RateGain Travel Technologies Limited has reported its financial results for the second quarter of fiscal year 2026, showcasing steady growth and strategic positioning in the travel technology sector. The company also provided an update on the utilization of proceeds from its Qualified Institutional Placement (QIP) conducted in November 2023.

Financial Highlights

For Q2 FY2026, RateGain reported:

• Operating Revenue of ₹2,950.60 million, up 6.4% year-on-year
• EBITDA of ₹536.30 million, with a margin of 18.2%
• Profit After Tax (PAT) of ₹510.10 million, with a margin of 17.3%

For H1 FY2026, the company achieved:

• Operating Revenue of ₹5,679.80 million, a 5.7% increase year-on-year
• EBITDA of ₹1,033.00 million, maintaining an 18.2% margin
• PAT of ₹979.40 million, with a 17.2% margin

QIP Proceeds Utilization

RateGain's monitoring agency report, issued by CRISIL Ratings Limited, revealed that the net proceeds of ₹5,862.91 million from the QIP conducted in November 2023 remain unutilized as of September 30, 2025. The entire amount is currently parked in fixed deposits with HDFC Bank.

The company plans to use these funds for strategic investments, acquisitions, and inorganic growth, as disclosed in the original offer document. Notably, RateGain announced the acquisition of Sojern Group on September 30, 2025, which is expected to be funded through the QIP proceeds.

Strategic Developments

Bhanu Chopra, Founder and Chairman of RateGain Travel Technologies, commented on the company's performance: "Our GTM expansion strategy continues to deliver strong results in the form of pick-up in new contract wins in H1FY26. 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."

The company reported new contract wins of ₹888.10 million for Q2 FY26, bringing the total for H1 FY26 to ₹1,704.90 million.

AI-Driven Innovation

RateGain continues to advance its AI-first vision, implementing new AI tools across the organization. The company won the CII Award for Best AI Solution Showcase for its flagship product UNO VIVA, highlighting its leadership in AI-led solutions for the travel industry.

Sojern Acquisition

On November 6, 2025, RateGain completed the acquisition of Sojern Inc., a US-based company specializing in AI-powered hospitality and travel marketing platforms. The acquisition, valued at USD 250 million, was funded through a combination of a secured term loan and internal funds.

Outlook

Rohan Mittal, Chief Financial Officer of RateGain, stated: "Highest ever quarterly revenue reaffirms our GTM strategy, stable EBITDA % reflects a disciplined approach to investments that we are making across products and people. The addition of Sojern will further accelerate our EPS journey."

As RateGain integrates Sojern and continues to focus on AI-driven solutions, the company appears well-positioned to capitalize on the growing demand for innovative travel technology solutions.

About RateGain Travel Technologies Limited

RateGain is a global provider of AI-powered SaaS solutions for the travel and hospitality industry. The company works with over 3,200 customers and 700+ partners in more than 100 countries, helping them accelerate revenue generation through acquisition, retention, and wallet share expansion.

RateGain Travel Technologies Limited has announced its unaudited financial results for the second quarter and half year ended September 30, 2025, revealing a mixed performance with revenue growth accompanied by a decline in profitability. The company has also completed a significant acquisition.

Financial Performance

The company reported a year-over-year increase in revenue for Q2:

Despite the revenue growth, RateGain experienced a decline in profitability:

Key Highlights

• The company's revenue increased by 6.4% year-over-year, reaching ₹2,950.50 million in Q2 FY2026.
• EBITDA decreased by 11.1% to ₹535.00 million, compared to ₹602.00 million in the same quarter last year.
• The EBITDA margin compressed by 351 basis points, from 21.71% to 18.20%.
• Consolidated net profit saw a slight decrease of 2.3%, from ₹522.07 million to ₹510.12 million.

Corporate Actions and Developments

• The Board of Directors approved the results in a meeting held on November 11, 2025.
• RateGain operates in the information technology services segment, providing solutions to clients in the hospitality and travel industry.
• The company completed the acquisition of Sojern Inc., a US-based AI-powered hospitality and travel marketing platform company, for USD 250 million on November 8, 2025. The acquisition was funded through a secured term loan of USD 125 million and internal funds of USD 125 million.
• RateGain's Nomination and Remuneration Committee approved the grant of 2,817 Stock Appreciation Rights (SARs) under the "RateGain - Stock Appreciation Rights (SAR) Scheme – 2022" on November 10, 2025. The SARs were granted at a price of ₹649.00 per SAR Unit, with a vesting period of 4 years and an exercise period of 3 years from the date of vesting.

Investors and analysts may want to monitor how RateGain addresses the profitability challenges while continuing to grow its revenue in the coming quarters. Additionally, the impact of the Sojern acquisition on the company's future performance will be an important factor to watch.