RateGain Shares Slump 15% To Hit Fresh 52-Week Low

Shares of enterprise tech unicorn Rategain nosedived 15% to touch fresh 52-Week low at INR 522.35 on the BSE today (February 17). 

The share price declined even after the company’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 a quarter-on-quarter basis, net profit rose over 8% from INR 52.20 Cr.

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. 

Notably, on a sequential basis, the company’s operating revenue remained flat at INR 278.70 Cr. 

The stock later at 12 PM recouped some of its losses and was trading almost 9% lower from the stock’s last (February 14) closing price of INR 615.70 apiece on the BSE. 

Amid a dip in its share price, RateGain’s market capitalisation stood at INR 6,619 Cr at the time of writing. 

In Q3 FY25, the travel tech SaaS company’s EBITDA zoomed 20% to INR 61.47 Cr 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.

Total expenses went up 7% to INR 225.91 Cr in Q3 FY25 from INR 210.86 Cr in the year-ago period.

Founded in 2004 by Bhanu Chopra, RateGain is a global provider of SaaS solutions for travel and hospitality sectors, enabling enterprises to accelerate revenue growth through acquisition, retention and wallet share expansion. The startup claims to cater to more than 3,200 customers and has a presence in over 100 countries.

RateGain entered the stock market in December 2021. The stock debuted at INR 425, which was at the upper end of its IPO price range of INR 405 to INR 425.