Rategain Travel Q1 FY27 Results (NSE: RATEGAIN)
Signal: Growth reaccelerated
The read
The main inflection is a margin recovery after four consecutive quarters of contraction in the prior-results series: consolidated EBITDA margin moved from 16% in Q3FY26 and 21% in Q4FY26 to 22.2% in Q1FY27, while revenue reached ₹7850.12 million, +187.7% YoY, largely because Sojern was consolidated; the next thesis test is whether this 22.2% margin holds as acquisition financing costs of ₹165.43 million and amortisation of ₹375.18 million continue.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹785.01 Cr | +187.7% | +9.7% |
| EBIT | ₹137.1 Cr | N/A | |
| Net profit | ₹94.91 Cr | +102.2% | |
| EPS | ₹8.03 | +101.8% | |
| EBIT margin | 22.2% |
P&L walk
Consolidated revenue rose to ₹7850.12 million, +187.7% YoY and +9.7% QoQ, with EBITDA margin at 22.2% versus 18% in Q1FY26; the scale increase reflects Sojern consolidation, while finance costs rose to ₹165.43 million from ₹2.98 million as acquisition financing entered the group P&L.
Segments
The filing reports a single operating segment; the material consolidated-versus-standalone divergence shows the acquired subsidiaries, particularly Sojern, are driving group growth, with consolidated revenue of ₹7850.12 million versus standalone revenue of ₹681.89 million.
Key positives
- Consolidated revenue reached ₹7850.12 million, +187.7% YoY and +9.7% QoQ, establishing the post-Sojern scale-up in the first full comparable quarter of the enlarged group.
- EBITDA margin recovered to 22.2% from 16% in Q3FY26 and 21% in Q4FY26, reversing the prior four-quarter contracting margin arc.
- Consolidated PAT rose 102.2% YoY to ₹949.10 million despite finance costs increasing to ₹165.43 million from ₹2.98 million, showing that operating profit absorbed the acquisition-related cost burden.
Key concerns
- The 187.7% YoY revenue growth is not organically comparable because the filing states that Sojern results were consolidated from the acquisition date and that the corresponding period is not comparable.
- Finance costs increased to ₹165.43 million from ₹2.98 million YoY, creating a substantially higher recurring financing burden after the acquisition.
- Depreciation and amortisation rose 331.2% YoY to ₹375.18 million, reflecting amortisation of acquired intangible assets and reducing conversion of EBITDA into EBIT.
- 493,689 employee stock options were exercised during the quarter, with 260,133 equity shares issued on June 18, 2026 and a further 37,453 issued after quarter-end, creating ongoing dilution risk even though current EPS tracked PAT.
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