Matrimony.Com Limited — Q2 FY26 earnings call

Call held 13 Nov 2025

Management summary

Matrimony.com reported mixed Q2 FY26 results, with consolidated billing growing 6.7% YoY to INR 118.4 crores, primarily driven by the Matchmaking segment. However, revenue saw a slight decline of 0.8% YoY to INR 114.6 crores, and PAT decreased significantly by 41.1% YoY to INR 7.8 crores. This performance is largely attributed to the deferred revenue recognition from newly introduced longer-term packages. Management expects double-digit billing growth in Q3 and anticipates improved profitability from Q4 onwards as the revenue recognition cycle aligns.

Highlights

  • Consolidated billing at INR 118.4 crores, a growth of 6.7% year-on-year.

  • Matchmaking business billing at INR 117.5 crores, a growth of 6.9% year-on-year.

  • ATV for Matchmaking business grew by 10.8% year-on-year and 2.9% quarter-over-quarter.

  • Cash and investment balance as at Q2 is INR 328 crores.

  • Matchmaking billings on a year-on-year basis is expected to post double-digit growth in quarter three.

Concerns

  • Consolidated revenue was at INR 114.6 crores, slightly lower by 0.8% year-on-year and 0.6% quarter-over-quarter.

  • Consolidated EBITDA margin in Q2 was 10.8% compared to 15.2% a year ago.

  • PAT is at INR 7.8 crores, a decline of 7.7% quarter-on-quarter and 41.1% year-on-year.

  • Paid subscription declined by 3.5% year-on-year and 9.5% quarter-over-quarter to 2.39 lakhs.

  • EBITDA loss for the Marriage Service and Other business was INR 2.8 crores.

Key financials

  1. Consolidated Billing ₹118.4 Cr +6.7%YoY
  2. Consolidated Revenue ₹114.6 Cr -0.8%YoY
  3. Consolidated EBITDA Margin 10.8%
  4. PAT ₹7.8 Cr -41.1%YoY
  5. Cash Flow from Operations ₹14.6 Cr
  6. ROCE 8.6%

What they filed

Q1 FY27: revenue up 13.3%, net profit up 137.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue113 109 106 113 112 −1%111 +2%115 +8%128 +13%
EBITDA16 12 6 11 11 −31%11 −8%12 +100%25 +127%
Net profit13 10 8 8 8 −38%9 −10%8 +0%19 +138%
How to read this

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

Segment breakdown

Share of Revenue
₹114.5 Cr Total
  • Matchmaking Business ₹113.5 Cr 99.1%
  • Marriage Service and Other Business ₹1 Cr 0.9%

Capital allocation

high confidence
  • M&A Bharat Ek Khoj Spiritual Tech Private Limited Acquisition · Closed

    Strategic investment in an AI-powered platform for astrology related services and Vedic Shastra, related to core industry with opportunity.

    Financial investment, may invest further depending on company performance.

    We have made strategic investment in Bharat Ek Khoj Spiritual Tech Private Limited, which is an Al-powered platform for astrology related services and for Vedic Shastra. No, it's an investment. It's a financial investment. And we'll see the amount depends on, again, it's an Al astrology study. It's related to our industry, and we also see an opportunity. We'll see how it goes and depends on how the company performs. We may invest further. All depends on future. I'll keep it open at this point of time
  • Liquidity Cash ₹328 Cr
    Cash and investment balance as at Q2 is INR328 crores.

Guidance & targets

Billing

  • Matchmaking Billing Growth Billing · Q3 FY26 · High confidence double-digit growth
    Our billings and revenue outlook for quarter three: the Matchmaking billings on a year-on-year basis is expected to post double-digit growth in quarter three.

    — Murugavel Janakiraman

  • Marriage Service and Other Business Billing Billing · Q3 FY26 · High confidence higher than quarter two
    Marriage service and other business expected to be higher than quarter two.

    — Murugavel Janakiraman

  • Matchmaking Billing Billing · FY26 · High confidence INR 500 crores
    Yes. Pretty much on track to, I believe, to get that number on matchmaking and billing.

    — Murugavel Janakiraman

Profitability

  • Consolidated PAT Profitability · Q3 FY26 · High confidence in line with Q2 levels
    On the outlook for Q3 margins, we expect the PAT to be in line with Q2 levels.

    — Harigovind Krishnasamy

  • Consolidated Profitability Profitability · from Q4 FY26 onwards · High confidence increase to double-digit numbers
    So profit will increase to double-digit numbers, so most likely from quarter 4 onwards. And obviously from starting Q1, the profitability will really move upwards, actually...

    — Murugavel Janakiraman

What to watch in Q3 FY26

Matchmaking Billing Growth

Q3 FY26
Current 6.9% YoY in Q2 FY26
Target Double-digit YoY growth

Why it matters

Indicates the effectiveness of new initiatives and the impact of longer-term packages on core business growth.

Our billings and revenue outlook for quarter three: the Matchmaking billings on a year-on-year basis is expected to post double-digit growth in quarter three.

Risks & concerns

  • Revenue Recognition Lag from Longer-Term Packages

    medium

    Introduction of longer-term packages causes a widening gap between billings and revenue, temporarily impacting reported profitability.

    Management acknowledged

  • Decline in Paid Subscriptions

    medium

    Paid subscriptions declined by 3.5% YoY and 9.5% QoQ, indicating potential challenges in user conversion or retention.

    Management acknowledged

  • Competitive Intensity in the Matrimony Market

    low

    While management notes some rationalization in marketing spend, the market remains contested, requiring continued advertising and visibility efforts.

    Management acknowledged

Q&A highlights

5 direct, 1 evasive
Ad Expenses and Industry Structure Direct
In terms of advertisement, we undertake various marketing initiatives, be it TV, digital platform. As you know that there are plenty of avenues to advertise. It's important that we choose the right mode of advertisement and that gives a better return on investment. So that's the approach we take.

Analyst questioned the high ad spend across the industry and potential for synergy, to which management explained their ROI-focused approach and noted competition reducing offline spend.

Asked by Ashis Behera

Traction in New Ventures (Many Jobs, MeraLuv) Partial
Let me talk about, so Many Jobs, it's crossed 1 million downloads. It's probably crossed 1 million registrations only in Tamil Nadu then probably within the next quarter. Good PlayStore rating, good feedback. We continue to get the feedback from customers. Continue to make the product improvements. Started monetizing from -- the last couple of months.

Analyst sought updates on new business traction. Management provided progress on Many Jobs (downloads, monetization) and MeraLuv (long-term investment for diaspora).

Asked by Ashis Behera

KPIs for New Ventures and Capital Allocation Evasive
We are not sharing probably what is the KPI, but obviously, any product, we look at a certain metric, certain benchmark, certain thing. Also, you may know that some other initiatives like Love.com, the new initiatives on MeraLuv, the monetization may happen only after reaching a certain threshold in terms of user base.

Analyst pressed for specific KPIs for new ventures given the company's cash position, but management declined to share specific metrics, citing monetization only after user base thresholds.

Asked by Ashis Behera

Buyback Strategy for Shareholder Rewards Partial
No, the board will look into it because I think one year is not over yet. And post that, I think the board will look into the various ways to reward shareholders. But that is, Yes, the board will decide on that.

Analyst inquired about the continuation of buybacks as a shareholder reward mechanism. Management indicated the board would review it after the current one-year period.

Asked by Ashis Behera

AI-based Astrology Product Launch and Monetization Direct
Astrology, we are launching again. There's a delay in launching the product. We are launching an Al-based astrology product because we will be end of the month, we'll be launching the product. We will be answering one question powered by AI using Vedic Astrology free. Post this, we want to monetize it.

Analyst asked for an update on the Astrology segment. Management confirmed a re-launch of an AI-based product by month-end with a free-to-paid monetization model.

Asked by Ashis Behera

Longer-Term Packages and Revenue-Billing Gap Direct
So in terms of the beginning of the year, we introduced sort of a one-year package. But again, there's a continuity fee also after one year. The user wants to continue beyond that. They have to pay the continuity fee. Basically, the thing is that the people go for a three-month package, and sometimes not everyone renews it also.

Analyst sought clarification on the new longer-term packages and their impact on the significant gap between billing and revenue growth, which management explained as a timing difference.

Asked by Damodaran

Increase in Employee Costs Direct
This is close to more than INR1 crores, close to INR1 crores, INR1.5 crores. There were one-time expenses which were incurred in Q2, so relating to certain provisions that we had to make to comply with certain laws. So it's a one-time cost, right? So all put together, it's around INR1.5 crores. So if you remove that, it will be around INR37.5 crores, which is INR37.5 crores to INR38 crores is what is the steady state.

Analyst questioned the rise in employee costs. CFO clarified it was due to one-time legal compliance provisions, not a structural increase.

Asked by Damodaran

Competitive Intensity and Consolidation in the Space Direct
I don't think anything happening at this point of time..

Analyst asked about competitive intensity and potential for consolidation in the matrimony space, to which management indicated no such activity is currently foreseen.

Asked by Abhisek Banerjee

2 min read 7 chapters

Detailed narrative

Q2 FY26 Financial Performance Overview

Matrimony.com reported Q2 FY26 consolidated billing of INR 118.4 crores, a 6.7% YoY increase, but revenue slightly declined by 0.8% YoY to INR 114.6 crores. Consolidated EBITDA margin stood at 10.8%, down from 15.2% a year ago, and PAT decreased by 41.1% YoY to INR 7.8 crores. This divergence is attributed to the introduction of longer-term packages, which defers revenue recognition, with full benefits expected from Q4 FY26 onwards.

Matchmaking Business Performance

The core Matchmaking business recorded billing of INR 117.5 crores, growing 6.9% YoY, and revenue of INR 113.5 crores, a slight decline of 0.6% YoY. Paid subscriptions, however, saw a decline of 3.5% YoY to 2.39 lakhs. Despite this, the Average Transaction Value (ATV) for Matchmaking grew robustly by 10.8% YoY and 2.9% QoQ, indicating higher value per customer.

Marriage Service and Other Business

The Marriage Service and Other business reported billings of INR 93 lakhs, a 4.9% QoQ growth but a 20% YoY decline, with revenue at INR 1 crore. This segment incurred an EBITDA loss of INR 2.8 crores, an improvement from INR 3.6 crores loss in Q2 FY25. The company is strategically shifting its focus in wedding services towards commission-based revenue from venue bookings, particularly in Tamil Nadu.

Impact of Longer-Term Packages on Profitability

Management explained that the widening gap between billing and revenue, and the temporary drop in EBITDA margins, is due to the introduction of longer-term packages. Revenue and EBITDA recognition for these packages will flow from Q4 FY26 onwards, with full benefits expected from Q1 FY27. This is anticipated to lead to an increase in profitability to double-digit numbers from Q4 FY26.

Strategic Investments and New Ventures

The company made a strategic financial investment in Bharat Ek Khoj Spiritual Tech Private Limited, an AI-powered platform for astrology services. They are also re-launching an AI-based astrology product by the end of November 2025, offering a free question initially, with plans for monetization. The 'Many Jobs' portal has crossed 1 million downloads/registrations in Tamil Nadu and has started monetization, with potential pan-India expansion in future quarters.

Marketing Strategy and Customer Experience Initiatives

Matrimony.com continues to pursue various marketing initiatives, including TV and digital platforms, with a focus on maximizing return on investment. Marketing expenses for the Matchmaking business were INR 45.8 crores in Q2. The company has also launched an AI Chatbot in customer service for one domain and plans to expand it, aiming to improve customer experience and drive productivity across all domains.

Employee Costs Clarification

Employee costs increased to INR 39 crores in Q2 FY26. However, the CFO clarified that INR 1-1.5 crores of this was a one-time expense incurred for provisions related to legal compliance. The underlying steady-state employee cost is estimated to be around INR 37.5-38 crores, indicating that the core employee cost structure remains stable.

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