MATRIMONY - Matrimony.com Limited Share Price

Matrimony.com management provided an optimistic outlook during the conference call on February 12, 2026. They anticipate double-digit or high single-digit growth in matrimony billings for Q4 FY '26 on a year-on-year basis.

Key points shared by the management include:

• Q3 consolidated billing was INR 117.9 crores, reflecting a growth of 7.8% year-on-year but a decline of 0.5% quarter-over-quarter.
• Consolidated revenue for Q3 stood at INR 113.2 crores, growing 1.6% year-on-year while decreasing by 1.2% quarter-over-quarter.
• Active paid profiles reached 2.5 lakh, growing 3% year-on-year and 4% quarter-over-quarter.
• Average Transaction Value (ATV) for the matchmaking business grew by 13.3% year-on-year and 4.7% quarter-over-quarter.
• The EBITDA margin for the matchmaking segment was reported at 19.2%, up from 17.1% in Q2.
• A share buyback of INR 58.5 crores was initiated to reward shareholders, with a commitment to evaluate future opportunities for rewarding investors.
• The ManyJobs business surpassed 1 million app downloads with over 10,000 recruiters onboard.
• They noted the successful launch of an AI chatbot within their matrimony business, with plans to leverage AI for further operational enhancements.

Additionally, management expressed confidence in enhancing average transaction values and overall growth due to effective marketing and product offerings, amidst competitive pressures. The cash and investment closing balance stood at INR 345 crores, supporting future growth and operational expansion.

Question 1: "Your marriage services revenue has been dropping every year, sir. And because of this, losses are also increasing. It would be viable to close this business so that our bottom line will increase, sir. This is dominated more by offline model than online?"

Answer: We continue to explore ways to improve the marriage services business and believe there are opportunities within it. We're considering a commission-based model over the current subscription model. While we're open to discontinuing underperforming areas, we feel confident that with the right strategies, we can enhance the business's growth.

Question 2: "Why invest in Bharat Ek Khoj last quarter, sir? Is it for the integration with our app? Please throw some light on that."

Answer: Our investment in Bharat Ek Khoj was due to their focus on AI astrology, which we found intriguing given AI's growing influence across sectors. Their work aligns with our strategic interests, aiming to expand our offerings through innovative technology.

Question 3: "Astrotalk revenue is more than INR 1,000 crores, though our company Astro division is in the sleep mode. Any update, sir? The company refuses to pluck this low-hanging fruit, sir?"

Answer: The investment in Astro-Vision was strategic, and we're currently employing their services. While they're not scaling as fast as others, we're actively exploring ways to leverage our investments in astrology through our own platforms, such as AstroFreeChat, integrating AI as we seek to enhance our presence in this space.

Question 4: "The marketing expenses remain elevated at about INR 451 million in quarter 3 of FY '26. So I wanted to understand if there's any scope for operating leverage if billing growth sustains double digits?"

Answer: Marketing expenses have actually decreased from INR 46.7 crores in Q1 to INR 43.9 crores in Q3. We actively seek to optimize these expenses while still investing in necessary marketing to spur growth. If billing indeed grows double digits, we expect to realize operating leverage, improving margins further.

Question 5: "If billing grows double-digit in quarter 4 as guided, what is the expected EBITDA margin for FY '27?"

Answer: While we anticipate growth in billing, revenue will lag behind due to the one-year package introduced. The full revenue impact will be realized in Q1 FY '27. Thus, we expect EBITDA margins to remain strong, influenced significantly by these deferred revenues.

Question 6: "In the yearly basis, when you remove other income, hardly net profit is INR 10 crores only. But you are spending INR 180 crores on advertisements. Why is this?"

Answer: The marketing spend, while high, supports not just existing services but also new initiatives like Luv.com and Jodii.com, which are crucial for long-term growth. The goal is to capture burgeoning markets, which will yield returns in the future as we see growth perhaps next year.

Question 7: "Post buyback, what is the capital allocation philosophy going forward?"

Answer: Our capital allocation is focused on disciplined and strategic investments in high-return areas. Following the buyback, we plan to evaluate further shareholder rewards while continuing to explore growth opportunities in promising new initiatives.

Question 8: "How much of Q3 deferred revenue converts into Q4 earnings visibility?"

Answer: A significant portion, about 90%, of deferred revenue from Q3 transitions to the next financial quarter. This means while there will be deferred revenues impacting Q4, we expect the bulk will contribute effectively to Q1 FY '27 as the one-year package aligns with revenue recognition.

Question 9: "Can we see more improvement in our average transaction values?"

Answer: Yes, we anticipate continued improvement in Average Transaction Value (ATV) due to the success of high-end packages and ongoing efforts to boost ARPU. The combination of targeted pricing strategies alongside personalized service offerings support our outlook for ATV enhancements.

Question 10: "What is your long-term strategy for maximizing paid subscriber base versus monetization per user?"

Answer: Our strategy balances both increasing our paid subscriber base and improving monetization per user. We aim to enhance customer conversion and ARPU through effective package offerings, ensuring both metrics grow symbiotically in the long run.