RateGain's 21.85% margin beats IT peer median by 3.45 points
Management reported Rs 141.0 cr in new wins and plans more go-to-market investment, while saying travel demand is harder to predict.
Filed 06 Aug 2026, 13:26 IST · Rategain Travel Technologies Ltd (RATEGAIN)
Key takeaways
- Consolidated operating margin was 21.85%, 3.45 percentage points above the median for 30 reporting IT peers.
- Management reported Rs 141.0 cr of new contract wins and said it plans to increase go-to-market investment in high-growth geographies.
- Other income was Rs 3.08 cr against profit before tax of Rs 120.56 cr, limiting the role of non-operating income in reported profit.
Price around the results
21.85% margin sits above the IT peer median
On a consolidated basis, RateGain generated operating profit of Rs 171.53 cr on revenue of Rs 785.01 cr. Its 21.85% operating margin was 3.45 percentage points above the median for 30 Information Technology peers that had reported the same quarter. With no year-on-year or sequential comparison provided, the peer benchmark is the clearest read on the quarter's operating position.
Reported profit was not led by other income
Other income of Rs 3.08 cr was small relative to profit before tax of Rs 120.56 cr, so the quarter's earnings were primarily tied to operating performance. Interest of Rs 16.54 cr and depreciation of Rs 37.52 cr stood between operating profit and profit before tax. Net profit was Rs 94.91 cr after tax of Rs 25.64 cr, with a reported tax rate of 21.27%.
New wins support continued investment in expansion
RateGain reported Rs 141.0 cr in new contract wins during the quarter. Management said it plans to invest in go-to-market teams to expand its presence in high-growth geographies, while maintaining its financial commitments. The company also said it deployed its Dex and Orbit internal platforms and partnered with Duetto on real-time revenue optimisation for hotels. Management said travel demand has become harder to predict but that it heads into the rest of FY27 with confidence.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹785 cr |
| Other income | ₹3 cr |
| Expenses | ₹613 cr |
| Operating profit | ₹172 cr |
| Operating margin (%) | 21.85% |
| Interest | ₹17 cr |
| Depreciation | ₹38 cr |
| Profit before tax | ₹121 cr |
| Tax | ₹26 cr |
| Net profit | ₹95 cr |
| EPS (₹) | ₹8.03 |
Operating margin of 21.85% compares with a Information Technology sector median of 18.40% across 30 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- RateGain welcomed 85 new colleagues across sales, engineering and customer success during the quarter.
- The company delivered more than 3,000 learning hours in the quarter.
Guidance & outlook
- Management says it is heading into the rest of FY27 with confidence.
- Management plans to keep investing in growth while maintaining its financial commitments.
Expansion
- RateGain plans to invest in go-to-market teams to build presence in high-growth geographies.
New orders
- RateGain reported INR 141.0 crore in new contract wins.
New initiatives
- RateGain deployed Dex, an AI-powered talent pipeline builder, and Orbit, an executive people intelligence dashboard.
- The company published a Responsible AI governance policy and scaled AI learning journeys across the organization.
- NorthStar 2.0 launched for first-time managers, alongside structured go-to-market enablement.
- RateGain partnered with Duetto to power autonomous, real-time revenue optimization for hotels worldwide.
Problems & risks
- The company says travel demand has become harder to predict.
What to watch
- Whether operating margin holds above 21.85% in the next reported quarter.
- Whether new contract wins build on the Rs 141.0 cr reported this quarter.
- Whether the tax rate moves materially from 21.27%.