Markets India
Shares of Matrimony.com slid 3.6% following an ICICI Securities downgrade, even as its Q2 FY27 profit surged 167%, reaching ₹20.7 crore.
Matrimony.com shares fell to ₹588 on Thursday after ICICI Securities downgraded the stock despite a strong quarterly performance. The company reported consolidated profits of ₹20.7 crore, up 167.3% year-over-year (Y-o-Y), with revenue rising 18% Y-O-Y to ₹134.8 crore in Q2 FY27.
The downgrade reflects concerns about sustaining growth momentum as management expects single-digit billings growth for the quarter due to seasonal factors. While matchmaking services saw a 10.9% Y-o-Y increase in billings, marriage-related revenue declined by 11.1%, highlighting potential imbalances in revenue streams.
ICICI Securities noted that improved affordability of its services could support medium-term growth but remains cautious about the company’s ability to maintain current performance levels. Paid subscriptions grew 26.6% Y-o-Y to 300,000, though this was offset by a sharp drop in marriage service billings.
The firm revised its target price for Matrimony.com from ₹650 to ₹690 but downgraded the stock to 'Add', signaling mixed sentiment about future prospects.
Management anticipates improved billing performance in Q4 FY27 amid seasonal demand, while ICICI Securities adjusted its target price to ₹690.
The downgrade underscores lingering doubts about Matrimony’s growth sustainability despite strong quarterly results. Whether affordability gains translate into long-term revenue momentum remains the key question for investors.
Topics: Stock Market News, Financial Services Sector, Online Matchmaking Growth, Business Analysis, Investment Downgrade
#MatrimonyDowngrade #ICICISecurities #Q2Results #FinancialNews #MarketAnalysis
Source: Business Standard
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