RateGain Q2 profit falls 21.27% as operating margin narrows
Revenue fell 5.05% sequentially, while expenses declined only 3.44%, and the tax rate rose by 2.02 percentage points.
Filed 05 Nov 2026, 16:54 IST · after market close · Rategain Travel Technologies Ltd (RATEGAIN)
Key takeaways
- Consolidated net profit fell 21.27% sequentially to Rs 74.72 cr as operating margin narrowed by 1.32 percentage points.
- Revenue declined 5.05% to Rs 745.4 cr, while expenses fell only 3.44%, indicating weaker operating leverage.
- Operating margin at 20.53% remained 2.22 percentage points above the 18.31% median for 62 reported IT peers.
Price around the results
Sequential revenue decline drives lower profit
RateGain reported consolidated revenue of Rs 745.4 cr in Q2FY27, down 5.05% from Q1FY27, while net profit fell 21.27% to Rs 74.72 cr. The sharper profit decline reflects the operating margin compression and a 2.02 percentage-point increase in the tax rate. EPS consequently declined 21.42% to Rs 6.31.
Costs fell slower than revenue
Expenses declined 3.44% sequentially, less than the 5.05% revenue decline, so operating margin narrowed by 1.32 percentage points to 20.53%. Depreciation rose 4.66% even as interest expense fell 2.60%, adding to the pressure below operating profit. Other income was negative at Rs -0.26 cr and represented -0.27% of pre-tax profit, so it did not support reported earnings.
Margin remains above the reported IT peer median
RateGain's 20.53% operating margin was 2.22 percentage points above the 18.31% median among 62 Information Technology peers that had reported the quarter. The sequential comparison nevertheless shows a 1.32 percentage-point margin decline from Q1FY27's 21.85%.
Results filed after market close
The consolidated results were filed on 5 November 2026 at 16:54 IST, after market close. This quarter's filing therefore came without an immediate market reaction in the reported data.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹745 cr | ₹785 cr | -5.05% |
| Other income | ₹-0 cr | ₹3 cr | — |
| Expenses | ₹592 cr | ₹613 cr | -3.44% |
| Operating profit | ₹153 cr | ₹172 cr | -10.77% |
| Operating margin (%) | 20.53% | 21.85% | — |
| Interest | ₹16 cr | ₹17 cr | -2.60% |
| Depreciation | ₹39 cr | ₹38 cr | +4.66% |
| Profit before tax | ₹97 cr | ₹121 cr | -19.21% |
| Tax | ₹23 cr | ₹26 cr | -11.54% |
| Net profit | ₹75 cr | ₹95 cr | -21.27% |
| EPS (₹) | ₹6.31 | ₹8.03 | -21.42% |
Operating margin of 20.53% compares with a Information Technology sector median of 18.31% across 62 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 20.53% after the 1.32 percentage-point sequential decline.
- Whether revenue moves back from Rs 745.4 cr toward Q1FY27's Rs 785.01 cr.
- Whether depreciation remains above Q1FY27's Rs 37.52 cr and continues to pressure profit below operating income.