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    Rategain Travel Technologies Limited

    RATEGAIN
    Information Technology·16 Feb 2026
    Management Summary

    RateGain Travel reported a transformative Q3 FY26 with 94% YoY revenue growth to INR540 crores, largely due to the Sojern acquisition. Despite a reported PAT decline from acquisition-related costs, adjusted PAT grew 8% YoY. The company achieved significant cost synergies in Sojern and repaid a substantial portion of acquisition debt, while maintaining a strong focus on AI-powered integrated tech stack development and market leadership.

    Highlights

    5

    • Revenue of INR540 crores, up 94% year-on-year, driven by Sojern consolidation.

    • Achieved $12 million in annualized cost savings in Sojern within 100 days of integration.

    • Repaid approximately $25 million of acquisition-related debt, representing 20% of gross loan amount.

    • PAT adjusted for onetime exceptional expenses grew 8% year-on-year.

    • SoHo business, previously unprofitable, achieved profitability this quarter.

    Concerns

    3

    • Reported PAT declined year-on-year due to increased amortization from acquisition accounting, deal-related costs, and finance costs.

    • Organic revenue grew 4.1% year-on-year, with some quarter-end revenue deferred to Q4 FY26.

    • Sojern's business experiences seasonality, with November and December being the softest months.

    What Changed3

    vs Q4 FY26

    Guidance items12 → 7 (-5)Risks discussed2 → 3 (+1)Q&A highlights6 → 8 (+2)
    Key financials

    Metrics

    20

    Periods

    2

    Headline

    18
    • Revenue
      ₹540 Cr
      YoY+94%
    • EBITDA Growth
      42%
    • Consolidated EBITDA Margin
      16.1%
    • Organic Revenue
      ₹290 Cr
      YoY+4.1%
    • Organic EBITDA Margin
      17.5%

    Q3

    2
    • Cash Flow from Operations
      ₹70 Cr
    • One-time Nonrecurring Costs
      ₹34.6 Cr

    Order Book

    medium confidence

    "Bookings growth is a strong lead indicator of future revenue and reflects the ROI of GTM investments."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Debt

    Net ₹880 crores

    Liquidity

    Cash ₹362 crores

    Guidance & targets

    6
    CategoryTargetPriority
    Organic Revenue Growth
    FY26 Organic Revenue Growth
    6%-plus
    		High
    Organic EBITDA Margin
    FY26 Organic EBITDA Margin
    17.5% to 18%
    		High
    EBITDA Margin
    Sojern EBITDA Margin (going forward)
    18.5% to 19.5%
    		High
    EBITDA Margin
    Consolidated EBITDA Margin (sustainable long-term)
    18% to 18.5%
    		High
    Revenue
    Long-term Revenue Target
    $1 billion
    		High
    Debt
    Net Debt Status
    net debt positive
    		High

    What to watch in Q4 FY26

    5

    Sojern Cost Synergies Visibility

    Q1 FY27
    Current$12 million annualized cost savings achieved, partial visibility in Q4 FY26
    TargetFull impact of $12 million annualized cost savings visible in Q1 FY27 P&L

    Why it matters

    To confirm the realization of cost efficiencies from the Sojern acquisition and its positive impact on consolidated margins.

    These savings will be partially visible in Q4 and fully visible in Q1 FY '27 onwards.

    Risks & concerns

    3
    RiskSeverity

    Acquisition-related Costs Impacting PAT

    Reported PAT declined due to increased amortization from acquisition accounting, deal-related costs (diligence, severance, alignment), and finance costs related to acquisition funding. These are integration and accounting impacts, not a deterioration in the underlying business. — Management acknowledged

    medium

    Seasonality in Sojern's Business

    Sojern's property business, contributing 45% of annual revenue, experiences seasonality, with November and December being the softest months, impacting Q3 results. This is a known factor and is expected to recover in Q1. — Management acknowledged

    low

    Temporary Organic EBITDA Margin Dip from GTM Investments

    The organic EBITDA margin saw a slight dip from 18.2% to 17.5% due to strategic investments in GTM teams (primarily payroll for new hires) aimed at accelerating future growth. Management expects strong ROI from these investments in future quarters. — Analyst acknowledged

    low

    Q&A highlights

    8

    “So the offerings are actually, this is our first acquisition where we have acquired a company with very, very similar offerings. In fact, as I mentioned in my opening remarks, we were going head on head against Sojern in the destination management space, and we were literally the top 2 providers for the DMO segment. ... In the case of Sojern, the properties business contributes as much as 45% annually to the overall revenue pie, which means that the seasonality will have some slightly more impact than what has been evident on the RateGain side of things.”

    Clarified the strategic overlap and competitive positioning of Sojern's offerings, and explained the impact of seasonality on consolidated revenue due to Sojern's business mix.

    asked by Deep Shah

    2 min read6 chapters

    Detailed Narrative

    01

    Q3 FY26 Performance Overview

    RateGain Travel Technologies reported a transformative Q3 FY26, achieving INR540 crores in revenue, marking a 94% year-on-year increase. While reported PAT declined due to acquisition-related costs, adjusted PAT, excluding one-time📎 exceptional expenses📎, grew 8% year-on-year. The company highlighted strong operational, strategic, and structural progress during the quarter, including significant cost synergies and debt repayment.

    02

    Sojern Integration and Synergies

    The integration of Sojern is progressing well, with approximately $12 million in annualized cost savings already executed within the first 100 days, primarily from G&A functions. These savings are expected to be partially visible in Q4 FY26 and fully realized by Q1 FY27. Furthermore, the company repaid $25 million of acquisition-related debt within 90 days, reducing net debt to INR880 crores and aiming for a net debt positive position within 30 months.

    03

    Strategic Growth Drivers and Market Leadership

    RateGain is building an integrated AI-powered tech stack across acquisitions, engagement, distribution, and revenue optimization. The integration of Adara and Sojern has established RateGain as the dominant provider in the destination management organization space. The company also saw strong commercial traction for its AI Concierge product, with hotels reporting up to 300% increase in ancillary revenue and 75% NPS improvement.

    04

    Organic Growth and Profitability Outlook

    Organic revenue for Q3 FY26 stood at INR290 crores, growing 4.1% year-on-year, with some revenue deferrals to Q4. Organic EBITDA margin was 17.5%. Management is confident in achieving 6%-plus organic growth and 17.5-18% organic EBITDA for the full FY26. Q4 FY26 is projected to see double-digit organic growth, supported by strong booking momentum (over 30% YoY growth in 9-month bookings).

    05

    AI Strategy and Long-term Vision

    RateGain views AI as an accelerator, not a disruptor, embedding it into commercial decision loops and product offerings. This includes the newly launched VIVA AI-powered voice agent for direct booking capture and AI-driven tools for audience targeting, pricing intelligence, and guest engagement. The company has set an ambitious long-term revenue target of $1 billion by 2030, driven by its integrated AI-powered travel tech stack.

    06

    Customer Base Harmonization and DaaS Business

    Management is re-evaluating its customer count methodology to harmonize reporting post-Sojern acquisition, with a unified count expected in Q4 FY26 and an overlap of less than 5%. The DaaS segment, excluding the gradually unwound Adara DaaS business, is growing at 10-12% year-on-year. Sojern's revenue is entirely classified under the MarTech division.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.