Matrimony.Com Limited (NSE: MATRIMONY) Q3 2026 Earnings Call dated Feb. 12, 2026
Corporate Participants:
Murugavel Janakiraman — CEO
Harigovind Krishnasamy — CFO
Analysts:
Jayram Shetty — Analyst
Vasudevan — Analyst
Jaya Jains — Analyst
Harsh Mittal — Analyst
Jimmy Mehta — Analyst
Apur Vijain — Analyst
Presentation:
operator
Ladies and gentlemen, Good day and welcome to Matrimony Q3 and 9 months FY26 earnings conference call. As a reminder, all participants line 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 this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Jayaram Shetty from ICICI Securities. Thank you. And over to you sir.
Jayram Shetty — Analyst
Good evening everyone. On behalf of ICI Securities I would like to welcome you all to quarter 3 and 9 month FY26 earning call of matrimony.com from the company we have Mr. Murgawal Janki Raman, MD and CEO and Mr. Hari Govind Krishna Swami, CFO. The call will begin with brief management remark followed by a Q and a session. I would like to hand over the call to Mr. Jankiraman for his opening remark. Over to you sir.
Murugavel Janakiraman — CEO
Good evening everyone. Thank you Mr. Jayram Shetty. In our matrimony business our building continue to grow at a healthy rate on year on year basis. We have initiated a share buyback in January 2026 accounting to rupees 58.5 crores to reward our shareholders. We’ll continue to evaluate opportunity to reward our shareholders in future as well subject to necessary board and shareholders. Approv. I am pleased to inform you that matthewmoney.com has officially been certified as a Great place to work for the second consecutive year by Great Places to Work India. This recognition based on feedback from all our associates and with scores better than the previous year.
This reflects our commitment to fostering a culture of trust, respect and collaboration complemented by dedication. The contribution of our leaders and associates for many jobs. Business has crossed 1 million app downloads and has more than 10,000 recruiters using our platform. With the leading brands across the industry. Top line operating metrics also have improved compared to quarter two. We have revamped our product offering for Lao.com which aims to assist the customer build meaningful and lasting relationship. We have launched a chatbot in our matrimony business and we continue to look at leveraging AI in all areas of our operations.
Now coming to the results in quarter three on a consolidated basis we achieved a billing of rupees 117.9 crore. A growth of 1.8% year on year and a decline of 0.5% quarter over quarter revenue at rupees 113.2 crore, a growth of 1.6% year on year and decline of 1.2 percentage quarter over quarter. Key highlights for the matrimony business in quarter three are as follows. Building at rupees 117 crores, a growth of 8 percentage year on year and a decline of 0.5 percentage quarter over quarter. Revenue at rupees 112.1 crore a growth of 1.8% year on year and decline of 1.3% quarter over quarter.
Active paid profile where 2.5 lakhs at the end of quarter three, a growth of 3% year on year and 4 percentage quarter over quarter 80 for the matching business increased by 13.3% year on year and 4.57% quarter over quarter. We create about 25,600 success stories for the quad in the quarter. Now coming to the wedding services and other businesses building were rupees 91 lakh, a decline of 2.6% quarter over quarter and 12.5% year on year. Revenue was rupees 1.13 crore, a growth of 7.7% quarter over quarter, a decline of 15.7% year on year. EBITDA loss for the quarter was rupees 3.2 crore compared to loss of rupees 2.8 crore in quarter two and rupees to 3.8 crore in quarter three of last year.
The losses also include the new initiatives under Building and Revenue Outlook for quarter four. We expect a double digit RI single digit growth in matrimony buildings in quarter four on year on year basis. Let me now pass on to our CEO Pari Govind to comment on the key profit highlights.
Murugavel Janakiraman — CEO
Thanks Marga. Good evening everyone. Our EBITDA margin for the matchmaking business in Q3 is at 19.2% as compared to 17.1% in Q2 and 18.7% a year ago. Marketing expenses for matchmaking in Q3 are at 43.9 crore as compared to 45.8 crore in Q2 and 46.2 crore a year ago. Excluding marketing expenses, our margins in matchmaking business are at 58% as compared to 57% in Q2. On a consolidated basis, our EBITDA margins in Q3 are at 11.3% as compared to 10.8% in Q2 and 12.4% a year ago. Tax rate for the quarter stood at 22.1%. PAT is at 8.3 crores, a growth of 7% on a quarter on quarter basis and a decline of 16.7% on.
A year on year basis. Share of Q3 loss from Astrovision, our associate company is 4 lakhs. Cash and investment. Closing balance is at 345 crores. ROCE is 9.7% on an annualized basis. On the outlook for Q3 Q4 margin, we expect double digit growth in operational profit on QoQ and YoY basis. I would like to end with the customary safe harbor statement. Certain statements during this call could be forward looking statements on our business. These involve 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. So we can now take questions.
Questions and Answers:
operator
Okay. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone 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. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two or three 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 Vasudevan from True Value. Please go ahead.
Vasudevan
Good evening gentlemen. Hello. Yes. Yeah please. We can hear you. Please. Good evening sir. My. I have three questions, sir. All small shorter one. Your marriage services revenue has been dropping every year, sir. And because of this losses are also increasing. 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. This is my first question. And the second question is why invest in Bharat? Echoed last quarter, sir. Is it for the integration with our app? Please throw some light on that. Third Astrotop revenue is more than thousand crores. Though company as Astro division it is in the sleep mode.
Any updates are the company refuses to pluck this low hanging fruit, sir. That’s all. Thank you gentlemen.
Murugavel Janakiraman
Thank you Mr. Vasudevan for asking this question. Marriage services will continue to figure out what is the best way to take the business forward. And as we speak in exploring the how to capture the opportunity in front of the vending services. I think we believe that we are getting some we are able to identify how you want to take the business forward. Probably in the coming year we’ll have the better visibility and clarity on vending services. We believe that approach what you are taking we probably may move into the maybe the commission based model rather than subscription model.
Their experiment is the same thing probably in the coming year as a better clarity on wedding services. But having said that as a company we are not ours to closing down things which are not working very well. But however, we definitely feel weddings there is opportunity we could able to maximize it. And so that’s something we feel we are confident of it. And then come to the regarding investment into the entity which is more on that the company the startup they are into the AA astrology space because you know the AI making those into various categories.
This is a startup we found it interesting and reinvesting began that that company to they are working on a astrology. That’s point number two. When come to Astro we spoke about here they are the large play in this category and the company want invested in Astro. Astro Vision, you know is a more of they are using their product and services and they’re one of the early modes that obviously they’re not really scaled up the way the other astrology company has scaled up. And so it’s a more of the investment into a product which are using it also.
And while one of the early movers for whatever reason they were not able to scale up. We continue to figure out how to maximize our investment in that astrology space. And we also the Astro free charge app what you have we are also offering a using AI so leveraging the investment what you made in Astrovision. So some things are happening on astrology. Having said that yeah there are large players we see whether how we can leverage this our investment or with something also trying to explore also.
Vasudevan
Thank you gentlemen.
Murugavel Janakiraman
Thank you.
operator
Thank you. The next question is from the line of Jaya Jains, an individual investor. Please go ahead. Jay, you can go ahead with your question. As there is no response from the participant. We’ll move to the next question. The next question is from the line of Palak Desai an individual investor. Please go ahead. Hello. Am I audible? Yeah. So the marketing expenses remain elevated at about 451 million in quarter three of FY26. So I wanted to understand if there’s any scope for operating leverage if billing growth sustained double digits.
Murugavel Janakiraman
Thank you for asking a question. Look at the marketing spend on matrimony business. Look at last everything continued to kind of go down so from quarter one, from 46.7 or it become 43.9. So the market spend has come down and we continue to look at opportunity to optimize the marketing spend. But it’s on the downward trend. And. But obviously we have to still continue because that category is still operating at a At increased marketing level. So having said that, we continue to optimize competitive reduce marketing. But at some market we see the marketing spend little softening.
So wherever we see the scope to reduce marketing spend, one end we are able to optimize other end wherever see that the softening we’re able to reduce the market spend as such. So definitely marketing spend on the downward trend of the matrix.
Jaya Jains
Okay, got it. And also I wanted to understand that if billing grows double digit in quarter four as guided. So. So what is the expected ebitda margins for FY27?
Murugavel Janakiraman
So the thing is that while the billing going to grow but the revenue still be there the gap between the billing and revenue. So we see the benefits of the increased billings for FY26 start happening because of the one year package that we included. At the beginning of the year we get the full benefits happening in quarter one. The full benefits will happen in quarter one only. While definitely the building growth happening in quarter four. Some increase in revenue will happen. But having said that full benefit happen only in the quarter one of the coming years.
Jaya Jains
Okay, got it. That’s it. From my side. Thank you. Thank you. The next question is from the line of Premonal Kota an individual investor. Please go ahead.
operator
Good evening, sir. Hello.
Murugavel Janakiraman
Yes, please. Please go ahead.
Jaya Jains
Yeah, yeah. In the yearly basis when you remove other income hardly net profit is 10 crores only. So. But you are spending 180 crores on advertisements. That is the one question. It’s a. It’s not about. It’s a lot for several years you are spending 40% or something. And job portal, right. Another question is job portal when you. When it is going to monetize. That’s all my sense.
Murugavel Janakiraman
The marketing spend definitely as we said it has come down. You know, we continue to figure out a way to reduce the market extent. And also investing began the newer opportunity in the matchmaking space. You may know that we launched love.com serious relationship app. So look at the market. The loud outcome was not even there one year ago. So now the new product also been launched. The product has come out very well. But overall marketing spend also includes in the matrimony business. Including the newer initiatives which include Joji.com, which also include Owl.com, some of the initiatives are investing now.
The benefits of the investment happened in the following years. In Tanwari. Though you already are monetizing now, it’s still in a very early days. So the benefits of love.com investment happen in the subsequent years. In terms of the job portal, job portal we started monetizing and currently you may know that it’s currently only in Tamil Nadu. We want to reach a certain scale and size in terms of user base, recruiters, company and the product wise also want to continue grow product and service. Once we reach a certain level then we have plans to expand across India.
I don’t know when that will happen. Probably maybe sometime the coming year, maybe later, part of coming, coming financial year. We don’t know. But at this point in time you have certain metrics we want to hit in terms of operating metrics and business metrics. So we started monetizing. The yearly feedback has been good. You know over 10,000 recorders are using it and a lot of big companies also signed up and we believe on the right. But I will say that still in the very early days and probably sometime data for next year, you know that is standard too many jobs.
But overall we believe that there’s a product market fit and there’s an opportunity and we believe I’m going in the right direction.
operator
Thank you. The next question is from the line of Harsh Mittal, an individual investor. Please go ahead.
Harsh Mittal
Hello, good evening. So I have some couple of questions. So first is a post buyback. What is the capital allocation philosophy going forward?
Murugavel Janakiraman
Yeah, hi. I think from a capital allocation perspective we are very clear. We are the, the. Our principles are very focused and discipline. So in terms of the newer initiatives also we invest in areas where we feel that we will make good returns when we scale. So that is number one in terms of the buybacks or future opportunities to give surplus cash to the shareholders. You know that there is a statutory time limit between buybacks and post that the board and the shareholders will continue evaluating rewarding the shareholders on a long term basis.
Harsh Mittal
Okay sir, also I have one more question.
Murugavel Janakiraman
Yes please.
Harsh Mittal
Yeah. So sir, how much of Q3 deferred revenue converts into Q4 earnings visibility?
Murugavel Janakiraman
See earlier, you know most of the product used to be you know, three months, three months package because of the, you know, introduction of the one year package in the beginning of the year. You know the, you know if you see that over nine months almost 20 crore of. Look at the nine months as a nine month comparison. Last year the building versus revenue is almost like in fact, in fact last year the revenue was more than the building or subscriber the preceding year revenue. So this year almost 20 crore difference between the building and revenue.
So, so, so there is some amount. Of revenue getting pushed. But as I said in a quarter one of the coming years, the FY27 where you get the full benefit of the one year packet that was into the beginning of the year. So we see that typically around 90 plus percent revenue get put to the subsequent quarter. That is a 10% revenue depends on the package and all push to the entire year.
Harsh Mittal
Yeah, majority of it is pushed to the next quarter. Also sir, just one more question. Sir. Can we see more improvement in our average transaction values? Like you have shown a really good growth in your average transaction value. So any more room for improvement in.
Murugavel Janakiraman
That some country definitely see that, you know the ATV can continue to get better on account of you see the in packages are, you know, you are able to make some progress. And also that you know the higher value the packages are, you know we’re able to make progress on those things plus also continuing figuring out a way to increase our arpo. The combination of this factor, we believe that ATV can continue to can improve.
Harsh Mittal
Thank you so much.
operator
Thank you. The next question is from the line of Jimmy Mehta, an individual investor. Please go ahead. You can go ahead.
Jimmy Mehta
Good evening sir. Am I audible?
operator
Yes, you are audible.
Jimmy Mehta
Okay sir, thank you for the opportunity. So given the long term package strategy, should we expect the revenue growth acceleration in FY27 once the deferred revenue base starts unwinding?
Murugavel Janakiraman
Yeah, absolutely. Yeah.
Jimmy Mehta
Okay. So and like I have one question on the subscription. So the paid subscription declined 4.6% on a year on year basis while the ATV grew around 13.3% on a year on year basis. Is the growth like entirely price driven?
Murugavel Janakiraman
No. Yeah, definitely. The one is about the combination of the in packages plus also one year packages. So JTB driven. And also in terms of the volume growth, we expect the volume growth also you know the one year package is going to come for renewal as well. So the starting of quarter one of next year we possibly see that, you know, the volume growth also moving up.
Jimmy Mehta
Okay, sir. Okay. And like one. Hello. Yeah, yeah. Okay. Is there any risk that continued ATV expansion code eventually impact the subscriber growth elasticity?
Murugavel Janakiraman
So basically the thing is that the increase in ATV on combination of these are the multiple packages. You know that there are customized services, the personal services are much higher revenue, be it elite matrimony, be it aster service. In fact those opportunities are growing at a much better pace compared to the overall growth. The combination of personal services growth at a better rate compared to the overall growth in the matrimony. And also the combination of one year practice. There’s also the way we are working on to improve that the average transaction value within the products because basically a lot of experiments are happening.
So the combination of all this ATV can continue to improve that’s outlook for you at this point of time.
Jimmy Mehta
And so how is the competition currently right now is like why will prefer people like the consumer prefer matrimony over all the other competitors.
Murugavel Janakiraman
See the most of the market One is about obviously we have the large user base and better than anybody else. And point number two is that in terms of the product and offering the most credible and trustworthy platform. So basically the number of people got married or service basically combinates from user base product and offering service trust and credibility. And the number of people who got married our service which is real that the more like you know it’s more like more people more database, more people getting married the more what are more publicity they’re driving more reaches and it’s a multiplayer more like a virtuous cycle.
So you know that’s where the people prefer most of the market because you have the large case more chance of finding a right like partner and also with a compelling product and offering.
Jimmy Mehta
Okay, so I’m sir, one. One last question. So can you disclose the renewal rate trend over the last four quarters?
Murugavel Janakiraman
So we don’t disclose the percentage but one thing that the renewal numbers have started moving up because a few years ago we had the profit grow impact and that impact our first time payment subsequently impact renewal payment last year started growing on the first time payment. We now see the growth happening at renewal as well. So basically we’re once again back on track with respect to the profile growth and beta first volume renewal also coming back. So all these factors which will help us to continue to grow in the matchmaking business. And the deferred revenue will also contribute to next year the revenue growth.
So and the marketing will be some level. We expect all the same benefit coming in the next step. So we don’t share that renewal percentage. So what I’m saying the renewal numbers start up growing.
Jimmy Mehta
Okay so. Okay, understood sir, thank you for the opportunity. All the best for the future.
Murugavel Janakiraman
Thank you.
operator
Thank you. The next question is from the line of Jean, an individual investor. Please go ahead.
Jaya Jains
Hello. Hello. Yeah please. Am I audible? Yes, you are. Yes. So marriage services billing remain Muted and structurally small. So what was, what is the long term strategy intent for the tour?
Murugavel Janakiraman
Yeah, so we believe there is opportunity and you continually figure out the reason you are not scaling up investing and all. We want to get the product market its strategy right. We are trying something new. We are working out strategies. We probably have the better clarity in the coming years. Once we are able to get that thing right then we will invest and scale up the business. So we definitely believe that the company had the opportunity to make endorsement wedding services. We continue to figure it out but believe you are sort of getting something right.
Let’s say in the coming year a better clarity on that building service.
Jaya Jains
Okay. So do you have any breakeven roadmap for this segment?
Murugavel Janakiraman
No, there’s a huge opportunity. So it’s more like rather than the break even you are looking at, you know it’s a. It’s a huge opportunity. You want to make it as a very large business, you know, few hundred crore business. So we want to get that product market with strategy and execution. Right. So we definitely were confident that we could able to execute to capture the opportunity in definitely maybe end of year or something. Maybe we have the better cat on building services road now.
Jaya Jains
Okay. And one last question on the market share. So are we gaining any market share? Is the industry recovery led growth? Is it recovery led growth?
Murugavel Janakiraman
I think we continue to remain strong in most of the markets, strong market share and we should be making indoors in some markets also. I’m not getting the specific market but the profile growth is happening and so we are making endorse in some market as well. So. Yeah.
Jaya Jains
Thank you. Thank you.
operator
Thank you. The next question is from the line of Apur Vijain, an individual investor. Please go ahead.
Apur Vijain
Good evening. So am I audible?
operator
Yes sir, Please go ahead.
Apur Vijain
So I have a couple of questions. So first question is about. Despite increased AD investments in north India revenue growth peers have you gained measurable market share in north India over the past two to three years?
Murugavel Janakiraman
We don’t get into a market specific spend as a thing. Definitely NAAT is one of the market we want to make in God. Because that’s the only market where I believe we have the opportunity to become a leader. Because Maharashtra market we are a leader only north India we’re not a number one player. So forest, we need to make progress in those orders. Continue to figure out way strategies to maintain the market. But at this point of time yes we have there’s limited investment happening in the market because overall the market expand in north India for All the players has come down.
We are not aggressively investing again in the north India at this point of time.
Apur Vijain
Okay sir. Okay sir. So my second question is at what point would you consider structurally reducing ad spends to protect margin?
Murugavel Janakiraman
What point is spend? Is spend? It depends on one is that you know the market opportunities and also what the competitor also see. But definitely we see that there is some bit of softening happening on the market expense. So that is sort of helped us to know can optimize the marketing spend. You know, you see that the quarter on quarter year, on year the marketing spend has come down. We believe at this point in time you may be operating at the current level of marketing spend. Now see progress to continue evaluated there’s opportunity to reduce marketing spend.
We we spend much, we’ll be releasing marketing spend. I think that we believe at this point in time this all a marketing span may be required. But other expenses being remaining it may remain at a similar level. So except you know next year some increment other infrastructure cost may come down a little bit because they’re leveraging AI to optimize. So looking at a to improve efficiency we also look at a to optimize cost. So while there is Some increase on CapEx account A May happen but there’ll be reduction in some cost. We believe that matchmaking broadly may operate at this level for the coming year.
But until otherwise, you know something changes that may warrant us to probably invest more. But this one I don’t see that happening. We believe they are at a stage where we believe that the matchmaking can contribute to this level of operating expansion.
Apur Vijain
Okay sir. So my third question is about is the business model inherently dependent on high recurring brand trend or is there scope for a more organic acquisition made model?
Murugavel Janakiraman
A lot of our acquisitions are organic. It’s a very large part of our organic. However, you know that Google is a gateway to the organic traffic. So it’s not that you put organic still you have to pay money to Google to get the organic traffic. So it’s something which forced to invest begin the Google platform because otherwise we don’t invest again. Your brand has a chance of the other ads being shown up now. But since the brand is a strong brand and the strong value so most of the appreciation are happening to the platform like Google.
So nobody had to invest money on those platform. So there is a scope to optimize the spend on account of how the competitors are spending or how the market is beginning. More like top of the funnel advertisement, TV other thing if there’s scope Reduce. You may reduce it also. That’s why you see that the marketing spend did count.
Apur Vijain
Okay sir, so one last question. If industry advertising rationalizes further, what is the incremental margin upside potential? Sorry, I missed the last part. Can you please repeat again? So I’ll repeat my question. If industry advertising rationalizes further, what is the incremental margin upside potential?
Murugavel Janakiraman
I think even we believe that we could able to operate the current level of operating expenses on matrimony business. Sadly in the coming years, that being the case, that incremental revenue largely can flow into a. You know, into the operating margin. So it flow into the bottom line.
Apur Vijain
Okay, so that’s it for.
operator
Thank you. The next question is from the line of Akash Mehta, an individual investor. Please go ahead.
Jimmy Mehta
Hello. Am I audible?
operator
Yes, Akash, please go ahead. Yeah, thank you for the opportunity.
Jimmy Mehta
Actually I just wanted to ask you what is the internal capital allocation discipline for new initiatives and when do we expect a breakeven?
Murugavel Janakiraman
We are not looking at the break in at this point in time. The way we are looking at archives. We want to get the now. We are looking at all these opportunities. Be it wedding services, be it many jobs. So all these opportunities we are definitely looking at the under plus core revenue are larger also. So basically for us we want to get to the level where we believe that you are confident enough to invest and scale up further. So definitely I sold many jobs. We already caused 1 million downloads and you are 10,000 recruiters in Tamil order.
You want to reach a certain level of usage and renewal and certain benchmarks before it decides to take. Then it can be a large business in terms of the wedding services while you are continuing investing. We believe that we are changing the model. We believe the current model which you are trying now can have the potential. Once you believe that, okay, this is the model working as well. This is the model you want to invest. It’s more of scaling the business to a large business and capital. The opportunity not looking at a. Let’s make a 5 crore every month and make it a break even.
That’s not what you are looking at. You want to create these individual opportunities a much larger opportunity. At least a minimum of 100, 200 or even much larger also. But we are looking at achieving a profitability. You know that level not at 3 crore level. You are looking at trying to make everything the reason not investing. Because so far we didn’t get the time. But as we speak we believe that wedding services. We are working on a model. We believe that model can be Scaled up again it’s a couple of more quarters. Once you have the comfort then we’ll come back to you.
And in terms of many jobs as I told you probably sometime coming financial year based on how the things are happening emails develop to across India that pandemic we invest further also.
Jimmy Mehta
Hello. Yes that that was the only question I had. Thank you sir.
operator
Thank you. The next question is from the line of Daya Shankar Pandey an individual investor. Please go ahead.
Harsh Mittal
Hello, Am I audible? Yes please. Yeah, thanks for your opportunity. So I have just one question that what is your long term strategy in terms of maximized paid subscriber base or maximize monetization per user?
Jayram Shetty
It’s a combination of both so it’s not one at the cost of other. We’re trying to do both. So both try to increase the conversion percentage monetization also try to get at the best possible R2 basically offering the right packet to the customer. So we’ll do. We try to do both.
Jimmy Mehta
Okay. And the second question I have is several initiatives were launched in love.com many jobs wedding loans and Astro chair But wedding loans have been posed. So what is the internal hurdle rate for these experiments?
Murugavel Janakiraman
Basically we know some of the experiment you want to do for a long time already known what we saw was that while able to generate lot of inquiries but the needs were not converting. So we believe that at this point of time we didn’t want to focus on opportunity which are not yielding the expert research. We decided to stop that initiative. So we are focusing on other initiatives. I believe that loud outcome is a long term because we believe there is a segment of users who prefer sort of serious relationship. There are small segments that we didn’t want to miss out on that opportunity keeping long term influence on Matinity.com so that the product has come out Well I think with that one we have covered the entire spectrum of offerings in the matrimony and matching making space and also frees are more of experiment.
We said a is happening. We don’t have a base free chart. It’s a more experiment. We know the coming year where it goes accordingly we decide what to do.
Jimmy Mehta
Okay, that’s it from my side. Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one at this time. The next question is from the line of Palag Desai an individual investor. Please go ahead. Hello, am I audible?
operator
Yes, yes please go ahead.
Apur Vijain
Yeah, so I had a follow up question on competitive intensity if it’s leading to higher customer acquisition cost.
Murugavel Janakiraman
So the you know, in terms of. Let’s say in terms of. There are two things. One is the top of advertisement and there’s a bottom of an advertisement spend. So you know that the top of an advertisement increases some. Some. Some market here also need to step up to ensure that the long term interest are productive at this point. Then the way we see that is that the market may continually operate the similar level or there’s a positive it may further softening. So. So that’s way we see at this point in time. So sometimes there you know things changes according.
You have to probably maybe step up also. But at this point I don’t sing. But we believe that at the similar level of marketing maybe good enough to continue with our growth strategies. So we believe that you know around 43 or 45 crore or 44 crore may be good enough for matrimony business at this point. So that’s what we force at the pandemic. Again depending on tomorrow that something happens probably may have to step up. But at this point that we see that it’s sort of going to upload at this level for Matt the company increases.
There can be increase in the cost of association.
Apur Vijain
Okay. And also should we expect a sustainable double digit billing growth over FY26 27 or is this a recovery led growth?
Murugavel Janakiraman
I think we feel we can have that sort of similar level of growth the coming year as well. So because as I said we started all the things on our first time. Payment renewal also started growing customer service also growing. The combination of all these factors we believe we could have that you know the growth momentum to continue for FY26 and 27 as well.
Apur Vijain
Okay, got it. Yeah, that’s it from my. Thank you. Next we have a follow up question from the line of Premalal Kota, an individual investor. Please go ahead.
Murugavel Janakiraman
In the balance is 348 after buyback. After buyback. 348 or what is the. Hello?
Harigovind Krishnasamy
Yeah, that. That 348 will reduce by 58 crores and the operational surplus will get added during the quarter once the regulatory formalities are done. And approximately account is like transferred. The the amount is transferred to the eligible shareholders that will get reduced from the closing balance of the investment. So one more thing for instance. Buyback acquiring the new new verticals and all recently corporate has bought by OLX. After that accelerate right profits. So Mr. Morgan can you answer on this? Because only net profit is hardly controls if you remove other income and all. So the thing is that you know this year there’s also the difference between the building and the gap revenue next year we see the profit from starting quarter one upcoming year when we started getting the benefits of the the building and the sorry revenue moving up on account of that one year package. The profit also move up. So I think quarter one of next year where we see the benefits of that the one year package fully getting realized and the continued growth happening on the building also reflect in the you know, the quarter four also reflect in quarter one.
But the next year we expect that the profit will be definitely better on account of the one time issue we’ve seen what happened introduction of one year package. So so in terms of as an organization what will they get how to reward the shareholders one is about be it a buyback or dividend. We also look at opportunity investment. Last year invested in a company called a astrology. We continue to evaluate those opportunities. So these are some of the areas we continue to strengthen also. So at this point of the focus on growing our core business and making the newer initiatives the product market, I think once you reach certain level of confidence on the new initiatives, once the profit moves up to certain levels, ability to accelerate in some of these investment opportunities also may get better.
operator
Thank you ladies and gentlemen. That was the last question from the participant. I would now like to hand the conference over to the management for closing comments.
Murugavel Janakiraman
Thank you so much for participating and I appreciate your support and we’ll see you again the next quarter. Thank you so much. Have a nice evening.
operator
On behalf of ICICI securities limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.