Matrimony.com Navigates Q2 FY26 with Strategic Shifts and AI Focus

Matrimony.com Limited, India's leading matchmaking service, reported its financial performance for Q2 FY26, showcasing a period of strategic recalibration and investment in future growth. While consolidated billings registered a healthy 6.7% year-on-year growth to INR 118.4 crore, consolidated revenue saw a marginal decline of 0.8% year-on-year, settling at INR 114.6 crore. This temporary divergence between billings and revenue is primarily attributed to the company's strategic introduction of longer-term subscription packages, which impact immediate revenue recognition but are expected to yield full benefits from Q4 FY26 onwards. Profit After Tax (PAT) for the quarter stood at INR 7.8 crore, a 41.1% decline year-on-year, reflecting the ongoing investments and the revenue recognition lag.

The matchmaking business, the core of Matrimony.com, recorded billings of INR 117.5 crore, growing 6.9% year-on-year, with revenue at INR 113.5 crore. The Average Transaction Value (ATV) for matchmaking saw a robust increase of 10.8% year-on-year, driven by the new long-tenure packages and personal services. However, paid subscriptions experienced a 3.5% year-on-year decline, indicating a need for continued focus on subscriber acquisition and retention strategies. The marriage services and other businesses, though smaller, also showed growth in billings quarter-on-quarter, with management expecting further improvement.

Financial Snapshot: Q2 FY26 Performance (INR Crore)

Strategic Initiatives and Future Outlook

Matrimony.com is actively pursuing several strategic initiatives aimed at enhancing customer experience, driving productivity, and diversifying its revenue streams. A significant focus is on leveraging Artificial Intelligence (AI). The company has launched an AI Chatbot in customer service for one domain, with plans for a broader rollout across all platforms after fine-tuning. This is expected to improve user interaction and operational efficiency. Furthermore, Matrimony.com has made a strategic investment in Bharat Ek Khoj Spiritual Tech Private Limited, an AI-powered platform for astrology services. An AI-based astrology product is set to launch by the end of November 2025, initially offering free questions, with paid options for AI or human astrologers to follow.

The company is also refining its new business ventures. Love.com, a matchmaking app for serious relationships, is being relaunched by the end of November 2025, targeting Indian users. ManyJobs, their portal for frontline and entry-level job seekers, has garnered over 1 million downloads and registrations in Tamil Nadu, with monetization efforts recently commencing. MeraLuv, a dating app for Indian Americans, continues to be a long-term investment aimed at the Indian diaspora. These initiatives, while in early stages, represent Matrimony.com's commitment to exploring adjacent markets and building future growth engines.

Operational Efficiency and Market Leadership

Despite the temporary impact on profitability, Matrimony.com maintains a strong operational foundation. The company is a market leader with the highest market share across India and operates as a zero-debt entity, boasting strong free cash flow generation. Cash flow from operations increased to INR 14.6 crore in Q2 FY26, underscoring its financial resilience. The management highlighted a strategic shift in wedding services towards a commission-based model, particularly for venue bookings, moving away from a listing-based approach. This aims to capture a more sustainable revenue stream.

Looking ahead, management expressed confidence in achieving double-digit billing growth in the coming quarters, with matchmaking billings specifically targeted for double-digit year-on-year growth in Q3 FY26. PAT for Q3 FY26 is expected to be in line with Q2 levels, with profitability projected to move upwards significantly from Q4 FY26 and Q1 FY27 as the benefits of longer-term packages fully materialize. The company is also on track to achieve INR 500 crore in matchmaking billings for the current fiscal year.

Concluding Thoughts

Matrimony.com's Q2 FY26 performance reflects a company in transition, strategically investing in its future while navigating short-term financial adjustments. The focus on AI integration, diversification into new verticals, and a disciplined approach to capital allocation position the company for sustained long-term growth. While the immediate profitability metrics show a dip, the underlying strategic shifts and management's clear guidance for future recovery provide a confident outlook for investors.