RateGain Q3 Profit Zooms 40% YoY To INR 57 Cr

Enterprise tech unicorn RateGain’s consolidated net profit surged 40% to INR 56.54 Cr in the third quarter of the fiscal year 2024-25 (Q3 FY25) from INR 40.42 Cr in the year-ago quarter on higher EBITDA margins driven by strategic investments in product innovation and partnerships.

On a quarter-on-quarter basis, net profit rose over 8% from INR 52.20 Cr.

The travel tech SaaS company’s EBITDA zoomed 20% to INR 61.47 Cr in Q3 FY25 from INR 51.26 Cr in Q3 FY24. EBITDA margin rose to a record 22.1% during the quarter under review from 20.3% in the year-ago period. 

Rategain said that operating leverage is contributing to strong operating margin growth.

Its revenue from operations jumped nearly 11% to INR 278.70 Cr in the December quarter of FY25 from INR 252 Cr in the same quarter last year, with steady growth across marketing technology (martech) and desktop-as-a-service (DaaS) segments.

On a sequential basis, the company’s operating revenue remained flat.

Including other income of INR 20.32 Cr, total revenue stood at INR 299 Cr during the quarter under review.

The surge in sales outpaced the rise in expenditure. Total expenses went up 7% to INR 225.91 Cr in Q3 FY25 from INR 210.86 Cr in the year-ago period. Of this, RateGain spent INR 103.33 Cr on employee benefits expenses in the reported quarter.

For the nine months ended December 2024 (9M FY25), the company reported a consolidated profit after tax (PAT) of INR 154.12 Cr, a 62% jump from INR 95.37 Cr in the year-ago period. Operating revenue grew over 16% to INR 816 Cr in 9M FY25 from INR 701.22 Cr in 9M FY24. 

“Strong profitability metrics supported by improved positive cash flow generated from operating activities ability to drive revenue through multiple products by cross-selling & up-selling to existing marquee customers,” RateGain said in its Q3 & 9M FY25 investor presentation.

The company further said that constant product innovation is enabling it to build steady revenue streams. Its annual recurring revenue stood at INR 1,114.9 Cr during 9M FY25, while the loan-to-value (LTV) to customer acquisition cost (CAC) for the fiscal year came in at 14.2X.

“We continue to see sustainable growth, driven by marquee customers across verticals who are expanding their engagements and trusting RateGain’s ability to deliver excellence at scale through AI-driven innovation. With a robust deal pipeline and growing adoption of our AI-powered solutions in new market segments, we are confident in building on this momentum in the next fiscal year,” said Bhanu Chopra, founder and managing director of RateGain.

Meanwhile, RateGain continued to expand its workforce, which saw a 10.7% YoY increase with the total headcount standing at 826 as of December 31, 2024. The company also claimed that it has brought its attrition rate to record-low levels at 9.6%.

Shares of RateGain ended Friday’s trading session 1.03% lower at INR 626.80 apiece on the BSE.