RateGain Navigates Growth and Integration in Q2 FY26

RateGain Travel Technologies Limited, a prominent AI-powered SaaS provider for the travel and hospitality sector, has reported its financial results for Q2 and H1 FY26, showcasing robust top-line growth driven by strategic acquisitions and continuous innovation. The company achieved its highest-ever quarterly revenue, signaling strong execution of its go-to-market (GTM) strategy and the growing adoption of its integrated solutions. This period also marked the completion of the significant Sojern acquisition, which is set to redefine RateGain's market position.

For Q2 FY26, RateGain's operating revenue soared to INR 295.06 Crore, marking a 6.4% year-on-year increase. The first half of FY26 saw operating revenue reach INR 567.98 Crore, a 5.7% rise from the previous year. This growth was primarily propelled by healthy performance in the MarTech and DaaS verticals. However, profitability metrics showed a slight dip, with EBITDA at INR 53.63 Crore (18.2% margin) for Q2 FY26, down from INR 60.22 Crore (21.7% margin) in Q2 FY25. Similarly, Profit After Tax (PAT) for Q2 FY26 stood at INR 51.01 Crore (17.3% margin), a marginal decrease from INR 52.21 Crore (18.8% margin) in the corresponding period last year. Despite these fluctuations in margins, the company's disciplined approach to balancing growth with profitability remains evident.

Strategic Expansion and AI-First Vision

RateGain's strategic narrative is strongly anchored in its AI-first vision and aggressive GTM expansion. The company is actively strengthening its position across key markets by fostering deeper customer relationships, forging new partnerships with leading revenue management and technology providers, and making continued investments in AI and GTM capabilities. The recent acquisition of Sojern, a global leader in AI-led marketing for travel and hospitality, is a cornerstone of this strategy. This acquisition, completed on November 6, 2025, integrates two complementary forces, combining RateGain's expertise in MarTech, revenue optimization, and distribution with Sojern's demand generation and traveler engagement capabilities. This synergy aims to create one of the most comprehensive AI-powered growth platforms, serving over 13,000 customers across the Americas, Europe, Middle East and Africa, and Asia Pacific.

Management highlighted that the GTM expansion strategy has yielded strong results, particularly in new contract wins in H1 FY26, with a total of INR 170.49 Crore. The APMEA region demonstrated its best-ever performance in new sales, and Latin America recorded over 52% growth in Q2. The company also expanded into five new markets, including the Maldives, Sri Lanka, Phuket, and select destinations in the Middle East and Africa, further solidifying its presence in high-growth travel corridors.

Product Innovation and Segment Performance

Innovation remains a core pillar of RateGain's strategy, with continuous investment in enriching its product portfolio to deliver superior value. Key product developments in Q2 FY26 include the introduction of the Model Context Protocol integration for its booking engine, an industry-first that enables conversational AI systems like ChatGPT or Cloud to share real-time hotel rates and availability. UNO VIVA, an AI-led voice agent, continues to enhance engagement, while Zoho helps hotels with personalized social media marketing. Within ADARA, investments in AI-driven tools are improving media operations and campaign outcomes.

Segment-wise, MarTech continued its strong performance, driven by ADARA and Demand Booster, which saw increased customer engagement. The DaaS segment also delivered healthy growth, with organic DaaS growing at 17.5% in Q2. However, the Distribution business faced challenges, experiencing a de-growth of 10.6% in H1 FY26. Management attributed this to the sunsetting of a large OTA partner, which had a significant impact on transactional volumes. Despite this, new initiatives within distribution, such as the booking engine, direct booking stack, and the VIVA AI voice application, are gaining traction, with management expecting a turnaround and double-digit growth by FY27.

Outlook and Organizational Strength

RateGain has revised its FY26 revenue guidance upwards to 55%-60% year-on-year growth over FY25, with an organic growth guidance of 6%-8%. The full-year EBITDA margin is projected to be around 16%-17%, with a March 2026 exit run rate of 16.5%-17.5% for consolidated EBITDA. The company also expects a cash conversion of about 75% for the year. The successful integration of Sojern remains an immediate priority, alongside disciplined investments in GTM and product innovation.

On the people front, RateGain continues to foster a people-first, AI-enabled culture. The company earned Great Place to Work certifications in both Spain and the U.S., reflecting its commitment to innovation and inclusion. Initiatives like the ACCEL Senior Leadership Program and the SheLeads program are designed to strengthen leadership readiness and empower teams. RateGain also received the CII Award for Best AI Solution Showcase for its UNO VIVA product, underscoring its leadership in AI-led solutions for the travel industry.

In conclusion, RateGain's Q2 FY26 performance demonstrates strategic clarity and sustained growth, fueled by its AI-first platform and aggressive market expansion. Despite some short-term challenges in profitability and specific segments, the company's proactive measures, strong new contract wins, and successful integration of Sojern position it for continued value creation and leadership in the evolving travel technology landscape.