RATEGAIN TRAVEL TECHNOLOGIES (RATEGAIN)
RATEGAIN TRAVEL TECHNOLOGIES — Stage 3 setup with EFS 81.6 and investment score 68.9.
Investment Read
Separate the company from the entry: business quality first, timing second.
The edge is in staying with strong fundamentals — and demanding a sane entry.
RATEGAIN TRAVEL TECHNOLOGIES combines the latest available financial extract with the technical snapshot. Latest quarter: revenue 785 Cr (YoY +187.5%), PAT 95 Cr (YoY +102.1%). The next step is to reconcile these headline numbers with the annual report, exchange filings, and cash-flow quality.
Decision Frame
- Business: understand where moat comes from.
- Financials: prefer consistent cash conversion.
- Technical: Stage 3, RSI 33.98.
- Action bias: buy-on-pullback beats chase.
- Invalidation: thesis break + trend break.
Fundamental Scores
Agent Adda scores from snapshot (stage_snapshot). Useful ranking signals — not standalone buy/sell rules.
Score Interpretation
EFS 81.6 is the composite fundamental score: it indicates a reasonably strong combination of earnings quality (88.0), sales growth (83.3), financial strength (70.8), and institutional bias (76.0). The weaker sales-growth/financial-strength components are why the score is not a clean quality signal. Investment Score 68.9 is lower because it blends the fundamental stack with the current technical setup, where the technical score is 65.5. In plain English: the tape is stronger than the balance-sheet evidence, so the stock can screen well for momentum without removing execution, leverage, or valuation risk. Validate the scores against audited cash flow, debt, margins, dilution, and the next two quarters before treating them as conviction.
Company Overview
Business profile grounded in RateGain's FY2025-26 annual report and Q1 FY27 consolidated filing; Sojern synergy, guidance and product-outcome statements remain management claims.
Business
RateGain provides an AI-powered Revenue Operating System for travel and hospitality. Its platform connects pricing intelligence, channel distribution, demand generation, digital marketing and guest engagement for hotels, airlines, destinations, car rentals, OTAs and other travel businesses.
Scale & moat
The combined RateGain-Sojern platform serves 13,410 customers across 160+ countries. Its moat rests on proprietary pricing infrastructure, travel-intent data, direct data and booking-engine partnerships, mission-critical distribution links and long-standing customer relationships.
Investment watchouts
Sojern integration must convert acquisition-led scale into organic growth and cash earnings. At FY26, gross borrowings were about ₹921 crore and consolidated goodwill about ₹1,581 crore; US and Europe contributed 83.7% of revenue, while reported and management-adjusted earnings diverged.
Website Research: Products, Customers and Moat Evidence
Official product documentation and company-published customer examples. Operational claims are not treated as audited financial evidence.
UNO platform breadth and data coverage
Company product documentation
RateGain presents UNO as a hotel commerce platform spanning channel management, direct booking, distribution, marketing and market intelligence. Its Navigator page claims connectivity to 800+ channels and pricing intelligence from 1,100+ sources; these are vendor-stated scale metrics, not audited KPIs.
AI-native direct-booking workflow
Company product documentation
The UNO booking-engine page describes an AI chatbot, WhatsApp booking and an MCP-native booking engine designed to make hotel inventory discoverable and bookable through assistants such as ChatGPT and Claude.
Red Roof expands Sojern relationship
Company-published customer evidence
Sojern says Red Roof expanded its relationship after deploying Reputation Manager across 700+ properties and began an AI Concierge rollout. The release reports Q4 2025 internal quality-score improvement of 6.64% and social-score improvement of 3.14%.
Selected UNO customer case studies
Company marketing case studies
UNO's resource library highlights outcomes including 32% reservation growth for GHL and 600% direct-revenue growth for a Philippine hotel chain. These are selected customer stories with differing products, periods and baselines.
DirectConnect integration surface
Technical documentation
RateGain's developer portal documents DirectConnect interfaces for pushing availability, rates and inventory and receiving reservation data between hotels and demand partners.
Historical P&L
5 annual periods returned from the fundamentals extract. The latest available annual period shows revenue +69.4% and PAT -7.2% versus the prior period; confirm whether the change is organic, margin-led, or acquisition-led in the annual report.
| Period | Revenue | Op. Profit | OPM | PAT | EPS | Payout |
|---|---|---|---|---|---|---|
| Mar 2022 | 367 | 32 | 9 | 8 | 0.78 | 0 |
| Mar 2023 | 565 | 87 | 15 | 68 | 6.31 | 0 |
| Mar 2024 | 957 | 191 | 20 | 145 | 12.34 | 0 |
| Mar 2025 | 1,077 | 234 | 22 | 209 | 17.70 | 0 |
| Mar 2026 | 1,824 | 337 | 19 | 194 | 16.45 | 0 |
Quarterly Results
6 quarterly periods are available. Jun 2026 revenue was 785 Cr and PAT 95 Cr; the latest sequential change was revenue +9.6% and PAT +35.7%. Use the next filing to test whether the latest growth rate is recurring and whether operating margin and cash conversion are moving with earnings.
| Quarter | Revenue | Op. Profit | OPM | PAT | EPS |
|---|---|---|---|---|---|
| Mar 2025 | 261 | 61 | 23 | 55 | 4.64 |
| Jun 2025 | 273 | 50 | 18 | 47 | 3.97 |
| Sep 2025 | 295 | 54 | 18 | 51 | 4.32 |
| Dec 2025 | 540 | 87 | 16 | 26 | 2.24 |
| Mar 2026 | 716 | 147 | 21 | 70 | 5.92 |
| Jun 2026 | 785 | 172 | 22 | 95 | 8.01 |
Balance Sheet And Cash Flow
3 balance-sheet/cash-flow periods are available. Latest reported borrowings are 949 Cr, CFO is 234 Cr, and FCF is Not available Cr. Read these alongside PAT, working-capital movements, capex, and financing flows: profit growth is higher quality when it converts to operating cash without repeated debt or equity funding.
| Balance sheet item | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|
| Equity Capital | 12 | 12 | 12 |
| Reserves | 1,439 | 1,671 | 1,994 |
| Borrowings+ | 17 | 16 | 949 |
| Total Liabilities | 1,722 | 1,897 | 3,560 |
| Fixed Assets+ | 364 | 348 | 2,403 |
| Total Assets | 1,722 | 1,897 | 3,560 |
| Cash flow item | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|
| CFO | 152 | 120 | 234 |
| CFI | -566 | -38 | -1,282 |
| CFF | 581 | -2 | 836 |
| FCF | — | — | — |
| Net Cash | 168 | 80 | -212 |
Concall, Filings And News
Evidence reviewed: 8 concall artifacts and 6 exchange/company announcements — PDF text extracted and synthesised by GPT-4o. The read-through below distinguishes reported numbers, management claims, and checks required before relying on the catalyst.
Annual report and management read-through
- Quarter context (Jun 2026): Revenue 785 Cr (+187.5% YoY), PAT 95 Cr (+102.1% YoY).
- FY26 Annual Report — locally parsed and reconciled: RateGain Annual Report FY2025-26. The audited consolidated statements, Sojern purchase accounting, cash flow, geography, customer concentration, auditor opinion and key audit matters are incorporated below. Reported earnings are kept separate from management-adjusted EBITDA/PAT, and FY26/Q1 FY27 growth is flagged as not like-for-like after Sojern consolidation.
- Analytical check: compare the latest result with the annual report for margin durability, cash conversion, leverage, segment mix, and management guidance; separate reported facts from management claims.
Q1 FY27 — 6 Aug 2026 transcript summary
- Evidence: Operating revenue was ₹785 crore, up 187.6% YoY and 9.7% sequentially; management reported 17.5% organic growth for the combined entity. DaaS grew 22.7%, Distribution 3.1%, while MarTech's 341% reported growth included Sojern consolidation.
- Evidence: Adjusted EBITDA was ₹193.4 crore at 24.6%, versus reported EBITDA of ₹171.5 crore at 21.9%. Adjusted PAT was ₹116.8 crore versus reported PAT of ₹94.9 crore; the ₹21.9 crore quarterly add-back was deferred Sojern consideration expected to continue through Q3 FY29.
- Evidence: Free cash flow was ₹135.2 crore with 78.8% conversion. Management said USD 47.5 million, or 38% of the original acquisition loan, had been repaid; outstanding debt was USD 77.5 million and net debt ₹615.4 crore.
- Evidence: Management raised FY27 guidance to around ₹3,100 crore revenue and 22.5-23.5% adjusted EBITDA margin. Q1 included a one-time USD 2.5 million FIFA-related revenue uplift that management does not expect to repeat at the same scale in Q2.
- What to test: Separate recurring organic growth from Sojern consolidation and the one-time FIFA uplift.
- What to test: Track revenue synergies, cross-sell and Distribution acceleration after Phase-I cost integration.
- What to test: Reconcile reported EBITDA/PAT with adjusted measures, deferred consideration, amortisation and finance cost.
- What to test: Verify debt reduction, free-cash-flow conversion and recovery from the Middle East revenue headwind.
- Open source transcript
Q3 FY26 — 16 Feb 2026 transcript summary
- Evidence: Revenue was ₹540 crore, up 94% YoY, including two months of Sojern consolidation. RateGain organic revenue was ₹290 crore, up 4.1%; consolidated EBITDA margin was 16.1% and reported PAT ₹26.5 crore.
- Evidence: Management-adjusted PAT was ₹61.1 crore after excluding ₹34.6 crore of one-time acquisition and labour-code costs. It guided to recurring quarterly acquisition-related amortisation of USD 2.8-3.0 million, finance cost near USD 1.6 million and deferred consideration expense of USD 2.0-2.5 million from Q4 FY26.
- Evidence: Management reported USD 12 million of annualised Sojern cost savings within 100 days and approximately USD 25 million of acquisition-debt repayment. It expected the savings to become fully visible from Q1 FY27.
- Evidence: Management expected FY26 organic growth above 6%, organic EBITDA margin of 17.5-18%, Q4 organic growth in double digits and cited nine-month bookings growth above 30% as a lead indicator.
- What to test: Compare the promised Q4/Q1 cost-synergy flow-through with reported margins and cash earnings.
- What to test: Test whether bookings and pipeline converted into organic revenue rather than acquisition-led growth.
- What to test: Track the recurring EBITDA-to-PAT drag from amortisation, finance cost and deferred consideration.
- What to test: Verify customer retention, unified Adara-Sojern go-to-market progress and debt repayment.
- Open source transcript
Q2 FY26 — 11 Nov 2025 transcript summary
- Evidence: Pre-Sojern-consolidation quarterly revenue was ₹295.1 crore, up 6.4% YoY, with an 18.2% operating margin and PAT of ₹51 crore. MarTech grew 12%; DaaS grew 10% in aggregate and 17.5% organically.
- Evidence: Distribution remained weak after churn of a large OTA relationship. Management described Q2/Q3 as the bottoming period and expected newer products, transaction growth and pipeline conversion to restore growth.
- Evidence: Following completion of Sojern, management raised FY26 reported revenue-growth guidance to 55-60% while retaining 6-8% organic growth guidance. It guided to a 16-17% full-year EBITDA margin and a 17-18% March 2026 combined exit margin.
- Evidence: Management targeted roughly 75% cash conversion and described Sojern as free-cash-flow positive. It also acknowledged that net revenue retention had moved from about 110 toward 100; gross retention/churn was said to remain around 10%.
- What to test: Use this quarter as the pre-consolidation baseline for organic growth and margin comparison.
- What to test: Verify whether Distribution actually bottomed and whether new products converted pipeline into revenue.
- What to test: Track NRR, cross-sell and the more transactional/lower-gross-margin MarTech mix.
- What to test: Reconcile the original Sojern synergy, EBITDA and cash-conversion promises with subsequent reported outcomes.
- Open source transcript
Management read-through
- Margin & profitability: Our EBITDA converted into cash at a strong rate, and that is the clearest signal of how healthy this business really is.
- Key themes: AI integration in travel technology; Revenue growth and diversification; Customer confidence and retention.
- Risk flags: Unpredictable travel demand; Market competition; Economic uncertainties.
- Management quotes:
- “What stands out to me this quarter is not just our performance, but the confidence our customers continue to place in us as travel demand becomes harder to predict.”
- “Our EBITDA converted into cash at a strong rate, and that is the clearest signal of how healthy this business really is.”
- Overall tone: Bullish.
Recent announcements and implications
- 3 Sep · Announcement under Regulation 30 (LODR)-Allotment of ESOP / ESPS
- Announcement under Regulation 30 (LODR)-Press Release / Media Release27 Aug- RateGain recognized at People Matters Infin
- Announcement under Regulation 30 (LODR)-Newspaper Publication25 Aug- Publication of information regarding 14th Annual Ge
- Announcement under Regulation 30 (LODR)-Change in Management24 Aug- Sahil Sharma resigns as CHRO on Aug 24, 2026; Shoban
- Announcement under Regulation 30 (LODR)-Press Release / Media Release24 Aug- RateGain appoints Shobana Kailash as CHRO,
- RateGain Annual Report FY2025-26: Primary audited source for the Sojern acquisition, FY26 consolidated financials, business model, geography, capital allocation, governance and risks.
- RateGain Q4 and FY2025-26 investor presentation: Management presentation covering FY26 reported and adjusted performance, Sojern consolidation, cost synergies, debt repayment and FY27 guidance.
NSE filings & documents digest
Newest exchange filings + extracted highlights (verify the source PDF/XBRL before thesis).
Primary-source evidence trail
- FY2025-26 annual report — audited consolidated financials, Sojern purchase accounting, business model, geography, customer concentration and risks.
- NSE Q1 FY27 consolidated iXBRL — unaudited quarter ended 30 June 2026.
- Q4/FY26 investor presentation — adjusted EBITDA/PAT and management guidance.
📋 Annual Report Deep-Read — FY2025-26
RateGain investor-relations PDF, 184 PDF pages. Consolidated audited figures unless explicitly marked adjusted; management guidance and product outcome claims are labelled as management claims. 📄 View Annual Report PDF
Key Financials (from AR)
| Turnover | ₹1,823.55 Cr revenue from operations (FY26) vs ₹1,076.67 Cr (FY25), +69.4%; not like-for-like after Sojern consolidation from 6 Nov 2025 |
| PAT | ₹194.39 Cr reported PAT (FY26) vs ₹208.93 Cr (FY25), -7.0%; management-adjusted PAT ₹249.88 Cr |
| EBITDA | ₹358.33 Cr adjusted EBITDA (19.6% margin) vs ₹232.06 Cr (21.6%) in FY25; reported operating profit in normalized Screener history is lower |
| Revenue Growth (YoY) | +69.4% reported; acquisition consolidation is the principal driver |
| PAT Growth (YoY) | -7.0% reported; adjusted PAT grew, but excludes acquisition-related items |
| Net Profit Margin | 10.7% reported PAT margin; 13.7% management-adjusted PAT margin |
| RoE / RoNW | FY26 ROCE 11.0% in company KPI disclosure, down from 16.1% in FY25 |
| Cash & Bank | ₹173.12 Cr cash and cash equivalents at 31 Mar 2026; current investments ₹24.52 Cr |
| Borrowings | ₹921.24 Cr gross borrowings at 31 Mar 2026 (₹682.56 Cr non-current; ₹238.68 Cr current) |
| Net Worth | ₹2,005.86 Cr consolidated equity at 31 Mar 2026 vs ₹1,682.66 Cr at 31 Mar 2025 |
| EPS | ₹16.47 basic and ₹16.43 diluted reported EPS (FY26), versus ₹17.73 and ₹17.72 in FY25 |
| Book Value / Share | Approximately ₹169.8 per share based on consolidated equity and year-end shares; verify against diluted share count before valuation use |
| Dividend / Share | No dividend in FY26 according to the normalized financial history; capital allocation prioritized Sojern and debt reduction |
| CAPEX | ₹4.15 Cr cash purchase of PPE, intangibles and right-of-use assets; acquisition payment was ₹2,217.07 Cr |
| Employees | More than 1,300 globally after Sojern integration (management disclosure) |
| Exports | Internationally concentrated: United States ₹1,072.48 Cr, Europe ₹454.36 Cr, APMEA ₹265.50 Cr and other countries ₹31.21 Cr in FY26; US plus Europe represented 83.7% of revenue |
| Credit Rating | Not available in the supplied annual-report evidence extract |
Chairman's Highlights
- Management positions RateGain as an integrated travel revenue operating system spanning demand generation, pricing intelligence, distribution and guest engagement.
- Sojern was acquired on 6 November 2025 for approximately ₹2,222.72 crore under final purchase accounting; management reported USD 15 million of annualized cost synergies by Q4 FY26.
- Management said USD 31.5 million of acquisition debt had been repaid and targets a debt-free position by FY2027-28.
- More than 70% of revenue is described by management as tied to measurable customer outcomes; this may improve alignment but increases exposure to campaign performance and travel demand.
- FY27 guidance is ₹3,000-3,100 crore revenue, 12-15% organic growth on the combined base, and 21.5-22.5% EBITDA margin. These are management claims.
Management Outlook (MD&A)
Management targets FY27 revenue of ₹3,000-3,100 crore, 12-15% organic growth on the combined RateGain-Sojern business, a 21.5-22.5% EBITDA margin and free-cash-flow conversion above 75%. It also states a long-term aspiration of USD 1 billion revenue by FY2030-31. The investment case depends on proving organic cross-sell, sustaining post-synergy margins and repaying acquisition debt without impairing product investment.
Key Contracts Signed
13,410 customers after the Sojern acquisition; 7 of the top 10 customers retained for more than 10 years; no single external customer contributed 10% or more of group revenue
New Products / Platforms
Management cites more than 15 AI products in active rollout, including Navigator AI, AirGain NLQ, Rev-AI, Agentic ARI, UNO VIVA, AI Concierge, Demand-AI, AI Audiences, RateIQ and RG Pay
SWOT — Strengths
- Travel-specific data and distribution infrastructure across more than 160 countries
- 13,410-customer base and no customer above 10% of group revenue
- Integrated pricing, distribution, MarTech and guest-engagement stack after Sojern
- FY26 operating cash flow exceeded reported PAT
- Large first-party travel-intent dataset and outcome-linked commercial model
Weaknesses
- FY26 reported PAT and EPS declined despite the revenue step-up
- Gross borrowings rose to ₹921 crore after the acquisition
- Goodwill and intangibles rose to roughly ₹2,366 crore, creating valuation and impairment sensitivity
- North America and Europe contributed 83.7% of revenue
- Reported growth is temporarily obscured by acquisition consolidation and adjusted metrics
Key Risks
- Sojern business-combination accounting was a key audit matter because valuation of customer relationships, software, trademarks and goodwill requires judgment
- Revenue recognition was a key audit matter, including variable consideration in performance-linked arrangements
- ₹1,580.97 crore of consolidated goodwill at 31 March 2026 makes integration execution and impairment testing material
- The USD 125 million acquisition facility carries floating-rate and foreign-exchange exposure and is repayable in quarterly instalments
- Management-adjusted EBITDA and PAT exclude acquisition-linked costs; valuation should anchor to reported cash earnings and reconcile both measures
- The annual audit opinion was unmodified, but the acquisition and revenue-recognition judgments require continued scrutiny
Sector And Competitive Context
Sector and peer claims are shown only when a same-date comparable dataset is available.
| Lens | Read-through |
|---|---|
| Sector | Not available |
| Data quality | No peer ranking asserted without comparable same-date observations. |
| Next check | Compare growth, margins, balance-sheet risk, valuation, and relative strength with the company’s listed peers. |
Peer ranking omitted: no comparable same-date peer dataset was supplied, so this report does not manufacture a self-comparison row.
Equity Chart V1
EOD chart from PostgreSQL market.equity_eod (130 bars). Range: 2026-03-04 → 2026-09-07.
Technical Analysis
Technical setup from cached snapshot (if available).
| Indicator | Value | Note |
|---|---|---|
| Stage | Stage 3 | Weinstein stage |
| Signal | — | Snapshot |
| RSI | 33.98 | Momentum |
| ADX | 26.1 | Trend strength |
| SMA20/50/200 | 920.76 / 928.8 / 709.27 | Trend context |
| Supertrend | SELL | Trend filter |
| Ratio | Value |
|---|---|
| Market cap | INR 10,151 Cr |
| P/E | 38.8x |
| ROCE | 13.9% |
| ROE | 11.9% |
| Book value | INR 170 |
| High / Low | 1050.0 / 417.6 |
| Dividend yield | 0.00% |
Weinstein And O'Neil Read
Stan Weinstein Stage Analysis
The snapshot labels the stock Stage 3 (Stage 3 topping). Weinstein stage describes the position of price within a multi-month trend: Stage 1 is a base, Stage 2 an advance, Stage 3 a topping range, and Stage 4 a decline. It is a context framework, not a forecast or standalone trade signal.
Evidence check: price is not above all the 20/50/200-day averages, and the moving averages are not fully stacked bullishly (920.76 / 928.8 / 709.27). RSI is 33.98 (weak momentum); ADX is 26.1 (strong trend); Supertrend is SELL. A bullish stage with weak momentum, a broken moving-average stack, or a conflicting Supertrend reading is a lower-quality setup.
William O’Neil / CAN SLIM Lens
- C — Current earnings: latest PAT growth is +102.1% and revenue growth is +187.5%; confirm the next two quarters and check whether margin and CFO support the growth.
- A — Annual earnings: latest annual revenue growth is +69.4%; fill the missing periods before claiming a multi-year CAGR.
- N — New: identify a new product, customer, capacity addition, or catalyst and distinguish company guidance from delivered results.
- S — Supply/demand: price/volume confirmation matters; share issuance, promoter selling, or thin liquidity can weaken the setup.
- L — Leader: relative strength is not available; compare against the correct sector and Nifty benchmark rather than using price alone.
- I — Institutions: institutional-bias score is 76.00; verify actual ownership trend.
- M — Market: confirm that the broader index and sector are supportive.
Practical conclusion: watchlist-quality setup only when earnings acceleration, leadership, volume, and a definable risk point align.
Broker And Market View
Broker/analyst evidence is shown only when dated source results are returned.
Valuation Scenarios
Illustrative valuation from TTM EPS and P/E multiples (not a recommendation).
| Scenario | TTM EPS | P/E | Implied value | vs current | Condition required |
|---|---|---|---|---|---|
| Bear (multiple compression) | 20.49 | 29x | 599 | -30% | Risk-off, slower growth, lower multiple. |
| Base (current multiple) | 20.49 | 42x | 856 | +0% | Steady execution; multiple holds. |
| Bull (multiple expansion) | 20.49 | 50x | 1027 | +20% | Sustained growth + quality premium. |
Issues And Risks
RateGain-specific risks from the FY26 audited annual report and Q1 FY27 filing; the central issue is whether Sojern's acquisition-led scale converts into organic growth, cash earnings and debt reduction.
| Risk | Why it matters | Severity | What to monitor |
|---|---|---|---|
| Sojern integration | FY26 growth and the unified Revenue OS thesis depend on platform consolidation, customer retention, cross-sell and delivery of stated synergies. | High | Organic growth on the combined base, churn, cross-sell, cost synergies and integration milestones. |
| Goodwill / purchase accounting | Consolidated goodwill reached about INR 1,581 Cr; the Sojern business combination was a key audit matter and depends on valuation assumptions. | High | Impairment testing, forecast revisions, customer attrition assumptions and MarTech margins. |
| Leverage / FX / rates | Gross borrowings were about INR 921 Cr at FY26 after the USD 125 Mn acquisition facility, creating floating-rate and currency exposure. | High | Quarterly debt repayment, finance cost, hedging, net debt and FCF conversion. |
| Reported versus adjusted earnings | FY26 reported PAT and EPS declined while management-adjusted PAT increased; acquisition costs and deferred consideration can obscure underlying economics. | High | Reported PAT, amortisation, exceptional/deferred consideration, diluted EPS and cash earnings. |
| Revenue recognition | Performance-linked and variable-consideration arrangements make revenue recognition judgment-sensitive; revenue was an auditor key audit matter. | Medium | Contract assets/liabilities, receivables, variable consideration and CFO versus EBITDA. |
| Geography and travel cycle | The US and Europe generated 83.7% of FY26 revenue, while travel and advertising budgets are cyclical and exposed to geopolitics. | Medium | Regional growth, DMO/MarTech budgets, travel indicators and FX. |
| Data, AI and cyber regulation | The moat uses large travel-intent datasets and AI-driven decisioning, increasing privacy, consent, model-governance and cybersecurity exposure. | Medium | Regulatory disclosures, incidents, partner retention, data provenance and compliance costs. |
Evidence Trail
Source-first trail for review.