RateGain Q1 FY26 Earnings Results: Profit Rises 3.8%, Margins Dip Amid Growth Investments

RateGain Travel Technologies reported its financial results for the first quarter of FY26 on Thursday, August 7. The company earned a net profit of ₹47 crore, which is 3.8% higher than the ₹45.3 crore it posted in the same quarter last year. Revenue also increased by 5% year-on-year to ₹273 crore, compared to ₹260 crore in Q1 FY25.

Margins Under Pressure Due to Higher Costs

While profit and revenue grew, the company’s operating profit (EBITDA) stayed flat at ₹49.7 crore. The EBITDA margin slipped to 18.2% from 19.1% a year ago. This was mainly due to higher spending on new markets, hiring talent, and product development.

Stock Movement Post Results

After announcing the results, RateGain share price (NSE: RATEGAIN) rose by 2.7% and traded at ₹439.6 on the BSE. However, the stock has declined more than 40% so far this year.

Strong Contract Wins

The company recorded ₹81.68 crore in new contract wins, a 37.7% rise compared to last year and the highest in the past 6 quarters. Even without contributions from Adara, contract wins were at an all-time high of ₹46.11 crore, up 52.6% year-on-year.

Focus on Long-Term Growth

CFO Rohan Mittal said that though rising costs and salary hikes impacted margins, RateGain is focused on building long-term growth through more spending on products, partnerships, and skilled people.

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Low Attrition and Global Growth

The company’s workforce now includes 856 employees. Attrition has dropped to a record low of 9.6%. Regions like APAC and the Middle East led growth with a 23.2% year-on-year increase.

Conclusion

RateGain delivered a stable Q1 performance with modest profit and revenue growth. Although margins were under pressure, strong contract wins and lower attrition reflect positive momentum. The company’s continued investments in people and products suggest it’s gearing up for future growth, especially in high-potential markets like APAC and the Middle East.

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