RateGain Travel Technologies Limited (NSE: RATEGain) reported strong financial performance in its Q2 FY25 results, though shares declined over 6% in early trading. The company’s operating revenue rose by 18.1% year-over-year (YoY) to INR 2,772.6 million, with total revenue reaching INR 2,945.8 million, marking a 23.6% increase. EBITDA was up 29.7% at INR 602.2 million, and the profit after tax (PAT) surged by 73.8% to INR 522.1 million.
The company’s positive performance was driven by consistent growth across its Daas, Martech, and Distribution segments, and it achieved an all-time high annual recurring revenue (ARR) of INR 11,090.2 million. However, management revised its FY25 growth guidance down to 15% organic growth, citing the churn of a significant Martech client, representing 4% of revenue, and a slowdown in new contract wins.
Despite challenges like pricing pressures and delays in the U.S. market, RateGain emphasized its focus on product innovation, expansion in emerging markets, and leveraging AI technologies, including Generative AI, to enhance its offerings. The company remains committed to scaling its RedMax platform and strengthening key account partnerships.
As of 10:10 am, RateGain shares were trading 6.36% lower at ₹781.60 on NSE.
