MATRIMONY - Matrimony.com Limited Share Price

In the recent Q1 FY '26 earnings call, management provided a positive outlook focused on sustained growth for Matrimony.com. CEO Murugavel Janakiraman stated, "We believe we are on track to achieve double-digit growth in year-on-year billing." For Q1, consolidated billing reached INR 126.2 crores, marking a 10% increase from the previous quarter and a 7.4% rise year-on-year. The matchmaking business was a strong performer with billing of INR 125.3 crores, reflecting a growth of 10.4% sequentially and 7.8% year-on-year.

Management anticipates Q2 will yield high single-digit to double-digit growth in the matchmaking business on a year-on-year basis. However, they note that Q2 is traditionally a seasonal quarter, which might see a decline compared to Q1. For the Marriage Services segment, a higher performance is expected relative to Q1, despite recent declines.

The EBITDA margins were 11% for the consolidated business and 17.6% for matchmaking, with plans to bridge the revenue-to-billing ratio gap in future quarters. Management emphasized ongoing initiatives within matchmaking, including launching luv.com by the end of Q3.

Additionally, the ManyJobs platform has shown traction with 1 million downloads and over 5 lakh registered job seekers in Tamil Nadu, with monetization expected to start this quarter. On astrology services, the company is exploring AI integration.

Financially, the management expects PAT for Q2 to remain around the same level as Q1, targeting continued improvement in profitability as the gap revenue closes. The cash balance stands at INR 330 crores, providing a strong foundation for future investments. Overall, the management remains optimistic about sustained growth and increasing returns in the upcoming quarters.

Question 1: "If you could reduce advertising costs, will it impact profitability?"

Answer: "Yes, definitely. We continually assess how to optimize our marketing spend. While we aim to maintain overall marketing levels, we have started investing in new initiatives like Elite Matrimony. Reducing marketing costs can increase profits, but it depends on market conditions. For now, we expect our marketing spend to remain stable, focusing on both cost optimization and growth areas."

Question 2: "What factors explain the billing revenue growth gap with your competitors?"

Answer: "The competitor you mentioned underwent a significant business model change, affecting their growth. While our model remained stable, they saw a revenue drop previously. We have returned to growth due to improved profitability and strategies yielding results. We anticipate achieving double-digit growth in billing this year, bridging any revenue gaps over time."

Question 3: "Can you provide an update on initiatives like Astro and ManyJobs?"

Answer: "ManyJobs is performing well with over 1 million downloads in Tamil Nadu and 500,000 registered job seekers. We're hoping to monetize it shortly. For Astro, we are exploring AI combined with human input to find a suitable business model. Both initiatives are in early stages, and we expect to see positive traction moving forward."

Question 4: "Are you considering a buyback or issuing dividends?"

Answer: "We've completed two buybacks already. The Board will evaluate future buyback opportunities after a one-year gap from the last. We also declared special dividends at our recent AGM, and any further shareholder returns will be decided by the Board based on profitability."

Question 5: "How do you view competition and market share movement over the past year?"

Answer: "It's difficult to gauge market share changes without public data from all competitors. However, I believe we still hold over 50% market share. We have seen growth return after a challenging year, and I'm optimistic about billing growth progressing to double digits this year."

Question 6: "What strategies will you implement to improve Northern market share?"

Answer: "We are currently working on specific strategies to enhance our presence in Northern markets. While we haven't made significant headway yet, we aim to communicate our plans as we refine our approach. We're committed to improving our market share there in the coming quarters."

Question 7: "What is the current status of the wedding services marketplace?"

Answer: "We're piloting a commission-based model for wedding services, moving away from traditional subscriptions. It's still early in the process, but we aim to achieve a fit with the market by enabling increased engagement from service providers. We expect this model to branch out beyond Tamil Nadu once we prove its viability."

Question 8: "How are you addressing attrition and employee costs?"

Answer: "While we continue to harness AI for efficiency gains, we're also hiring for growth areas, especially in personalized services requiring more relationship managers. Attrition is slightly decreasing due to enhanced engagement initiatives. We foresee further reductions in attrition rates next year as these initiatives take effect."