Rategain Travel Techn Q1 FY27 earnings call

Thu 24 Sept 2026RATEGAIN

In brief

Q1 FY27: record ₹785 cr revenue and 24.6% adj EBITDA margin; net debt cut to ₹615 cr with 38% acquisition debt repaid.

Management's tone: Confident
What was said: Leaned positive
Guidance: None given
Analyst pushback: Low
Stock, next session: −3.26% (Nifty 50 −1.64%)

Q1 FY27 operating revenue hit a record ₹785 cr, with adjusted EBITDA margin at a record 24.6% and adjusted PAT of ₹116.8 cr.
Sojern integration completed ahead of plan with USD15M annualized cost synergies within 100 days; customer migration onto a single platform done.
Q1 FY27 free cash flow of ₹135.2 cr at 78.8% conversion, the highest in company history.
Net debt down to ₹615.4 cr at June 30, 2026 with 38% of acquisition facility repaid; on track to return to net cash within 30 months.
Company targets USD 1 billion in revenue for FY27 and continued deleveraging through operating cash.

An AI read of the company's transcript · the filing

The numbers

The quarter, Q1 FY27

	This quarter	A year ago	Last quarter	Margin
Revenue	₹785 cr	+187.6%	+9.7%
EBITDA (excl. other income)	₹172 cr	+245.4%	+16.7%	21.9% (18.2% a year ago)
Net profit	₹94.9 cr	+102.2%	+35.6%	12.1% (17.2% a year ago)
EPS (₹)	₹8.03	+101.8%	+35.4%

From the company's filed results for the quarter ended 30 Jun 2026 (consolidated), not from the call. EBITDA here excludes other income, so it can differ from the figure management quotes.

Where management's figures differ from the filing

Q1 FY27 adjusted EBITDA: said ₹193.4 cr; margin 24.6% (management's adjusted figure); filed EBITDA ex other income ₹171.53 cr; margin 21.9%. Adjusted EBITDA adds back acquisition-related costs not captured in filed EBITDA ex other income.
Q1 FY27 adjusted PAT: said ₹116.8 cr (management's adjusted figure); filed Net profit to owners ₹94.91 cr. Adjusted PAT adds back deferred consideration payable to Sojern team, contingent on revenue growth and EBITDA targets over 3 years.

What moved the numbers, as management explained it

Sojern consolidation in Q1 FY27 vs part-year inclusion in Q1 FY26 drives reported revenue base effect.
USD15M annualized Sojern cost synergies delivered within 100 days, lifting adjusted EBITDA margin to a record 24.6%.
Higher amortization expense from Sojern acquisition weighs on reported PAT versus adjusted PAT. (accounting)
Interest expense on USD125M acquisition debt and absence of prior other income (cash deployed for Sojern) reduced reported PAT by about 7% YoY in FY26. (one-off)
Revenue mix shift to MarTech (81.1%) reflects Sojern in base, not a new product dependency in itself.

The numbers management led with

Sojern acquisition consideration: USD 280 million plus USD 30 million in earn-outs
Cost synergies realised: USD 15 million annualized within first 100 days post-closing
Net debt: INR 615.4 crores as on 30 June 2026 (down from INR 722.3 cr on 31 March 2026)

Guidance

Guidance on this call

What	For	What management said
USD 1 billion revenue ambition	FY27	to reach USD1 billion in revenue
Return to net cash position	—	expect to return to a net cash position within 30 months of the acquisition closing
Distribution growth	FY27	expect Distribution to reach double-digit growth by end of the year

Guided on earlier calls, and what was filed

What	For	Guided	Filed
FY26 revenue growth band	FY26	6–8% (on the Q1 FY26 call)	69.4%, above the range
FY26 EBITDA margin range	FY26	16.5–17.5% (on the Q1 FY26 call)	16.6%, within the range

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.

The business

By business

MarTech

MarTech share rose to 81.1% of Q1 FY27 revenue with Sojern consolidated for a full quarter; FY26 grew 146% (18.9% organic). UNO platform brings channel manager, reservation system, booking engine and VIVA voice agent into one stack.

81.1% of Q1 FY27 revenue · FY26 growth 146% (18.9% organic) · Revenue per employee rose 95.3%

Outlook: Cross-sell into 14,000+ customer base flagged as largest revenue opportunity; UNO with Agentic ARI positioning MarTech for further revenue optimization.

DaaS (Data-as-a-Service)

Q1 FY27 share at 12.6% with intent data from Adara and Sojern now combined; grew 22.7% in the quarter across airline, OTA and car rental customers.

12.6% of Q1 FY27 revenue · Q1 FY27 growth 22.7%

Outlook: Investing to grow DaaS in absolute terms; intent data seen as underpinning marketing spend effectiveness.

Distribution

Q1 FY27 share at 6.3%; FY26 declined 12.4%. Launched industry-first Agentic ARI and RateIQ products to address revenue leakage for large chains.

6.3% of Q1 FY27 revenue · FY26 decline 12.4%

Outlook: Management expects Distribution to reach double-digit growth by end of FY27 as new product traction builds.

Balance sheet, capex and funding

Net debt ₹615.4 cr at June 30, 2026, with further USD16M repaid in July-early August, taking total acquisition-debt repayment to 38% of original facility.
Q1 FY27 free cash flow ₹135.2 cr at 78.8% conversion, the highest in company history.
FY26 free cash flow ₹230 cr; FY26-end cash and equivalents ₹173.1 cr.
Goodwill ₹1,581 cr and other intangible assets ₹784.9 cr on balance sheet, arising mainly from acquisitions and driving the amortization charge.
Management targets return to net cash position within 30 months of acquisition closing.

Risks management named

Distribution segment declined 12.4% in FY26 and requires product-led reacceleration to return to double-digit growth
MarTech concentration at 81.1% of Q1 FY27 revenue creates a perception risk even as top-10 customer share stays low at 17.6%
Goodwill of INR 1,581 cr and other intangibles of INR 784.9 cr drive ongoing non-cash amortization pressure on reported PAT
Net debt of INR 615.4 cr requires sustained free-cash-flow conversion of 78.8% to maintain the deleveraging pace

Q&A

Q&A was lightweight and shareholder-driven rather than analyst-driven, with five clearly articulated questions on revenue authenticity, PAT decline, Sojern integration, deleveraging pace, and segment concentration. Management responded with detailed, numbers-led answers each time, no visible pushback, and no deferrals. The Company Secretary cut the session short citing a large backlog of further questions, which were committed to be answered separately in writing — a standard AGM protocol rather than avoidance. The segment-concentration answer was the most substantive, with management tying the mix shift to Sojern consolidation and committing to DaaS and Distribution reacceleration.

Every question, with its answer

1. Revenue growth authenticity vs acquisition effect
Shareholder, Unknown
Question. FY26 saw a very large jump in revenue. How much of that is genuine business growth versus the effect of the Sojern acquisition?
Answer, Bhanu Chopra, Chairman and Managing Director. Operating revenue grew to about INR 1,823 crores, about 69.4% over the previous year. A significant part reflects consolidation of Sojern from November 2025, so the reported growth rate is not a like-for-like comparison. Organic growth through the year was in mid-single digits, with the pipeline strengthening through H2. What matters is that the acquisition has been delivered as promised, leaving RateGain with the largest travel intent data platform in the industry, a much larger North American customer base, and an earnings-accretive deal faster than projected. FY27 will be the first full year where the combined business can be read cleanly.
2. PAT decline and adjusted PAT reconciliation
Shareholder, Unknown
Question. Reported profit after tax declined 7% in FY26. Can you explain why, and why does the company also report an adjusted profit figure?
Answer, Bhanu Chopra, Chairman and Managing Director. The decline is linked to the Sojern acquisition, with three drivers: (1) amortisation expense from the Sojern acquisition, (2) absence of other income as cash was deployed for the deal, and (3) interest expense on the USD 125 million of acquisition debt incurred in H2 FY26. Adjusted PAT for FY26 was INR 249.9 crores, roughly 20% YoY growth. The adjustment adds back the deferred consideration payable to the Sojern team, contingent on revenue growth and EBITDA targets over three years. None of these items affect operating cash flow or free cash flow, which remained healthy through the year.
3. Sojern integration status and synergies
Shareholder, Unknown
Question. Where does the Sojern integration stand today?
Answer, Bhanu Chopra, Chairman and Managing Director. Integration is operationally complete and ahead of plan. USD 15 million of annualized cost synergies were delivered within the first 100 days, with full benefit visible in Q1 FY27; Q4 FY26 was when cost synergies first showed in the numbers. Customer migration onto the unified platform is complete, with Adara and Sojern now operating as one company on one platform. Focus has shifted from integration to monetisation — cross-selling data, distribution and marketing capabilities into a customer base that previously bought only one product.
4. Deleveraging pace and net debt path
Shareholder, Unknown
Question. The acquisition was partly debt-funded. How quickly are you bringing that debt down?
Answer, Bhanu Chopra, Chairman and Managing Director. About USD 250 million was paid for Sojern plus USD 30 million in earn-outs, with roughly half funded from internal accruals and half through external borrowings. By 30 June 2026, 25% of the acquisition debt was repaid, with net debt of about INR 615 crores. By early August a further USD 16 million was repaid, taking total repayment to 38% of the original loan. Q1 FY27 free cash flow was INR 135.2 crores at 78.8% conversion, the highest in company history. On this trajectory, return to a net cash position is expected within 30 months of the acquisition closing.
5. MarTech concentration risk and segment rebalancing
Shareholder, Unknown
Question. MarTech now accounts for more than 80% of revenue. Does that concentration worry you?
Answer, Bhanu Chopra, Chairman and Managing Director. Two figures are relevant. For FY26 as a whole, mix was 69.1% MarTech, 20.2% DaaS, 10.7% Distribution. In Q1 FY27, with Sojern consolidated for a full quarter, MarTech stood at 81.1%, DaaS at 12.6%, Distribution at 6.3%. The Q1 mix is the better guide to current shape; the shift is a direct result of adding Sojern to a base that already had Adara and reflects where the largest addressable travel spend sits. Not read as single-product concentration risk: MarTech spans 14,000+ customers across geographies and campaign types, and top 10 customers were 17.6% of Q1 revenue. The three businesses reinforce each other (DaaS intent data powers marketing, Distribution fulfils demand). The mix does need to rebalance — DaaS grew 22.7% in Q1 and Distribution is expected to reach double-digit growth by year-end.

What was said

Topic by topic, in the order it was spoken

AGM Convening and Meeting Formalities · Mukesh Kumar (Company Secretary)

Meeting convened through VC/OAVM under Companies Act 2013, MCA and SEBI circulars
Quorum confirmed; Chairman and Managing Director Mr. Bhanu Chopra called the meeting to order
E-voting facilitated by NSDL; remote e-voting window was 20-23 September 2026
Scrutinizer Mr. Devesh Vasisht of DPV & Associates appointed to oversee e-voting process
Statutory registers and records made available electronically for member inspection
Statutory and secretarial auditors (Deloitte, RMG & Associates) confirmed present via video conferencing

Chairman's Address: FY26 as a Year of Structural Change · Bhanu Chopra (Chairman and MD)

FY25-26 framed as the year RateGain became 'a structurally different company' following the Sojern acquisition in November 2025
Sojern acquired for USD 280 million plus USD 30 million in earn-outs; integration delivered USD 15 million of annualized cost synergies within the first 100 days
Customer migration onto a single platform completed; Adara and Sojern now operating as one business on one platform
FY26 operating revenue grew 69.4% to INR 1,823.6 cr; adjusted EBITDA grew 54.4% to INR 358.3 cr; adjusted PAT grew 19.6% to INR 249.9 cr
Reported PAT lower year-on-year due to other income normalisation, Sojern amortisation and one-time acquisition costs
Set explicit FY27 ambition to reach USD 1 billion in revenue

Product and AI Strategy · Bhanu Chopra (Chairman and MD)

UNO platform now integrates channel manager, reservation system, booking engine and VIVA voice agent for hotels
VIVA handles live reservation calls in 50+ languages, quoting rates, confirming bookings and managing upsells
Sojern's AI concierge live across Red Roof's US portfolio; Agentic ARI delivers 30-40% ARI traffic optimisation
RateIQ uses AI to identify revenue leakage across channels for large chains and quantify commercial impact
Frame reiterated: AI-first means products that optimise customer revenue and remove cost, not capability demos

Customers, Geography and People · Bhanu Chopra (Chairman and MD)

Customer base expanded to 14,000+ customers and 700+ partners across 160 countries
Enterprise logos include 33 of top 40 hotel chains, 4 of top 5 airlines, 7 of top 10 car rental companies
Cross-sell into customers buying only one of three product lines identified as the largest revenue opportunity
APAC became fastest-growing region, recording strongest-ever quarter for new customer wins in Q1 FY27
Headcount crossed 1,250; attrition at historic lows; certified Great Place to Work in India, US and Spain
Shobana Kailash joined as Chief Human Resources Officer in August to lead people agenda

Financial Performance: FY26 and Q1 FY27 · Ankit Aggarwal (Deputy CFO)

FY26 operating revenue INR 1,823.6 cr (+69.4%); total revenue INR 1,884.9 cr
FY26 EBITDA INR 337.5 cr (+45.4%); adjusted EBITDA INR 358.3 cr at 19.6% margin (+54.4%)
FY26 reported PAT INR 194.4 cr (-7%) vs INR 208.9 cr in FY25; adjusted PAT INR 249.9 cr (+19.6%)
Q4 FY26 operating revenue INR 715.5 cr (+174.5% YoY); adjusted EBITDA INR 167.9 cr at 23.5% margin; adjusted PAT INR 90.9 cr (+65.8%)
Q1 FY27 operating revenue INR 785 cr (record); adjusted EBITDA INR 193.4 cr at 24.6% margin (record); adjusted PAT INR 116.8 cr
Q1 FY27 free cash flow INR 135.2 cr at 78.8% conversion; revenue per employee +95.3% YoY

Segment and Geographic Mix · Ankit Aggarwal (Deputy CFO)

FY26 mix: MarTech 69.1%, DaaS 20.2%, Distribution 10.7% (Sojern consolidated for 5 months)
Q1 FY27 mix: MarTech 81.1%, DaaS 12.6%, Distribution 6.3% (Sojern for full quarter)
MarTech grew 146% in FY26 with 18.9% organic growth; DaaS grew 7.8%; Distribution declined 12.4%
Geography in FY26: North America 58.8%, APAC 24.9%, Europe 14.6% reflecting Sojern base and APAC investment

Balance Sheet, Deleveraging and Cash Flow · Ankit Aggarwal (Deputy CFO)

Sojern acquisition funded ~50% from internal accruals and ~50% from external borrowings (USD 125 million facility)
Net debt at 31 March 2026: INR 722.3 cr; net debt at 30 June 2026: INR 615.4 cr
USD 31.5 million of acquisition facility repaid in FY26; further USD 16 million repaid in July-early August 2026 (38% total)
Cash and equivalents at year-end: INR 173.1 cr; free cash flow for FY26: INR 230 cr
Goodwill INR 1,581 cr and other intangibles INR 784.9 cr drive ongoing amortisation
Return to net cash position targeted within 30 months of acquisition closing

Q&A Session with Shareholders · Bhanu Chopra (Chairman and MD)

FY26 69.4% revenue growth framed as not like-for-like; organic growth in mid-single digits, pipeline strengthening in H2
PAT decline explained as three items: Sojern amortisation, absence of other income on deployed cash, and H2 FY26 interest on USD 125 million debt
Adjusted PAT adds back deferred consideration contingent on Sojern 3-year revenue/EBITDA targets
Integration operational and complete; cross-sell is now the priority rather than integration
MarTech concentration addressed: 17.6% top-10 customer share in Q1 FY27; DaaS grew 22.7% in Q1; Distribution targeted at double-digit growth by year-end
Additional shareholder questions deferred to separate written responses within reasonable timeframe

In their words

FY25-26 was the year RateGain became a structurally different company. A year ago, I stood before you and said we were making a deliberate choice to become AI-first, and that FY26 would be a year of investment. Both of those things have happened, and the company that emerged at the end of the year is larger, more global, and better-positioned than the one that started it.

Bhanu Chopra (Chairman and Managing Director, RateGain Travel Technologies Limited)

We entered FY26-'27 with a clear ambition, which is to reach USD 1 billion in revenue.