RateGain Travel Technologies (RATEGAIN) Q3 24/25 earnings summary

Executive summary

• Achieved steady Q3 FY25 performance with balanced growth, strong margins, and resilient SaaS-based business model, supported by expanding marquee customer engagements and robust AI-powered solution adoption.

• Record EBITDA margin of 22.1% in Q3 FY25, reflecting operational excellence and scale benefits.

• Strategic focus on scalable growth, increasing enterprise revenue share, and expanding product innovation, especially in AI.

• Notable delays in large deal closures due to cautious enterprise spending in the US and Europe, but outlook for 2025 is positive.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024; auditors found no material misstatements.

Financial highlights

• Q3 FY25 consolidated revenue reached INR 2,787.07 million, up 10.6% year-over-year; nine-month revenue at INR 8,159.8 million, up 16.4%.

• Q3 FY25 EBITDA grew 19.9% to INR 614.7 million (22.1% margin); nine-month EBITDA up 26.6% to INR 1,714.7 million (21.0% margin).

• Q3 FY25 PAT increased 39.9% to INR 565.4 million; nine-month PAT up 61.6% to INR 1,541.2 million.

• Basic EPS (consolidated) for Q3 FY25 was INR 4.80; nine-month EPS was INR 13.08.

• Net cash and equivalents stood at INR 12,093.6 million as of December 31, 2024.

Outlook and guidance

• FY25 revenue growth guidance revised to 12%-13% due to deal delays, implying single-digit Q4 growth.

• FY26 expected to be a year of investment in sales and marketing, with margin expansion likely in the long term but not in the short term.

• Management remains optimistic about long-term growth and margin potential as investments in go-to-market motion mature.

• Focus remains on scaling newly launched products and deepening relationships with key clients as global investment in the sector is expected to pick up.