Matrimony.Com Q1 FY27 earnings call

Matrimony.Com Limited delivered a strong Q1 FY27, with consolidated PAT increasing by 127% year-on-year to ₹19.1 crores. Consolidated billing reached ₹136.0 crores, growing 7.8% QoQ and YoY, while revenues stood at ₹130.5 crores, up 11.7% QoQ and 13.2% YoY. The consolidated EBITDA margin significantly improved to 20.1% compared to 11% a year ago, reflecting operational efficiencies and a tax rate of 23.8%.

The core Matchmaking business continued to be the primary growth driver, reporting billing of ₹135.3 crores (up 7.9% QoQ and 8.0% YoY) and revenue of ₹109.5 crores (up 11.7% QoQ and 13.6% YoY). This segment achieved an EBITDA of ₹34.9 crores, translating to a healthy 26.9% margin. Paid subscriptions grew by 15.9% QoQ and 3.7% YoY to 2.72 lakhs, and the company facilitated over 25,500 success stories during the quarter. Marketing expenses for the segment were ₹46.5 crores.

The 'other businesses,' including marriage services, reported billing of ₹74 lakhs (up 0.5% QoQ but down 13.8% YoY) and revenue of ₹96 lakhs (up 13.1% QoQ but down 24.3% YoY). This segment recorded EBITDA level losses of ₹3.8 crores, an improvement from ₹5.7 crores in the previous quarter. Management expressed optimism for these new initiatives, expecting marriage services billing to be higher in Q2 than Q1 and overall growth momentum to pick up in the coming quarters^⏳.

Management clarified that revenue recognition is based on the subscription period, which can range from 3 months to 1 year. This leads to a difference of approximately ₹3-5 crores between billing and recognized revenue in any given quarter. The introduction of 1-year packages last year contributes to this deferral. The company expects 97-99% of billing to be recognized as revenue, with the exact percentage depending on the quarter's package mix.

Matrimony.Com is actively integrating AI across its operations to enhance automation, service improvement, product development, and overall efficiency. AI is being used for profile and photo validations to ensure trust and credibility, and for customer experience through AI chatbots. The company also invested ₹4 crores in an AI Astrology startup, Bharat Ek Khoj, viewing it as a long-term opportunity in the evolving AI domain.

For Q2 FY27, management projects double-digit year-on-year growth in Matchmaking billing and revenue, and triple-digit year-on-year growth in consolidated PAT, with profit levels expected to be similar to or slightly better than Q1. The wedding services business is targeted to achieve a ₹100 crore run rate and profitability within approximately one year. The company maintains a cash balance of ₹342 crores and continues to evaluate opportunities for strategic investments and acquisitions to drive growth.