MATRIMONY - Matrimony.com

📊 NSE: MATRIMONY 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 9:41

💰 Financial Performance

Revenue Growth by Segment

Matchmaking revenue, which constitutes 99% of total revenue, was INR 113.5 Cr in Q2 FY26, representing a 0.5% QoQ decline. In FY25, Matchmaking revenue was INR 449.96 Cr (down 4.74% YoY), while Marriage Services & Others revenue was INR 5.88 Cr (down 34.6% YoY from INR 8.99 Cr).

Geographic Revenue Split

Not disclosed in available documents, though the company maintains a subsidiary in Dubai to serve international business reasons.

Profitability Margins

PAT margin for Q2 FY26 was 6.7%, a sharp decline from 11.4% in Q2 FY25 (down 460 bps). FY25 Net Profit Margin was 9.82% compared to 10.27% in FY24, driven by lower matchmaking volumes.

EBITDA Margin

Consolidated EBITDA margin was 10.8% in Q2 FY26, down 438 bps from 15.2% in Q2 FY25. Matchmaking segment EBITDA margin was 17.1% in Q2 FY26 compared to 22.6% a year ago, primarily due to the accounting gap between billings and revenue recognition.

Capital Expenditure

The company spent INR 12.82 Cr on capital expenditure during FY25 to support its technological infrastructure and operational needs.

Credit Rating & Borrowing

Not disclosed in available documents; however, the company maintains a strong cash and investment balance of INR 327.9 Cr as of Q2 FY26.

⚙️ Operational Drivers

Raw Materials

As a digital service provider, the primary 'raw' operational costs are Marketing Expenses (40% of revenue) and Employee Costs. Marketing expenses for Matchmaking were INR 45.8 Cr in Q2 FY26.

Import Sources

Not applicable for a digital matchmaking platform.

Key Suppliers

Not applicable; the company relies on digital advertising platforms (Google, Meta) and media agencies for customer acquisition.

Capacity Expansion

Current capacity is measured by paid profiles, which stood at 9.95 Lakhs in FY25 (a 7.29% YoY decrease). The company added 0.24 Mn paid subscribers in Q2 FY26, a 9% QoQ decline.

Raw Material Costs

Marketing costs represent approximately 40% of revenue. In Q2 FY26, marketing spend was INR 45.8 Cr, slightly up from INR 45.2 Cr YoY, as the company continues to invest in brand visibility despite revenue pressure.

Manufacturing Efficiency

Operational efficiency is tracked via Matchmaking margins excluding marketing, which stood at 57.4% in Q2 FY26 compared to 62.1% in the previous year.

Logistics & Distribution

Not applicable; services are distributed digitally via web and mobile applications.

📈 Strategic Growth

Expected Growth Rate

10%

Growth Strategy

The company is implementing long-term subscription packages (6-12 months) to increase Average Transaction Value (ATV), which rose 2.9% QoQ to INR 4,914. Management expects double-digit billing growth to eventually flow into P&L revenue starting Q4 FY26 as the billing-to-revenue gap narrows.

Products & Services

Online matchmaking subscriptions, astrology services (Astro-Vision), and marriage-related services.

Brand Portfolio

BharatMatrimony, Matrimony.com.

New Products/Services

Expansion into the Astrology segment and enhanced long-term matchmaking packages are expected to drive future revenue growth.

Market Expansion

Targeting deeper penetration in the matchmaking market through customer segmentation and increasing the Average Transaction Value (ATV).

Market Share & Ranking

The company claims market leadership in the online matchmaking industry in India.

Strategic Alliances

The company holds a stake in associate company Astro-Vision, which contributed a share of loss of INR 0.062 Cr in Q2 FY26.

🌍 External Factors

Industry Trends

The industry is shifting toward longer-term engagement models and integrated marriage services. Matrimony.com is positioning itself by widening its service funnel to include astrology and marriage services.

Competitive Landscape

Faces intense competition which can impact pricing and margins; management responds through innovative segmentation and marketing.

Competitive Moat

The moat is built on network effects (25,350+ success stories in Q2 FY26) and brand trust. This is sustainable because a larger user base increases the probability of matches, creating a virtuous cycle that competitors find difficult to replicate.

Macro Economic Sensitivity

Revenue is sensitive to the Indian marriage season and general consumer discretionary spending on digital services.

Consumer Behavior

Shift toward longer-duration packages indicates a consumer preference for sustained search capabilities rather than short-term access.

Geopolitical Risks

Minimal, though international operations in Dubai are subject to local regulations.

⚖️ Regulatory & Governance

Industry Regulations

The company actively engages in forums to advocate for interests regarding new digital regulations that may impact the business environment and data privacy.

Taxation Policy Impact

The effective tax rate for Q2 FY26 was 21.96%. The company benefited from lower LTCG tax rates on certain holdings in FY25.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the timing of the 'billing-to-revenue' catch-up. If billing growth does not accelerate as expected, the current margin compression (EBITDA down 29.2% YoY) could persist longer than the projected Q4 FY26 recovery.