Rategain Travel Techn Q1 FY26 earnings call

What moved the numbers, as management explained it

• MarTech (with ADARA vertical) grew at the fastest pace in FY25, validating customer value proposition and execution.
• APAC and Middle East revenue grew 24% YoY in FY25, the fastest among geographies, with GTM headcount expanding from 15 to 55 in nine months.
• FY25 EBITDA margin expanded to 21.6% (highest ever) on AI-driven productivity, automated workflows and disciplined cost management.
• DAS vertical scaled in FY25 with new logos and continued traction across key accounts.
• Distribution delivered steady performance supported by UnoSuite adoption; Americas and Europe anchored by renewals and expansions with key accounts.

The numbers management led with

• Geographic revenue growth (APAC + Middle East): Revenue up 24% year-on-year in FY25
• GTM headcount expansion (APAC + Middle East): GTM headcount scaled from 15 to 55 in nine months
• Cash and cash equivalents: ₹1,267 crore cash on balance sheet as of 31 March 2025, debt-free
• M&A pipeline coverage: In-house Cogdev team tracking 500+ travel tech companies globally; two years since last acquisition; transaction expected over next few quarters

Guidance on this call

Filed figures are summed from the company's own quarterly results for the whole period (EBITDA excludes other income); where one sits against what was guided is arithmetic, not a judgement.

By business

Balance sheet, capex and funding

• Cash position of INR 1,267 crores as of 31st March 2025.
• Net worth of INR 1,682 crores as of 31st March 2025.
• Balance sheet remained debt-free as of 31st March 2025.
• Cash reserved to absorb the next inorganic acquisition; CFO targets consummating a transaction over the next few quarters.

The industry, as management sees it

Management cited the State of Distribution Report (with NYU and Hedna) as evidence the industry is moving toward leaner operations, tighter technology stacks and sharper ROI measurement — a backdrop that validates RateGain's AI-first, integrated-platform positioning.

Risks management named

• FY26 growth band of 6-8% is materially below historical pace during build-out phase
• EBITDA margin guided to 16.5-17.5% vs 21.6% in FY25 as 4% of revenue is reinvested
• Two-year gap since last acquisition signals friction in inorganic execution

Asked for a number, answered without one

• Long-term (3-5 year) growth trajectory: CFO called FY25-26 a build-out phase, said the team is 'extremely optimistic and bullish' on three- and five-year outlook but gave only the phrase 'double-digit organic growth over the next few years'.
• Inorganic acquisition target: CFO said Cogdev tracks over 500 companies and balance sheet can absorb the next acquisition; confident of consummating a deal 'over the next few quarters' without naming a target, size or valuation.

Every question, with its answer

1. 1. FY26 revenue growth guidance

   Shareholder, AGM Q&A

   Question. Growth guidance for this year is in the 6-8% band, which is lower than previous years. How do you see this panning out for the year and going forward?

   Answer, Rohan Mittal, Chief Financial Officer. We're coming off exceptional growth over the last few years, especially post the IPO, including via tuck-in acquisitions. FY25-26 is a build-out phase. We are investing in GTM rollout, in people, in product and innovation. The growth accruing this year is therefore likely to be lower than the past, but this build-out is necessary to get back to double-digit organic growth over the next few years. We are extremely optimistic and bullish on our three-year and five-year projections on the basis of this build-out panning out.

2. 2. FY26 EBITDA margin guidance

   Shareholder, AGM Q&A

   Question. With the incremental investment, what is the expected impact on margins?

   Answer, Rohan Mittal, Chief Financial Officer. GTM and product innovation investment is anchored at 4% of FY25 revenue being committed back into the business to seed future growth levers. Our guidance for this year is 16.5% to 17.5% EBITDA margin. Once these investments play out, our ability to scale EBITDA margin back up will return. That's the range we are working with.

3. 3. M&A pipeline and capital deployment

   Shareholder, AGM Q&A

   Question. What are the inorganic initiatives planned for FY25?

   Answer, Rohan Mittal, Chief Financial Officer. Inorganic execution is about more than just a deal pipeline; it's about tapping the right opportunity at our terms and valuation. Our in-house Cogdev team tracks more than 500 companies globally in travel tech and we remain in conversations at different stages. It's been two years since our last acquisition — we are conscious of that — and the balance sheet is strong enough to absorb the next deal, with sizable cash earmarked. We are confident of consummating a transaction over the next few quarters.

4. 4. AI-first product portfolio

   Shareholder, AGM Q&A

   Question. Can you share more about the new AI-first products launched this year, and the areas where RateGain is focusing on AI investments?

   Answer, Rohan Mittal, Chief Financial Officer. FY25 brought the AI-first approach to life across product, people and process. Launches include UnoViva, our CRS-integrated AI voice agent that quotes live rates, confirms bookings, handles upsells and supports 30-plus languages; Smart ARI, the industry's first AI-powered ARI engine reducing redundant updates; RG Insights, giving real-time partner performance visibility with strong customer feedback; and an AI-powered Digest for Air that simplifies airline pricing data into actionable intelligence. Beyond products, we are training teams on AI literacy, automating workflows and designing products around speed and interoperability. Being AI-first is not a theme; it is how we build, operate and deliver.

Topic by topic, in the order it was spoken

In their words