Results · Enterprise Software & IT

RateGain profit falls despite revenue surge

By Startup Enthusiast · 13 February 2026

What they do

RateGain provides data, distribution and marketing tech to travel companies

Q3 net profit dropped 53% to ₹26.5 Cr even as operating revenue jumped 94% to ₹540 Cr

Exceptional expenses from the Sojern acquisition and labour code changes hit the bottom line

RateGain reported its Q3 FY26 results on 13 February 2026.
Consolidated net profit fell 53.2% year-on-year to ₹26.5 crore from ₹56.5 crore.
Sequentially, net profit dropped 48.1% from ₹51 crore in the previous quarter.
Operating revenue surged 93.8% YoY to ₹540 crore from ₹278.7 crore.
Revenue also rose 83% sequentially from ₹295.1 crore.
Total expenses jumped 118.3% YoY to ₹493.1 crore.
Exceptional expenses included ₹32.4 crore from higher amortisation for the Sojern acquisition and ₹2.2 crore due to labour code notification.
Adjusted profit (excluding exceptionals) was ₹61.1 crore, up 8% YoY.

The profit decline was driven by one-time costs from the Sojern acquisition and labour code changes.
Revenue growth was boosted by the Sojern acquisition completed in November 2025.
EBITDA rose 42% YoY to ₹871.2 million, with margin improving to 22.1% from 16.1%.
The company added 37 new customers and won new contracts worth ₹250 crore during the quarter.

RateGain provides data, distribution and marketing technology to the travel and hospitality industry.
It operates through three segments: DaaS (data as a service), distribution channel, and martech (marketing technology).
In the first nine months of FY26, martech contributed 62.6% of operating revenue, DaaS 24.4%, and distribution 16%.
Martech business grew 76.4% in the quarter, while DaaS grew 3.6% and distribution contracted about 11%.
57.1% of revenue came from North America and 26.6% from Europe.
The company serves 3,277 customers (excluding Sojern's 10,300 customers, which will be combined from next quarter).
RateGain completed the acquisition of Sojern, a US-based AI hospitality and travel marketing platform, for $250 million in cash on 6 November 2025.

CFO Rohan Mittal said the company is focused on revenue momentum and Sojern integration.
RateGain has begun introducing Sojern services to existing customers and launched an AI concierge for Red Roof.
The combined customer count from Sojern will be reported from the next quarter.