Matrimony.com Ltd Management Discussions

The Management Discussion and Analysis includes statements regarding the Companys objectives, projections, estimates, and expectations. These may be considered forward-looking statements under applicable securities laws and regulations. Such statements involve risks and uncertainties that could cause actual results to differ materially. The Company assumes no obligation to update these forward-looking statements unless required by law. Readers should review this discussion alongside the Companys financial statements and accompanying notes in the Annual Report. This analysis is based on the Companys consolidated financial results.

GLOBAL ECONOMY OVERVIEW

The global economy expanded by 3.4% in 2025 and is projected to grow by 3.1% in 2026 and 3.2% in 2027, as per the IMFs April 2026 World Economic Outlook (WEO). The 2026 forecast is modestly lower than earlier baseline projections, largely reflecting the disruptions caused by the outbreak of war in the Middle East at the end of February 2026, including the disruptions to traffic through the Strait of Hormuz and damage to energy infrastructure facilities. These disruptions interrupted what had been a steady growth trajectory supported by continued momentum in technology-related investment, accommodative financial conditions, and a moderation in trade-policy tensions.

Notwithstanding the conflict-related shock, the global economy demonstrated resilience through 2025, with disinflation continuing across most economies and labour markets remaining broadly stable. The toll of the current shock is expected to be more pronounced for commodity-importing emerging market and developing economies with pre-existing macroeconomic vulnerabilities, while advanced economies are forecast to remain broadly on their pre-war growth path. Risks to the outlook are skewed to the downside and centre on the duration and intensity of the Middle East conflict, the path of energy prices, and the potential resurgence of global trade-policy frictions.

World Economic Growth - An Overview

	Estimate	projections	projections
	2025	2026	2027
World output	3.4%	3.1%	3.2%
Advanced economies:	1.9%	1.8%	1.7%
United States	2.1%	2.3%	2.1%
Euro Area	1.4%	1.1%	1.2%
Japan	1.2%	0.7%	0.6%
United Kingdom	1.3%	0.8%	1.3%
Emerging markets and developing economies:	4.4%	3.9%	4.2%
Emerging and developing Asia	5.5%	4.9%	4.8%
China	5.0%	4.4%	4.0%
India*	7.6%	6.5%	6.5%
Middle East and Central Asia	3.6%	1.9%	4.6%

* For India, IMF data and forecasts are presented on a fiscal year basis (i.e., 2025 corresponds to FY 2025-26, 2026 to FY 2026-27, and 2027 to FY 2027-28). The IMFs estimate of 7.6% growth for India in 2025 is consistent with MoSPIs National Accounts data for FY 2025-26 under the new base year 2022-23 series.

(Source: IMF World Economic Outlook, April 2026 - "Global Economy in the Shadow of War"; S&P Global Market Intelligence)

OUTLOOK

The IMFs reference forecast assumes that the Middle East conflict will be relatively short-lived, with energy production and exports from the region normalising by mid-2026. On this basis, global growth is projected at 3.1% in 2026 and 3.2% in 2027, while world headline inflation is expected to rise from 4.1% in 2025 to 4.4% in 2026 before easing to 3.7% in 2027. Energy commodity prices are projected to rise by approximately 19% in 2026, with oil prices increasing by around 21% on the back of supply disruptions in the Middle East. Trade-policy assumptions reflect tariff measures in place at the end of March 2026, including a US effective statutory tariff rate of 13.5%.

The IMF complements the reference forecast with two scenarios that contemplate a more prolonged or expanding conflict. Under an adverse scenario, global growth would decline to 2.5% in 2026 with inflation rising to 5.4%. Under a severe scenario, with sustained dislocations in energy markets and a de-anchoring of inflation expectations, global growth would slow to around 2.0% in 2026 and 2027, bringing the global economy close to recessionary territory, with inflation near 6%. Within emerging markets, the outlook remains relatively favourable for India and select South and Southeast Asian economies, supported by domestic demand, manufacturing diversification, demographic dividends, and digital-led productivity gains. Looking beyond the immediate shock, the medium-term outlook will be shaped by the diffusion of artificial intelligence and the pace of investment in resilient and renewable energy infrastructure.

(Source: IMF World Economic Outlook, April 2026; World Bank Global Economic Prospects, January 2026)

INDIAN ECONOMY OVERVIEW

India retained its position as the fastest-growing major economy during FY 2025-26. As per the Ministry of Statistics and Programme Implementation (MoSPI), Indias real GDP is estimated to have grown by 7.6% in FY 2025-26, with nominal GDP recording growth of 8.6% as per the Second Advance Estimates, FY 2025-26. This sustains a multi-year trend of resilient performance, with real GDP growth of 7.2% in FY 2023-24 and 7.1% in FY 2024-25. Growth was underpinned by robust momentum across quarters, with the second and third quarters of FY 2025-26 recording real GDP growth of 8.4% and 7.8% respectively.

On the demand side, private final consumption expenditure grew at a healthy pace, supported by a recovery in rural incomes, moderating food inflation, and continued strength in urban services consumption. Gross fixed capital formation continued to expand, aided by sustained Government emphasis on infrastructure investment and a revival in private-sector capex across manufacturing, data centres, and renewable energy.

On the supply side, manufacturing emerged as the major driver of the resilient performance of the economy, recording doubledigit growth in FY 2025-26 — its third such instance in recent years following the rebasing exercise. The secondary and tertiary sectors registered growth in excess of 9.0% during the year, with services activity supported by financial services, real estate, and professional services. Headline retail inflation moderated through the year, enabling the Reserve Bank of India to shift to a more accommodative stance towards the latter part of FY 2025-26.

(Source: MoSPI - National Accounts Statistics (Base Year: 2022-23); Ministry of Finance - Economic Survey 2025-26; Reserve Bank of India)

OUTLOOK

Indias medium-term growth outlook remains among the strongest globally. According to the IMFs April 2026 World Economic Outlook, India is projected to grow at 6.5% in FY 2026-27 and 6.5% in FY 2027-28, significantly outpacing global and regional counterparts. The Economic Survey 2025-26 has projected real GDP growth in the range of 6.8% to 7.2% for FY 2026-27. The Union Budget 2026-27 has continued to prioritise capital expenditure, innovation, and digital infrastructure, while providing targeted relief to the middle class to support consumption. Structural tailwinds — including a young demographic, rising digital adoption, formalisation of the economy, and a growing middle class — reinforce Indias position as a key engine of global growth over the coming decade.

(Source: IMF World Economic Outlook, April 2026; PRS Legislative Research - Economic Survey 2025-26 Summary; World Bank Global Economic Prospects, January 2026; Union Budget 2026-27)

DIGITAL INDIA

An Overview

Indias transformation into a digital-first economy has been one of the most consequential stories of the past decade. What was once a nascent digital landscape has matured into a globally benchmarked ecosystem that underpins public services, financial inclusion, entrepreneurship, and everyday consumption. The combination of affordable connectivity, population-scale digital public infrastructure, and a policy environment supportive of innovation continues to expand access and efficiency across the country.

Launched in 2015, the Governments Digital India campaign has evolved into Digital India 2.0, with a continued focus on broadband connectivity, digital public goods, and citizen-centric e-governance. Initiatives such as BharatNet, Make in India, Startup India, and the Production Linked Incentive (PLI) schemes have reinforced Indias standing as a hub for technology services, electronics manufacturing, and digital innovation. According to the MeitY-ICRIER report "Estimating Digital Economy in India", the digital economy contributed 11.74% of GDP in 2022-23 and is estimated to have reached approximately 13.42% in 2024-25, with projections suggesting it could reach nearly one-fifth of GDP by 2029-30.

The Union Budget 2026-27 has reaffirmed the Governments commitment to the sector, with continued allocations for the IndiaAI Mission, digital public infrastructure, Global Capability Centres (GCCs) in Tier-II and Tier-III cities, and a sustained push for AI-led transformation across education, healthcare, and agriculture. The IndiaAI Mission, backed by compute infrastructure, data sets, and innovation centres, is catalysing a new generation of Indian AI applications.

Deciphering India Stack

The India Stack — comprising Aadhaar for digital identity, UPI for real-time payments, e-KYC for paperless verification, DigiLocker for secure document storage, and the eSign framework — continues to anchor Indias digital public infrastructure. It has transformed payments, government service delivery, credit access, and the onboarding economics of digital businesses. UPI has emerged as the dominant retail payments rail globally by transaction volume.

India Stack has served as the backbone of Indias digital economy, enabling paperless documentation with digital signatures and online submission of documents, thereby simplifying government services and business interactions. As digital inclusion deepens and new innovations such as the Unified Lending Interface (ULI) and the Open Network for Digital Commerce (ONDC) scale, India Stack continues to reshape Indias economy.

(Source: MeitY-ICRIER - Estimating Digital Economy in India; National Payments Corporation of India (NPCI) - UPI Product Statistics; India Brand Equity Foundation (IBEF); Protean eGov Technologies; India Stack)

Rising Internet penetration

Indias internet usage has continued its rapid ascent, reinforcing the nations position as the worlds second-largest internet market. As per TRAIs Indian Telecom Services Performance Indicators Report, Indias total internet subscriber base crossed 1,028 million as at December 2025, up from 969 million in March 2025. Internet penetration approached 70% of the countrys population. Rural users now constitute over 55% of active internet users, reflecting deepening digital inclusion beyond metros and Tier-I cities.

According to the Internet and Mobile Association of India (IAMAI) and Kantar Internet in India Report 2025, Indias active internet user base reached approximately 958 million in 2025, with continued growth driven by adoption of Indic-language content, short- form video, and digital commerce. (Note: TRAI tracks total internet subscriptions while IAMAI/Kantar measures active internet users; the two methodologies are not directly comparable.) Average monthly data consumption per user has risen to approximately 25-27 GB in 2025, and is estimated to grow to 75 GB per month by 2030, according to Ericssons Mobility Report.

Embracing the 5G revolution - A paradigm shift in technology

Indias 5G rollout has emerged as one of the fastest globally since its launch in October 2022. By the end of 2025, 5G subscriptions in India crossed 330 million, accounting for nearly one-third of the total mobile subscriber base. 5G coverage has been extended

to substantially all districts, and telecom operators have continued to invest in network densification, fixed wireless access (FWA), and stand-alone 5G architectures to unlock enterprise use cases.

With its key attributes — low latency, enhanced bandwidth, and support for massive machine-type communications — 5G is driving business innovation and accelerating digital transformation. Its cloud-native, service-based architecture enhances the adoption of emerging technologies such as AI, loT, and robotics, unlocking new opportunities for growth and efficiency across industries. Preparatory work for 6G, including the Bharat 6G Vision, has also commenced, positioning India to play an active role in shaping next-generation global standards.

(Source: TRAI - Indian Telecom Services Performance Indicators Report; Ericsson Mobility Report, November 2025; IAMAI- KANTAR Internet in India Report 2025; Statista - India Digital Market Outlook)

Start-up Ecosystem in India

Indias startup ecosystem remains the worlds third-largest, behind only the United States and China, with over 160,000 DPIIT- recognised startups as of the end of 2025. Beyond the major metros of Bengaluru, Hyderabad, Mumbai, Delhi-NCR, Chennai, and Pune, the ecosystem has witnessed growing participation from Tier-II and Tier-III cities, which now account for nearly half of new DPIIT-recognised startups. Indian start-ups continue to achieve a post-Series B funding conversion rate among the highest globally, underscoring the maturity of the countrys scaled-up ecosystem.

The Government continues to play a pivotal role through initiatives such as Startup India, the Startup India Seed Fund Scheme (SISFS), the Credit Guarantee Scheme for Startups (CGSS), the Fund of Funds for Startups (FFS), and the Atal Innovation Mission (AIM). The BHASKAR centralised startup portal, launched in September 2024, has further streamlined collaboration across the ecosystem. The Union Budget 2026-27 has proposed enhanced support for deep-tech startups, including a dedicated Deep Tech Fund of Funds.

Role of the government in boosting start-ups

Over the past decade, the Startup India initiative has catalysed an entrepreneurial culture across the country, with a new startup emerging every hour. Direct employment generated by DPIIT-recognised startups has crossed 1.7 million, spanning diverse sectors including fintech, enterprise SaaS, deep tech, climate tech, consumer internet, healthtech, and AI.

Generative AI (GenAI) has emerged as a defining theme, with over 240 Indian GenAI startups having collectively raised in excess of US$ 1.5 billion since 2019. AI is being deployed across both customer-facing products and internal operations, with over two- thirds of Indian tech startups leveraging AI to enhance product capabilities and improve internal efficiencies. India now ranks among the top three countries globally in terms of AI talent availability, supported by strong output from the IITs, IIITs, and emerging AI Centres of Excellence.

Funding of India Startups

Indian tech startups raised approximately US$ 10.5 billion across equity funding rounds in calendar year 2025, per Tracxns India Tech Annual Funding Report, ranking India as the worlds third most-funded startup ecosystem. This reflects a more disciplined capital environment after the 2022 funding peak, with a clear shift in investor preference towards profitable, defensible business models. Several new unicorns emerged during the year across AI, fintech, deep tech, and consumer internet, taking Indias total unicorn count past 120.

Funding flows in 2025 were driven by continued interest in AI and GenAI, healthtech, climate and clean energy, fintech, cybersecurity, and e-commerce and retail tech. A marked trend has been the growing allocation of capital towards deep-tech and AI-first businesses. Sustainability and climate-aligned innovation are expected to remain dominant themes through 2026.

(Source: NASSCOM - Indian Tech Startup Landscape Report; Tracxn - India Tech Annual Funding Report 2025; Startup India - DPIIT; Inc42 - Indian Startup Funding Report)

Surge in social media users

The internet and social media continue to serve as the connective tissue of the modern information age. According to DataReportals Digital 2026 Global Overview Report, there are over 5.6 billion social media user identities globally, equivalent to ~65-70% of the worlds population. The continued increase in time spent on social media platforms is expected to drive demand for online matchmaking, dating, and community platforms, as users become more comfortable initiating and building relationships in digital environments.

Asia continues to lead as the region with the largest online population, accounting for over half of global internet users. In India, the internet user base is projected to grow consistently, adding approximately 250 million new users between 2025 and 2030. By 2030, India is expected to host over 1.2 billion internet users, reinforcing its position as one of the worlds largest and most attractive digital consumer markets.

(Source: DataReportal - Digital 2026 Global Overview Report; DataReportal - Digital 2026: India)

INDIAN MATRIMONY MARKET

Large youth demographic

Indias population was estimated at approximately 1.46 billion in January 2026, maintaining its position as the worlds most populous country. The male and female population stood at approximately 51.6% and 48.4% respectively. With a median age of around 29 years, India continues to have one of the largest and youngest populations in the world.

A significant share of Indias population falls within the 15-34 age cohort, which represents the core demographic for the matrimony market. The growth of the online matchmaking market continues to be fuelled by this demographic advantage, coupled with rising digital adoption, increasing disposable incomes, urbanisation, and the gradual evolution of attitudes towards partner discovery and marriage.

(Source: Countrymeters - India Population; UN DESA - World Population Prospects 2024)

Online Matrimony Market in India

The Indian wedding industry remains one of the largest consumption categories in the country, estimated to be worth in excess of US$ 140 billion, making it the second-largest retail segment after food and groceries. This growth is driven by rising consumer spending, a booming luxury and premium segment, a robust destination wedding market, and the continued entry of large cohorts into marriageable age over the remainder of the decade.

According to the Confederation of All India Traders (CAIT), India remains the worlds second-largest wedding market after the United States. The 2025 wedding season witnessed an estimated 46 lakh (4.6 million) weddings between November 1 and December 14, 2025, generating business of approximatelyRs. 6.5 lakh crore (Rs. 6.5 trillion). The sustained growth reflects both volume expansion and higher per-wedding spends across categories such as venues, jewelry, apparel, catering, photography, and digital services.

The wedding services market globally is projected to continue its growth trajectory, with research reports forecasting expansion at a compound annual growth rate of approximately 7% through 2030. India is expected to be a disproportionately large contributor to this growth, given its scale, demographic profile, and rising per-wedding expenditure.

Online meeting - A key driver of social change

While arranged marriages continue to be prevalent in India, the pathway to marriage has evolved meaningfully with the growth of online matrimony services. Young Indians are increasingly turning to digital matchmaking platforms to find life partners, with a notable rise in users from Tier-II and Tier-III cities. Deeper internet penetration, wider smartphone adoption, higher spending power, evolving consumption habits, and the mainstreaming of digital payments continue to drive growth of the online matrimony industry.

Industry surveys indicate that roughly one-third of couples now meet through digital platforms, with a meaningful share specifically via matrimonial and dating sites. Online matchmaking has also catalysed broader social change, reshaping how individuals and families approach the partner discovery process. Post-pandemic, Indians across age groups have become more comfortable initiating conversations online and sustaining relationships digitally alongside traditional offline pathways such as family introductions, workplace, and social gatherings. This blended landscape underscores the continued relevance of trusted, large-scale online matchmaking platforms with deep community and regional coverage.

The growing influence of artificial intelligence — in the form of smarter matching algorithms, personalised recommendations, and trust-and-safety features such as photo authentication and fraud detection — is emerging as a key differentiator in the category. Online matchmaking platforms with scale, brand trust, and deep community and regional coverage are best positioned to benefit from these structural tailwinds.

(Source: CAIT - Wedding Season 2025 Press Release; Business Standard - Wedding Industry Coverage; WedMeGood; Wright Research; IMARC Group - India Wedding Services Market)

COMPANY OVERVIEW

Strengths & Opportunities

Robust brand recognition and market positioning: Matrimony.com is a leading online matchmaking service, offering online and mobile-based matchmaking and marriage services in India and globally. With strong brand recognition, its flagship platform, BharatMatrimony, is among the most trusted and recognised names in the industry.

The Company offers a wide range of matchmaking services, both online and offline, tailored to meet the distinct preferences of Indian-origin consumers, including regional, community-based, and exclusive elite matchmaking services.

The Company provides a variety of online and offline matchmaking solutions, including BharatMatrimony, CommunityMatrimony, EliteMatrimony, and AssistedMatrimony, enabling users to connect with potential life partners. During FY 2025-26, the Company also opened an exclusive Elite Matrimony Experience Center in Hyderabad, complementing its retail presence of over 120 outlets across India catering to users who prefer a personalised, traditional matchmaking approach.

Matrimony.com offers paid subscription plans for its online matchmaking services in India and internationally, enabling users to connect with other members, safeguard their privacy, and enhance their profiles. In FY 2025-26, though the platform recorded over 9.63 lakhs paid subscriptions which is marginal lower compared to 9.95 lakhs as on March 31, 2025, there has been an increase of 11.91% over the previous year in Average Transaction Value which was at Rs. 5,032.

Micro-market strategy: Matrimony.coms micro-market strategy helps it differentiate itself from other matchmaking services in India, catering to 17 regional portals, over 300 community websites, and serving the NRI community across the globe. It allows the Company to offer a variety of products and services to meet the evolving needs of people. The micro-market strategy offers a range of customised products and services to meet the needs of specific groups of people, based on a persons religious, linguistic, and community preferences.

One-stop shop: With a forward integration strategy of offering marriage services across the value chain to enhance its online matchmaking platform, WeddingBazaar, serves as a comprehensive marketplace for wedding-related services such as makeup, photography, mehendi, wedding planning, catering, and decorations. Through Mandap.com, its wedding venue booking service platform, the Company simplifies wedding venue bookings, offering a selection of mandaps, banquet halls, and convention centres. During FY 2025-26, the Company launched WeddingGiftBox, which has shown encouraging early traction.

Entering adjacent segments to capture new customers: The Company has also forayed into adjacent segments to tap potential customers. MeraLuv.com is an exclusive dating app for Indian Americans, while Luv.com addresses next generation (Next-Gen) serious relationships. Focusing on the theme of love before marriage, these platforms bring about key differentiators in the market while addressing the growing market potential. ManyJobs, the Companys jobs platform, has also gained meaningful momentum during the year, reaching one million registered job seekers and over 10,000 recruiters.

Business Leadership and AI capabilities: During the year, the Company strengthened its business leadership team with new appointments, including a Tech Head for new initiatives, and dedicated leadership for Assisted services, Elite, Manyjobs, Mandap, and WeddingGiftBox. The Company also made significant progress on AI-led initiatives across product, customer experience, and operations, laying the foundation for an AI-first organisation in the years ahead.

FINANCIAL PERFORMANCE

An overview of the consolidated financial results of the Company

particulars	FY 2025-26	% to Total	FY 2024-25	% to Total Income	Growth %
	( lakhs)		Income		( lakhs)
Revenue from operations	45,999	99.80%	45,584	98.81%	0.91%
Other income	92	0.20%	549	1.19%	(83.24%)
Total income	46,091	100.00%	46,133	100.00%	(0.09%)
Expenses
Employee benefit expenses	15,234	33.05%	14,156	30.69%	7.62%
Advertising and business promotion expenses	18,421	39.96%	18,842	40.84%	(2.23%)
Other expenses	7,187	15.59%	6,759	14.65%	6.23%
Total expenses	40,842	88.61%	39,757	86.18%	2.73%
Earnings before interest, tax, depreciation, and amortization (EBITDA)	5,249	11.39%	6,376	13.82%	(17.68%)
Depreciation & amortization	2,699	5.86%	2,926	6.34%	(7.76%)
Finance cost	465	1.01%	480	1.04%	(3.13%)
Finance income	(2,278)	(4.94%)	(2,824)	(6.12%)	19.33%
Profit before tax & share of profit / (loss) from associate	4,363	9.46%	5,794	12.56%	(24.68%)
Share of profit / (loss) from associate, net of taxes	(33)	(0.07%)	(12)	(0.03%)	(175%)
Profit Before Tax (PBT)	4,330	9.39%	5,782	12.53%	(25.11%)
Tax expense	913	1.98%	1,254	2.72%	(27.19%)
Profit after tax (PAT)	3,417	7.41%	4,528	9.82%	(24.53%)

Revenue: Overall revenue increased marginally for the year. The revenue distribution is across two segments, Matchmaking and Marriage services & others. The segment-wise performance is given in the table later in the discussion. Matchmaking comprises 99.07% of revenues and increased by 1.28% in FY26 as compared to a decrease of 4.74% in FY25. The matchmaking billings grew by 8.3% in FY26 as compared to a decrease of 4.74% in FY25. The key drivers for this business are the number of paid profiles and Average Transaction Value (ATV). Paid profiles are at 9.63 lakhs, a decrease of 3.27% over the previous year, while ATV is at Rs. 5,032, an increase of 11.91% over the previous year. The Company typically has subscription packages ranging from 3 months, 6 months and 1 year, and the subscription billings are recognised as revenue over the subscription period.

Other income: Other income decreased byRs. 457 lakhs in FY26 over FY25, largely on account of lower gain from pre-closure of leases compared to the previous year and liabilities not required to pay written back which was reversed in the previous year.

Expenses:

• Employee benefit expenses: Employee benefit expenses have increased byRs. 1,078 lakhs (7.62%) mainly due to higher headcount and annual compensation revisions. Total headcount stood at 2,571 as of March 31, 2026.

• Advertising and promotion Expenses: Current year marketing expenses are marginally lower than the previous year by 2.23%, with disciplined spends to support brand visibility despite growth in newly launched initiatives.

• Other expenses: Other expenses mainly comprise IT, infrastructure & facility management cost, collection charges, legal & professional charges and other administrative expenses. These have increased byRs. 428 lakhs (6.34%) compared to the previous year, largely on account of higher technology, professional consulting and infrastructure costs to support new initiatives. As a percentage of total income, other expenses stood at 15.59% in FY26, broadly in line with the previous year (14.65% in FY25).

• EBITDA margins: EBITDA margin is at 11.39% in FY26 as compared to 13.82% in FY25, indicating a decrease of 2.43 percentage points. The decline was largely driven by higher employee costs and continued investments in new growth initiatives. Implementation of longer duration revenue plans resulted into a lower growth in revenue compared to billing growth which also contributed to lower EBITDA margin.

• Finance income: Finance income consists mainly of income from investments of surplus funds in fixed deposits (FDs), mutual funds and tax-free bonds. Finance income decreased toRs. 2,278 lakhs in FY26 fromRs. 2,824 lakhs in FY25, primarily reflecting a lower investment corpus, lower treasury yield driven by repo rate cuts by RBI and the absence of one-off items recorded in the previous year.

• Finance cost: Finance cost mainly consists of notional interest on lease liabilities charged to the Profit and Loss account as per Ind AS 116. The cost is broadly in line with the previous year.

• Effective Tax Rate: The effective tax rate is at 21.09% in FY26 as compared to 21.69% in FY25.

• Profitability: PAT margin in FY26 is at 7.41% as compared to 9.82% in FY25, indicating a decrease of 2.40 percentage points, broadly tracking the EBITDA-margin movement and reflecting the Companys continued investments in newer growth initiatives.

SEGMENT pERFORMANCE

The following tables depict an overview of the segment performance of the Group:

particulars	FY 2025-26 ( lakhs)	FY 2024-25 ( lakhs)	growth %
Revenue:
Matchmaking	45,570	44,996	1.28%
Marriage services & others	429	588	(27.02%)
Total Revenue	45,999	45,584	0.91%
EBITDA:
Matchmaking	8,650	9,217	(6.15%)
Marriage services & others	(1,502)	(1,451)	(3.51%)
Total EBITDA	7,148	7,765	(7.95%)
Key Ratios:
EBITDA Margin %	18.98%	13.82%	5.16%
Net Profit Margin %	7.41%	9.82%	(2.41%)
Return on Net Worth %	14.91%	16.83%	(1.92%)

Note: The reduction in the percentage of return on net worth is due to a reduction in the profitability for the year 2025-26

CASH FLOWS

The Company spentRs. 1,087 lakhs as capital expenditure during the year. Consequently, the Company generated a free cash flow ofRs. 6,455 lakhs during the year, taking the cash position (including cash and cash equivalents and investments) as of March 31, 2026 toRs. 30,785 lakhs. The EBITDA to operating cash flow conversion has been strong at 1.44 times and EBITDA to free cash flow is at 1.23 times.

HEADCOUNT

The total number of employees (excluding subsidiaries and associates) as on March 31, 2026 is 2,571, as compared to 2,754 as on March 31, 2025.

STRATEGY AND OUTLOOK

The Companys key strategic focus areas for FY 2026-27 are as follows:

• Drive high growth in personalised matchmaking services, building on the strong momentum demonstrated during FY 2025-26.

• Transform into an AI-first organisation, leveraging AI for greater operational efficiency, enhanced customer experience, and faster speed of delivery. Al-led automation is expected to optimise the workforce required across both service and sales functions.

• Set up additional Elite Matrimony Experience Centres, building on the success seen in initial markets.

• Scale WeddingGiftBox by achieving the desired success rate for partners in South India, followed by a phased roll-out across India.

• Establish Mandap and ManyJobs as successful propositions in Tamil Nadu before scaling to additional States.

• Continue to leverage the momentum in newly launched offerings — including MeraLuv.com, Luv.com, WedAsssist, and AstroChat — to capture adjacent consumer opportunities.

Backed by its market leadership in online matchmaking, a differentiated micro-market strategy, healthy cash position, AI first approach and a strengthened leadership team, the Company is well-positioned to navigate the evolving consumer landscape and deliver sustained value to all stakeholders in FY 2026-27 and beyond.

RISK MANAGEMENT

Effective risk management is a cornerstone of strong corporate governance. Internal controls serve as structured processes designed to identify, mitigate, and manage potential risks. By proactively assessing risks that could significantly impact long-term sustainability, the Company develops targeted action plans for mitigation. Each mitigation plan is assigned to specific owners, set against defined timelines, and regularly monitored and reviewed to ensure progress.

The Companys comprehensive risk management framework enables the systematic identification, evaluation, and control of risks associated with its business and operations. Oversight of risk management falls under the Companys Risk Management and ESG Committee, which is responsible for identifying and mitigating risks. This committee reports to the Board of Directors, which sits at the top of the corporate governance structure.

Some of the key risks and their corresponding mitigation measures during the year under review are as follows:

• Business & Market Risk:

Changes in consumer preferences — particularly among younger, digitally-native users — and evolving attitudes toward arranged matrimony may impact subscription growth. Additionally, regulations affecting digital platforms could influence the Companys profitability and expansion.

Mitigation Strategy:

The Company continues to differentiate through retail expansion, integration of vernacular languages, and a strong focus on personalised services. Adjacent offerings — including MeraLuv.com for Indian Americans, Luv.com for Next-Gen serious relationships, and allied platforms such as Mandap.com, WeddingBazaar, AstroChat, WedAssist, and ManyJobs — broaden the Companys reach. The Company also actively engages in relevant forums to represent its interests on new regulations and adapts business models to mitigate impact on revenues and profits.

• Data protection & privacy Risk:

The operationalisation of the Digital Personal Data Protection (DPDP) Act imposes substantive obligations on entities handling personal data. Given the sensitive nature of matrimonial information — including community, religion, income, and photographs — any non-compliance could result in regulatory action, financial penalties, and reputational damage.

Mitigation Strategy:

The Company has undertaken a comprehensive DPDP readiness programme encompassing consent management, privacy notices, vendor data processing agreements, grievance redressal mechanisms, data retention policies, and appointment of a Data Protection Officer. Product workflows are being re-engineered to embed privacy by design, and the Company continues to monitor implementation rules and engage industry forums on sectoral clarifications.

• Cybersecurity Risk:

Technology failures, IT system breakdowns, cybersecurity breaches, and threats such as phishing and social engineering attacks could disrupt the Companys operations and harm its reputation. The growing incidence of Al-generated fake profiles and synthetic content also poses new risks to member trust.

Mitigation Strategy:

The Company conducts periodic vulnerability assessments and audits through its internal audit framework to identify and proactively address potential risks. Multi-factor authentication, ID and photo verification, Al-driven fraud detection, and round-the-clock security monitoring are in place. Employees undergo regular security awareness training to safeguard the Companys systems and member data.

• Competition Risk:

Competition from global dating apps, free and freemium regional players, and vertical-specific platforms can significantly affect the Companys market position, pricing, and margins.

Mitigation Strategy:

The Company sustains its market leadership through continuous product innovation, a portfolio of 300+ community portals and 17 regional platforms, a network of 120+ retail outlets, and deep brand recognition across BharatMatrimony and allied brands.

• Platform & Regulatory Dependence Risk:

A significant share of user acquisition and transactions flows through third-party ecosystems including app stores, search engines, and digital advertising platforms. Changes in their policies, algorithms, or commission structures could materially affect unit economics.

Mitigation Strategy:

The Company has diversified acquisition channels across search, social, referrals, and retail, reducing single-platform dependency. Business models have been adapted in response to app-store billing requirements, and the Company actively participates in industry advocacy forums on ongoing regulatory consultations.

• Talent & Human Capital Risk:

Retention of engineering, product, data science, and sales talent in a competitive market is critical to sustaining innovation and execution across the Companys workforce of over 2,825+ employees and 120+ retail outlets.

Mitigation Strategy:

Competitive compensation, ESOP programmes, structured learning and development initiatives, and a values-led culture support employee retention. Workforce planning, succession frameworks, and leadership development programmes ensure continuity in key roles.