Q2 26/27

Nov 11, 2026

Summary

Q2 FY27 revenue rose 17.6% YoY and PAT grew 167.3%, alongside 26.6% growth in paid subscriptions. Management expects double-digit revenue growth in Q3, while seasonal timing may constrain billing growth.

Ladies and gentlemen, good day and welcome to Matrimony.com Q2 FY 2027 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0 on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Jairam Shetty from ICICI Securities. Thank you, and over to you, sir. Good morning, everyone. On behalf of ICICI Securities, I would like to welcome you all to Q2 FY 2027 earnings call of Matrimony.com. From the company, we have Mr. Murugavel Janakiraman, MD and CEO. The call will begin with brief management remarks followed by Q&A session. I would now hand over the call to Mr. Janakiraman sir for his remarks. Over to you, sir. Thank you, Mr. Jairam. Good morning, everyone, and thank you for joining us for the quarter two FY 2027 earning call. We are pleased to report a strong performance during the quarter with growth across our key financial parameters. Our consolidated revenue grew by 17.6% year-on-year, while EBITDA registered a significant growth of 144.7% to INR 30.3, and net profit increased by 167.3% to INR 20.7 crore. Our billing also recorded a healthy growth of 10.7% compared to the corresponding quarter of last year. On the business front, our paid volume also witnessed a substantial increase, supported by the introduction of shorter duration subscription packages and strong execution. The technology and AI continue to be important drivers of our business transformation. AI is increasingly becoming part of how we build our products and deliver services. We implemented several AI-led initiatives across photo and profile validation, AI-powered chatbots, product enhancement, and customer call quality analysis. These initiatives are aimed at improving customer experience, getting key insights, and driving operational efficiency. During the quarter, we also launched the regional versions of Luv.com, that is our serious matchmaking initiative. The brand names are Premam in Kerala, Priyam in Tamil Nadu, Premalu in Andhra Pradesh. These offerings are still at an early stage, and the initial traction has been very encouraging. We plan to extend this initiative to other regional languages in the coming quarters. We expect Luv.com and the regional brands to meaningfully contribute in the coming years. As part of our strategy to expand to related adjacent services, our board of directors have approved a proposal of acquisition of an additional 50% stake in Astro-Vision Futuretech Private Limited, subject to customary closing condition and regulatory approvals. We see this an opportunity to participate more meaningfully in the growth of online astrology services segment, which is booming in India. Another significant milestone during the quarter was securing the government approval for voluntary Aadhaar authentication for our matchmaking platform. At this point, we are the only matrimony company approved by the Government of India to get the Aadhaar-based verification of members. We believe this initiative will further reinforce our commitment to providing a safe and trusted matchmaking experience. Overall, we remain focused on strengthening our core matchmaking businesses, leveraging technology and AI, improving operational efficiency, and building new growth opportunities. Now, coming to the results for the quarter. In quarter two, on a consolidated basis, we achieved a billing of INR 131.1 crore, a growth of 10.7% year-on-year and decline of 3.6% quarter-on-quarter. Revenue at INR 134.8 crore, a growth of 17.6% year-on-year and 3.3% quarter-on-quarter. Key highlights for the matchmaking business quarter two are as follows: Billing at INR 130.3 crore, a growth of 10.9% year-on-year and decline of 3.7% quarter-on-quarter. Revenue at INR 133.9 crore, a growth of 17.9% year-on-year and 3.3% quarter-on-quarter. Added 3.02 lakh paid subscription during the quarter, which is a growth of 26.6% year-on-year and 11.2% quarter-on-quarter. ATV for the matchmaking is declined by 12.2% year-on-year and 13.3% quarter-on-quarter basis. We facilitated over 26,000 success stories during the quarter. And coming to the marriage service and other business, billing were at INR 79 lakh, a growth of 7% quarter-on-quarter, a decline of 15.5% year-on-year. Revenue was INR 89 lakh, decline of 7% quarter-on-quarter and 14.7% year-on-year. EBITDA loss in the quarter were INR 4.3 crore as compared to EBITDA losses of INR 3.8 crore in quarter one of FY 2027 and INR 2.5 crore in Q2 of FY 2026. On the billing and revenue outlook for quarter three, matchmaking revenue on a year-on-year basis is expected to post a double-digit growth in quarter three. Matchmaking billing are expected to reach a single-digit year-on-year growth in quarter three, reflecting impact of the Shradh and Navratri period falling in quarter three of this year compared to the quarter two of last year. Marriage service and other business is expected to be higher than the quarter two. Let me pass on to Sushanth to comment on the key profit with highlights. Sushanth, over to you. Thanks, Muruga. Good morning, everyone. Our EBITDA margin for the matchmaking business in Q2 is at 29.7% as compared to 26.9% in Q1 FY 2027 and 17.1% a year ago. Marketing expenses for matchmaking in Q2 are at INR 45.3 crore as compared to INR 46.5 crore in Q1 FY 2027 and INR 45.8 crore a year ago. Excluding marketing expenses, our margins in matchmaking are at 64% compared to 63% in Q1 FY 2027 and 57% a year ago. On a consolidated basis, our EBITDA margin in Q2 are at 22.5% compared to 20.1% in Q1 FY 2027 and 10.8% a year ago. Tax rate in the quarter is at 24.1%. PAT is at INR 20.7 crore, growth of 8.6% quarter-on-quarter and growth of 167.3% year-on-year. Share of Q2 loss from Astro-Vision, our associate company, is at INR 21 lakh. Cash balance as of September, INR 345 crore, improved slightly compared to Q1 FY 2027. Return on capital employed is at 39.8% annualized. On the outlook of Q3 margins, we expect to achieve a triple-digit year-on-year growth in PAT. Profit may be similar level of Q1 or slightly less than Q2 of current year. I would like to end with the customary safe harbor statement. Certain statements during this call could be forward-looking statements 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. Thanks. Thank you, sir. Yeah. So we can take questions now. Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sukrit D. Patil from iSimFinTrade Private Limited. Please go ahead. Good morning to the team. I have two questions. My first question to Mr. Jhansi Ram, is, your paid users grew by nearly around 26%, 27% this quarter, which is a very great number. But the average amount each customer pays dropped around 11%, 11.5%. As you add more budget users from smaller towns, how do you manage the risk of lower prices hurting your core business? And how will you make sure cheaper plans don't pull down your overall revenue per user or force you to spend more on ads? That's the first question. I'll ask my second question after this. Thank you. Yeah, thank you. Basically, we introduced a shorter duration package, a one-month package, to a certain cohort of customers. First of all, it's not to all the users and not at the same time frame. It's based on the analysis, based on the user of their spending capacity. Based on various analysis, we offer the one-month package to set up specific users, basically aimed at increasing conversions, not affecting the revenue. Basically, we're able to add the more volume, without compromising the paying users who otherwise would go for a longer duration package. Yeah, there can be here and there some overlap, but largely we're able to achieve this. There's an increase in volume without affecting the revenue contribution from the key customer base. So, and our pull down on account of that shorter duration package. Basically, net-net, there's a benefit of offering to certain cohort of users shorter duration package. My second question is regards to new investment risk. Your profit margins more than doubled to 22% because I believe the costs were kept under tight control, even though marriage services dropped around, if I'm not mistaken, 12%-13%, and you are spending around INR 7.5 crore-INR 8 crore to buy more of Astro-Vision. Going forward, how will you protect this 22% margin benchmark which has been set if advertising costs jump during the busy wedding season? Also, how do you make sure the new side of business does not waste the company's cash? Thank you. Yeah, in terms of the margins, in terms of marketing spend, marketing spend will be at a similar level at this point of time. We don't think any substantial increase in the matchmaking marketing. That's the point number one. In terms of the acquisition, after all, it is a good opportunity. The Astro-Vision, the company, they're doing around close to INR 20 crore of annualized business. And there are synergies because we are already using the services of Astro-Vision for horoscope generation, horoscope matchmaking. And they generate a good amount of revenue through astrology Q&A. So, there is opportunity for us to integrate those services into millions of our users. And I believe there is a synergy, there is an opportunity. So net-net, one hand, we're able to increase revenue in the astrology side because astrology booming, and also this is a complementary service to our customers. So we see that this thing, while there may be some investment, I don't think it's going to come at the cost of our margin because the company, there's operating leverage. Yes, the investment they're making between the matchmaking, the Luv domains, and other things, but Shaadi.com is able to manage the overall marketing deal with the current marketing spend. So we don't see any major increase in marketing expenses. Also, we don't see it's going to come at the cost of these margins on the matrimony. Only expect as you progress, the margin only going to increase at the overall level. Also the case with the matchmaking business as well. And also we see that the new initiative, be it matchmaking, the wedding services, other initiative, we see the growth going to happen from, while we saw already some growth, but we see definitely the momentum is picking up. I think now, actually, I believe they pretty much hit the bottom the couple of quarters. I think we see the continuous growth happening in the new initiative beyond matrimony. Thank you, and best wishes ahead. Thank you. Thanks so much. Thank you. The next question is from the line of Guneet Singh from Counter Cyclical PMS. Please go ahead. Hi, sir. Thank you for this opportunity. Firstly, I would like to understand that you have guided a billings growth of around a single digit in Q3. Also the ATV is falling, so I think the contribution from ATV, a lower ATV will come in the coming quarters. I just want to understand over a longer term, say over a one-year period, would we be looking at a single-digit or a double-digit revenue growth because of these two contributing factors? Or is it possible that due to falling ATV, the revenues can also remain stagnant at these levels or maybe degrow? Can you help me understand that? Yeah. First of all, revenue growth for this year, be it Q3 or Q4, is going to be in double digit only, and the profit will come at a triple-digit profit. See, the ATV and it's a you have millions of users. It's not that millions of free users and only certain personal user go for a paid membership. You appreciate that not all the users are in terms of, be it income or be it their level of, what do you call it, the intensity to get married, may not be a similar level. The idea is to increase the conversion. At the same time, without affecting their ARPU of those users who can pay at a higher level, longer duration, all those things. The idea is to overall increase that conversion percentage, overall increase the paid users without upsetting those users who otherwise can go for longer duration. I think the more of this all, the segmentation, the execution strategy, and all those. If you have to drive the ARPU, then payment volume will go down. If you drive the payment volume, then ARPU go down. Net-net, what you have to focus on increasing the overall revenue. It's basically net-net converting more users at the right ARPU and all those. So that way, it's a right strategy, right thing to do. In fact, increasing the paid volume rather would contribute on renewals and all those. The more the paid volumes mean that people can experience the paid service, it can contribute to renewal also. So net-net is a good strategy to get more users to go for a paid transaction. So, will not have any implications on our future revenue or other things. In fact, it's only probably aid the growth in the future and all those. That's the first thing in terms of the single-digit growth, while the revenue going to be double-digit in Q3, and we expect the billing on a single digit on account of last year, both the Shradh and most of the Navratri was on the Q2. This year, both Shradh and Navratri is on Q3. So during the Navratri and also the Shradh period, there's a matchmaking gets impacted and all those. So because of the reason why they had a slightly expected growth in the quarter two on the billing, and there are some impact on the quarter three. However, the revenue will be on a double-digit growth only. So, it's more of this quarter specific on the billing. Nothing to do with the ATV or paid transaction or that. So completely independent. Got it. So, what are the conversion rates currently and how do they compare with last year, and what exact initiatives? I mean, this is basically driven by us providing discounting to basically convert more customers. Is that No, it's basically, see, we had a prior to that, we had only three months or longer duration package. We did increase one-month package to certain core of customers. So basically, it's not a discounting. It's a more of shorter duration package to certain segment of customers. Got it. What is the conversion rate currently, if you can help us understand versus last year? Yeah. Sorry, there is increase in conversion hour. We don't disclose actual conversion rate. Yeah, there is increase in conversion percentage, yeah. Got it. What would be our market share, and have we seen any growth in our market share if we compare to Shaadi.com and Jeevansathi.com? See, we don't know the entire competition information of the number 2 player public and all those. We are not in a position to comment on that. Our focus is on, Abhijit, we are the strong player in Southeast to large extent others. I think North is one of the market where we are one of the players, leaders and all those things. Not at the number 1 player, let's say, the North market. I think that's where probably we have to continue to figure out how to paint it in North. Otherwise, we continue to maintain our share in these markets, Southeast and West actually. Got it. My last question would be regarding the acquisition. We are Astro-Vision. If you can help us understand what the EBITDA profitability and the expected synergies of this acquisition of Astro-Vision are, number one. Number two, I would also like to understand, once our buyback cooling off period is over, would we still continue to prioritize share buybacks going forward? In terms of Astro-Vision, they have been doing around INR 18 crore-INR 20 crore annual revenue, with maybe some minimum losses, INR 1 crore-INR 2 crore, or EBITDA break-even. What are synergies is that we have millions of users, and Astro-Vision also generate a good amount of revenue. More than 50% revenue for them come through Astro Consulting. We believe there is an opportunity, and because the company is one of the oldest player in this category, and that is prediction is based on Vedic astrology. A lot of astrologers also use their software for horoscope generation, prediction, all those things. They offer this service in various languages. We already use their software for horoscope generation, horoscope matching. We believe we bring our expertise on scaling the business, and we also integrate into our various offerings, be it matchmaking or matrimony or serious matchmaking, Luv domains. There is synergy, and also the astrology is booming in India. We want to capitalize on the opportunity, leverage their core strength in Vedic astrology, which is well respected and appreciated, and integrate across a lot of offerings. Plus, we can also unleash some opportunity as well. This is something, again, we have to, once we do the acquisition, we have to figure it out how we want to drive the growth and all that. Okay? Got it. Sir, in terms of share buybacks, would we continue to Yeah, sorry. Sorry. My apologies. Share buyback, I think we are still one year is not over, and after one year over, board will decide what to do in order to say. We have the commitment to decide on these things. Got it, sir. Thank you very much. One year is over only yearly next year only. I think board will decide at that point. Got it. Got it, sir. Thank you very much. I just request you to continue share buybacks as it is the most efficient way to return money to long-term shareholders. Thank you. I will join back to you. Thank you. Thank you. The next question is from the line of Ankur Kumar from Alpha Capital. Please go ahead. Hello, sir. Thank you for taking my question. Sir, my question is also on this use of money, basically the share buyback and all. We have enough cash. We do not need much cash to grow the business. I just wanted to ask, why do not we give a big special dividend? We have around more than INR 200 crore cash. Why do not we plan a big special dividend and then reward the stock? Because our stock is quite cheap versus lot of peers, lot of market participants. Can you comment on that, sir? Thank you, Ankur. No, as I said, the board will decide on rewarding the shareholders. We will take this point and yeah. We continue to look at how to reward our shareholders. We have done a lot of buybacks. Yeah, we definitely look into various ways to reward our shareholders. We appreciate your input on that. Got it, sir. And sir, in terms of Q3, you are saying Shradh as well as this Diwali, et cetera, are there in this Q3. Still we are expecting similar kind of numbers as in Q2. So what is giving us confidence that we can achieve similar numbers in terms of growth, net profit, and revenue? Yeah, one thing, the revenue will be a double-digit growth, because of, one is that the strong Q2 year-on-year. So normally, there will be a quarter of some bit of that benefit, whatever happened in Q2 will flow into Q3. So the revenue will be better than the revenue will be double-digit growth. Yeah, the single-digit growth, yeah, there is some billing impact, but it will catch up. That is why the Q4 will catch up. Q4 normally a good quarter, will catch up for the Q4. So the revenue-wise, yes, we expect a double-digit revenue growth. Plus, with the expense being at a similar level, so we expect the profit to be, as Sushanth said, either between Q1 and Q2 number and all that. So, yeah. So we do not see much impact on the profit side. Yeah. Got it, sir. Thank you and all the best. Thank you. The next question is from the line of Priyam Shah from Trinetra Asset Managers. Please go ahead. Yeah, hi. Thank you for the opportunity. Just some context, actually, I am new to the company. While we are very much aware of the competitive landscape in the online matchmaking space and the fact that Matrimony.com has been around for the longest time, just wanted to understand, for the last three, four years, while our margins have been sequentially improving, our sort of revenue growth has stagnated. While we are a cash-positive company, as I think a lot of other participants have pointed out, why don't we give a special dividend? My question is that, is there any way where we can sort of accelerate our growth and go beyond the nominal 10%, 12%, 14% that we are growing at? See, the matchmaking, the growth either can be a high single digit or double digit, depends on how well we execute. We also do not accelerate growth at the overall company level. We are taking initiative, be it the newer initiative, plus the recent acquisition of Astro-Vision. Matchmaking per se, yes, it can have a, it depends on the year. It can vary from high single-digit growth, double-digit growth. We have seen that this year, we have a high single-digit growth or double-digit growth. It is basically that level of growth the matchmaking can have. Again, plus, at the overall, at the company level, the growth can be better if you are able to execute well on the newer initiatives, and that is something we have been working on. We definitely see that the newer initiatives are getting the traction, plus the acquisition of Astro-Vision, and that also in a way there is synergy and all that. The thing is that the advantage of matchmaking, yes, it can, when the growth, now that we are at a level that increase in growth also will contribute to the increase in operating margin. Whether growth at 5%, whether growth at 10%, whether growth at 15% matchmaking. The thing is that the business has a strong operating leverage. Unlike other companies, there is a lot of operating costs. It is not the case with the matchmaking business. Also, we don't have lifelong customers. We also say every year that the churn is also happening. I think we should be sort of even okay with even like other FMCG companies, because consumer focus, whether growing 5%, 10%, 15% plus rates, whether year-on-year, whether the operating margins are increasing and ROCE is increasing, I think that is something. Plus, overall, to drive the growth, lot of growth can come from the newer initiatives, be it wedding service. Definitely, it is a bigger opportunity in the wedding service present now. Next time, what we are looking at, we are looking at a combination of matchmaking and the wedding services and newer initiatives, and growing at a helping company to grow at the double digits. Plus, more important that increase in operating margins and the EBITDA margin and profit margin growing. I think that is where you will be looking at the way forward for the organization. Sure. I also just wanted to understand the sort of thought process of the management. While INR 300 crore of cash balance sounds good, are we against burning cash at all for new initiatives? Do we want to sort of allocate some kind of risk capital and then see what happens? Or do we want to conserve it for some inorganic acquisition? What is the thought process here? It's nothing to do more. There's no reason to invest too much of money because, see, these are adjacent services. We have millions of users already acquired for matchmaking. They trust our services, be it wedding services or the plus, even astrology we are talking about. Yes, astrology we need going forward, once you understand, probably may call for some investment. Too early to comment on that one. However, when you already acquired a customer, there's no need to. It's more of offering more to the same customers. That means actually, literally, there's no need to invest money, begin marketing for these initiatives. I think that's basically our idea is to how to get the more revenue from the existing customers beyond matchmaking, making them to avail the wedding services. Again, the reason that wedding services, that's a different thing because the model has been changed. While they've been running for quite some time, the new model, what we are working on, a more of commission-based model, at the very, very early stages, but we are already seeing the traction. That's the reason that we are confident that, we see that now henceforth, the quarter-on-quarter, there'll be increase in the growth of revenue from other services. So it's not because of investment. It's more towards the reason to invest is not there on the wedding services because the customers are already acquired. It's more of providing more to these customers, integrating effectively into core matchmaking, making people aware of these wedding services, and make them to understand the benefits or value proposition to avail these wedding services. However, if we see that tomorrow investment required, we are not averse to the investment also. So that's all. Sure. Thank you. Yeah. Thank you. The next question is from the line of Abhishek from ICICI. Please go ahead. Yeah. Hi, Mr. Rao. First of all, congratulations on a great set of numbers. If we kind of try to look at what has happened over the last three years, right? Both in terms of the revenue growth and the margin performance, it does seem like there is a disproportionate impact of what the competition has been doing, right? So, when competitive intensity had gone up significantly, we had struggled both in terms of revenue growth and in terms of margin maintenance. Now that the headwind is gone, we seem to be doing very good in terms of both growth as well as margins. Now, from an investor's point of view, right? Is there something that has kind of changed, or if, say, tomorrow again competitive intensity picks up, right, for whatever reason, we will again be back to what was happening in FY 2025, for that matter, or 2026. If you could give some color on this, sir, that would be really helpful. Yeah. Thank you. It's a good question. The thing is that today we have a sufficient cushion for marketing. Almost the marketing spend is like almost INR 45 crore of marketing spend on a quarterly basis. We still believe that still the marketing spend is more than what otherwise also the some other market. While that competition has come down in north and some other markets, some other market is still there. So yeah, marketing spend can slightly go down also. That's the point number one. In terms of thing whether tomorrow will there be thing, I think we are sufficiently cushioned and also the most of the revenue for us is come from the key markets where we are a strong player and we are already spending money on TV, we are sufficiently spending on digital. So that now that today the profit margin coming on account of reduced marketing spend in these markets. We are literally, we are operating at a good threshold on south, west and eastern market. We do not see anything is going to change in this market. Not only the marketing spend is sort of neutered level and we do not see that it is going to go up and even something happens also, I do not think it is going to any materially affect our either growth or our margins or other things. In fact, as you progress, we need to figure out how to penetrate in northern markets. Net-net, I am not seeing anything going to kind of go up and all those things. Even otherwise, if at all anything happens in one particular market, be it in north and all those things, do not think they are going to have any impact on our growth or profit and all those things. I am not sure whether it is going to, if at all, get into that increased marketing if it happens in northern market, or we may decide to do it also, but we do not see anything impacting as a growth and profit. Because one thing, we have sufficient cushion on marketing budget, and that is the point number one. Second thing is our growth outlook, because for the what you see, that will contribute to the increased profit margin. Even you have to invest some money into the marketing, that is not going to affect our profitability growth or operating margin or those. I believe we are at a certain threshold. I think henceforth, you see the only the increasing margins are happening and a bit of profit happening. But how well you grow, whether that INR 20 crore, whether how soon you get into INR 30 crore or INR 40 crore, I think that is something what we need to work on it all those. Net-net, I am not seeing that it is affecting our level or growth and all that. More about the profit margin will not get impacted. So, only expect to grow further. Understood. Sir, if we kind of look at the volume growth, this quarter was actually very strong, right? Almost 25% plus. Now, trying to just understand, right? Is there a pickup that we are seeing in inherent volumes? If, say, this kind of volume growth is to sustain, what is the reasonable kind of number to build in for revenue growth? If you could give some color on this, that would be helpful. No, we can sort of, we can have today 3 lakh of paid volume, per quarter. I think that is sustainable because of the introduction of the shorter duration package to certain core of customers. We also done some segmentation strategies, so that's helping us. In fact, we expect this shorter duration package to continue to contribute to the volume growth. We see that this level of volume growth is sustainable. Right. So, in terms of the underlying metrics which kind of dictate how well the app is gaining traction, things like, say, Net Promoter Score or maybe the engagement on the app in terms of the time of engagement. Can you share some color on that? Probably it might be a good idea to kind of start sharing that on the presentation as well. Okay. Yeah, it's a good point. We'll look at it. This end we are doing lot on the AI. In fact, we have an AI chatbot. We are also continue to leverage AI in various areas. The AI chatbot something we have done. We are also making lot of improvements on our product side. We only see that our product continue getting better and better. We just announced that we also got the Government of India approval to have the Aadhaar verification on our portal. At this point, we are the only matrimony company approved by the Government of India, both state government as well as central government. That's something also planned to launch this quarter. We are taking various initiatives to strengthen our product offering and services and taking steps to drive that paid volume. Yeah, the point is we definitely look into whether we can share these information as well. Right. Just one last on the new businesses. First is the wedding services business actually contracted quite a bit for two, three years, and now you are saying that you see it kind of building out from here. So, if you could give some color on what has changed here, and if you could make some comments on the new vernacular dating app that you are talking about. Because one question that always kind of comes up is, why is vernacular app basically relevant? Because the dating community generally would be more into conversing in English. So, if you could give some comments on that. Those are all my questions. Yeah. I will leave it there. Thanks. Yeah. Yeah. Once, in terms of the why that vernacular, let me talk, discuss vernacular dating. It is not vernacular, it is the name actually, because the name has the connect. Say love, it is a word, the Priyam, the name what we launched, Priyam is equivalent to love in Kerala. Premalu also love in Telugu. Premam sort of means to some extent related to love. So basically, having the regional brand while Luv.com is there, the pan-India level, having a regional brand sort of in a way is connect with the consumer better and all those things. So I think India as a country is a diverse population and the strong language affinity. So I believe that this is a better strategy. In terms of growth, yes, we are having, sort of told very, very early stages. But we see that our growth has been month-on-month has been pretty impressive. Still very early stage. However, I do believe that in the coming years, love and the regional variation of Luv.com will add to the overall growth in the matchmaking at a meaningful percentage. That is why it is an outlook. But we believe that having the regional brands in a way helps us to connect with the consumers better. Understood. Thank you so much. Thank you. The next question is from the line of Ajay Sharma from Sona Mittal Capital. Please go ahead. Hi. I want to ask actually, the marriage services, we have been doing this for a very long time and still making INR 15 crore EBITDA loss every year. I mean, what's the game plan here basically? Sorry, I forgot even the earlier, there's a question on marriage. Sorry, I missed that. Yeah. So basically, look, so we are, earlier the model was on the subscription model. The vendors are paying for the subscription money. In fact, we are almost close to INR 1 crore run rate per month. And we decided, we realized that's not the model we want to work on, and we decided to more of scale it down substantially to the model, completely, literally, virtually, very low number or literally non-existent to large extent. Because the model we are working on is more of commission-based model. We facilitate the wedding services. There are people who are looking for wedding venue or photography, makeup parties. We facilitate wedding services, meaning helping our customer to choose the right service provider at the best price. We also get some service fees from the members who are availing the service. We also get a commission from the service provider. I think that is the model we want to work on because some of this subscription model on vendors paying money, we did not feel that that is scaling up beyond a certain number and all that. In fact, as I said, we have scaled down to almost INR 10 crore plus business run rate into sort of virtually zero. Now, this is the model we are focusing on for the last couple of quarters. We believe this is the model will help us to scale big in the wedding services. Literally, while whatever done in the past so many years, it is no more relevant. Whatever we built in terms of the base, the ecosystem, the vendor connection, all that, which are definitely important for the brand, what we are running on wedding service, the WedAssist, assisted wedding planning service. At this point in time, it is pretty much only Tamil Nadu. We want to reach a certain scale and success metrics before we take it to other markets. Wedding services largely limited to only one market. Though we do sell here and there some subscription, that is pretty much very, very small insignificant revenue. We also Mandap.com. All these things are in a way enablers for our business. That is the shift we are talking about. If it is commission-based, how can you lose money? I am just wondering why you are losing so much money. It is about the people, it is about the process. There are a lot of things required in terms of the leadership team because we also have Mandap.com. We have to have the tie-up with all the venues and the contract to be and wedding service provider. There are multiple things. It is again, not only the WedAssist, but also there is an assisted service related to one wedding-related service. There is the WedAssist, Mandap, and all put together, there is a tech and product. That is why the cost and all. I think more units will begin in the future. Once you reach a certain number, then losses will come down and all that. But at what stage you think you should close down this particular operation? No, no. Because you are losing money for a long time now, I think. Yeah. No, but I believe I told you, we were sort of very, very gung-ho about or upbeat about this opportunity. So we do not see that this opportunity where we are not definitely looking at the closing. We only want to make it successful. So, at this point, we are quite confident about this opportunity. So we will see that from month on month, quarter on quarter, we will see the growth happen. So, you can pretty much assume that it is starting from the scratch on wedding service. So we do not see that it is a more You are not seeing any ramp up at all in this business basically. I mean, even the revenue is not growing, right? I mean, what is the point? No, that is I appreciate, well, I understand where you are coming from. But again, as I told you, it is more like it is pretty much whatever done in the past, it is not the model. But whatever done in the past is the more of those things are enabling us, that relationship, the brand, the leads, and everything. We definitely see that the growth happening from quarter on quarter on wedding side. So yeah, definitely we are very, very upbeat about it. Probably you will see that in the coming quarters, the growth is happening as it is coming down. Okay. Thank you. Thank you. The next question is from the line of Gautam from Gautam Matrimony Services. Please go ahead. Yeah, thank you. I just want to understand where all in the company is using AI and what are the cost reduction strategies implemented? A lot of automations are taking place. As I told you, there is a profile validation, photo validation. We are also looking at, whatever is done by human, we are looking at whether it can be done by AI. AI is now with the product side and the customer service side, we are sharing that the AI chatbot has been launched. We are looking at across the organization, how to use AI to drive efficiency or improve productivity. We will be able to reduce people. Actually, look at our people cost, pretty much year-on-year, we operate at the same level. Yeah, a lot of AI has been sort of now cuts across various parts of the organization and also looking at AI to improve the way we do things as well. Thank you. Thank you. The next question is from the line of Vasu Devan, an individual investor. Please go ahead. Good afternoon, gentlemen. Hello, good afternoon. Good afternoon. At the outset, just congratulations to the entire team for the phenomenal results which you have given. Just accept my congratulations. I have got some three questions, sir. Just explain to me that one. Your effective tax rate is only 24% and not the gross rate. What are the deductions? Please tell two or three major one. Sushanth. Yeah, please go ahead. One at a time. Actually, our tax rates, we are getting income from other country also. Dubai, we are getting income, and their tax rate is lower. In Dubai, we are paying effective tax at 7%-9%. That is main reason for reduction in our company tax rate as per Income Tax Act 25.17, but due to Dubai income, all that is coming to 24%. Oh, that is the reason. My second question is, your EBITDA to operating cash flow is more than 100%, which was not the case last year. Can you please explain? One second. This is for the quarter or for the year? For the quarter. You can go to third question while he is pulling out some information. You can go to third question. We will get the information for the second question. My next question is, sir, what will be your adjusted EBITDA if you remove this lease adjustments? That will understand me better. Sushant, both are correct. Lease adjustment mainly Ind AS related, all rental related we are doing as per Ind AS, Indian Accounting Standard, we are adjusting. Because of that only, that expenses, if you move that expenses, we have around INR 15 crore-INR 20 crore per year, lease expense. Coming to cash flow. Operating cash flow, in this quarter, we have around INR 17 crore. Your question, you can repeat again? Cash flow question? Your EBITDA to operating cash flow increased more than 100%, which was not the case last year. Because of the No, this quarter is only 0.57. Only Q1 is 1.35. If you see- Because Q2, we paid the dividend also. If you are talking Q1 only, the EBITDA to cash flow is 1.35. But Q2 is only 0.57 because we paid the dividend. Yes. Last year. Mainly because of dividend only. Because of the dividend only. Okay, gentlemen. Thank you for your time, and congratulations once again for the excellent results. Thank you. Okay. Thank you. Bye. Thank you. The next question is from the line of Prema Lalukotha, an individual investment. Please go ahead. Congratulations, sir. Instead of special dividends and buyback, other than marriage services, sir, are you using that money in new verticals or new internet verticals and all? That is one question. And new CFO is appointed or not? That is the one thing I need. No, by the way, sorry. Please go ahead, please. Can we expect Q3 net profit also same way? That is also from me. The first question was not clear to me. Can you please repeat it? Yeah. Yeah. Instead of buyback and special dividend, other than marriage services, are you venturing into new verticals? That is one question. Yeah, yeah. Understand. At this point of time, we are with the what are the excess initiative. We are not looking at any more at this point of time. And there is also, yeah, ManyJobs is there, that is also sort of scaling up. And in terms of that CFO thing, yeah, we are not yet finalized. So, that is on the CFO side. In terms of profit margin, yeah, we expect a similar level between the Q1 and Q2 levels. So, yeah, we are on course to sort of INR 19 crore-INR 20 crore range. That is sort of what we see. Thank you. Thank you. Thank you. The next question is from the line of Anish, an individual investor. Please go ahead. Anish, you are not audible. The current participant seems to have disconnected. The next question is from the line of Guneet Singh from Counter Cyclical PMS. Please go ahead. Hi, sir. I just want to understand what are the main drivers of this growth in revenue from INR 115 crore to around INR 135 crore. The delta is around INR 20 crore. If you can help me understand what were the main drivers of this growth. Okay. Look, last year, we launched a one-year package. When we launched last year, the profit took impact. We started that billing to revenue gap, whatever thing had, because last year when we launched a one-year package, we told that, look, the benefit will happen from the next year onwards. That is the reason last year PAT got impacted. When you compare again last year PAT, we see the growth of more than 100% and all. It is more of last year the profit got impacted because the revenue got pushed into the next year. That is one of the reason. Obviously, the continued growth is also the contributing factor that you are talking about the high single-digit growth or double the growth. Combination of the one-year package you launched last year, that revenue happening this year, and secondly, was the continued growth. These are the reasons for the increase in the profit margin and all. It is more like it now is getting normalized. This becomes the base for the future years and all. Got it. I want to understand in terms of the revenue growth. If we look at the revenues, they have been ranging from around INR 110 crore to INR 120 crore over the last, say, 20 quarters. But now suddenly over the last two quarters, revenues are around INR 131 crore-INR 135 crore. I just want to understand what has changed over the previous two quarters. Is it that there are more people who are coming to our platform? I mean, how much is volume growth year-on-year? Why suddenly over the last two quarters have we seen this? What has exactly changed? In terms of the one-year billing, out of the INR 20 crore, how much delta would be because of that? If you can just help us understand this. No, that one is small percentage. It is not one year is a lot of volume. Having said that, when you introduced the last year, the revenue got impacted last year, that is last year profit took a hit. In terms of the growth, it has been a gradual growth and nothing of, you know, Q4 is normally where that growth picks up and Q1 where the growth is definitely one of the best quarters for us. This Q2, we had executed well. I talked about some other point what you mentioned also a bit, the introduction of shorter duration package and all that. So Q2 normally it takes slight de-growth. Actually, Q2 versus Q1 does a slight de-growth, but compared to preceding year, we are able to reduce the de-growth percentage on Q2. Plus also the thing about the pricing strategies and the execution strategy, it does have the reduced impact on the Q2. So it's more like nothing any different thing and all that. Normally the trend has been normally Q2 is better, Q1 is better. Sorry, Q4 better, Q1 is better. Q2 some take the de-growth, Q3 also get impacted, once again bounces back in Q4. That's been sort of trend in the matchmaking business. Obviously, we started executing better in terms of our execution strategy. I still believe we need to improve on execution. So I wouldn't say that there's always scope to improve on the way we do things and all that. But definitely things are getting better and we are executing better into leveraging AI and pricing strategy, segmentation strategy. All these things are helping us to drive the growth and all that. I wouldn't say that there are any- In terms of total paying users, if you can help me understand what would that number be for the current financial year FY 2027? What was that in FY 2026 and FY 2025? I want to understand how much of this growth is because of volume, how much is because of pricing or any other strategy, the INR 20 crore delta. If you look at the first two quarters, we almost had 5 lakh paid users in Q1, Q2. But look at, even now we are talking about Q1, Q2 is almost talking about 5.7 lakh. This is almost like, so 70,000 increase. Particularly Q2, there is a growth of 26.6% increase in the paid volume. So the paid users have gone up. And obviously, it has come at the reduced ARPU because the point what you spoke that the introduction of shorter duration packages to a certain cohort of customers and all that. So there is an increase in the paid users. Got it. I mean, it is fair to assume that the revenue growth is because of higher paid users in this year versus last previous years. Yes. Good increase in paid users. Got it. We expect this INR 130 crore plus kind of a run rate to continue for the coming quarters, right? Is that something that we are underestimating? No, for the year, we expect this kind of run rate because there will be a It depends on quarter to quarter because normally Q2, Q3, it's not where it's lower. Because most of the revenue come for us in the south and west and east, not just contribute. While it may be wedding market season in the north India, the south is not a wedding market in the month of December. So there will be some year-on-year, while there is growth, but compared to Q2, there will be a de-growth on the billing on the quarter three. But our Q4, everything really bounces back. Q1, we have set that highest number and all that. So that's been a trend actually. But net profit, all those things will be as it's same for this year. So, whatever done in pretty much H1, we expect this trend to be there for the H2 as well. Got it. In terms of non-matchmaking segment, what kind of aspirations do we have I am sorry to interrupt you, sir. in FY 2028? I am sorry to interrupt you. Yeah, ask the question. If they can answer, that is fine. Yeah, sure. Yeah. Okay. Yeah, please. Yeah, so in terms of non-matchmaking revenue, what kind of revenue aspiration do we have for the next financial year or in the long term? And what kind of a growth do we expect to sustain in FY 2028, FY 2029? Oh, we should go at a triple-digit growth next year and all. That's a finding I want to state and all. And for the matrimony business? Now, we aim for this double-digit growth, but with high single-digit growth, double-digit growth, it depends on how your legs do and things. But as I was sharing in the moment, whether the single digit or double digit, the more important that the growth in margin what you are now, because it reaches at an operating leverage, we are now want to drive the operating margins and because whether it is growing at 5%, 10%, 15%, more important what you are looking at, increase in operating margin. Got it, sir. We take a look at the growth, yeah. I wish you all the best. Thank you. Thank you. The next question is from the line of Mohammed Namir from Eco Quantum Solutions. Please go ahead. Thank you for the opportunity. We have core matchmaking midterm margin has increased significantly around 10% in revenue. Can you please call your high-level introduction of longer-term- No, sorry. My apologies. Sorry to interrupt. You are not audible, please. Can you just loudly, I think maybe on speaker or something like that. Yeah, sorry. Not able to understand. Am I audible now? Your voice is not clear. You are using speakerphone. I do not know. The voice is not clear, sir. Am I audible now? Yeah, better. Yes, sir. Am I audible? Sir, you are audible, but your voice keeps breaking in between. If you are using an earphone or anything, please use your handset, I request you. No, I am on my handset only. Am I audible now? Yes, sir. Please go ahead. Yeah, core matchmaking margins have increased significantly. Positive because, sorry, as you said that the revenue, the margins are increased because of the difference in the planning now. Going forward, I think the margins will be stable at 20%-22%, right? Or it will go further? Margin with the growth, sir, the growth in the billing and revenue in the coming year, it will only grow only. It is not the rate. When the growth happens, the margin will continue to get better. Now we are reached 20 plus percentage. You want to take it to 25, then 30. I think that is the level of growth we will be aspiring for. This is not due to operating leverage, but due to some part. Operating leverage, yeah. Operating leverage, noted. Thank you. Thank you. That was the last question for today. I now hand the conference over to the management for closing remarks. Thank you so much for your participation and wish you all a great new year and connect with you all next year. Thank you so much for your support and active participation. Thank you, sir. On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.