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    Rategain Travel

    RATEGAIN
    Information Technology·21 May 2026
    Management Summary

    RateGain Travel Technologies reported a strong Q4 and Full Year FY26, marked by record revenues and significant EBITDA growth, largely driven by the successful integration of Sojern and robust organic performance. The company provided optimistic FY27 guidance with substantial revenue and EBITDA growth targets, emphasizing its position as an AI-powered operating system for travel revenue growth. While the Middle East conflict presented some headwinds, management expressed confidence in its strategic direction and continued market leadership.

    Highlights

    5

    • Highest ever quarterly revenue of INR 716 crores, a 175% YoY growth, driven by strong organic and inorganic contributions.

    • Full Year FY26 revenue reached INR 1,824 crores, exceeding revised guidance with 69.4% YoY growth.

    • Adjusted EBITDA for Q4 came in at 23.5%, a 177% growth YoY, demonstrating disciplined execution and profitability.

    • RateGain organic revenue grew at 19.3% YoY to INR 311 crores in Q4, achieving double-digit organic growth by fiscal year-end.

    • Sojern integration is ahead of plan, with full cost synergy delivered in Q4 and annualized cost synergies now at USD 15 million, exceeding initial Phase I target.

    Concerns

    2

    • The Middle East war impacted DMO and properties business, resulting in a deferred revenue impact of approximately USD 2 million.

    • Amortization of Sojern purchase price consideration and finance costs contribute to a recurring EBITDA to PAT delta of USD 6-6.5 million per quarter.

    Key financials

    Metrics

    8

    Periods

    2

    Headline

    3
    • Full Year FY26 Revenue
      ₹1,824 Cr
      YoY+69.4%
    • Full Year FY26 PAT
      ₹194.4 Cr
    • Annualized Revenue Run Rate
      ₹2,850 Cr

    Q4 FY26

    5
    • Revenue
      ₹716 Cr
      YoY+1.8%
    • Organic Revenue
      ₹311 Cr
      YoY+19.3%
    • Adjusted EBITDA Margin
      23.5%
      YoY+1.8%
    • Consolidated EBITDA Margin
      20.5%
    • PAT
      ₹70 Cr

    Segment breakdown

    DaaS
    21.5% Q4 FY26 Growth
    Martech (excluding Sojern)
    37.5% Q4 FY26 Growth
    List

    Order Book

    medium confidence

    Pipeline

    deal pipeline tcv

    Strong pipeline momentum, especially in APMEA for Martech engine.

    "Management highlighted significant cross-sell opportunities, new airline wins, and extended partnerships, indicating strong commercial momentum and an expanding market footprint."

    Source:
    Prepared remarks

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Debt

    Net ₹722 crores

    M&A

    Sojern

    acquisition · integrated

    Liquidity

    Cash ₹199 crores

    Strong balance sheet with net worth of INR 2,005.8 crores.

    Guidance & targets

    12
    CategoryTargetPriority
    Revenue
    Full Year FY27 Revenue
    INR 3000-3100 crores
    		High
    Revenue
    Full Year FY27 Organic Growth (Combined Entity)
    12-15%
    		High
    Revenue
    USD 1 billion revenue company
    $1 billion
    		High
    Revenue
    Organic growth (USD terms)
    10-12%
    		High
    Revenue
    DaaS growth (USD terms)
    10-14%
    		High
    Revenue
    Distribution growth (USD terms)
    Mid-single-digit
    		Medium
    Revenue
    Martech growth (USD terms)
    12-15%
    		High
    Revenue
    SoHo growth (USD terms)
    30%+
    		High
    Profitability
    Full Year FY27 EBITDA
    INR 650-700 crores
    		High
    Profitability
    Free cash flow to EBITDA conversion
    Higher than 75%
    		High
    Margin
    Full Year FY27 EBITDA Margin (excluding earn-out)
    21.5-22.5%
    		High
    Debt
    Debt-free status
    Debt-free
    		High

    FY27 Organic Growth (USD terms)

    FY27
    Current19.3% (Q4 FY26 organic INR)
    Target10-12%

    Why it matters

    Verifying if the company achieves its conservative double-digit organic growth target in USD terms, crucial for sustained long-term growth.

    So if we were to break this down, as Bhanu mentioned, on USD terms, we are looking at 10% to 12% kind of a growth is the outlook that we have.

    How to verify

    guidance_and_targets[metric='Organic growth (USD terms)']

    Risks & concerns

    2
    RiskSeverity

    Middle East geopolitical situation impacting travel demand

    The Middle East war impacted DMO and properties business, with a deferred revenue impact of approximately USD 2 million. Management expects a strong rebound post-stabilization. — Both acknowledged

    medium

    Recurring financial impact from Sojern acquisition (amortization, finance costs)

    A recurring EBITDA to PAT delta of USD 6-6.5 million per quarter is due to Sojern amortization (USD 2.8 million/quarter) and finance costs (USD 1.6 million/quarter), which are structural reallocations of capital. — Management acknowledged

    medium

    Q&A highlights

    6

    “Yes. This is Divik. I think in terms of data partnerships, we would have on a combined basis over 320 data partners for the combined entity, combining both from Adara and Sojern onto the 1 platform. And in term of travel graph IDs, that we are tracking, that would be over 1.5 billion graph IDs.”

    Quantifies the scale of RateGain's combined data assets post-Sojern acquisition, highlighting its market leadership in travel intent data.

    asked by Karan Uppal

    2 min read6 chapters

    Detailed Narrative

    01

    Q4 & Full Year FY26 Financial Performance

    RateGain reported its highest ever quarterly revenue of INR 716 crores in Q4 FY26, marking a substantial 175% year-on-year growth. Organic revenue also showed strong momentum, reaching INR 311 crores with a 19.3% YoY increase, achieving the target of double-digit organic growth by fiscal year-end. For the full fiscal year 2026, revenue stood at INR 1,824 crores, reflecting a 69.4% YoY growth and surpassing the revised guidance. The company also crossed an annualized revenue run rate of INR 2,850 crores, demonstrating significant scale expansion.

    02

    Profitability and Margin Expansion

    Adjusted EBITDA for Q4 FY26 came in at 23.5%, a 177% growth compared to the same period last year. This figure is adjusted for the deferred consideration related to the Sojern acquisition. Consolidated EBITDA for Q4, including the earn-out, was 20.5%. The company's adjusted PAT for Q4 was INR 90.9 crores (12.7% margin), and for the full year, it was INR 249.9 crores (13.6% margin), indicating healthy profitability despite integration efforts and investments.

    03

    Sojern Integration and Strategic Platform Evolution

    The integration of Sojern is ahead of schedule, with full cost synergies delivered in Q4 FY26. Adara and Sojern are now unified under a single brand, Sojern, and their technology platforms are consolidated. This integration has created the world's largest single source of travel intent data, providing an unmatched data moat and operational efficiency. Annualized cost synergies from Sojern have increased to USD 15 million, up from USD 12 million, positioning Sojern for 19-20% EBITDA margins.

    04

    AI-Powered Offerings and Market Leadership

    RateGain is evolving into an AI-powered operating system for travel revenue growth, integrating demand generation, distribution, and revenue optimization. Key AI initiatives include Agentic ARI, which reduces traffic by 30-40% and improves rate accuracy, and UNO VIVA, handling voice reservations across 30+ languages. The company's travel intent data platform was showcased through the FIFA World Cup 2026 Market Pulse dashboard, generating significant media attention and positioning RateGain as a definitive lead on global travel demand.

    05

    FY27 Guidance and Growth Outlook

    For FY27, RateGain expects revenues of INR 3000-3100 crores, representing 65-70% YoY growth. This includes an organic growth projection of 12-15% for the combined entity. EBITDA is guided at INR 650-700 crores, with a margin of 21.5-22.5% (excluding earn-out consideration). The company aims to achieve USD 1 billion in revenue by FY30-31 and expects free cash flow to EBITDA conversion to be higher than 75% in FY27.

    06

    Capital Structure and Debt Management

    The company has maintained strong discipline in debt repayment, having repaid USD 31.5 million to date, representing 25.2% of the original loan. The current outstanding balance is USD 93.5 million, and net debt stands at INR 722 crores. With strong free cash flow generation (INR 230 crores for FY26, INR 82 crores in Q4), RateGain expects to retire the balance of acquisition-related debt and become debt-free by fiscal year '28 end.

    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.