RateGain H1 operating cash reaches Rs 286.6 crore, debt falls

RateGain generated Rs 286.6 crore of net operating cash in the half year ended September 2026, while total borrowings fell Rs 188.1 crore to Rs 733.2 crore and non-current borrowings declined Rs 234.3 crore. Closing cash and cash equivalents increased to Rs 232.2 crore from Rs 173.1 crore at the start of the year.

How much operating cash did RateGain generate in H1FY2027?

RateGain generated Rs 286.6 crore of net cash from operating activities for the half year ended Sept-26. Cash generated from operations was Rs 345.9 crore after a Rs 19.2 crore working-capital outflow, and direct taxes paid, net of refunds, were Rs 59.3 crore. Profit before tax was Rs 217.9 crore, while adjustments of Rs 147.2 crore brought operating profit before working-capital changes to Rs 365.1 crore.

The Rs 286.6 crore H1FY2027 operating-cash figure was Rs 52.9 crore above the Rs 233.7 crore reported for the full year ended Mar-26, although the two periods are not directly comparable. Working-capital cash usage was Rs 19.2 crore in H1FY2027 versus Rs 57.8 crore for FY2026, while direct taxes paid rose from Rs 53.8 crore to Rs 59.3 crore.

How did RateGain's borrowings change by September 2026?

RateGain's non-current borrowings fell to Rs 448.3 crore at Sep-26 from Rs 682.6 crore at Mar-26, a reduction of Rs 234.3 crore. Current borrowings increased Rs 46.2 crore to Rs 284.9 crore from Rs 238.7 crore, meaning the balance sheet showed both a lower aggregate borrowing balance and a higher amount classified as current.

Total borrowings, combining current and non-current amounts, declined to Rs 733.2 crore at Sep-26 from Rs 921.3 crore at Mar-26, a net reduction of Rs 188.1 crore. Non-current liabilities overall fell Rs 231.7 crore to Rs 646.4 crore, a category that also included Rs 13.8 crore of lease liabilities, Rs 40.2 crore of other financial liabilities and Rs 129.3 crore of deferred tax liabilities.

What do RateGain's cash and financing flows show?

RateGain ended Sep-26 with Rs 232.2 crore of cash and cash equivalents, Rs 59.1 crore above the Rs 173.1 crore opening balance. The cash-flow statement recorded a Rs 55.2 crore net increase in cash and cash equivalents and a Rs 3.9 crore net foreign-exchange difference, which together reconcile the opening and closing balances.

Net cash from financing activities was an outflow of Rs 246.8 crore in the half year, compared with an inflow of Rs 835.9 crore in FY2026. Net cash from investing activities was an inflow of Rs 15.4 crore in H1FY2027, versus an outflow of Rs 1,281.5 crore for FY2026; the presentation reports aggregate categories without a line-by-line explanation for either movement.

How did RateGain's H1FY2027 earnings compare with H1FY2026?

RateGain reported revenue of Rs 1,530.4 crore in H1FY2027, up 169.5% from Rs 568.0 crore in H1FY2026, while reported earnings before interest, tax, depreciation and amortization (EBITDA) rose 214.2% to Rs 324.5 crore. Reported EBITDA margin increased to 21.2% from 18.2%, which management attributed to progress in Sojern integration, operating leverage and operational excellence.

Reported profit after tax rose 73.2% to Rs 169.6 crore from Rs 97.9 crore, but reported profit-after-tax margin declined to 11.1% from 17.2%. Finance costs increased to Rs 32.7 crore from Rs 0.6 crore, amortization of acquisition cost rose to Rs 69.4 crore from Rs 13.9 crore, and other income declined to Rs 2.8 crore from Rs 42.2 crore. Adjusted EBITDA was Rs 362.5 crore and adjusted profit after tax was Rs 207.6 crore after excluding Rs 38.0 crore of deferred deal consideration related to the Sojern acquisition.

Conclusion

RateGain's H1FY2027 disclosures combine Rs 286.6 crore of operating cash generation with a Rs 188.1 crore reduction in total borrowings and a Rs 59.1 crore rise in closing cash. The Rs 234.3 crore decline in non-current borrowings exceeded the Rs 46.2 crore rise in current borrowings, resulting in a lower aggregate borrowing balance at Sep-26.

The disclosed item to watch is deferred deal consideration for the Sojern acquisition, which RateGain says will be incurred for three years ending Q3FY29. Future disclosures will show the continuing effect of that expense on reported and adjusted EBITDA and profit after tax.