RateGain Shares Jump 10% Post Q1 Results

SUMMARY

Shares of RateGain surged 9.5% to INR 480.8 apiece on the BSE today, a day after it reported its Q1 financial results

The SaaS startup’s profit rose 3.5% to INR 46.9 Cr in Q1 FY26 from INR 45.3 Cr in the same period last year

At 10:30 AM today, the shares paired back some gains falling about 2% to INR 469.1 apiece

Shares of traveltech-focussed SaaS major Rategain surged 9.5% to INR 480.8 apiece on the BSE today, a day after it reported its Q1 financial results.

The SaaS company’s profit rose 3.5% to INR 46.9 Cr in Q1 FY26 from INR 45.3 Cr in the same period last year. Its operating revenue jumped 4.9% to INR 272.9 Cr from INR 260 Cr reported in the previous year.

The company’s revenue soared on the back of new contracts secured in Q1 worth INR 81.6 Cr during the quarter, a 37.7% rise YoY with its organic business.

RateGain also introduced new products such as VIVA, an AI-powered voice agent for hotel reservations and a new dashboard for connectivity insights helping hotels and partners to catch on booking trends and channel performance.

At 10:30 AM today, the shares pared some gains falling about 2% to INR 469.1 apiece. As per the previous close of the shares of RateGain, it had a market capitalisation of INR 5,561.4 Cr (about $635 Mn). The shares of the Delhi NCR-based startup has fallen 40% on a year-to-date basis from the closing price of INR 727.1 apiece on January 1.

RateGain’s shares were listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on December 17, 2021. The IPO issue price was INR 425 per share. The stock made a weak debut, listing at a discount on both exchanges. On the NSE, it opened at INR 360, a 15.29% discount, and on the BSE, it opened at INR 364.80, a 14.16% discount.

According to the week-on-week performance, RateGain’s stocks have not given much returns to its retail investors, sliding 2.5% last week on the bourses. However, the company’s shares are up 13.6% today from their listing price.

RateGain’s Struggle With Sales Drop

Last year, RateGain’s founder and managing director, Bhanu Chopra, said that the company was looking to double its revenue in the next three years, leveraging artificial intelligence to cut operational costs. However, the company marked down the growth of its FY25 revenues later in the year.

The operating revenue of RateGain grew 16% to INR 1,153.1 Cr from INR 998.6 Cr in FY24. However, it saw a 44% YoY growth in net profit to INR 208.9 Cr.

RateGain said during the Q4 FY25 earnings call that the reason for the drop in revenue was the fact that it failed to close big deals during the year and also lost an important client. Moreover, renegotiation of the contract with a legacy player also resulted in the drop of FY25 sales.

Going ahead, the company has further dropped its FY26 revenue outlook, projecting to grow by just 6-8% during the year.

Founded in 2004, RateGain provides SaaS solutions to travel and hospitality sectors. It has a presence in more than 100 countries and claims to have onboarded more than 3,000 clients. The company helps its customers to accelerate their revenues via acquisition, retention, and wallet share expansion.