RateGain Travel Technologies Ltd, a leading SaaS provider for the travel and hospitality sector, reported a stellar financial performance for the quarter ended June 2025. The company posted a consolidated net profit of ₹469.3 million, marking an 82.2 percent surge, while revenue from operations rose 21.2 percent to ₹2.73 billion. Despite the strong numbers, the stock declined nearly 13 percent post-results, reflecting investor caution over slower contract wins and pricing pressures.
Key Highlights from Q1 FY2026 Results
Revenue from operations: ₹2.73 billion
Net profit: ₹469.3 million
EBITDA: ₹497.7 million
EBITDA margin: 19.1 percent
PAT margin: 17.5 percent
Annual recurring revenue: ₹10.4 billion
Deal pipeline: ₹5.55 billion
Operational Strength and Margin Expansion
RateGain’s performance was driven by increased traction across long-standing client relationships and operational excellence. The company’s AI-powered revenue maximization tools continue to gain popularity among hotels, airlines, and travel platforms seeking omnichannel optimization and customer acquisition.
Revenue per employee stood at ₹13 million, and the LTV to CAC ratio came in at a healthy 15.7x, underscoring the company’s scalable business model. The attrition rate dropped to a record low of 10.9 percent, reflecting a stable and motivated workforce.
Management Commentary and Strategic Focus
Founder and Chairman Bhanu Chopra emphasized RateGain’s steady start to FY26, highlighting product innovation and deepening client relationships. CFO Tanmaya Das noted a 150 basis point improvement in EBITDA margins despite annual wage increments, attributing it to operational discipline and strategic investments.
The company remains focused on expanding its tech stack, exploring inorganic growth opportunities, and investing in talent to sustain long-term value creation.
Stock Movement and Market Sentiment
RateGain’s stock fell 13 percent post-results, closing at ₹427.25 on NSE
The decline was attributed to:
Slower pace of new contract wins
Pricing pressure in key verticals
Loss of a major account in the OTA segment
Despite the dip, brokerages like Hem Securities maintain a buy rating with a target price of ₹620, citing strong fundamentals and long-term growth potential
Strategic Positioning and Sector Outlook
RateGain’s positioning as a niche SaaS player in travel tech gives it a competitive edge amid rising digitization in hospitality. With over 3,200 clients and partnerships across more than 100 countries, the company is well-placed to benefit from global travel recovery.
However, macro uncertainties and cautious enterprise spending in developed markets could impact near-term growth. Investors are advised to monitor contract momentum and margin sustainability before making fresh allocations.
Source: RateGain Boosts PAT by 82% YoY with Sustained Revenue Growth – RateGain Press Release RateGain Travel Technologies consolidated net profit rises 82.18% – Business Standard RateGain Travel Technologies News – The Economic Times
