RateGain Q2: Profit Remains Flat At INR 51 Cr, Revenue Up 6.4% YoY

Travel-focussed SaaS major RateGain’s consolidated net profit declined 2% to INR 51 Cr in the second quarter of the ongoing fiscal year (Q2 FY26) from INR 52.2 Cr in the same quarter previous year. Sequentially, profit rose 8.7% from INR 46.9 Cr. 

Operating revenue rose 6% to INR 295.1 Cr during the quarter under review from INR 277.3 Cr in Q2 FY25. Sequentially, it rose 8.1% from INR 272.9 Cr.

Including other income of INR 21.5 Cr, total income grew 8% to INR 316.6 Cr from INR 294.6 Cr in the year-ago quarter. On the expense front, RateGain’s total expenses increased 19% YoY to INR 55.8 Cr in the quarter under review, from INR 47 Cr in the same quarter last year. In this, its employee benefit expense surged 17% YoY to INR 44 Cr. 

Meanwhile, the company’s EBITDA declined 11% YoY to INR 53.6 Cr in the quarter under review.

On the operational front, the company secured new contracts worth INR 170.5 Cr during the quarter while its revenue pipeline stood at INR 588.6 Cr. It added 39 customers in the quarter, taking its total customer count to 3,240.

“We have registered our best-ever performance in new contract wins in APMEA driven by focused execution and growing adoption of RateGain’s integrated solutions. This performance reaffirms the strength of our strategy and validates the progress we are making in building an AI-first platform for the travel industry,” Rategain’s chairman and managing director Bhanu Chopra said.

As per the company, Q2 FY26 recorded the highest- ever quarterly revenue on the back of strong traction of its data as a service (DaaS) and MarTech verticals growth. For context, RateGain divides its business into three segments — DaaS, distribution channel and martech. 

In the first half of the ongoing fiscal year, Martech accounted for over half of its total revenue, while DaaS brought in 31% and the distribution segment accounted for 17.4% of the company’s total revenue pie.

Beyond its operational gains, RateGain also pursued inorganic growth during the quarter with the acquisition of Sojern, an AI-led marketing platform built for the hospitality sector, in a $250 Mn deal (around INR 2,200 Cr).

Founded in 2007, Sojern offers AI-based hospitality, travel marketing, and guest engagement platform. The company has presence in multiple countries including US, UK, Ireland, UAE, Singapore, France and Mexico.  

Sojern’s turnover for FY25 stood at $177.2 Mn. The acquisition was completed in November and the business’ performance would be included in RateGain’s balance sheet starting Q3 FY26. “The addition of Sojern will further accelerate our EPS journey. The successful integration of Sojern continues to be our immediate priority,” RateGain’s CFO Rohan Mittal said. 

Shares of RateGain ended today’s trading session down 2.3% at INR 659.25.