Rategain Travel Technologies Ltd (NSE: RATEGAIN) Q1 2026 Earnings Call dated Aug. 07, 2025
Corporate Participants:
Unidentified Speaker
Bhanu Chopra — Chairman and Managing Director
Rohan Mittal — Chief Financial Officer
Analysts:
Unidentified Participant
Jyoti Singh — Analyst
Rahul Jain — Analyst
Karan Uppal — Analyst
Pratap Maliwal — Analyst
Rishika Agarwal — Analyst
Shailesh Naik — Analyst
Mayank Babla — Analyst
Miten Shah — Analyst
Darshil Zaveri — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q1FY26 earnings conference call hosted by Rate Gain Travel Technologies. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is been recorded.
I now hand the conference over to Mr. Bhanu Chopra, chairman and Managing Director from Rate Gain. Thank you. And over to you sir.
Bhanu Chopra — Chairman and Managing Director
Thank you, Anushka. Good afternoon everyone and thank you for joining us today for Radiant Travel Technology earnings call for the first quarter of FY26. I am joined by Rohan Mittal, our CFO and Dibek Anand, our head of Investor relations. We announced our Q1 results earlier today and I hope you’ve had a chance to review our financials, press release and investor presentation available on the stock exchanges and on our website. We started FY26 with strong momentum. In Q1 grade gain recorded new contractments of 81.7 crores, a six quarter high growing 37.7% year on year. This includes our highest ever new contract wins for Raygain excluding Adara which grew by 53% year on year to 46.1 crores in the first quarter.
These numbers validate the strategic investments we have made since the start of the year in scaling our GTM engine, expanding presence across key geographies and strengthening our product and leadership. In line with this approach and given the growth potential in APAC and Middle east, we’ve expanded our GTM headcount from 15 to 55 in the region. And this has helped us grow our revenue within the region at 23.2% compared to the same time last year. And we also saw a healthy uptick in new contract wins. We continue to see offshoots from the investments we have been making and will continue to seek to double down on these investments.
This is the traction we see in these markets in the previous quarter. We also spoke about our continued investments in building an AI first portfolio. We are now seeing early results from these these efforts. Uno Viva, our AI voice agent is progressing well with initial deployments. Underway and strong interest from regional players. RG Insights, a real time analytical solution providing deeper visibility into distribution performance is now used by over 30 partners and praised for its ease of use, real time insights and clean interface by our customers. Smart Ari, our AI powered ARI management engine has helped partners reduce AI traffic by 45% without impacting bookings.
With that, let’s take a brief look at our business units on the back of new AI capabilities and our ability to deliver at scale. The DaaS business has been expansion of key existing customers across product lines and verticals in AI LED capabilities for root performance and price intelligence are driving strong momentum supported by new signings and positive feedback from revenue teams. We announced key partnerships with TestJet, Air, Montagne, Gross, Cypress Airways and others in CAR and Rev AI. We’ve seen expansion across key enterprise accounts and new key signings for the OTA segment. I’m pleased to announce we won a very large deal and one of the largest travel tech companies expanded key strategic accounts and secured a major deal in nada.
Distribution continues to be a key area of investment for us, especially in the mid market segment. We recently announced partnership with Cloudbeds to redefine how hotels, hostels and vacation rentals optimize their distribution strategies using AI powered capabilities. We see a clear opportunity to evolve from being a connectivity provider to helping hotels drive incremental revenue. UNO continues to be a key investment area gaining traction in APAC and the Middle east driven by our expanded GTM efforts in our Martech business. Adara continued to perform well this quarter with steady growth in both new and renewal business within Adara.
Renewals grew by 41% compared to Q1 of last year. A great validation of the value and roas we are delivering to our customers. We are seeing good traction within the BMO segment which remained a key contributor. This quarter we saw healthy demand across key sectors including airlines, financial services, hospitality, entertainment parks. Demand Booster also saw a consistent increase in client acquisition across regions, reinforcing the relevance of our solutions in helping hotels drive direct demand. Weight Gain continues to lead industry conversations of the future of distribution and hospitality. This quarter we released the second edition of the State of Distribution 2025 with New York University, SPS, Dish center and Hedna.
Based on insights from over 700 hotel brands and 21,000 plus properties, the report highlights how distribution is becoming leaner and more integrated. It reinforces our focus on building solutions that simplify operations and support faster, more connected decision making in line with broader industry trends. The Skiff Travel health index reported a 3% year on year. Increase in global travel performance in the first half of 2025 supported by resilience in North America, APAC and Latin America. Booking windows have shortened and there’s growing caution in leisure spending, but overall travel activity remains steady. We’ve also seen from commentary of leading travel brands which talk about improving demand for the second half of the year, reinforcing optimism across the sector.
We also continue to invest in strengthening our leadership team. This quarter we made three key appointments Parajat Tiwari has joined us as Executive Vice President and General Manager for Distribution. He will lead the global strategy, innovation and growth of weight gains distribution business. Parajat brings over 17 years of experience in strategy, operations and digital transformation across diverse industries. He joins us from PAYTM and has held positions at BCG and KD Carney. He holds an MBA in Strategy and Finance from Iron Calcutta. Ashish Sikka has joined us as Senior Vice President and Business Head of uno.
He joins to lead UNO Rate Gain’s AI First Suite combining crs, Channel Manager, Booking Engine and VIVA with responsibility for product strategy, innovation and global adoption. He has over 17 years of experience in strategy transformation and regional leadership at firms across India, Europe and Southeast Asia. His prior roles include leadership positions at E Com Express and at oyo. Sanchit Garg joined us as Executive Vice President and General Manager, Rev AI and Car Business. He will oversee global strategy, operations and growth for Ray Gain’s Rev AI and CAR verticals, working closely with regional teams to scale innovation and performance.
He brings entrepreneurial experience having founded a Sequoia backed startup and has held senior leadership roles at Lazara and Group 1. He’s an alumni of IIT Delhi and IM Calcutta. Continuing with our vision of AI first organization this quarter we also introduced Remo Radiant’s first AI employee as part of our People and Culture team. Designed to foster a more inclusive and empathetic workplace, Remo creates a safe space for honest dialogue, reflection and employee well being alongside product innovation. We are also investing in AI literacy adoption. Over 300 employees have been trained on core AI concepts and use cases.
With more training sessions underway, these skills are being applied across engineering, sales, marketing and support to drive faster execution and better decision making. Also, I’m pleased to share that Great Gain was once again recognized by Great Place to Work India as one of the top 100 mid sized companies to work for. In 2025 the company was ranked 77th making a 20 place jump from previous year. We also won the Economic Times award for best B2B campaign for the State of Distribution Report. These awards reflect the commitment of our teams and the culture we continue to nurture with that.
Now I’ll hand it over to Rohan to walk you through the financials. Thank you.
Rohan Mittal — Chief Financial Officer
Thank you Bhanu and a very warm welcome to everyone on this call. It’s a pleasure to connect with you all today. Starting with an update on the Numbers for the quarter 1 FY26 we have reported a revenue of INR 273 crores which reflects a growth of 5% year on year. Our operating margins came at 18.2%. We continue to maintain a healthy margin with a relentless focus on cost control and this reflects in the fact that our quarter one margins also also carry the impact of annual wage hikes as well as the investment ramp up. As was mentioned in the last quarter’s call to drive the next leg of growth, RPAT grew marginally compared to last year and stood at INR 46.9 crores in this quarter.
Our Martech vertical witnessed strong growth in this quarter at 16.5% year on year growth with continued strong traction in Adara. That business continues to build momentum on the back of a strong value proposition delivering superior ROAS for our customers. Our DAS vertical degrew by 3.1% in this quarter and this was mainly due to the shift from Adara DAS to Adara Martek. This has been a strategic call and focus for us since the acquisition of Adara given that Adara Martech is higher up the value chain in terms of offering to our customers and we own the entire relationship.
Organic Rate Gain DAS excluding Adara DAs grew at 5.9% year on year with continued traction in key subsegments of travel. We continue to drive investments in our Uno Rev Max platform within our distribution business and are committed to scaling this up in the coming few quarters. Along with this, we continue to establish key partnerships with travel software companies to scale up presence across their established customer base. As management we are committed to driving investments in key areas which will help us deliver growth in line with our aspiration and are happy to see the traction in this quarter.
Our new contract wins came in at a six quarter high growing at 37.7% compared to the last year and stood at INR 81.7 crores. This was also the highest ever new contract wins for Raygain excluding another with both DAS and distribution outperforming. New contract wins within the DAS Segment grew by 68% compared to Q1 last year with a large order win with one of the largest travel tech companies on the planet in distribution as well. Our new contract wins in quarter one came in at over 65% of the entire new contract wins of last year.
Along with this we saw strong growth in the APAC and Middle east markets. This has been a high investment market for us for the past few quarters and we continue to see positive traction with the customers. We continue to see steady growth in our North American market in quarter one as well with continued traction across key customer segments and geographies. We have a healthy pipeline in Tor which currently stands at INR 512.3 crores. We’ve added INR 41 crores of fresh pipeline in quarter one itself. We continue to have a strong balance sheet with our net worth currently at 1740 crores and our cash and cash equivalent at the end of the quarter stood at 1281 crores.
With that I would like to close my remarks. Happy to open the floor for questions. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touch tone telephone. If you wish to remove yourself from the question queue you may press Star and two Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Jyoti Singh from Arihan Capital Markets Ltd. Please proceed.
Jyoti Singh
Thank you for the opportunity and sir, congratulation on the good set of number and a good deal means execution. So basically I wanted to get a sense on the new pipeline contract means came from major geography like North America and Europe and how are you tailoring your offering in the geography versus India or Asia Pacific?
Bhanu Chopra
So I’ll address the second part of your question about the geographies that we are focusing on from GPM execution and let Rohan fill in on the numbers specific to the pipeline. So as I remarked in my opening remarks and something that I’ve been saying along across past two quarters we’ve been really investing in the GTM engine specifically for the SMB market which is quite prevalent in APAC and we have increased our GTM strength from 15 to 55 people and that’s really yielding very very good results. Similarly we have made some incremental investments in Europe and US as well.
But our focus really on executing on UNO and the SMBC GTM machinery has been really in APAC and that’s why you see a good amount of growth in the business in the APAC business From last year. And we will continue to see that growth over the next few quarters as well. Rohan, do you want to fill in on the pipeline?
Rohan Mittal
In terms of the pipeline, our current pipeline stands at 512 crores. There is a heavy representation across North America, Europe, Acmea markets. We don’t disclose the exact numbers across these markets. But there is a very strong healthy representation across all three markets. I can tell you that if you were to look at the year on year numbers, NORAM market, which is the North America market and APAC market have registered the strongest growth. This is just a reflection of the pipeline and the investment sector done in these markets.
Jyoti Singh
Okay, thank you. Sir, just one more question. On the revenue side like 49.1% of revenue now from the subscription and hybrid model. So how do you see the shift impacting customer lifetime value and upsell potential?
Rohan Mittal
Did I take that?
Bhanu Chopra
Yeah please.
Rohan Mittal
So if you look at our numbers, our transaction business, our transaction revenue has grown from 40% to almost 51%. If you were to look at the year on year numbers while my subscription and hybrid business brings up the rest of the business from a customer lifecycle point of view. We mentioned that the renewal in our Adara business which primarily contributes to the transaction continues to be exceptionally sound. We are trending at north of 35% renewal rate on a year on year basis. So even if it is a transaction business, we continue to retain those businesses and expand those businesses over a longer period of time. So we are not seeing any major concerns or any concerns for that matter on owning the lifetime value of those customers.
Jyoti Singh
Okay. And sir, on the margin side like very good show on the margin 18.2% this time and largely our growth, our margin guidance 15 to 17%. So if we can guide further will be remain same guidance or any changes on that side as a lot of good dealings execution.
Bhanu Chopra
Yeah, I’ll take that. So Jyoti, on the question on margins and revised guidance, we want to stick to the guidance that we have given at the beginning of the year. And we really want to forego this thing of actually revising guidance every quarter to it puts unnecessary pressure on us. So we will stick to the guidance that we have provided at the beginning of the year. And our aspiration and effort would be that we exceed that.
Jyoti Singh
Understood. Thank you so much sir.
operator
Thank you. The next question is from the line of Rahul from Daulat Capital. Please proceed.
Rahul Jain
Yeah, hope my line is okay.
Bhanu Chopra
Yes, yes, we can hear you.
Rahul Jain
Yeah, yeah, thanks. So basically you know if I look at the booking Input that you have shared both on the overall and non aadara part of it, it is pretty up and you have also separately commented on odara renewals at 40% up. So can we say that the current pain from a distribution point of view is behind us and within dash it’s only the Adara part of the business which continues to remain under challenge and rest of the businesses are up for a good double digit plus growth.
Bhanu Chopra
Yeah. So I think Rahul that’s, that’s a good summary because as you noted on the distribution side of the business Q1 alone, our new wins were equivalent to 50% of the new wins of all of FY25. So we have a very, very good order book and even from a pipeline perspective we are in a very good place. So yeah, I would say that given the focus on distribution and something that I’ve said all along, eventually I see it as a very high growth area given the investments we are making in UNO and new areas like smart distribution.
The other part of the business that you mentioned about Adara data, that has subsided and we’re not too worried about that because it’s a strategic call that we made that we want to be more in managed media business versus the data business. And overall the data business continues to outperform. So yeah, overall it does feel like we are now behind the pain and given the GTM execution and the wins that we are seeing, I feel very, very confident that we should see much higher prospects of growth from here on.
Rahul Jain
Right. Banu, just to further, if I may prod you on that. So one part of the question which was on the Dara dash, I think this business in FY24 used to be around $15 million, give or take. Can you tell us where it is now, where it was in FY25? What is structural potential here for this year, next year? Any input on that part would be great. And taking cue from your distribution comment, is it safer to assume sequential growth from this point should continue in that.
Bhanu Chopra
So on the Dara yes, on the Idara Das business I’ll refer to Rohan on the exact numbers but directionally, like I said to you, it will continue to remain stagnant or maybe a little bit declining. But like I said, we’re seeing very, very good growth on the other side of a DARA business. So I’m not concerned about it at all. And as I noted on distribution, again directionally we’ve had some very, very good wins and we have a very large order book now. It’s really in Terms of seeing sequential growth, it’s our ability to monetize the order book that we have. But directionally it should improve from here on.
Rohan Mittal
On the number side, Rahul, last year Adara does as a percentage of total revenue was sub 7%.
Rahul Jain
Okay, okay. And this must
Rohan Mittal
total revenue of weight gain. Yeah, yeah, yeah, yeah.
Rahul Jain
And last question from my side, just trying to understand is there some bit of realignment that we have done within the three sub segment, the way we define it? Because the reason of asking this is the abrasion in the quarterly performance in the three segments have become very, very stark, you know. Or is there a mix of seasonality that has evolved in a different manner which is driving this kind of movement?
Bhanu Chopra
No, there hasn’t been any change in alignment on how we categorize the revenue. Rahul, in distribution there is some amount of seasonality between different quarters. And similarly there is some seasonality in the Adara business as well. Some amount of aberration that you may see in our distribution business is last quarter we had some onetime collection of bad debt and something that I’ve noted earlier, also on the distribution side we have one of our big OTAs that has consolidated as a result of which we continue to see some declining. But given the new order wins and the order book we’re able to as we monetize, we’re able to recover on that.
Rahul Jain
Fair enough. That’s it from myself. Thank you.
operator
Thank you. We take the next question from the line of Karan from Philip Capital. Please proceed.
Karan Uppal
Yeah, hi. Thanks for the opportunity and congratulations on setup numbers. The first question is in the Martech segment. So if you can just mention about the segmental breakup within Martech, it used to be within paid digital media, brand management and Hadara. If you can highlight how are these sub segments doing? What is the overall contribution of these three sub segments to Tomatic and what, what’s the outlook in these three subsegments?
Bhanu Chopra
Yeah, so in the Martech business, Atara continues to outperform on the social media which is around brand engagement and brand monitoring. That’s a business that has declined over the last couple of years and we continue to figure out a way on how we pivot that. But we do feel that we are at a point where the focus on product innovation should land us at a good place on how we pivot the business. And we are experimenting in launching a self serve and there are some experiments underway but it’s a very small part of our business overall, maybe 2 or 3%. And on the paid Digital media. As I had noted a couple of quarters ago, we had lost one major client which was acquired by a big hotel brand. And so as a result of which we see some attrition. But the new wins that we have and the continued momentum, this is going to be an area of growth and focus.
And now that we have really started to focus on the integrated suite, we are now going into the market with Uno, which is our starting with our direct booking stack where we are bundling the paid digital media along with the booking engine, along with the Viva, along with the channel manager. And that’s seeing very, very good traction and also very healthy contract wins as well. So Banu, can you give us a ballpark number in terms of split between these three segments? Rohan, can you help me with that please?
Rohan Mittal
So from a Q1 revenue point of view, Adara would typically continue. Adara would typically contribute close to about 65 to 70% of the business and the ballot and the social media business would contribute to less than 5%, less than 6%. The balance is all paid media.
Karan Uppal
65 to 70% is of Matic, not of the total revenue, right?
Rohan Mittal
Yes, of Martech.
Karan Uppal
Okay, great. Thanks for answering that question. Secondly, we wanted to check on Dash and distribution. So Bhanu, you had mentioned in previous few calls about pricing pressure within these two segments. So is the pricing pressure still there? Just an update on that would be.
Bhanu Chopra
Yeah, there is no new conversation on pricing renegotiations. So we actually haven’t seen any of that happen in this quarter. And even in the future outlook on renewals that we are having, we continue to insist on CPI increases in our contracts. And so as I mentioned, a couple of contracts were legacy contracts in distribution that we had acquired and that had to have a relook. So most of that is now behind us. And in das, the dimension of pricing pressure maybe was more of an anomaly than a trend. So we don’t see any of that anymore.
Karan Uppal
Okay, great. Thirdly, on the outlook on US geography, so some of the hotel listed hotels and airlines have spoken positively on the demand revival. So what are you seeing in terms of outlook from us?
Bhanu Chopra
If I had to talk about macro level, I would say US is kind of holding steady. More focuses on domestic tourism and travel versus international given Trump policies, but the demand is holding steady. Europe is similar, but it’s really APAC where a lot of investment continues to happen. In fact, over the last one or two quarters, every conference and event that I’ve been at, all these hotel majors that you talked about, their CEOs are present there and looking to really invest and double down. So it really marries very well with our strategy to continue to increase our investments in the APAC region. And really if you think about our competitor set also, they are mostly based in western economy. So I feel very strongly in the next sort of year or two, in our backyard, in our neighborhood, we will be the most dominant player.
Karan Uppal
Okay, great. Thanks a lot and all the best.
operator
Thank you. Before we proceed with the next question, ladies and gentlemen, in order to ensure that the management is able to questions from all the participants, please limit your questions to two per participant. The next question is from the line of Pratap Maliwal from Mount Infra Finance. Please proceed.
Pratap Maliwal
Hello. Am I audible?
Bhanu Chopra
Yes, Pratap, you are.
Pratap Maliwal
Hi sir, thank you for taking my question. I just wanted to ask that. I was going through your ppt. I don’t think the annual recurring revenue number is mentioned on this quarter’s ppt. So can you help us with that number? Please?
Bhanu Chopra
Go on. Do you want to take that please?
Rohan Mittal
So Pratap, we have stopped publishing our ARR numbers from this quarter onwards. And the reason for that is now 50.9% of our business is transaction business. So we don’t think it’s the right metric to track going forward.
Pratap Maliwal
But sir, in. Even in previous quarter substantial portion was transaction based and I believe we were taking that into account based on certain estimations in our ARR can. Right. So what has changed?
Rohan Mittal
You’re right about that. If you look at the last quarter, the contrib. If you look at the entire last financial year, the transaction business was contributing 42.4%. Right. Since that number has crossed the 50% threshold, that’s why we’ve taken a call to stop publishing the ARR numbers. But if you still need some additional clarity on the annual recurring revenue which will come from our specifically come from a subscription and hybrid business, I’m happy to connect offline and shed some light around that.
Pratap Maliwal
Sure. So that would be great. And just one other thing. I noticed that our NRR number has been declining and we’ve come to about 100% right now. So do we see any concerns regarding our client churn and you know, how are we trying to make up for this?
Bhanu Chopra
So if you look at our GRR and nrr, the grr, which is really on the churn, it has been hovering around 90% which is very, very healthy for SaaS companies and we continue to be on track on that. And a comment that I had made previously also is that given the fact that we are investing in the GTM machinery, a lot of focus is also now on new logo wins. So if you notice that we are selling more, but perhaps we haven’t done as great a job of selling to our existing customers. So I think it’s an aberration. I don’t think this is a long term trend as we hunt for new logos because the idea is you bring in new logos and ultimately we will be able to cross sell and upsell to them. So yeah. So overall on the GRR nrr, I’m not too concerned and I think it should given the fact that GRR has remained at 90% or thereabouts, which is very healthy. I do think that the NRR number over the next couple of quarters will continue to move up as well.
Pratap Maliwal
Okay, sure sir. Thanks for taking my questions and congress on good side of dealing with.
operator
Thank you. The next question is from the line of Rishika Agarwal from Bastion Research. Please proceed.
Rishika Agarwal
Hi, thank you for the opportunity. I have a couple of qualitative questions. So my first question is regarding the industry maturity. Like I wanted to get a sense on how mature the industry is to which we are catering. Like if we add a new client in the DAS segment, so is it like a client who’s not already using such services from us or our competitors or is the industry sure, to the extent that the clients which we will be acquiring will mostly be from competitors. So if I could get a sense around this.
Bhanu Chopra
Yeah, it’s a great question and really depends on where in the life cycle the product is. So some of our traditional products, and I’ve given this analogy previously also we qualify our products as babies, teenagers and adults. So I would say for the most part on products that I would categorize as adults, which are our cash cow, there is healthy growth of the industry. So in 50% of the cases the new win will be a displacement deal and in 50% it will be new customer acquired. But when it comes to newer products like our Viva, our smart distribution, our approach to going in with an integrated platform like Uno, which I would categorize as more as a teenager, in those cases it’s more of a green field and the opportunities are very, very large.
And similarly with our babies, which are experimental products, some of them make through depending on what we realize in the product market fit cycle and some of them unfortunately we have to kill. So really depends on where we are in the life cycle. But given the progressive nature and AI first mentality of the company, we continue to Launch new capabilities that we are seeing as an opportunity. And as you can imagine, AI is quite a transformational event for tech industry and our ability to drive a lot of cost efficiencies and revenue opportunities for hospitality industry. So I’m very excited about everything that we are doing and I feel a lot of it is going to be greenfield. It will take some time to reach the tipping point. But once we do on some of these products, we will see tremendous amount of scale.
Rishika Agarwal
Okay, thanks, that’s helpful. The second question I had was as we can see that our business mix is tilting a lot towards Martech, which is our highest growth segment. So as we move towards Martech, is my understanding correct that we’ll be moving from a platform led business to an employee intensive business?
Bhanu Chopra
No, that’s incorrect assessment. If you look at our Martech business, it’s completely digitized, it’s AI led. Everything that we do is done by machines in terms of how we spend the marketing dollars. And in fact, if you think about the transformations that AI is leading in the Martech area, we’re at the forefront of IT in terms of doing the creatives, in terms of devising multichannel programs that optimize the spends to deliver the highest return on ad spend. So even if I look at the revenue increase and the number of people that we have, it’s nonlinear. So we will continue to see expansion of our margins in that business versus vice versa.
Rishika Agarwal
Okay, thanks. Thanks for correcting that understanding. That’s all from my side.
operator
Thank you. The next question is from the line of Shailesh Naik from Squad. Please proceed.
Shailesh Naik
Yeah, this is Shailesh Nakia. I had a small query regarding a slide number nine. I think that’s eight. Sorry, where you have a client count. Now, when you take this client count, is it unique clients or is there a product? Different products. So you count them as a different client. Secondly, what is the issue why they are declining from 2024 to now every quarter we are losing customers. Is there some mix which we are trying to change or are we declining certain sets of customers? That is what I wanted to understand from this. Hello.
Bhanu Chopra
Yeah, directionally, you know, we are actually increasing the strategic customer count. So it’s not by any means a worrisome trend. The decline that you see is because of some long tail customers that may have churned. But I’ll let Rohan give more color.
Rohan Mittal
Yeah, so. So the way to look at that is that the way we represent our clients, certain clients are represented at a master level and certain clients might be Represented at an individual property level, for example. Yeah. Then they belong to the same same master client. But we may not have the contracts for all the properties which are run by the master client and therefore we will represent them at an individual level. So one, that’s how we calculate and submit our client count. The churn number is a very, very small number. 23 accounts on a base of three, two to four.
Yeah. And as Panu mentioned, that’s just some churn on the long tail side. To answer your second part of the first question, we are not declining or trying to move to a certain direction actively that a certain product has to grow faster than the other. We are actively investing and pursuing growth in all our three categories of business, Das, distribution and market. This is just a reflection of how and where we get traction in a particular quarter. You will as Manu Ralphie said, there is no cause for concern here. You should not construe this as a long term trend line.
Shailesh Naik
So in long term we would be looking at increasing the client count. That is the metric. So way we should look at. Right. That is how we are saying the right metric is to see that the client count has to go up and that is the sign of growth. Is that the way I should look. At it in long run?
Rohan Mittal
I’m sorry, your voice is a bit muffled. I could not really understand your second question. Could you please repeat that?
Shailesh Naik
Yeah. So basically I believe it’s client count as a metric which is to be looked at as a number of the growth and the client count are somewhere correlated. Is that the way I look at it? Or it has no correlation. More more into focuses on more on depth or width.
Rohan Mittal
No. So let me put it this way. Let me put it this way. Let’s say we’ve signed up a master account and there are thousand properties under that master account. We may initially start with 100 and gradually our intention would be to obviously scale up to all thousand.
Shailesh Naik
So you count that as thousand or you count that as one client that.
Rohan Mittal
Varies from product to product. In certain products we will count it as one. In certain product it will count as thousand.
Shailesh Naik
So there’s another slide where you have given the segment wise growth rate. So there you have mentioned that let’s say dash is minus 3.1, which you mentioned and in highlight you’re mentioning the rate gain dash growth is 5.5.9. I didn’t understand that. Is that something difference in this two. What, what does that mean exactly? This is slide number 10.
Rohan Mittal
Sure. No, no, we are aware of that. So the way to look at that, and I included this in my opening remarks. The way to look at that is there are two parts to this. One is the rate gain organic dash and the second is the dash business that we inherited as part of the Adara acquisition about two years. Oh, there was a strategic call that the Adara Das will migrate to Adara Martech which is continuing to show a very strong growth as you can see in the matech business. So we are calling out the rate gain organic DAS growth which is excluding the Adara Das. The rate gain organic Das continues to show strong growth numbers.
Shailesh Naik
Thanks a lot.
Rohan Mittal
All right.
operator
Thank you. We take the next question from the line of Mayank Babla from Enam Asset Management. Please proceed.
Mayank Babla
Hi, thank you for taking my question and congratulations on the new contract wins and the margin performance. My first question is around, you know, if you could give us some sort of clarity on insight on the growth for FY26 given that we’ve signed, we’ve had a great quarter in terms of new contract wins. I’m asking this because the last time we won around 80, 84 crores of new contract wins was in Q3 of FY24. And I’m unable to draw parallels because there was no Adara in the base back then. So how should we look at growth for FY26?
Bhanu Chopra
So as I indicated Mayank earlier, we’ll continue to hold the guidance that we gave at the beginning of the year which is 6 to 8% growth and 15 to 17% of margin.
Mayank Babla
Okay, so that means you would. You are. Can we expect that there might be some impact in the next quarter in. Terms of margins because yeah, there is.
Bhanu Chopra
Look, you know something that I just said earlier. We just don’t want to be having the pressure of every quarter revising guidance. We want to stick to what we have provided earlier and our endeavor would be to exceed that expectation. But if you’re asking me do I see anything in the next few quarters that I see as an impact. No, I do not see anything. In fact, I see a lot of optimism and I am hoping that we continue to outperform on new wins. We’ve also started this quarter which is Q2 in quite a fantastic way in terms of new contract wins. So hoping we continue to deliver on that promise, but there is no impact as we speak today.
Mayank Babla
Okay, so essentially you mean to say that you’re moving away from that whole format of giving guidance and it would be means if you your aspiration to be to beat that whatever guidance you gave in Q4 or safe to assume that we would beat that guidance, right?
Bhanu Chopra
That is correct. We are foregoing this, you know, habit of revising guidance every quarter. We want to stick to what we have delivered at the beginning of the year. And our endeavor would be to meet and beat it.
Mayank Babla
Sure. Thanks. That’s it from myself.
operator
Thank you. The next question is from the line of Miteen Shah, an individual investor. Please proceed.
Miten Shah
Yeah, thank you for giving me opportunity. So I would like to know, you know, what is the status of acquisition? You know, it’s been the. We’ve been waiting for so long and we can understand, you know, you know, it takes time and whatever reasons which have been eluded. And do we see Guestara as a rising competition and any plans of being a potential acquisition candidate?
Bhanu Chopra
Sorry, I didn’t follow the second part of the question. I think first was around the status of M and A. I didn’t follow the second part of the question.
Miten Shah
The second part of the question is are we aware of Gastera as a rising competition? Guest er, as in GU E S Tara, you know, are we aware of this company as a rising competition? And could this be a potential acquisition candidate? Have you ever looked looked upon it? That was my question.
Bhanu Chopra
Okay, okay. So on the M and A side, I will sound like a broken record. We continue to have very, very active conversations and our pipeline continues to be robust. However, we are extremely disciplined about creating shareholder value by ensuring that what we pay is meeting certain IRR and payback thresholds that we have. I’m pretty confident something will happen and whenever it happens, I think the investor community will understand and will also appreciate how patient does get rewarded. So I am very confident that we will, in our MA journey continue to make the right deals that will be extremely value accretive that we have demonstrated in past deals such as Adara and to, you know, to get the right deals, you have to be patient.
On your second point, about the company you mentioned. No, I’m not aware of them, but we’d love to connect offline and get more details about this company. And also maybe your voice is a bit muffled, so I didn’t get the name quite accurately. So we’ll connect offline and get more information about this company that you mentioned.
Miten Shah
Yeah, just repeat the spelling as G U E S T. Guest Ara ar A R A. Yes, Tara.
Rohan Mittal
I’ve got the details. I’ll share it with you.
Miten Shah
Sure, sure. And the next question we, you know, the second question would be by the tariff because the majority of revenues come from the north of America.
Bhanu Chopra
Sorry, you cut off in the middle. Can you repeat the question please?
Miten Shah
Yeah. Would we be affected by the tariff from us, you know, as a major revenues come from North America.
Bhanu Chopra
In terms of the tariffs? No. So there is no impact on us because the tariffs are more on the goods and we are a tech company, so it does not impact us.
Miten Shah
All right. All right. Yeah, thanks. Thanks a lot and I’ll stand it if I get an opportunity. Once again. Once again, thanks a lot for doing the opportunity. Wish you all the best.
Bhanu Chopra
Thank you. Thank you, sir.
operator
Thank you. The next question is from the line of Darshal Zaveri from Crown Capital. Please proceed.
Darshil Zaveri
Hello. Good evening, sir. Thank you so much for taking my question. Hopefully I’m audible.
Bhanu Chopra
Yes, you are.
Miten Shah
Yeah, sure. So some of my questions have already been answered. So I just want to know from a business point of view, how do we see the next few years? Like I think FY26, as we’ve said, maybe is an investment year and we are trying to get into a lot of new more products. So what do we see maybe FY27 looking as and like in terms of like what we can see and what you’ve been alluding to also that the second half can be much better right now. So how do we see that? So just wanted to, you know, grab your two thoughts on it.
Bhanu Chopra
Yeah. So our endeavor this year has been really to go back into an investment, more largely into building out our GTM machinery which is beginning to see results. But I don’t think this is. We will continue to double down as we see traction in certain key markets, including apac. So our really focus is building out the GTM machinery, continuing to launch our AI powered product suite. I feel very excited about the integrated suite that we are building that will allow us to participate in some sort of a fee for every booking that a hotel makes, irrespective of the channel that it comes from.
Because if you think about the industry size, that’s almost 6,700 billion. And if you’re participating in taking a percentage of that, it can be very, very large business for us. So I’m very excited about that vision and future that we have built for us. But in looking at near term, given the investments we are making into the GTM machinery and product innovations, our endeavor for next year and the year after that is to get back to double digit and hopefully get to that 20% organic growth path that I’ve indicated in previous calls as well.
Darshil Zaveri
Okay, okay. That, that helps a lot, sir. And so Sorry to ask again about the acquisition, but the current growth that you said double digit is organic, right? Not including the acquisition?
Bhanu Chopra
That is correct.
Darshil Zaveri
Okay, okay, fair enough. So and on the acquisition side, like is there anything that, you know, maybe that can happen in this year or how do we see that, sir? Because just right now the market conditions are better than what they were.
Bhanu Chopra
Yeah, look, as I said, we are in active conversations. So something can happen this year. Absolutely something can happen. But I don’t think we would commit to anything as of this point because like I said, we are very disciplined about what we would pay and sometimes it takes some time to get meeting of the mind, especially with the seller. And can we arrive at that number sooner than later, who knows. But like I said earlier, I do feel very, very confident that our patients will pay off.
Darshil Zaveri
Okay, fair enough. And just like last question from my side, sir, in the transaction LED model, is the Prof. Profitability better or similar to like a subscription or you know, hybrid model? Because I think now most of our avenues coming from the transaction side. So just wanted to know is the overall margins better or how do they move around, Sir?
Bhanu Chopra
Rohan, do you want to take that please?
Rohan Mittal
Could you please repeat that?
Darshil Zaveri
So, so I think our transaction based revenue is now more than 50% where it was around 40% last year. I think so, yes. In that how do the pricing of transaction based happens? Like is that is, does this give us better margins or is it like because like there are more direct costs involved in the transaction. So, you know, the margins can become a bit less than what we used to do previously. So just wanted to, you know, understand how the economics of that work, like.
Rohan Mittal
Sure. So if you look at this quarter’s presentation, you’ll notice that there is a slight dip in our gross margins while our EBITDA has largely stayed flat. And that’s actually in part the answer to your question. As the mix changes to our transaction business, which is largely matech, the gross margins have slightly come down from trending at about 74, 75% to about 72.8%. Yeah, we don’t expect them to come down any further. However, at an EBITDA level, which is what is most important, the transaction business continues to operate at an ebitda north of 17 to 18%. So we don’t see any EBITDA impact coming in. By virtue of the transaction business gaining larger share of the total revenue, there can be a slight impact on the gross margins. So does that answer your question?
Darshil Zaveri
Yeah, that, that helps a lot. So and so just want to know like 1, 2 OTAs. We are thinking of those, those legacy contracts will be on the sunset. So how much of that would impact our revenue in the current year? Like what would its contribution be in FY25 and what could it be expected in FY26, sir?
Rohan Mittal
Okay, so if you were to look at the sunset OTA that we have spoken about in the past, almost 60% of the impact that was supposed to come and has already come in on a year on year basis between quarter one FY25 to quarter one 26. Yeah. So only about 40% of that is balance. That number will account for a very small number of the total revenue as on date.
Darshil Zaveri
Okay, okay, Fair. Fair enough, sir. Yeah, that’s it from my side, sir. Thank you so much, sir.
Rohan Mittal
All right.
operator
Thank you. Ladies and gentlemen. Due to time constraints, we take that as the last question and would now like to hand the conference over to the to Bhanu Chopra, sir, for closing comments. Over to you, sir.
Bhanu Chopra
Thank you, Nishka. So as we look ahead, I am incredibly excited about the future. Our ongoing investments in go to market acceleration and AI powered product innovation are laying the foundation for sustainable long term growth. These are not just tactical bets. These are strategic moves that position us to lead in an evolving landscape, deliver more value to our customers, scale efficiently. The momentum we are seeing is just the beginning. And we are confident that the steps we are taking today will translate into even greater impact and shareholder value in the quarters to come. And so thank you all for your continued support.
operator
On behalf of Rate Gain Travel Technologies. That concludes the this conference. Thank you for joining us. And you may now disconnect your lines.