Matrimony.Com Limited — Q4 FY25 earnings call

Call held 16 May 2025

Management summary

Matrimony.com reported a challenging Q4 and full year FY25 with declines in consolidated billing, revenue, and PAT, primarily due to industry-wide degrowth. However, the company observed a return to year-on-year growth from March 2025 and expects this momentum to continue. New initiatives like AstroFreeChat are gaining traction, while wedding loan services have been paused. Management is focused on optimizing marketing spend and gaining market share in North India, with a commitment to continuous growth and shareholder returns through dividends and buybacks.

Highlights

  • Consolidated billing grew 5% quarter-over-quarter to ₹114.8 crore in Q4 FY25.

  • Matchmaking business ATV grew 1.7% QoQ and 4.5% YoY in Q4 FY25, and 2.7% for the full year.

  • Added 2.5 lakhs paid subscriptions in Q4 FY25, a 3.3% QoQ growth.

  • Successfully completed the second buyback in the last 2 years.

  • Year-on-year growth started from March 2025 and is expected to continue in coming quarters.

Concerns

  • Consolidated revenue declined 9.1% YoY to ₹108.3 crore in Q4 FY25 and 5.3% for FY25.

  • PAT declined 30.3% YoY to ₹8.2 crore in Q4 FY25 and 8.6% for FY25 to ₹45.3 crore.

  • Losses in wedding services and new initiatives increased to ₹4.9 crore in Q4 FY25, up from ₹3.8 crore in Q3 FY25.

  • EBITDA margin for the Matchmaking business declined to 17.7% in Q4 FY25 from 19.1% a year ago.

  • Marketing expenses remain high (39-41% of topline) without proportional revenue growth.

Key financials

  1. Consolidated Billing ₹114.8 Cr -5.3%YoY
  2. Consolidated Revenue ₹108.3 Cr -9.1%YoY
  3. Consolidated PAT ₹8.2 Cr -30.3%YoY
  4. Consolidated EBITDA Margin 10.8%
  5. Cash Balance ₹324.3 Cr
  6. Return on Capital Employed 14.2%

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
₹108.3 Cr Total
  • Matchmaking Business ₹107 Cr 98.8%
  • Marriage Services Business ₹1.3 Cr 1.2%

Capital allocation

high confidence
  • Liquidity Cash ₹324.3 Cr
    Cash balance is at Rs. 324.3 crores and return on capital employed 14.2%.

Guidance & targets

Billing

  • Matchmaking Business Billing Growth Billing · Q1 FY26 · High confidence Year-on-year growth
    On the billing and outlook for quarter 1, we expect growth in Matchmaking business year-on-year and also growth in wedding services revenue year-on-year.

    — Murugavel Janakiraman

  • Billing Growth Billing · Coming quarter · High confidence Continue
    Our objective is to continue to drive the growth, but we definitely see that the billing growth is happening in this quarter, and we expect the growth momentum to continue.

    — Murugavel Janakiraman

Revenue

  • Wedding Services Revenue Growth Revenue · Q1 FY26 · High confidence Year-on-year growth
    On the billing and outlook for quarter 1, we expect growth in Matchmaking business year-on-year and also growth in wedding services revenue year-on-year.

    — Murugavel Janakiraman

Profitability

  • PAT Profitability · Q1 FY26 · High confidence Better than Q4 FY25, but less than Q1 of last financial year
    Though we will have year-end billing growth in Q1 FY '26; however, due to lower billings in Q4 FY '25, the Q1 PAT will be better than Q4. However, it will be less than Q1 of last financial year.

    — Murugavel Janakiraman

  • PAT Growth Profitability · Q2 FY26 onwards · High confidence Year-on-year growth
    We expect year-on-year PAT growth from Q2 FY '26 onwards.

    — Murugavel Janakiraman

Marketing Spend

  • Marketing Spend Level Marketing Spend · Future quarters · Medium confidence Remain at current level or slightly reduced, or may come down
    We don't see the marketing spend is going to increase from the current level of spend at this point of time. So the marketing spend will remain at this level, maybe at a slightly reduced level, or maybe at this point of time at a similar level. So the revenue increases, the percentage of spend on marketing will come down.

    — Murugavel Janakiraman

New Initiatives

  • Monetization of 'many jobs' New Initiatives · Coming months (next month or subsequent month) · Medium confidence Monetize
    So, maybe next month or maybe a subsequent month. We have reached a desired level of registration with the employers and we intent to monetize in the near future.

    — Murugavel Janakiraman

What to watch in Q1 FY26

Matchmaking Billing Growth

Q1 FY26
Current 5% QoQ growth in Q4 FY25, -5.3% YoY
Target Year-on-year growth

Why it matters

Billing growth is a key indicator of business momentum and future revenue realization.

On the billing and outlook for quarter 1, we expect growth in Matchmaking business year-on-year and also growth in wedding services revenue year-on-year.

Risks & concerns

  • Industry-wide Profile Degrowth

    medium

    FY25 was the first year of degrowth in 25 years, attributed to post-COVID normalization and a surge in profiles during COVID.

    Management acknowledged

  • Marketing Spend Efficiency

    medium

    High marketing spend (39-41% of topline) has not translated to proportional revenue growth, raising concerns about ROI.

    Analyst acknowledged

  • Profitability of New Initiatives

    medium

    Wedding services and other new initiatives are currently loss-making, with losses increasing to ₹4.9 crore in Q4 FY25.

    Management acknowledged

  • Competitive Intensity in North Indian Market

    medium

    The North Indian market is highly competitive, requiring continuous marketing efforts to gain market share against established players.

    Management acknowledged

Q&A highlights

6 direct
North Indian Market Share Strategy Direct
So we are at this point in time, looking at having continuous visibility because it was not the case last couple of years. So we have optimized our marketing campaign strategies. So only for the last couple of quarters, we are having a regular visibility in the North Indian market. We intend to continue our visibility campaigns in the North Indian market so that we could gain market share in the long term.

Analyst questioned the company's strategy to gain market share in the North Indian market, which is dominated by a competitor, given past struggles.

Asked by Rishabh Shah

Marketing Spend Efficiency vs. Revenue Growth Partial
So last year was one of the years where that the overall industry had a degrowth in the profile. And again, all it is due to the post-COVID effect where during the COVID time, there was a surge in the profile. After that, there is a thing, I think we see that things are getting normalized. We can see that year-on-year growth in the profiles.

Analyst challenged the high advertising spend (39-41% of topline) without corresponding revenue growth, raising concerns about cash burn.

Asked by Rishabh Shah

Capital Allocation for Acquisitions vs. Shareholder Returns Direct
So if there is, we've done some investment in the past on acquisition. If there are any right opportunities, we definitely look into it. But we actually probably continue to keep these options open in terms of any opportunity to the Company in a related industry.

Analyst questioned why excess cash is used for dividends/buybacks instead of M&A, probing the company's inorganic growth strategy.

Asked by Vasudev

Google Billing Dispute Status Direct
No, actually not the case because there is a CCI verdict against Google that the Google billing was an abuse of dominance and on the user choice of billing against CCI, the investigation is going on. There is a directive by CCI to Google and recently NCLT also upheld the Google orders. So at this point in time, so we are all protected, no payment to Google and it is not required.

Analyst sought clarification on the ongoing Google billing issue and whether the company is still making payments, which has financial implications.

Asked by Ankur Jain

Profitability and Future of Wedding Services Partial
No, actually we don't mind exiting things where we feel that it's not working, as a wedding loan one thing we see at this point is not required. But again, wedding services, the new model what you're trying to do is MakeMyWedding where the customer needs to pay money to avail wedding services.

Analyst questioned the continued losses in wedding services and new initiatives, asking about potential exits from non-profitable segments.

Asked by Ankur Jain

Platform Issues and Subscriber Conversion Rates Direct
I don't think it has nothing to do with the platform or other thing. Last year also, one of the years when the profile degrowth happened and also some of the markets was that it had a prolonged inauspicious dates in particular market like Andhra Pradesh and also the success story is not something you know it's not mandatory.

Analyst probed if declining success rates (paid subscribers vs. total) indicated underlying issues with the platform or eligible candidate pool.

Asked by Madhur Rathi

ARPU Growth and Package Timelines Direct
Yes, so it may take an average of 9 to 12 months for someone to find a life partner. So we have various packages. We have from 3 months to 1 year package. So it's ideally better if someone goes for the one-year package because of the benefit it brings and also the cost advantage. But some people do prefer taking, the majority prefer taking a shorter duration of the package.

Analyst inquired about strategies to increase Average Revenue Per User (ARPU) by adjusting package durations and pricing.

Asked by Madhur Rathi

Relevance of Matrimony.com vs. Dating Apps for Younger Generation Direct
So definitely, the Matrimony is the most credible trustworthy and the intention is very clear. Someone looking for a life partner to get married, matrimony should be the de facto choice for individuals.

Analyst questioned the company's competitive positioning against dating apps like Bumble or Tinder, and its appeal to the younger generation seeking life partners.

Asked by Rishabh Shah

3 min read 6 chapters

Detailed narrative

Q4 & FY25 Performance Overview

Matrimony.com reported a challenging Q4 FY25 with consolidated billing at ₹114.8 crore (up 5% QoQ, down 5.3% YoY) and revenue at ₹108.3 crore (down 2.8% QoQ, down 9.1% YoY). For the full year FY25, consolidated billing was ₹452.7 crore (down 5.5%) and revenue was ₹455.8 crore (down 5.3%). PAT for Q4 FY25 stood at ₹8.2 crore, a decline of 30.3% YoY, and for FY25, it was ₹45.3 crore, down 8.6% YoY. The company noted that FY25 was the first year of degrowth in its 25-year journey, attributing it to industry-wide profile degrowth post-COVID normalization.

Matchmaking Business Performance

The core Matchmaking business recorded billing of ₹113.5 crore in Q4 FY25 (up 4.8% QoQ, down 4.8% YoY) and revenue of ₹107 crore (down 2.8% QoQ, down 9.1% YoY). For FY25, billing was ₹448 crore (down 4.7%) and revenue ₹450 crore (down 4.7%). The company added 2.5 lakh paid subscriptions in Q4 FY25, a 3.3% QoQ growth, and approximately 1 million for the full year. Average Transaction Value (ATV) for matchmaking grew 4.5% YoY in Q4 FY25 and 2.7% for the full year. EBITDA margin for this segment was 17.7% in Q4 FY25 and 20.5% for FY25.

Marriage Services & New Initiatives

The Marriage Services business reported billing of ₹1.2 crore in Q4 FY25 (up 19.1% QoQ, down 36.6% YoY) and revenue of ₹1.3 crore (down 0.8% QoQ, down 4.8% YoY). For FY25, billing was ₹4.7 crore (down 46.4%) and revenue ₹5.9 crore (down 34.7%). Losses from wedding services and new initiatives combined increased to ₹4.9 crore in Q4 FY25, up from ₹3.8 crore in Q3 FY25, and totaled ₹14.5 crore for FY25. The company has paused its wedding loan initiative due to lower-than-expected conversions but expects monetization from its 'many jobs' initiative in the coming months. AstroFreeChat is generating over 1,000 downloads and a few hundred consultations daily.

Marketing Strategy & North India Focus

Marketing expenses in Q4 FY25 were ₹46.7 crore, comparable to Q3 FY25. For FY25, total marketing expenses were ₹185.2 crore. Management acknowledged that marketing spend has been high (39-41% of topline) but expects this percentage to decrease as revenue grows. The company is focusing on gaining market share in North India through continuous visibility campaigns, optimizing marketing strategies, and leveraging a combination of Bharat Matrimony and community matrimony brands. They believe regular advertisement in North India will help penetrate the market.

Capital Allocation & Shareholder Returns

The Board of Directors recommended a final dividend of 100% for FY25, subject to shareholder approval. The company also completed its second buyback in the last two years. Cash balance stood at ₹324.3 crore at the end of Q4 FY25. Management indicated openness to acquisitions in related industries if suitable opportunities arise, emphasizing a strategy that includes both organic and inorganic growth. The return on capital employed was 14.2% for FY25.

Google Billing Dispute Resolution

Matrimony.com confirmed that it is currently protected from Google's billing policies due to a CCI verdict and NCLT upholding the CCI's directives. The company is not making payments to Google in this interim period. Management highlighted global developments where courts are challenging app store payment policies, reinforcing their protected status in India. This resolution mitigates a significant potential financial outflow for the company.

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