RateGain shares fall 12.5% after Q3 profit drops 53% YoY

Shares of RateGain Travel Technologies dipped as much as 12.5% to reach ₹499.35 apiece on the NSE after the company reported a 53.2% year-on-year decline in net profit to ₹26.4 crore in Q3, compared with ₹56.5 crore in the corresponding quarter last year.

The SaaS company reported a mixed set of numbers for the December quarter, with strong revenue growth offset by a sharp decline in profitability amid margin pressure.

Revenue from operations nearly doubled, rising 94.2% YoY to ₹540 crore, from ₹278

crore a year ago, driven by higher demand across its SaaS offerings and continued customer expansion.

EBITDA increased 44% YoY to ₹87 crore, compared with ₹61 crore in Q3 last year. However, EBITDA margin contracted to 16.1% from 21.8%, reflecting higher operating costs during the quarter.

On the cost front, total expenses rose sharply to ₹493.1 crore in Q3. Employee benefit expenses increased to ₹217.6 crore, while finance costs stood at ₹12.5 crore. Depreciation and amortisation expenses came in at ₹27.7 crore, and other expenses were ₹235.3 crore, indicating elevated spending on operations and growth initiatives.

RateGain is an Indian travel‑tech company that provides AI‑driven SaaS software to hotels, airlines, online travel agencies and car rental firms to help them optimise pricing, distribution and marketing across channels.

For the nine months ended December 31, RateGain reported revenue from operations of ₹1,108 crore, compared with ₹816 crore in the same period last year.

Net profit for the nine-month period declined to ₹124.4 crore, from ₹154.1 crore a year ago, as margin pressures persisted despite strong topline growth.

Also Read: RateGain partners with PayU to deliver secure, AI-powered direct booking experience for hotels