RateGain's Q3 FY26: Sojern Integration Fuels Growth Amidst Strategic AI Push

RateGain Travel Technologies Limited, a global leader in AI-powered SaaS solutions for the travel and hospitality industry, delivered a transformative performance in Q3 FY26. The company reported a robust operating revenue of INR 540.03 crore, marking an impressive 93.8% year-on-year growth. EBITDA also saw a healthy increase of 41.7% year-on-year, reaching INR 87.12 crore. While Profit After Tax (PAT) declined year-on-year to INR 26.45 crore, management attributed this to increased amortization from acquisition accounting, deal-related costs, and finance costs related to acquisition funding, rather than a deterioration in the underlying business. Adjusted for one-time exceptional expenses, PAT grew 8% year-on-year.

The quarter's performance was significantly bolstered by the integration of Sojern, a strategic acquisition completed in November 2025. This move has been pivotal in bringing together complementary AI-powered marketing, distribution, and revenue technologies, creating a combined platform that now serves over 13,000 travel brands globally. RateGain is now positioned as a category-leading AI-driven travel tech provider with unparalleled customer reach and product breadth. The company also demonstrated strong operational execution, with nine-month bookings growing over 30% year-on-year, indicating robust future revenue.

Strategic Integration and AI-Powered Innovation

The Sojern acquisition is progressing ahead of schedule, with RateGain already realizing approximately $12 million in annualized cost savings within the first 100 days of integration. These savings are expected to be fully visible by Q1 FY27. The integration efforts extend beyond cost synergies to organizational alignment and a unified go-to-market structure, aiming to drive scalable growth. Notably, SoHo, an erstwhile BCV business that was previously unprofitable, achieved profitability this quarter, demonstrating RateGain's ability to turn around underperforming assets through improved cost alignment and sharper execution.

RateGain's commitment to AI-driven innovation is evident across its product portfolio. The company launched UNO VIVA, an AI-powered voice agent, which has shown encouraging results in measurable booking conversions. This product is strategically positioned to address labor shortages in key markets like Europe and the U.S., leveraging voice automation for direct revenue capture. Furthermore, the AI Concierge, part of the Sojern platform, is demonstrating strong commercial traction, leading to significant increases in ancillary revenue (up to 300%) and Net Promoter Score (up to 75%) by automating guest queries and enhancing in-stay engagement.

Market Leadership and Future Outlook

RateGain is actively consolidating its position in the MarTech segment, particularly in the destination management organization (DMO) space, where the integration of Adara and Sojern makes it the most dominant provider. The company is also enhancing its DaaS offerings, with Navigator, an AI-assisted solution for hotels, evolving to provide commercial clarity and decision-ready actions for revenue managers. The renewal of a long-term partnership with Singapore Airlines for pricing intelligence further validates RateGain's product competitiveness.

Management expressed confidence in the company's organic growth trajectory, expecting to beat its FY26 organic revenue and EBITDA guidance. They project ending the full year with over 6% organic growth and an EBITDA margin between 17.5% and 18%. Q4 FY26 is anticipated to show double-digit organic growth. The company's strategic investments in its Go-to-Market (GTM) team, totaling $5-6 million over the last 9-12 months, are expected to yield a much stronger organic growth rate in FY27 and beyond, with the impact already visible in the order book.

RateGain's long-term vision is ambitious, targeting $1 billion in revenue by 2030. This goal is supported by a strong balance sheet, healthy operating cash flows, and a disciplined approach to debt reduction, with approximately$25 million of acquisition-related debt already repaid. The company aims to be net debt positive within 30 months. By focusing on an integrated AI-powered tech stack that drives guest acquisition, engagement, and wallet share expansion, RateGain is strategically positioned to capitalize on the accelerating digital adoption in the resilient travel and hospitality sector, ensuring sustained growth and profitability.