RateGain Travel Technologies (RATEGAIN) Q1 25/26 earnings summary

Executive summary

• Achieved a six-quarter high in new contract wins at INR 816.8 million, up 37.7% year-on-year, with non-Adara contracts growing 53% year-on-year to INR 461 million.

• Strategic investments in go-to-market and AI-first product innovation are driving growth, especially in APAC and the Middle East, with GTM headcount in these regions rising from 15 to 55.

• AI-led solutions such as UNO VIVA, RG Insights, Smart ARI, and REMO are gaining traction, with deployments and customer adoption increasing.

• Key partnerships and large deals secured across airlines, OTAs, and hospitality, including major wins in LATAM, Cloudbeds, Air Montenegro, LIAT Airlines, and Razorpay.

• Leadership team strengthened with three senior appointments and a new Independent Director with significant AI and technology experience.

Financial highlights

• Q1 FY26 consolidated revenue reached INR 2,729.2 million, up 5% year-on-year.

• Operating margin stood at 18.2%, with EBITDA at INR 496.7 million and PAT at INR 469.3 million, up 3% year-on-year.

• Cash and cash equivalents at quarter-end were INR 12,811.3 million; net worth at INR 1,740 crore.

• Basic and diluted EPS for Q1 FY26 were INR 3.98 (consolidated) and INR 1.53 (standalone).

• Total comprehensive income for Q1 FY26 was INR 581.93 million, up from INR 442.02 million in Q1 FY25.

Outlook and guidance

• Management maintains FY26 guidance of 68% growth and 15%-17% margin, with an aspiration to exceed targets.

• No plans to revise guidance quarterly; focus remains on outperforming initial targets.

• Healthy pipeline of INR 512.3 crore, with strong representation across North America, Europe, and APAC.

• QIP proceeds of INR 6,000 million remain unutilized as of June 30, 2025, parked in deposits for future strategic investments and acquisitions.

• Merger of BCV Social LLC with RateGain Adara Inc. effective April 1, 2025, expected to deliver operational synergies and cost efficiencies.