Matrimony.com Ltd shares jump 14% after company to consider share buyback

Synopsis: Matrimony.com shares jumped 14% after the company announced a board meeting to consider its third buyback in three years. The company’s past buybacks offered substantial premiums of 27% in 2024 and 71% in 2022, reflecting strong management confidence.

This company is a leading Indian online matchmaking and marriage services company, best known for its flagship brand BharatMatrimony is now in the focus after the company’s considering a share buyback proposal.

With market capitalization of Rs. 1,130 cr, the shares of Matrimony.com Ltd are currently trading at Rs. 527 per share, increasing 14% in today’s market session making a high of Rs. 543.75, from its previous close of Rs. 476.45 per share.

A share buyback is when a company repurchases its own shares from the open market, reducing the total number of shares available. This often signals management’s confidence in the company’s future and can improve financial ratios like EPS by spreading profits over fewer shares. 

About the Buyback

Matrimony.com Ltd shares rallied up to 14% on December 8, 2025, reaching and following the company’s announcement of a board meeting on December 15 to consider a share buyback proposal. This marks the third buyback in three years, signaling management’s confidence in returning capital to shareholders. The record date for the buyback remains undisclosed.​

Buybacks are tax-efficient ways to boost earnings per share by reducing outstanding equity, often sparking investor enthusiasm as seen in prior surges of 10-14% on similar news. Promoters held 54.26% stake as of Q2FY26 end.​

In September 2024, the company completed a Rs. 72 crore buyback, repurchasing 7.02 lakh equity shares at Rs. 1,025 per share, a 27% premium to the pre-announcement price via a tender offer from October 30 to November 6. 

Its inaugural buyback in May 2022 involved Rs. 75 crore at Rs. 1,150 per share, a 71% premium, targeting up to 6.52 lakh shares or 2.85% of equity capital, though the stock price did not reach the buyback level. 

About the company 

Matrimony.com Ltd is a leading Indian online matchmaking and marriage services company, best known for its flagship brand BharatMatrimony along with several community-focused platforms. It operates across matchmaking, wedding services, and related digital offerings, serving millions of users seeking long-term relationships.

Sales declined about 1% YoY, slipping slightly from Rs. 116 crore to Rs. 115 crore. Profitability weakened more sharply, with EBITDA falling around 31% YoY from Rs. 17.3 crore to Rs. 12 crore. The bottom line also softened as net profit dropped roughly 41% YoY, down from Rs. 13.2 crore to Rs. 7.76 crore, while EPS rose 39% YoY from Rs. 5.91 to Rs. 3.60.

The company delivers strong return ratios, with a ROCE of 19.4% and ROE of 17%, indicating efficient use of capital and equity. Its low debt-to-equity ratio of 0.22 reflects a comfortably leveraged balance sheet. Moreover, it has consistently rewarded shareholders, maintaining a healthy dividend payout of 31.3%.

Written by Manideep Appana

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