RateGain Q2 FY27: profit up 46.5% as Sojern lifts revenue 153%
By Neha KapoorEconomy Correspondent, Peepals Business
Representative image: Rodrigo_SalomonHC / Pixabay
RateGain's Q2 FY27 net profit rose 46.5% to Rs 74.72 crore and revenue 152.6% to Rs 745.4 crore, results released on 6 November show, as Sojern is consolidated.
What Happened
RateGain Travel Technologies, a listed Indian software company that sells pricing, distribution and marketing tools to hotels, airlines and travel firms, reported a 46.5% year-on-year rise in consolidated net profit for the July-September quarter of 2026 (Q2 FY27). Net profit rose to Rs 74.72 crore from Rs 51.01 crore a year earlier, and revenue from operations grew 152.6% to Rs 745.4 crore. The results, released on Friday, 6 November 2026, are the clearest sign so far of how the company's purchase of the travel advertising platform Sojern has changed its size and its business mix.
Key Facts
- Consolidated net profit, Q2 FY27: Rs 74.72 crore, up 46.5% from Rs 51.01 crore in Q2 FY26.
- Revenue from operations: Rs 745.4 crore, up 152.6% year on year.
- Reported EBITDA (earnings before interest, tax, depreciation and amortisation): Rs 153 crore.
- Adjusted EBITDA: Rs 169.1 crore against Rs 53.6 crore a year earlier; adjusted EBITDA margin 22.7% against 18.2%, according to the company.
- Adjusted for deferred deal consideration linked to Sojern, net profit rose 78% to Rs 90.8 crore.
- Against the April-June quarter, net profit fell 21.3% from Rs 94.9 crore and revenue fell 5% from Rs 785 crore.
- Marketing technology now makes up 80.2% of revenue; the company bought Sojern for USD 250 million in November 2025.
Why It Matters
RateGain is one of a small group of Indian software-as-a-service (SaaS) companies, firms that rent software over the internet on subscription rather than selling it once, whose customers are mostly outside India. Its products help a hotel decide what room rate to charge, push those rates to booking websites, and buy online advertising to find guests. For a travel business, this is enterprise technology in its plainest form: software that decides prices and spending that used to be set by hand.
The quarter's revenue more than doubled mainly because Sojern's sales are now counted in RateGain's own accounts, which is what "consolidation" means. That is growth bought through an acquisition rather than growth from existing products, and the company's own split shows it. Marketing technology, the segment Sojern belongs to, is now about four-fifths of the business. Within marketing technology, the company said its properties business, which serves hotels and similar stays, accounts for 44.7%.
The adjusted figures exist because of how the Sojern deal was paid for. Part of the price is "deferred consideration", money owed to the sellers later, and accounting rules require some of it to be charged against profit over time. RateGain strips that charge out in its adjusted numbers to show the underlying business. The reported profit of Rs 74.72 crore is the statutory number, and the Rs 90.8 crore adjusted profit is the company's own measure.
The fall from the April-June quarter is also worth noting. Travel booking and advertising tend to follow seasons, and the company's quarter-on-quarter revenue and profit both declined. The brokerage ICICI Securities described the revenue dip as seasonal and temporary, according to one report; that is an analyst's view, not a company forecast.
Peepals calculation: Revenue of Rs 745.4 crore after a 152.6% rise means revenue a year earlier was about Rs 295 crore (745.4 ÷ 2.526), so the company added roughly Rs 450 crore of quarterly sales in a year. Adjusted EBITDA rose about 3.2 times (169.1 ÷ 53.6), much faster than revenue's 2.5 times, which is why the margin widened. Net profit equals about 10.0% of revenue (74.72 ÷ 745.4), and marketing technology brought in roughly Rs 598 crore (745.4 × 0.802). Our calculation from the reported figures.
| Measure | Q2 FY27 | Q2 FY26 |
|---|---|---|
| Revenue from operations | Rs 745.4 crore | about Rs 295 crore (derived) |
| Consolidated net profit | Rs 74.72 crore | Rs 51.01 crore |
| Adjusted EBITDA | Rs 169.1 crore | Rs 53.6 crore |
| Adjusted EBITDA margin | 22.7% | 18.2% |
Impact
Short-term: The results show the Sojern purchase is now fully inside RateGain's accounts, lifting revenue and margins against last year, while the quarter-on-quarter dip shows the business still moves with the travel season.
Long-term: RateGain has moved from being mainly a hotel pricing and distribution tool to being mainly a travel marketing company. Its growth will now depend on how much hotels and travel firms spend on digital advertising and on whether the margin gain from combining the two businesses holds. The deferred payments for Sojern will keep a gap between reported and adjusted profit for some time.
Who is affected: Hotels, airlines, car rental firms and online travel agencies that use RateGain's software; the company's employees in India and abroad; shareholders; and other Indian SaaS firms whose acquisition plans are often judged against deals like this one.
Key Takeaway
RateGain's Q2 FY27 net profit rose 46.5% to Rs 74.72 crore and revenue 152.6% to Rs 745.4 crore, mostly because the Sojern acquisition is now counted in its results, making marketing technology about 80% of its business.
Questions and Answers
What were RateGain's Q2 FY27 results?
For the quarter ended 30 September 2026, RateGain Travel Technologies reported consolidated net profit of Rs 74.72 crore, up 46.5% from Rs 51.01 crore, and revenue from operations of Rs 745.4 crore, up 152.6% year on year.
Why did RateGain's revenue rise so sharply?
Mainly because the results now include Sojern, the travel marketing platform RateGain bought for USD 250 million in November 2025. Marketing technology now accounts for 80.2% of the company's revenue.
What is RateGain's adjusted profit?
Leaving out a charge for deferred payments still owed to Sojern's sellers, the company put net profit at Rs 90.8 crore, up 78%. Its adjusted EBITDA margin was 22.7%, up from 18.2% a year earlier.
Did RateGain grow compared with the previous quarter?
No. Net profit fell 21.3% from Rs 94.9 crore in April-June 2026, and revenue fell 5% from Rs 785 crore, reflecting the seasonal pattern of travel spending.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Neha Kapoor, Economy CorrespondentCovers Economy and more for Peepals Business. All stories by Neha Kapoor
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Neha Kapoor is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
