Mach Conferences — Q4 FY25 earnings call

Call held 29 May 2025

Management summary

Mach Conferences reported FY25 revenue of INR235.75 crores, maintaining last year's level despite the absence of a large event. The company saw a 73% increase in events organized and acquired 21 new clients. However, EBITDA margin compressed to 9.31% from 15.45% due to aggressive client acquisition and BFSI sector headwinds. Strategic expansion into B2C, including religious tourism and cruise distribution, along with an acquisition in medical conferences, positions the company for future growth, targeting 25% CAGR over the next three years.

Highlights

  • Total revenue for FY25 stood at INR235.75 crores, maintaining last year's level despite absence of a large INR80 crore event.

  • Number of events organized increased by 73% from 90 in FY24 to 156 in FY25.

  • Acquired 21 new clients in FY25, contributing to profitability in the last quarter.

  • Recommended a dividend of INR1 per equity share, representing a 10% payout on face value of INR10.

  • Strategic alliances and acquisitions (Travexel, Cordelia Cruises) to expand service portfolio and deepen domestic presence.

Concerns

  • EBITDA margin for FY25 was 9.31%, down from 15.45% last year, attributed to aggressive client acquisition and BFSI segment slowdown.

  • Trademark dispute ongoing for the B2C travel portal name.

  • Related Party Transaction (RPT) for wedding expenses of a promoter's son, though management stated it was a one-off and approved.

  • Loan of INR50 crores to a subsidiary (Travexel) with FY25 revenue of only INR1.25 crores raised analyst concern, management agreed to amend.

Key financials

  1. Revenue ₹235.75 Cr
  2. EBITDA ₹21.95 Cr
  3. EBITDA Margin 9.3% -39.5%YoY
  4. PAT ₹14.16 Cr
  5. Events Organized 156 events +73%YoY
  6. New Clients Acquired 21 clients

What they filed

Q1 FY27: revenue up 23.5%, net profit up 1.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY24Q2 FY25Q4 FY25Q1 FY26Q2 FY26Q4 FY26Q1 FY27
Revenue71 119 116 22 95 +34%74 −38%143 +24%
EBITDA6 11 7 1 10 +67%6 −48%7 −3%
Net profit4 9 6 2 8 +100%4 −51%6 +1%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Debt Debt disclosed
    with the money coming in from the IPO, we do not have an interest cost.
  • Dividend ₹1/share (final) Payout ratio 10%
    The Board of Directors has recommended a dividend of INR1 rupee per equity share, representing a 10% payout on the face value of INR10 rupee per share for the year ended March 31st, 2025.
  • M&A Travexel Events and Travel Private Limited Acquisition · Signed

    Expand service portfolio, deepen domestic presence and jointly develop new revenue streams.

    Recently we have approved the acquisition of a major equity stake in Travexel Events and Travel Private Limited. It is a young but promising company in the medical conference and travel segment. It has recorded a turnover of INR1.25 crores in FY '25.

Guidance & targets

Revenue

  • Revenue Growth CAGR Revenue · next three years · High confidence 25%
    With the opportunities in the existing MICE setup and with the new developments in place, we are hopeful to clock a growth of 25% CAGR over next three years.

    — Ranjan Ghosh

  • Revenue Growth Revenue · this year · High confidence 25%
    This year, we are looking at 25% growth.

    — Amit Bhatia

Profitability

  • Profitability Ratios Profitability · this year · Medium confidence 2024 profitability ratios
    But this year, we are hopeful that we will be able to achieve 2024 profitability ratios.

    — Amit Bhatia

M&A

  • Medical Conference Vertical Acquisition Completion M&A · from now · High confidence 30 days
    I think in about 30 days from now, the entire process will be completed.

    — Amit Bhatia

What to watch in Q1 FY26

Resolution of B2C portal trademark dispute

next quarter
Current Currently in court
Target Resolution or clear path forward

Why it matters

Impacts the launch and branding of a strategic B2C initiative.

you know the dispute which is there regarding the trademark of our B2C portal is right now currently in the court.

Risks & concerns

  • Trademark dispute for B2C portal name

    medium

    Ongoing legal dispute over the name of the B2C travel portal, which could delay or impact its launch.

    Analyst acknowledged

  • Margin compression in FY25

    medium

    EBITDA margin declined to 9.31% in FY25 from 15.45% in FY24 due to aggressive client acquisition and slowdown in the BFSI segment.

    Management acknowledged

  • Disproportionate loan to subsidiary

    medium

    A loan of INR50 crores to Travexel Events and Travel Private Limited, which had only INR1.25 crores in revenue in FY25, raised concerns about capital allocation and recovery.

    Analyst acknowledged

  • Dependence on key individuals post-acquisition

    medium

    Concern that an acquisition based on an individual's expertise (e.g., in medical conferences) carries the risk of that individual leaving, potentially impacting the acquired business.

    Analyst acknowledged

  • Related Party Transactions (RPTs)

    low

    Analyst raised concerns about RPTs, specifically a wedding expense, which management clarified as a one-off and stated such transactions have stopped.

    Analyst acknowledged

Q&A highlights

4 direct, 1 evasive
Trademark dispute for B2C portal Partial
you know the dispute which is there regarding the trademark of our B2C portal is right now currently in the court. I will not like to comment upon it. We are pushing for the same name. Nevertheless, we are not wasting time. We are parallelly creating our product, the tool, which would help us to get into this business.

Reveals an ongoing legal dispute that could impact the branding and launch of a key strategic initiative.

Asked by Sanket Sadh

Revenue generation from B2C segment Evasive
But while I will not be able to give you any numbers, the bottom line here is not to, burn money. We do not want to, we do not aspire to become, in current scenario, we do not want to, compete with the biggest and the best which would be there in your cell phone currently.

Management was unwilling to provide specific revenue targets for the new B2C segment, indicating uncertainty or early-stage development.

Asked by Sanket Sadh

Margin profile for B2C vs B2B and overall FY26 margins Partial
You know you're absolutely correct that the cost would increase. Now, in terms of the business of these B2C vertical, now the most expensive bit is the marketing cost, the client acquisition cost which is there... So, while there will be a cost attached to taking a customer... but we will never get into negative territory.

Analyst challenged management on potential margin dilution from B2C expansion and FY25 margin compression, prompting management to explain cost structures and commitment to positive territory.

Asked by Darshil Jhaveri

Related Party Transactions (RPTs) Direct
That related party transaction which you are referring to is a small little business. I can happily state in this forum, my son is getting married this year. So, this is his wedding expense which we have taken approval and we took the permission from the board. And we have ensured that nothing is done which is unlawful. And this is one-off event... Yes, that has completely stopped.

Analyst highlighted recurring RPTs, and management confirmed the specific nature of the transaction and stated that such transactions have stopped.

Asked by Raghav

Cash flow and receivables increase Direct
No, the good news is that out of the INR47 crores, INR25 crores to 27 crores we've already received as we speak and the balance we would be getting soon. Yes, the payment got delayed this time. But since we are dealing with the blue-chip companies, AAA plus listers, there is nothing to get worried.

Analyst raised concern about negative operating cash flow and increased receivables, which management addressed by confirming recovery of a significant portion and reassuring about client quality.

Asked by Sagar

Loan of INR50 crores to subsidiary (Travexel) vs its revenue (INR1.25 crores) Direct
Babu sir, we understand that this is a case, this is a reason of concern. The provision in the board meeting was just done to take one time approval. But I see that this is cause of concern and we've addressed this and I can assure you as soon as possible, we will amend it and the loan would be given to the company as a basis whenever it is needed. But I can guarantee you right now over the call that we will amend this as soon as possible.

Analyst challenged the disproportionate loan amount to a small subsidiary, leading management to acknowledge the concern and commit to amending the loan structure.

Asked by Ram Babu

Acquisition strategy and risk of acquired talent leaving Partial
To start with this particular company, we, like I said, there is the promoter of the company, has a lot of years' experience... So, he started this company and perhaps he wanted somebody to invest and we were there to solve that problem for him. Now, as far as your question is concerned, that after 3, 4 years, will he, start his own venture without us or something? That risk happens everywhere. Although we have, my compliance team and my consultants have taken care of that in practicality, in law angle, but in practicality, I have learned this art to hold on to people.

Analyst questioned the strategy of acquiring a company based on an individual's expertise and the risk of that individual leaving, prompting management to explain their approach to talent retention.

Asked by Gaurav Kothari

Quarterly updates for investors Direct
You know, we had thought about it. We are still contemplating. We would seek advice and, you know, this is the foundation of the company in terms of the IPO listing. We are in the 9th month, 10th month. So, we are accepting a lot of suggestions. So, we are currently working on this.

Analyst suggested providing quarterly updates, which management acknowledged and stated they are considering as they are new to public listing.

Asked by Sahil Raj

2 min read 6 chapters

Detailed narrative

FY25 Performance Overview

Mach Conferences & Events Limited reported a total revenue of INR235.75 crores for FY25, maintaining last year's level despite the absence of a significant INR80 crore event. The company successfully increased the number of events organized by 73%, from 90 in FY24 to 156 in FY25. This growth was driven by a dedicated focus on client satisfaction, operational efficiency, and market expansion, leading to the acquisition of 21 new clients during the year.

Strategic Expansion & B2C Ventures

The company has strategically ventured into the B2C segment, starting with religious tourism offerings like Mahakumbh Mela and Char Dham Yatra, which resonated well with exclusive clientele. Mach is also developing a B2C travel portal to leverage its existing captive audience of approximately 1 lakh people. This platform aims to streamline travel requirements, including flights, hotels, and visas, and is powered by a partnership with TBO, a travel technology provider.

Acquisitions & Alliances

Mach Conferences approved the acquisition of a major equity stake in Travexel Events and Travel Private Limited, a company in the medical conference and travel segment with a FY25 turnover of INR1.25 crores. This acquisition aims to expand service portfolio and deepen domestic presence. Additionally, Mach has been appointed as a key distributor for Cordelia Cruises, India's premier luxury cruise line, capitalizing on the projected growth of the Indian cruise tourism industry to over US$229 million in FY25.

Financial Performance & Margins

While revenue remained stable, the company's EBITDA for FY25 stood at INR21.95 crores, with an EBITDA margin of 9.31%, a decrease from 15.45% in the previous year. This margin compression was attributed to aggressive client acquisition strategies and a slowdown in the BFSI segment during the third and fourth quarters. Management expressed optimism about achieving 2024 profitability ratios in the current year, expecting margins to improve as new clients mature and the cost base is optimized.

Shareholder Returns & Capital Allocation

In line with its commitment to shareholder returns, the Board of Directors recommended a dividend of INR1 per equity share for FY25, representing a 10% payout on the face value of INR10 per share. The company noted that with funds from its IPO, it no longer incurs interest costs, contributing to improved financial health. However, an INR50 crore loan to the newly acquired subsidiary, Travexel, which had only INR1.25 crores in FY25 revenue, raised analyst concerns, prompting management to commit to amending the loan structure.

Outlook & Growth Drivers

Mach Conferences is transforming into a full-service online travel agency (OTA) and aims for a 25% CAGR over the next three years. Key growth drivers include strengthening premium MICE offerings, expanding into high-growth verticals like the corporate travel desk, and leveraging strategic alliances. The company is confident in its ability to accelerate growth by diversifying its client base and innovating its service offerings, despite initial challenges in B2C segment penetration.

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