Rategain Travel Technologies Ltd (NSE: RATEGAIN) Q3 2026 Earnings Call dated Feb. 16, 2026
Corporate Participants:
Bhanu Chopra — Chairman and Managing Director
Rohan Mittal — Chief Financial Officer
Analysts:
Unidentified Participant
Deep Shah — Analyst
Naim Patel — Analyst
Parth Agarwal — Analyst
Deepak Podar — Analyst
Anmol Garg — Analyst
Aditya Jhawar — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Rate gain Travel Technologies Limited Q3 and FY26 earnings conference call hosted by Strategic Growth Advisors. 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 this conference call, please signal an operator by pressing Star then zero on a Touchstone phone. I now hand the conference over to Mr. Bhanu Chopra from Raid Gain Travel Technologies. Thank you and over to you sir.
Bhanu Chopra — Chairman and Managing Director
Thank you and good afternoon everyone. Thank you for joining Ray gain Travel Technologies Q3 FY26 earnings call this was quite a transformative quarter for us operationally, strategically and structurally. Let me first start by addressing the headline directly. We delivered revenue of 540 crores up 94% year on year. Our EBITDA grew 42%. The reported PAT declined year on year and the reasons are transparent. There was an increased amortization from acquisition accounting. There were deal related costs including diligence, severance and alignment expenses and finance costs. Related to acquisition funding. These are integration and accounting impacts, not a deterioration in the underlying business and Rohan will cover these in details during his commentary. Pat adjusted for one time. Exceptional expenses which are non recurring grew 8% year on year. Importantly, within the first hundred days of integration we have already executed approximately $12 million in annualized cost savings in sojourn on a base of 24 million annual Epictet in sojourn. These savings will be visible from Q4FY26 onwards with a full impact should be visible from Q1FY27 given the cash generation profile of this business, We’ve already repaid approximately 25 million of acquisition related debt representing 20% of gross loan amount within the first 90 days of deal closure.
We aim to be net tech positive within 30 months. We continue to generate healthy operating cash flows and that gives us both balance sheet comfort and strategic flexibility as integration progresses. Let me now give you some strategic context where value is accruing. Travel continues to be resilient. Digital adoption accelerating, online bookings are expanding globally. Experience led travel is increasing. In this environment, value accrues to platforms that provide an integrated tech stack. One that allows customers to acquire guests efficiently, retain and engage them meaningfully. Expand guest wallet share over time. That is our vision. We are not building disconnected tools.
We’re building an integrated AI powered stack across acquisition engagement, distribution and revenue optimization. An important shift we are seeing is how travelers search and discover. Increasingly travelers are using conversational AI platforms and intelligent search tools to plan trips, hotels and destinations are asking how do we show up effectively in that environment? We have built integrations that allow our hotel partners to distribute structured content and availability seamlessly into these emerging discovery channels in simple terms. As search behavior evolves, our customers remain visible and bookable. Another structural shift helping us win is our commercial model. Across our integrated tech stack, we are increasingly moving towards performance linked pricing where customers pay based on outcomes delivered.
We monetize when we create measurable revenue lift. This allows incentives and reflects how modern commercial models are evolving and it makes it very compelling for our customers. Let me now talk about engines of growth. Our engine number one in Martech is scale dominance and integration. Machtech continues to be our largest growth engine. With the integration of Adara and Sojourn, we’re now the most dominant provider in the space of destination management organizations. No other provider even comes close to it’s about a $90 million business for us and no other provider combines travel intent data at global scale, closed loop attribution and booking measurement at that scale, Deep long standing relationships across destinations, enterprise grade marketing execution at our scale of data we uniquely positioned to capitalize on this segment and that’s what destinations care about.
Integration is progressing ahead of plan and we have already achieved 12 million in cost synergies within 100 days. We’re working with BCG to bring the go to market teams of Adara and Sojourn together aligning sales structures, account coverage and cross sell motions. This is about building one unified commercial engine. SOHO Update Erstwhile BCV on SOHO the erstwhile BCV business this was the only acquisition in our portfolio that was not profitable since acquisition this quarter SOHO achieved profitability. This was driven by a large marquee account Win, improved cost alignment and sharper execution focus. It demonstrates that we can take underperforming assets and drive operational improvement.
We’re encouraged and we remain disciplined in scaling it profitably. AI Concierge Separately AI Concierge part of the Sojourn platform is showing very strong commercial traction. Hotels used AI concierge are seeing up to 300% increase in ancillary revenue, 75% improvement in NPS automation of up to 80% of guest queries. This is real ROI. This is monetization. It drives direct wallet share expansion which is central to our integrated thesis. We are now working on integrating this in our unified platform. Uno Demand Booster Win Back Validation Another important signal this quarter, a large customer that had exited approximately 18 months ago has returned via pilot on Demand Booster.
They had moved due to industry consolidation and their exit had impacted our organic growth. After demonstrating the revenue lift they were missing by moving away they have reengaged. This validates our product competitiveness. It validates measurable ROI we deliver as we move into the upcoming quarter and achieve deeper integration. Demand Booster Insurgents Hospitality marketing offerings will be sold as one unified solution. This allows us to combine performance marketing, audience intelligence and direct booking optimization into a single integrated proposition for hotels. Similarly, Adara and Sojourn offerings will be streamlined and positioned as unified products, strengthening our cross sell motion and simplifying the customer buying journey.
This is where integration begins to translate directly into commercial acceleration. Let me talk about Naruto. The DAS embedded intelligence momentum is improving. We saw volume increases across Air, Car and OTA customers along with net new customer additions. Navigator a solution for hotels has undergone a meaningful evolution. We have moved beyond dashboards and historical reporting. Navigator now delivers AI assisted commercial clarity, translating complex demand, pricing and competitive data into decision ready actions for revenue managers. Instead of just showing data, it answers where should I price? Where am I losing share? Which demand segments are shifting? Similarly, REV AI clarity in cars simplifies pricing complexity into actionable insights.
Air Gain continues to strengthen parity intelligence and competitive pricing visibility. Singapore Airlines extended its long standing partnership reinforcing trust in our pricing intelligence stack across DAs. We’re embedding intelligence into workflows, not adding just surface based analytics that creates durability. Unoviva Our AI Voice success We launched Uno Viva, our AI powered voice agent. The first key implementation has delivered very encouraging results including measurable booking conversions. We see a big opportunity for this product in Europe and US where labor shortages are a real problem. VIVA turns inbound intent into direct bookings in real time. As hotels focus more on direct revenue capture, voice automation becomes a powerful leverage.
We see this as a meaningful long term opportunity within distribution AI embedded across the stack. There is broad market noise around AI. Our approach is disciplined and practical. We’re embedding AI into commercial decision loops, not laying superficial features across the platform. We now offer Demand AI for smarter audience targeting, REV AI for pricing intelligence, Smart ARI within our AI Powered channel Manager for real time rate and inventory optimization, Navigator AI for demand forecasting and decision clarity AI Concierge for in store revenue expansion and VIVA Voice AI for direct booking capture. This intelligence spans marketing, pricing, distribution and guest engagement.
That integrated stack is really our moat. Let me now talk about our organic growth and integration trajectory. The organic year on year growth for this quarter was in 4 to 5% range primarily due to some December end revenue Getting deferred to January 2026 organic EBITDA for Q3 was 17.5%. Overall we are confident of beating our FY 2026 RG organic revenue and EBITDA guidance which was issued at the start. Of the financial year. Organically we should end the full year at 6% plus organic growth and between 17.5% to 18% EBITDA nine month bookings have seen over 30% year on year growth. It’s a strong lead indicator of Future revenue. Our Q4 should see double digit organic growth combined with pipeline strength, cross sell traction, product adoption and the unified product motion underway. This gives us confidence in our return to double digit organic growth in the current quarter and going forward. As integration synergies scale and our unified go to market motion matures, we expect operating leverage to improve progressively over the coming quarters, strengthening our platform and improving our long term scalability.
Let me now talk about people and culture and how we’re scaling with strength. With the addition of Sojourn we are now over 1300 strong globally. We harmonize policies and benefits across regions to truly build one great game. We were recognized as a great place to work in India for the seventh consecutive year. As we scale globally, culture becomes a competitive advantage. Now I want to talk about our ET Corporate Excellence Award. This quarter we were named Emerging Company of the Year at the ET Corporate Excellence Awards. This is one of India’s most prestigious corporate recognitions.
The jury comprises of highly respected business leaders, industry veterans and institutional decision makers. To be recognized alongside some of the most iconic business leaders in the country, including this year’s distinguished awardees is both humbling and validating. It reinforces the credibility of our acquisition strategy, the strength of our integrated platform thesis, the discipline of our execution and the ambition of our long term vision. It signals that rate gain is not just growing, it’s being recognized as the highest institutional level. So in closing Q3 was a quarter of integration and validation. We delivered 94% revenue growth, achieved 12 million in annualized integration synergies within 90 days of deal closure, grew, adjusted PAT at 8%, turned SoHo profitable, saw strong traction in AI concierge product, won back a key demand booster client, began unifying demand booster and sojourned into an integrated commercial offering, launched viva, successfully strengthened our DMO leadership position, advanced navigator towards an AI driven commercial clarity and delivered 30% bookings growth as a leading indicator of organic acceleration.
We are building an integrated AI powered travel tech stack focused on guest acquisition, guest engagement and guest wallet share expansion and we are doing so with measurable outcome. With that, we’ll now 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. Starting with the update on the numbers for quarter three FY26 we have reported our highest ever quarterly revenue of INR 540 crores. This revenue includes two months of Sojourn’s revenues getting consolidated for the first time. It’s important to note here that seasonally November and December are the softest months in sojourn. RG Organic continued to report strong numbers despite some quarter end revenue getting deferred to Q4. RG Organic grew at 4.1% year on year and came in at INR290 crores.
You’ll all recall that we had reported our highest ever revenue in Q2 at 295crores. Q3 has been able to maintain that trend. RG Organic is poised to grow at double digit growth in Q4 on the back of strong booking momentum leading to overall organic annual growth in line with the guidance issued at the start of the year. Full year EBITDA percentage will also meet or exceed our guidance. RG Organic Q3 EBITDA stood at 17.5%. Sojourn has reported full year’s EBITDA percentage at about 14.4%. Consolidated EBITDA for Q3 stood at 16.1%. We have reported part of INR 26.5 crores in this quarter.
While Bhanu has touched upon this in his commentary, I’m going to explain this in bit more detail since I’m sure this is important to project EPS for FY27 and beyond. So we can basically split the bridge from EBITDA to pat into two parts one time and recurring. The one time non recurring amount which has been recognized in Q3 is INR 34.6 crores. This basically largely includes M and A related costs recorded as exceptional items as well as one time impact of the change in labour loss. By adjusting for the one time non recurring exceptional cost, the PAT stood at INR 61.1 crores representing a growth of 8% compared to same period last year.
Recurring charges include net finance costs, amortization of sojourn, purchase consideration excluding goodwill. The amortization amount can be expected to be $2.823 million per quarter. Because the provisional PPE exercise is now complete. A lot of you had questions around this in our earlier call and we just thought it should we should clarify this number. The finance cost is right now trending at 1.6 million per quarter. This will keep reducing as we repay the principal Q3 numbers factor in two month impact of these costs. Part of the deferred component of the overall deal which is roughly 30 million will be expensed over three years starting quarter four FY26.
This is in line with accounting standards. This expense will see through a pull down in line with actuals since this payout is conditional in nature over a span of three years. Nothing from this bucket has been recognized in Q3 thus far. As of now this amount can be estimated at 2 to 2.5 million per quarter for 12 quarters starting Q4 FY26. At an overall level, EBITDA to pack conversion will see a recurring delta of close to about 6.6 to $6.9 million per quarter. A large part of this will get covered through the cost synergies that we have already demonstrated which translates into about 3 million per quarter.
We are looking at additional revenue and cost synergies to make sure that the balance amounts are also negated. This does not factor any revenue growth on the baseline which obviously will be there. Further, I am happy to report that Sojourn integration is progressing well and on track with respect to the goals that we had set up for execution by March 2026. As Bhanu mentioned, we have managed to execute $12 million in annualized cost savings in phase one and these are permanent in nature. These cost savings have been executed on a base of $24 million for the entire calendar year 2025 EBITDA of sojourn.
These savings will be partially visible in Q4 and fully visible Q1 FY27 onwards. It’s important to note here these savings only pertain to the GNA function which was our area of focus during the first 90 days. These savings alone should allow Sojourn to get to the 18.5 to 19.5% EBITDA level going forward and there is further room for expansion. The cash flow generation has been quite healthy in the past quarter. The total nine month cash flow from operations stands at approximately INR 150 crores. If we were to just look at the Q3 cash flow generation, we’ve done almost 70 crores in cash flow from operations in Q3 and that was partially the reason why we decided to prepay a large chunk of the loan that we had taken as on date.
We continue to have a strong balance sheet. Our net worth currently is at 1860 crores. Our cash and cash equivalent balance as of 31st December was 362 crores. Net debt as on today is down to close to about 880 crores. As we move to FY 2027, our immediate focus remains primarily twofold. Successfully integrate Sojourn and maintain the booking growth trajectory that we have registered in the nine months of FY26 and monetize them into revenue. With that I would like to close my remarks and we are happy to open the floor for questions. Thank you.
Questions and Answers:
operator
Thank you very much sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their Touchstone 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 the moment while the question queue assembles. The first question is from the line of Deepsha from BNK securities. Please go ahead.
Deep Shah
And thanks guys for. Such detailed opening remarks. Very useful. I, I, I’m sure it has helped. A lot of people on the call. One question I still had was if. We could provide some some further clarity. On how similar or different are the offerings of Sojourn versus R Markex. Is there something very different in terms of the product profile, customer profile receivable cycle and the reason the context is. That you guys mentioned that November December is the weakest for Sojourn. So is there something very different in. Terms of Georgio fees? I think some clarity over these things could be very useful. That’s it from my side. Thank you.
Bhanu Chopra
So Rohan, I’ll take the first part and then you can address the question on. The Q3 seasonality bit. So the offerings are actually this is our first acquisition where we have acquired. A company with very very similar offerings. In fact, as I mentioned in my opening remarks, we were going head on head against Sojourn in the destination management space and we were literally the top. Two providers for the DMO segment. And with the combination now we become a very very dominant provider in this customer segment. So the offerings were very very similar in nature and as we bring the platforms together, one of the offerings was about measuring the efficacy of the digital marketing and bringing the platforms together makes the measurable attribution a lot more effective and our measurement product will be the. Only product available in the marketplace to measure the efficacy of your digital marketing dollars for. So both from a go to market perspective as well as you know, combining. The platform and the Data that’s available. In it makes it very, very strong. Similarly, on the property side. They were. A more seasoned and mature and scaled player in digital marketing as opposed to our Demand Booster product. They were almost seven or eight times our size. And by bringing it together, we will be able to take advantage of the very high number of properties that they have, which is about 13,000, and be able to cross sell and upsell our integrated tech stack, which is uno, where we are able to combine all the capabilities to offer the ability to do. Guest acquisition, guest engagement and guest wallet share expansion. And there are a couple of other. Capabilities that were part of our vision that we didn’t have in our stack, especially around the AI concierge that I. Talked about that enables in stay engagement. With the guests and also is a great ancillary revenue generator for the customers. And we are very pleased to have that in our stack. So overall, even for the hotel property business, having this one integrated tech stack is very compelling and very powerful. And we would be one of the only few companies to possess all these capabilities in one unified platform. And as I indicated, we’re combining the Demand Booster and the Sojourn digital marketing capabilities into one platform within this quarter. In fact, from a go to market perspective, we have now a unified solution that we are taking to the market. And similarly on the other segments like DMOS and the big corporate customers, we are unifying our GTM teams and we are consulting Boston Consulting Group BCG to.
Enable us to unify that GTM motion as well.
Rohan Mittal
Thanks Manu. I’ll pick up the second part. Deep. So basically the way to look at that is in the properties business, which is almost exactly similar to the Demand Booster program that we were running. The only difference is that Demand Booster was contributing less than 10% of our revenue pre acquisition and therefore the seasonality in that business was not fully evident. Although if you typically look at our numbers, Q3, revenue is slightly lower than Q2. Yeah, so that’s the seasonality impact. In the case of Sojourn, the properties business contributes as much as 45% annually to the overall revenue pipe, which means that the seasonality will have some slightly more impact than what has been evident on the rate gain side of things.
And that’s the only thing that we were calling out. This is pure seasonality impact. It has. No, it’s, no, it’s not a sustainable business impact that business recovers in Q1, sorry, Q4 of the next calendar year.
Deep Shah
Understood, understood. This is very useful that it, that’s it. From My side. Thank you.
Rohan Mittal
Thanks.
operator
Thank you. The next question is on the line of Naim Patel from Bastion Research. Please go ahead.
Naim Patel
Hi. Thank you for this opportunity and congratulations on a good set of numbers. So my first question was for Rohan on some bookkeeping data points. So how has our other older offerings such as Adara, you know, organic offerings, have grown in this quarter on a year on year basis as well as quarter on quarter basis for the Martech segment? And on secondly on that front as well that our, if I see our EBITDA on a quarter on quarter basis organically it has gone down from 18.2 to 17.5. So was that due to the acquisition related expenses that we, we have not able to, you know, sustain it this way or was there any other reason?
Rohan Mittal
So, so the first question, the answer to that is that Adara has grown at about 19.8% year on year in Q3. Yeah. The answer to your second question, if you, if you look at the numbers, we had given a guidance initially that our ebitda Percentage of 17 to 17 and a half percent on an annualized basis. The primary reason was some investments that we were doing to accelerate gtm and the ROI on that on those investments is evident to the fact that for the entire first nine months we’ve reported 30% plus in booking volumes, which we’ve never done before.
So that’s the only reason why you are seeing partial dip in the numbers. It’s in line with the guidance and expectation that we had set up earlier at the start of the year. It’s important to note here is that we don’t capitalize any costs. Right. Whatever cost you’re incurring is getting expensed straight away in the same financial year. The delta from 18.2 to 17.5 does not include any M and A related expenses. All M and A related expenses have been called out as one time exceptional costs, which is part of the 34.6 crore number that you’ll see in the exceptional items.
Naim Patel
Understood. And what was the growth for overall Martech segment? Excluding Susan, you mentioned, but I wanted it completely.
Rohan Mittal
Yeah, sorry, come again please.
Naim Patel
Yeah. So what was the. Like you had mentioned 19 growth on Adara, but excluding Sudan, we have other offerings in Martech as well. So for Martech overall, excluding Sojourn, what was our why and growth?
Rohan Mittal
Close to about 11%. 11. 11 and a half percent.
Naim Patel
Understood. And my second question was for Bhanu, that currently, you know, there are many AI platforms coming in and there’s some uncertainty in the market as well. So how do you see those offerings benefit our current offerings, such as DAS distribution, and with which of them do you see, you know, come as a threat to our offerings? If that’s the case at all, Some more clarity or color would be very helpful.
Bhanu Chopra
Yeah. So both externally and internally, we have. Taken a lot of AI initiatives and. I covered some of them in my opening remarks. So we launched our, which is an AI voice agent. So if you call a hotel, our. AI agent would pick up the call. And answer any questions around the hotel. Or even make a booking or do any upgrades. Similarly, we, through Sojourn acquisition, we acquired an Insta AI concierge platform. So if you’re at a hotel and you have any questions about the hotel, say for instance, where the gym is. What time is the breakfast open? So the AI concierge product, which is an AI, would answer any questions about. Things at the hotel or any suggest any activities or itineraries while you’re, you know, in that destination. Then internally we are using, you know, AI to, from an engineering perspective, large section of what we code now is AI generated. There are a bunch of wipe code projects that we have developed internally to streamline both our and finance functions. We’re using AI from a support perspective as well. And to your other question about how. Disruptive can it be for our business? So I don’t see it as a. Disruptor, I see it as an accelerator. And I talked about a lot of. Those initiatives we are taking. I think the fears about AI eating up SaaS are a little overblown. I in fact wrote a LinkedIn post also on it. I think in our case, the fact that we, you know, we have the domain context is a great advantage to us. And this, this kind of fear also came around, you know, when cloud companies came about and it was feared that. The cloud companies would get into the. Areas of SaaS and completely disrupt them. But ultimately what happened was staff grew as a result of, you know, the cloud companies. So I see a similar pattern play. Out here as well where I don’t. See it as a disruptor, but I see it as an accelerator.
Naim Patel
Thank you. Thank you very much, Rohan and Banu. That’s all from my side and best. Of luck to you.
Rohan Mittal
Thank you.
operator
Thank you. The next question is on the line of part Agarwal from Bastion Research. Please go ahead.
Parth Agarwal
Hi, thank you for the opportunity. I had just one question. So, you know, in FY20 we have essentially decided to do a lot of GTM marketing and the benefit of which is also visible in Our order wins in the last two, three quarters. But is there any other, you know, benchmark or success rate that you’re seeing that this entire exercise has been fruitful for us? Hello? Hello.
Rohan Mittal
Yeah, so if you look at our GTM investments, the total investment. I. I hope I’m audible. Yeah.
Parth Agarwal
Yes.
Rohan Mittal
If you look at the total. Perfect. If you refer to our guidance which we had issued last year around similar time, we had proposed that we’ll be adding close to about 5 to 6 million dollars, which was roughly 4% of our EBITDA at that time. Back in building out a GTM teambase, we have gone ahead and executed that strategy over the last nine months, nine to 12 months. The impact, as you rightly said, is evident in the order book that was is the single largest ROI calculator. Obviously that order book has to translate into revenue.
That’s point number one. Point number two, when a new sales team is onboarded, there is a time given for the sales team in terms of booking targets as to what can they achieve in the first six to 12 months. Right. They cannot start performing to the 100% potential in the first six to 12 months, as you can imagine. So that is financial year. Some of those targets will also get reset, which will reflect in the FY27 guidance that we will issue on our May call and this call. Yeah. So the growth rates that we pick up in the businesses where we’ve invested in the GTM team, those businesses should ideally look at a much stronger organic growth rate in FY27 and beyond on the back of successful hiring and successful execution of this whole GTM strategy. Does that answer your question?
Parth Agarwal
Yes. So the gtm or the 5,6 million that we deployed, was it more towards, you know, hiring the sales team and building a sales team or it was more something like a one time marketing kind of expense?
Rohan Mittal
No, no, no, it’s not a one time marketing expense. A majority of it has gone in terms of payroll for new people who have been hired. In the GTM function, this would largely include sellers, but it would also include a proportionate amount of customer success managers and account managers. In addition to that, there is a very small portion that would have been allocated to tools, GTM enabling tools and some investment in our revenue ops team, which is basically a strong catalyst and enabler for the entire GTM team to perform. So in the direct support functions, there would have been a small investment in tools, there would be a small investment.
Large part would be pure GTM payroll.
Parth Agarwal
Got it. So essentially the team that you have built this year, they will have to start performing next year for us. Are now, you know, margins to normalize to 2022 kind of a level. Is that understanding correct?
Rohan Mittal
See, this is a common dichotomy that we all face on a day in, day out basis to prioritize revenue growth versus to deliver best in class EBITDA percentage. Given a choice, if we see any white space where we believe we can add more people and therefore gain market share, profitable market share, we will not hesitate to go ahead and do that going forward. Also, the guidance that we’ve given in the, at the start of this year is that going forward, if we are, if we are capable of delivering 20 to 20.5% EBITDA on a sustainable basis, we’d much rather invest back 1 to 2% of that EBITDA in adding strength to our GTM team and other functions ahead of the curve.
So we are not going ahead and issuing guidance for FY27 right now, but that is the philosophy that we are following here.
Parth Agarwal
Got it. Thank you so much.
Rohan Mittal
Thank you.
operator
Thank you. The next question is from the line of Deepak Podar from Sapphire Capital. Please go ahead.
Deepak Podar
Yeah, Am I audible, sir? Hello? Am I audible? Yep. Thank you very much for this opportunity, sir. So, just wanted to understand. This quarter we had about consolidation of two months of revenue from Sajan, right? So, so, so how much was that?
Rohan Mittal
250 crores.
Deepak Podar
So 250 crores. And, and, and, and, and, and at margins of what, 14.4% would that be? Right?
Rohan Mittal
Roughly. Yes, yes, yes.
Deepak Podar
Okay. Okay, understood. And you also mentioned about synergies of around 12 million. We have already seen in terms of savings, cost savings in 100 days. So which kind of will help you to reach 18 and a half to 19% EBITDA margin going forward. So when it will be visible, I mean, will it be visible from fourth quarter itself or it will take two, three quarters for us to see that kind of margins. And this margins we are talking about on a console basis, right?
Rohan Mittal
Yeah, but the margins are applicable to sojourn. Right, but they should be visible in the console results. So if you look at Q4, you’ll see part of these margins coming in. Because some of these initiatives have been executed in January or early February, but they’re all executed as we speak today. Q1, you should see the entire impact visible in the PNL.
Deepak Podar
Come again, sir? I missed that just last point.
Rohan Mittal
I’m saying some of these $12 million integration levers have been executed during January and early February as Well, yeah, the current month that we are speaking in, as of Today they are 99.99% executed in Q4. Therefore you’ll see a partial uptick in Q1. You should see a full impact of this 12 million dollar annualized number. So 3 million dollar in the quarter visible in Q1.
Deepak Podar
Okay, understood. So ideally, if I have to, I mean look for first quarter. So ideally, or this, if this impact is visible, your 18 and half to 19% kind of margins in sojourn and your the base business margins stands at around 17 and a half to 18%. So. So consolidated margin should be somewhere in between. Right. Ideally, given.
Rohan Mittal
That’s right.
Deepak Podar
Given the revenue mix we, we might be having.
Rohan Mittal
Okay, you’re absolutely right.
Deepak Podar
Okay, okay. Okay, understood. And in terms of FY27, you mentioned we look at much stronger organic growth. Right. So any range we are looking at, I mean given I think this fourth quarter we are targeting what a double digit kind of a growth rate. And this quarter was little on the lower side. So how should one look at the organic growth FY27?
Rohan Mittal
So Q4, 50% is already behind us. So I can say with reasonable confidence that you will be able to see a double digit organic growth on the RD side of things, excluding sojourn in Q4. We will start issuing FY27 guidance in the month of May. That’s the typical trend that we’ve maintained. We’ll stick to that. But I see no reason why, if you are delivering double digit organic growth in Q4, I see no reason why we should not be able to continue that trend on the back of the strong booking momentum that we’ve seen in the first nine months of this year.
Deepak Podar
Okay, so a double digit is quite a possibility for FY27 as well.
Rohan Mittal
Yes, yes. But please wait for us to issue formal guidance.
Deepak Podar
Yeah, fair point. And just the last thing on the EBITDA margins that the point that you are making to the last participant of 20, 20 and a half percent is what our threshold margin would be and any incremental we would like to invest back in the business. So. So with that philosophy we would be working. Right.
Rohan Mittal
So what I said on the to the last participant was that 20% is something that we can sustainably deliver. Yeah, we have done 21 also. But 20, 20.5 is something that we can sustainably deliver. Our intent would be to reinvest up to 10% of that EBITDA, which is about, which takes it to 18, 18 and a half to reinvest 10% in growth and investment cases. Wherever we are satisfied with the roi, the risk parameters are within our acceptable range and things like that. It’s not a necessary investment every year but wherever we can find those white spaces we will actively invest ahead of the curve.
Deepak Podar
Okay. So effectively at 18% would be a sustainable long term, long term margins that one one might look at for this business.
Rohan Mittal
18, 18 and a half. 18. 18 and a half with surgeon Consolidated is something that we can, we. We are in. We are looking to deliver.
Deepak Podar
Okay. Okay. Okay.
operator
Sorry to interrupt sir.
Deepak Podar
Yeah, I’m done. Thank you very much sir. Wish you all the best.
Rohan Mittal
Thank you. Thank you.
operator
Thank you. The next question is on the line of Matenshah from an individual investor. Please go ahead.
Unidentified Participant
Yes, hello. Am I audible?
Rohan Mittal
Yes.
Unidentified Participant
Yes. So thanks a lot for being opportunity and heartiest congratulations. Banu, I don’t know if you reflect or no. I’d asked you, you know, whether we’ll be able to meet the 2000 crore target that you test for FY27. And it seems that we might very well achieve this, you know, by the end of next quarter or maybe Q1 FY27. So heartiest congratulations for that and really appreciate the hard work that you’ve done for this and the entire team. So my next question would be, having said that we have almost achieved doubling the revenue of so called 2000 crore well before FY27.
What would be the next target?
Bhanu Chopra
Yeah, so internally we have set a goal of a billion dollars by 2030.
Unidentified Participant
Oh, that’s too far away.
Bhanu Chopra
Okay, so it’s only four years away.
Unidentified Participant
I’ve been almost four years invested as of now.
Bhanu Chopra
Yeah, so we’ve, I mean if you look at our history, we are now 10 times the revenue. When we came into the public markets we were about 300 crores. And now we are run rating close to 3000 crores in four years. With that space I feel quite comfortable. We just need to do three times from here.
Unidentified Participant
No, I’m equally excited to be going along with this company since almost last four years. I really love the way the company is working. So my next question would be. Bhanu, you know I’ve been seeing the, you know, lot of small, small companies emerging from India. You know, digital companies, you know, offering hotel management suites. I had even asked earlier regarding a company named Destara. I don’t know if you recollect, I see some names like anticipatory and all those. Are we by any chance you know just you know casting a glance to this companies as to what are they doing and could there be a potential acquisition or you know, a threat or whatever you make you may be able to foresee from these names.
Are we, are we going through this name by any chance?
Bhanu Chopra
Yeah, so we maintain a very, very active M and A machinery. We have a dedicated team. So we run a robust corporate debt program and we continuously looking at all kinds of companies and I’m sure we’ve gone through some of these names as well. I mean the database that we have is of over thousand companies and we. Are constantly evaluating them on. On merit and wherever we see an opportunity we progress our conversation. So I mean I can tell you right now it’s definitely must be evaluated by our teams. But it hasn’t shown up on my radar. I think if there is some merit. It will show up on my radar.
Unidentified Participant
Yeah, I know these are very small and I had received a response that the company is normally looking for anyone which is 5 million northwards and these are pretty much smaller. So I can understand. But the only thing is because I see a lot of names cropping up from this sector, you know, so that’s what that was. But I. That’s all you know from my side and I’ve really enjoyed this ride since almost last four years and wish you all the best and heartiest congratulations once. Once again. Thanks. Thanks a lot.
Bhanu Chopra
And then. Thank you. Thank you sir.
operator
Thank you. The next question is from the line of Anmol Garg from Dam Capitals. Please go ahead.
Anmol Garg
Yeah, hi. Thanks for the opportunity. A couple of things that I wanted to understand. Firstly, if I look at our total. Customers that has not increased despite a Sojourn acquisition coming in, does that mean that most of the customers in most of the customers there is a overlap between Sojourn and Rateken?
Rohan Mittal
No, I’ll take that. I am not. What we are doing is we are reevaluating the methodology through which we report our customer count. Right. Because there’s a difference in the way we look at customers in a parent child grouping versus how Sojourn looks at it. So this quarter we have just shown the Sojourn count of customers as is in the next quarter you’ll see a harmonized count of customers. The overlap is less than 5% at an overall level.
Anmol Garg
Okay. So the current customer count is basically. The rate gain customer count not the Sojourn is not included in this number.
Rohan Mittal
Yeah, the current rate gain customer count hovers at around 3,200. Sojourn talks about 13 to 14,000 customers. Yeah, but we didn’t want to just add the two and report it. It didn’t make sense to us because the methodologies are different. So we’ll report a harmonized number, Q4 onwards. But that’s the individual customer count.
Anmol Garg
Okay. Secondly, if I look at our dash revenue on a sequential basis then it’s more or less range bound. However, two months of Sojourn acquisition has been taking place in this quarter. So just wanted to understand how is the classification over there?
Rohan Mittal
Sojourn does not have any revenue which is getting classified in DAs. That was only the case for the DARA business. Yeah. So Sojourn entirely sits in the Martech division and excluding the Adara DAS business, which Anmol, you’ll recall, we’ve been sharing active commentary on this. Strategically it didn’t make sense. It did not make sense for us. So that business has been gradually unwinding. Yeah, there’s no rush to unwind it. But it’s been gradually unwinding. If you were to exclude that business, our DAS business are growing at 10 to 12% year on year.
Anmol Garg
Understood. And thirdly is that, you know, should. We expect that the initial investment cycle that we are doing for our revived GTM strategy is now largely complete or. Or there would be some impact of that in the fourth quarter as well?
Rohan Mittal
No. So other than a few offers which might be pending for rolling out as part of the original investment plan and the sustainable accrual of the payroll expenses, there is no other expense item that’s likely to hit Q4. So if a person has joined in in November, the full payroll has not reflected in the Q3 numbers to that extent there’ll be true ups.
Anmol Garg
So from that perspective we expect that. On a sequential basis, basically our margins should inch up in. In fourth quarter.
Rohan Mittal
Yes. Not just because of that, but a few other reasons expecting better than Q3 margins in Q4.
Anmol Garg
Okay. Understood. Understood. Yeah. That. That’s all from my side. Thank you so much.
Rohan Mittal
Thanks.
operator
Thank you. The next question is on the line of Aditya Jawar from AK Investments. Please go ahead.
Aditya Jhawar
Yeah, thanks for the opportunity. I have few questions related to Sojan. Is Sojourn reporting gross revenue or it is a net revenue only?
Rohan Mittal
Gross revenue in line with what we’ve been reporting on MHS and the DARA side of business. Because the businesses are almost exactly the same.
Aditya Jhawar
Okay, but Ray gain we as a company we generally have net revenues, right?
Rohan Mittal
No. Adara nhs, which are the comparable businesses For Sojourn we’ve been reporting gross revenue. So accounting policies, revenue recognition policies are absolutely consistent. No change.
Aditya Jhawar
Okay. Okay. So what is the net revenue for Sojan?
Rohan Mittal
We, we will avoid reporting those granular numbers.
Aditya Jhawar
Okay, okay, okay, okay. My question to Bhanu is a little broader one. So Bhanu, what is, what are your top priorities right now going FY27 because you know that we have now this Sojourn asset and radian asset and we are building a lot of AI stuff underneath the companies. Right. So what are your top priorities on top of your mind for next year or upcoming one or two years for the rate gain to build or leverage on this AI tools or stack or whatever comes to your mind?
Bhanu Chopra
Yes. Yeah. So I think from product perspective we have a very comprehensive set of capabilities. That we have built and acquired. A lot of these capabilities are at, some of them are at infancy stage and some of them are at a. Tipping point to scale. So really focus is now accelerating on. The products that we have already built or acquired through the Sojourn acquisition. So a lot of focus on GTM and unifying teams. So as I mentioned, our big effort right now is consolidating our go to. Market teams in Adara and Sojin for. The DMO and the corporate customer segment where we see a massive opportunity given. In DMOs we will be in a very, very dominant position and that should. Give us significant pricing power as well. And and on the property side I am very, very excited about realizing our vision of having this integrated tech stack that can pretty much do everything from. A guest acquisition, guest retention engagement and. Guest wallet share expansion perspective. So we have invested quite significantly, as. Rohan mentioned, about 5 to 6 million. Dollars and a large portion of that went into building our APAC team and it’s showing in our numbers from a bookings perspective. But I feel we haven’t seen the full benefit of all the investments that we have made. And now that we have such a powerful and compelling value proposition, I see massive opportunity to dominate in the APAC region as well, which something that historically. We haven’t really focused on. So net net, I think key priority will be to really calibrate our go to market motions because I see significant. Opportunity and significant acceleration in our organic growth. I think we will have some bumps, but I feel very, very confident that you know, we are poised for very, very good growth in the in the. Next couple of years.
Aditya Jhawar
So if I understand basically you are happy with the products, whatever we have, but your most focus is on go to market strategy because we have the right asset in the place. Is my understanding right?
Bhanu Chopra
Yes, that’s absolutely right. That’s the right Way to sum it up. Yeah.
Aditya Jhawar
And one more thing, in this agentic world, right? I mean lot of agents are coming through. And are we also putting the company in the right shape? That we have internal teams who are dedicatedly working on this agent and AI stack so that whatever the vision we have for a billion dollar, we have to be making sure that the internal teams are also. I mean, as you know. Right. Lot of steps are being written through AI, so are we focusing how much are we putting efforts there also? Because I know you’re happy with the product, but in order to move one step ahead and gain more margins for our business. Right. So are we also putting leaders over there who are upfront on the AI side?
Bhanu Chopra
Yeah. So you know, let me reinforce, like I was saying earlier, even from our perspective, whatever products we are building now, half of the code that we write is AI generated pretty much all across teams. We have large initiatives that our HR department is leading on how AI can. Lead to automation and productivity gains. And pretty much across all our teams we have introduced vite coding and build AI tools to get these productivity gains. For instance, in hr we’re using an AI agent to answer any queries or. Questions and provide HR support. We have an AI agent from a talent acquisition perspective. Similarly, we are using it in much faster prototyping in new ideas. What used to take us several months to build and prototype now can be done in weeks and days. So there is a concentrated effort in continuously to, you know, promote this culture grounds up. But there is a cross functional team also that’s dedicated on understanding new capabilities. That are emerging and how that can be put to use. See, AI has a huge opportunity, but it’s very, very important to use it as an enabler with an end outcome insight. And so we’re defining those end outcomes and basis that, you know, devoting our. Energies and delivering those outcomes.
Aditya Jhawar
Right, right. Okay, great. Last question. I have basically, I know that we are putting a lot of efforts on the products and you also said a couple of years back that you know, the products, whatever you are building are a very high margin, this kind of thing. Right. But now with the equation, I know that this is large, but what is the aspiration you have being a product tech company? And we know that the cost might not go up if we have the operating leverage in the business. Right, but where would you like to see the business, I mean margin in the overall long run? What is the juncture you see internally the product pipeline that can gain us a very big margin expansion? Like currently people are afraid of the SaaS. But I think with this AI, I mean the SaaS product companies can gain more and more market share and be the best there.
I mean in this AI. So what is the aspiration you have on this?
Bhanu Chopra
That’s my. Yeah, so I think Rohan addressed this in his commentary earlier. Our goal will be to be between that 18 to 20% range and we will continue to reinvest additional margins back into the business. Because as I stated earlier, you know, the aspiration or the next goal in. Our mind is to hit a billion dollars in revenue. The market is there, the opportunity is there and we need to continue to accelerate. So we’ll continue to reinvest, you know, wherever we get the confidence that we have clear conviction that additional investments will deliver the roi. Expect so. We’ll continue to invest, but we are very comfortable with that 18 to 20% margin profile and reinvesting the balance to gain more growth.
Aditya Jhawar
Right. Thanks. Thanks one. Thanks. All the best.
operator
Thank you ladies and gentlemen. That was the last. Due to time constraint. That was the last question. I would now like to hand the conference over to the to the management for the closing comments.
Bhanu Chopra
Thank you everyone for your support. As I indicated, this was a transformative quarter for Rate Gain. We are very excited about the opportunity ahead and we will continue to deliver on the promises that we have made. Thank you.
operator
Thank you, sir. On behalf of Rate gain Travel Technologies Ltd. That concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.