, INR 342 crores. Return on capital employed is 36.4%. On the outlook for Q2 margins, we expect to achieve a triple digit year-on-year growth in PAT. Profit may be similar level of Q1 or slightly better than current quarter. I would like to end this customary safe harbor statement. Certain statements during this call could be forward-looking on our business. This involves a number of risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements. We do not undertake to update any such forward-looking statements that may be made from time to time by or on behalf of the company, unless it is required by law. Thank you. And over to Muruga.
Thank you, Sushanta. Yes, we can take questions now.
[Operator Instructions] The first question is from the line of Abhinav M from Aequitas Investment.
Firstly congratulations for a great result. My first question was regarding the revenue recognition mechanism. How do we recognize revenue, whether it is over the period or by the end of the plan? And second was, how much is the difference between the billing growth and the revenue growth?
Okay, Abhinav, thanks so much. So revenue is recognized based on the subscription period. So we have the membership from -- ranging from 3 months to 1 year also. So for the duration of membership period, the revenue is getting recognized. So that's way it is done. If you look at the quarter 1, the billing was INR 136 crores overall, and matchmaking was INR 135.3 crores where the revenue recognition was INR 130.5 crores. There's almost a INR 5 crore difference. So because of last year also there's a longer-term package, 1-year package was introduced. So sometimes the revenue gap on account of the increase in the billing and on account of different packages. So this gets recognized over a period of time. So at some quarter, maybe 98% or 97%, it depends.
Okay. Do you expect it to streamline going forward, the revenue and billing gap?
The thing is about the billing growth continues because as of today, if you look at the year before, our package are only 3 months package by and large and some 6 months package. So last year, also introduced a 1-year package. So there will be some difference. The revenue -- the billing continues growth, there will be some difference of year-on-year [indiscernible]. So it depends on the quarters. Suppose the billing growth, sometimes the catch-up may happen also. There is a billing growth Q2 and Q3, there will be some bit of slight slowdown can happen in terms of -- compared to the previous quarter, but revenue can be better also. So it depends. So net-net, it's -- last year was the first year we introduced. So this year, some catch-up is happening. Maybe between somewhere 97% to 99%, depends. Depends on the quarters.
The next question is, usually our cash on our balance sheet, what is the use which we are anticipating? Are we planning any acquisition or something?
Definitely, we continue to evaluate opportunities to reward our shareholder, also to grow the business. So we look at opportunity to acquire companies, opportunity to invest, and opportunity to reward companies also. That continue over to happen.
Got it. And then newer ventures where there is a lot of cash burn continuing, and you have discontinued also a couple of operations. What is the newer outlook on the newer venture business, and would we see any goodwill impairment or something on those lines?
So in terms of the newer opportunity, definitely, we see the opportunity to grow the wedding services, other initiatives. We definitely see the momentum happening probably in the coming quarters. So we are definitely upbeat about it. We changed the model, which we communicated some time back. We moved from the subscription business model to a commission-led model. We believe that's the way forward on the wedding services. We are seeing some traction. We are working on things. And so we are quite optimistic about the growth opportunity in the wedding services space and also other initiatives. So we see that happening in the coming quarters, which we are confident of it. And in terms of the goodwill and -- we did take some impairment in quarter 4. So it depends on how the business performs or not. We continue to evaluate and take decisions at the appropriate stage and all that. But in terms of net-net, yes, we definitely are upbeat about the opportunity in the nonmatchmaking revenue side which we hope to show the growth in the coming quarters.
Can you tell me the breakup of how much will be Bharat Matrimony out of the total matchmaking services?
So for the competitive reasons, we prefer not to give the breakup. So we are talking on a consolidated basis, yes.
Okay. Could you just tell me the regional breakup revenues, which like part of India will be dominant? I think it will be South, right? If you could just give me a broad breakup.
Sorry, I think your voice is a little sort of -- I think maybe you're on a speaker or something. It's not clearly audible.
Yes, am I audible?
Yes, better. Yes.
Yes. So my question was in terms of geographical split. I understand we are more heavily dominant in the South, but could you help me with a good mix of geography?
Again, for competitive reasons, while you are right that some of the markets, we are a very strong player, but again, for competitive reason, we prefer not to share the geography breakup and all.
Okay. Got it. And any particular reason why legal fees are so high?
Any -- what was the question? Sorry.
Legal fees.
Sorry, again, not so clear. Sorry.
Legal fees.
Legal fees. Okay. Why the legal fees? Sushanta, you want to explain that?
Se we are now registering all the trademark. We have a lot of trademarks. We are registering that trademark so that other people should not misuse our trademark. All that registration expenses, all that we are now doing for all our trademarks.
Got it. Any ASP increase you are taking in the plans across any of your platforms, ticket size?
No. [indiscernible] We have thus far various pricing strategy, nothing in particular.
What is the current fee since the last year's strategy was to move from shorter plans to longer plans? Are we discontinuing the shorter plan or how are things like? And basically can you explain that? If all the contracts are moved to 1-year contract, when will the billing catch up with the revenue?
See, it's again, it's a users' choice, which package the user want to opt for. So that's a choice of users while there's a benefit of people to go for 1-year package, again, it's individual choice. Some people, prefer to get married in a shorter span of time. Again, it's one more package. It's not that today, the 1-year package, it's a big contribution for us. However, we introduced this package to ensure that there's some kind of continuity for the users who are serious about matchmaking to have continuity in the service without need to worry about the subscription on every 3 months basis. Again, it's individual's preference and choice. It's not a big part of our business. It's certain percent of customers ask for it. However, we provide this option to the customer so that people can have the continuity. So in terms of -- it's -- again, it's individual choice. I wouldn't say that anything in particular or only for a set of customer, nothing like. So there's nothing like incentivizing or disincentivizing. It's more like individual choice of which package somebody wants to go for. Obviously, 1-year package is not the multiple of 3 months package. Obviously, there's a -- price-wise there is a benefit of going for 1-year package.
The next question is from the line of [ Vasudevan from Finnvest ].
The thing is excellent performance, 100% you have given an increase. Is it because of the lower base last year? Whether it is sustainable in future also because for the last few quarters, your revenue and your -- this one has been very flat. Because of the lower base, this 100% jump show. But is it sustainable? That is my one question. And the second question is, when Bharat Ek Khoj investment you have made last year, I understand. What is the financial impact you got from that? Please be categorical whether it is beneficial, yes or no. If it is yes, how much, and if it is no, why?
So in terms of whether the profit -- triple-digit profit this year, yes, this year, definitely because last year, we told we introduced a 1-year package, some of the revenue got deferred. And it's a combination of not only that, again, the continuous growth momentum. As I said in my opening speech, we expect a double-digit billing growth, similar revenue growth this year. It's a combination of a continued growth momentum plus because of the deferred revenue. So both are happening at the same time. So definitely this year, we see that triple-digit growth happening in the quarter. So that is why we are talking about the -- Sushanta also mentioned the Q2 profit may be at a similar level or even slightly better than the Q1 level. So we have the double-digit billing growth, double-digit revenue growth, profit at a similar level or slightly better also. That means we are talking about sort of triple-digit profit growth for Q2. So we expect for this year, that number sort of -- again we are talking only current quarter, which is -- again, which is pretty much there. So that's on the matchmaking. When it comes to Bharat Ek Khoj, it's more of the investment we made in one of the start-ups. We invested around INR 4 crores, okay? It's a long-term investment. So it's investment in one of the start-ups. It's more like a lot happening on AI side, the company doing AI astrology. So it's an investment opportunity for us because we see then AI has been evolving, astrology domain has been picking up. So we saw an opportunity. We invested in that company.
And one more question, gentlemen. I think I'm talking to Vice President Sushanta, I understand. Is it?
Yes.
You are talking to our Managing Director.
Yes, it's Murugavel.
Our Managing Director.
Sushanta is here. This is Murugavel.
Last time, I think there was one gentleman. CFO is not in the conference call today?
Yes, he is not in the conference call today.
Is he not feeling well?
No. Actually, he's on vacation actually. . Incidentally, he is kind of moving out as well. But again, he is on vacation. So he has a few days of working days left, but he is on vacation now, actually.
The next question is from the line of [ Srinivas from Value Capital ].
There are 2 questions. You said this year you have introduced AI. What are the AI use cases which you are implementing in your business to stay ahead? This is question 1. Secondly. You will continue the question or one by one?
No, no, you can continue the question so I can respond to both.
Yes, you please. Second question is, what is the plan of the company to increase the top line? This quarter, there is an increase in the top line, like resulted in the net profit. So I want to know just on the plan of your company. This is second. Third point is, the investor presentations in the website, all research and data are all showing as on 2016. Why not provide it updated, data using 2026 or current one? These 3 questions.
Thank you, Mr. [ Vasudevan ]. So let me go one at a time. Regarding AI, AI used in a lot of automations. What's being done by people, we are trying to do it through AI. So things like -- earlier we used to have people to do the profile validations and the photo validations. We used to employ people because the one thing Matrimony wants to be a company where it's known for trust and credibility. Everything is validated before gets to the platform. Today, obviously, these kind of things pretty much can be done through AI. So that's one area, automation, things like that. In the customer experience, you have an AI chatbot instead of today humans answering questions, it can be done by AI chatbot. There's some other work. Obviously, a lot is happening. We're also using AI on the product side here to ensure that customers have a good experience. So AI is on multiple areas in the organization. In terms of the plans to grow the business, again, we already mentioned that we expect double-digit billing growth and revenue growth. The growth is a combination of multiple. One is that continue to work on the profile acquisition, conversion strategies. And so these are things we continue to work on and the product improvement. So the combination, of all these things continue to happen. It's not that -- so again matchmaking is about the profits and conversions, and selling the right package. So continue to work on these strategies. We launch a new offering, we launch Luv.com. We also went regional on Luv.com. We launched Malayali Luv.com because Malayalam is one market where normally the uptake is good. So we're also going regional on Luv.com. So the expansion, there are -- the business-related expansion, marketing. We also continue to invest big in the marketing. A lot of conversion strategy also being worked out. So a combination of all these things are helping us to grow the business. In terms of investor presentation, yes, thank you for that valuable input. We definitely look within and get this addressed.
The next question is from the line of [ Premal Kota ], an individual investor.
Janakiraman, congratulations after long time double-digit growth.
Thank you, sir.
Entire year net profit is the same, what you given same way. And another one, last con call, I requested, when employee or promoter buying and selling, they have to inform exchange between 3, 4 days, what mode, what price they bought it or sell it. That is the 2 questions from my end.
Sorry, the first question was not so clear and the second question. Could you please repeat, sir?
Yes. So what you've given current quarter net profit, can we expect entire full year, say, in line with that net profit?
We are only talking about quarter 2, because we don't want to talk about the entire year. But again, based on the last year, the deferred revenue, Q1, there's a growth. Q2 we're expecting both billing and revenue and double-digit growth. So we expect the momentum to continue. I don't want to get into a specific quarter beyond Q2. But our expectation is, of course, Q2 is a double-digit billing and revenue. That's what we foresee. Profit we already mentioned, is better than possibly even the Q1 slightly or maybe similar level. Yes. So again, the last year, the growth is continuing. We are running efficient operations. So all these things contributing to the increase in PAT as well. Again, we are also investing in the growth as well. So that's continuing to happen. So that's the thing. I terms of the promoter buying back, our company secretary will do the needful. So thanks so much for that.
The next question is from the line of [ Mani ], an individual investor.
Congrats for the good set of results. I want you to specifically speak about Luv.com and the efforts that you have taken in terms of some kind of initial feedback and then how it is shaping up, because we see Aisle as part of Jeevansathi's disclosure is shaping up pretty well. So I wanted to understand so that we are not -- since it is liquidity-based platform and we need the first mover, I just wanted to know how we are progressing on that.
Thanks so much for asking the question. So there is an opportunity because India being a large market, obviously matrimony is a large market. Again, there is an opportunity in the serious matchmaking as well. That's the reason we got in Luv.com. Again, compared to Aisle, you are talking about specific, it's probably almost 2 decades old and it's around INR 40 crores revenue last year. And so we definitely see that there's an opportunity. That's the reason we bought the domain name Luv.com. We also realized that the strength of Matrimony has been in regional and again -- Aisle, again, is not a single brand. There are multiple brands as well. So we also think that going regional on Luv.com may be the good strategy. We just rolled out Malayali Luv. We intend to go regional Luv.com as well. Again we are talking about somebody branding almost 2 decades vis-a-vis just launched less than -- just recently. So we're definitely going to invest. We're going to -- and improve on our product offering and also be one of the best players in this segment at the serious matchmaking space. So we have -- the product price is good. We are 100% verified and we have some USPs. It's about marketing and getting more profile, because all this matchmaking or matrimony, profile acquisition important. We're going to invest while we launch Malayali Luv. We may launch other regions as well. So we may invest some money behind this Luv.com and grow the business. Yes, that will be definitely one thing we want to invest and grow.
[Operator Instructions] The next question is from the line of [ Pranay Shah from Carron Capital ].
Sir, I have 2 questions. Firstly, we have seen our ATV price on the matchmaking line by 7% Q-on-Q. So just wanted to know, have we taken this bundling step or discounting, which has led to this decline in the ATV since we have moved to the new model, which is basically an ATV accretive. So it is on a decline. So what is the reason for such a decline?
No. Sorry. Again, my apologies. It is not so clear. Would you please repeat your question again?
Yes, sir. My question is basically on the ATV price, which is for the quarter declined by 7% Q-on-Q.
Yes, ATV.
Yes. Since we transitioned into a new model, so I think what is the reason for such a decline in ATV?
Okay. See, ATV, again, we should not read too much into ATV. So the pricing is one of the levers whether it's not that -- there are multiple things. There are different packages and different price points. So I think the objective is to grow the business. So again, offering the right package to the right customer. So some customers offer the lower price or some customers higher price, discounts. It is all being employed based on the data analytics now. So it's not something the ATV continue going to increase. It's a combination of various strategies, segmentation, pricing and all those. So in my view you should not read too much into the ATV. It's more of we have to look into the growth side. Again, you are talking about introduction of 1-year package. Again, it increased last year only for the -- it's not that majority people go for 1 year. Small percentage people opt for it and all. So that way -- so we employ various strategies to drive the growth. So price is one of the levers. Again, price some quarter move up, some quarter reduce. It depends on what package or again, uptake in some other package or add-in packages. There are multiple factors come into force and all those. So I wouldn't read too much into ATV because we are not operating at a steady state. So it's multiple customer segment. And also more importantly, we have multiple products. We have the Jodii, which is like kind of a very low cost price product. Now we also launched Luv.com, a very low cost product. So it's again, combination of multiple things. So my suggestion is that's one of the information, but should not read too much into that one.
And sir, second question is on the revenue recognition, basically, sir. If I look at deferred revenue and collections, can you help me understand what percentage of deferred revenue will be booked in the current quarter and then what percentage of the billing will be booked in the revenue?
No, the thing is about what percent revenue gets booked in the current quarter. So see it's again, we said you can pretty much around between 97% to 99% happens, depends on the quarter. So sometimes the billing slows down, the revenue may move and all. If you look at how much of exact revenue get captured and all those things, I don't have the number on top of head, but it's more like you can assume on a trend basis, you can assume between probably 96% to 99% you can assume on those.
Okay. Understood. And sir, third question is on the marriage services and others. We've seen that there is a loss being narrowed down for the current quarter. So should we read more into it? Like, how should we look at the trajectory going forward, and what are the steps which were taken which has led to this narrowing of losses in the current quarter?
So it's more than the losses. I would probably look into the growth. We definitely see that there is some momentum and we changed the model and there are also some new initiatives getting worked out. We believe that the growth will get better in the coming quarters. And in terms of -- and the momentum will accelerate as we progress. Last quarter, we have taken some impairment as well. That's the reason the losses were slightly higher. Other than that, yes, it's around less than INR 4 crore per quarter.
Correct.
That's what I think.
Okay. That's a one-off. So apart from that trajectory has been maintained, it has not improved. That's what you are assuming to, correct?
Yes, yes, correct.
Okay. And sir, any update on ManyJobs, how is progressing? And what is the time line we'll be seeing to roll out on a national level like before? What are the key metrics we will be tracking before rolling out?
So we have a good number of companies are using it. Again, it -- since it's very early days, it's a combination of paid model and some customer trial also given, and we have more than 1.5 million job seekers. So it may take some time until we achieve a certain run rate or close to a breakeven. You may not expand to other markets. So you want to stay limited to, stay focused only in Tamil Nadu. So at this point in time, maybe next year or maybe coming -- next year also, probably we may focus only in Tamil Nadu. Probably sometime next year, we may decide when do we want to go national mode.
[Operator Instructions] Next question is from the line of [ Ankur Jain from Prayaas Capital ].
I have two questions. Continuing the response about the wedding services business, it was not very clear to me. Could you shed some more light with the change in the business model that we have taken and what is the time period that you look for the business of marriage services to break even and then become profitable? That is question one. And the second question is about advertisement expenses. Have you seen any reduction in the overall competitive intensity? And as we go forward, do you see these ad expenses to moderate from the current levels?
The business model wedding services, we moved from sort of while we operate to some extent subscription, but what we want to focus on the commission-based model. So that's what's currently being piloted. We believe that's sort of thing we want to focus on. And so in terms of when do you think it can achieve a profitable order, I think it's more of we want to -- we believe there's an opportunity. We want to grow the wedding services and take it to a, say, probably INR 1,200 crore run rate, then we can -- at that level, sort of it can contribute into the profit also. So focus -- because the wedding service is a large opportunity. So for us, it's not achieving a breakeven, it's more of achieving the growth and reaching the run rate is very important for us. And -- which we believe we can do it. That's the point number one. And when do you think -- again, we're just trying this model. We believe it's the right way to look into that opportunity. Probably sometime maybe in 1 year down the line, probably have a better clarity on this front. And why we believe that we are in the right -- I would say that we think that the approach is right, and again, probably have some clarity in the coming quarters. In terms of advertisement, while some bit are softening, but again, there are -- we also want to invest behind our newer opportunities. So [indiscernible] some of the existing product as well. So while the trends are softening, we don't expect to reduce our marketing. Probably may even invest slightly more on marketing while the property will be there, the growth will be there. So even maybe require maybe even slightly step up on marketing as well to drive the growth. So yes, we don't see any reduction in the marketing side. While there is some market, there's a competitive intensity there, there is some market that's softened. But net-net, it's not fully slowed. It slowed down across India. But having said that, we also want to invest behind some of the newer opportunities. So we may even slightly step up marketing as well.
[Operator Instructions]
If there are no further questions, we can end the conference call.
Okay, sir. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. Over to you, sir.
Thank you, shareholders and investors, and thanks for your patience. So last year, we did take some steps for the long-term interest of the organization and thanks for your patience. As we had committed, the profits started showing up. We expect the momentum to continue. We look forward to your continuous support. Thank you so much.
Thank you.
Thank you. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
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