The travel technology firm posted record quarterly operating revenue of ₹5,400.3 million after consolidating its latest major acquisition. While operating profit grew, net earnings were weighed down by transaction-related amortization and one-time exceptional expenses.
RateGain Travel Technologies Limited (NSE: RATEGAIN) reported a 93.8% year-on-year increase in operating revenue for the third quarter of fiscal 2026, reaching ₹5,400.3 million. EBITDA for the period rose 41.7% to ₹871.2 million, though profit after tax declined 53.2% to ₹264.5 million. The results reflect the first full quarter of financial consolidation for the company’s acquisition of Sojern, which significantly expanded the group’s top-line performance while introducing substantial one-time and recurring non-cash charges.
Sojern Integration Drives Scale
The primary driver of the quarter’s performance was the completion of the Sojern acquisition in November 2025. This transaction added approximately 10,300 customers, bringing RateGain’s total base to over 13,000 travel brands globally. The integration is intended to create a unified AI-powered ecosystem that merges traveler intelligence and media activation with RateGain’s existing distribution and data capabilities. Management indicated that the process is currently focused on capturing cost synergies and aligning organizational structures.
Financial Performance and Margin Compression
For the nine months ended December 31, 2025, operating revenue increased 35.8% to ₹11,080.0 million. However, the aggressive expansion led to margin compression; the Q3 EBITDA margin fell to 16.1% from 22.1% in the same period last year. Net profit was impacted by ₹346.2 million in one-time exceptional expenses related to the acquisition and a sharp rise in amortization costs, which reached ₹230.8 million for the quarter. Adjusted for these one-time costs, the profit after tax stood at ₹610.7 million, an 8.0% increase year-on-year. The company maintained healthy liquidity, reporting net cash and equivalents of ₹3,617.1 million and prepaying $19.0 million of acquisition-related debt during the quarter.
Business Strategy and AI Innovation
RateGain’s stated strategy remains centered on an AI-led “Guest Acquisition, Retention, and Expansion” vision. The company is increasingly embedding artificial intelligence into its product suite, including the rollout of “AI Concierge” solutions to hospitality clients to drive ancillary revenue. Operational metrics showed improved efficiency, with revenue per employee rising 60.0% year-on-year to ₹21.3 million. The company entered the final quarter of the fiscal year with a total contract pipeline of ₹5,625 million and reported new contract wins of ₹2,506.5 million for the nine-month period.
Global Travel Health Index Shows Steady Rise
The company’s performance is set against a stabilizing global travel market. The Global Travel Health Index reached 102 as of November 2025, representing a 2% year-on-year increase. While political headwinds caused minor declines in some markets, the Middle East and Africa saw a 9% surge in travel activity. The Asia-Pacific region continues to lead global growth in online travel adoption, currently accounting for 36% of all online travel agency sales as total gross online travel bookings reached an estimated $1.07 trillion in 2025.