RateGain's Q2 Shock: Profit Slips, But Revenue Hits Record High! See What's Next for Investors!

RateGain Travel Technologies announced its financial results for the quarter ended September 2025 (Q2 FY26). The company's consolidated net profit saw a slight decrease of 2.3%, amounting to ₹51 crore compared to ₹52.2 crore in the same quarter last year.

Despite the profit dip, revenue demonstrated robust growth. Total revenue increased by 6.4% year-on-year to ₹295 crore, marking the company's highest-ever quarterly revenue. Sequentially, revenue grew by 8.1%. For the first half of FY26, revenue growth was 5.7%, aligning with the management's full-year projection of 6–8%.

Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) declined by 11% year-on-year to ₹53.6 crore. However, the company maintained healthy EBITDA margins at 18.2%, exceeding its FY26 guidance range of 15–17%.

RateGain also reported positive developments in new business acquisition, winning contracts worth ₹88.8 crore during the quarter, up from ₹81.7 crore in the preceding quarter. The company's financial health is further underscored by its substantial cash balance of ₹1,351 crore as of September 2025. A significant portion of this, ₹1,089.6 crore, has been allocated for the acquisition of Sojern, which is expected to be consolidated into RateGain's financials starting from the third quarter of FY26.

**Impact**: This news directly impacts RateGain Travel Technologies' stock performance and investor sentiment. While revenue growth and strong cash reserves are positive, the slight dip in profit and EBITDA may cause some concern. The acquisition of Sojern is a strategic move that could drive future growth. Rating: 6/10.

**Difficult Terms Explained**: * **Consolidated Net Profit**: The total profit of a parent company and its subsidiaries after deducting all expenses, taxes, and interests. * **EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation)**: A measure of a company's operating performance before accounting for non-operating expenses such as interest, taxes, and non-cash expenses like depreciation and amortisation. * **Sequential Growth**: The growth of a financial metric (like revenue or profit) from one period to the next consecutive period (e.g., from Q1 to Q2). * **Sojern**: A company that provides digital marketing solutions for the travel industry.