Rategain Travel Q2 FY27 Results (NSE: RATEGAIN)
Signal: Growth decelerated
The read
The business has held the enlarged scale at 7,454.02 million of quarterly consolidated revenue, +152.6% YoY, but the -5.0% QoQ pullback and 20.5% derived operating margin need monitoring as depreciation rose 320.1% YoY and finance costs expanded to 161.14 million after the acquisition.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹745.4 Cr | +152.6% | -5.0% |
| EBIT margin | 20.5% |
P&L walk
Consolidated revenue was 7,454.02 million, +152.6% YoY but -5.0% QoQ; employee costs grew 146.6% YoY, depreciation rose 320.1% YoY and finance costs increased to 161.14 million, leaving profit before tax at 974.01 million versus 655.34 million a year ago.
Segments
The filing identifies a single operating segment; the material consolidated-versus-standalone gap is visible in revenue, with consolidated revenue of 7,454.02 million versus standalone revenue of 712.41 million, reflecting the Sojern-led subsidiary base.
Key positives
- Consolidated revenue reached 7,454.02 million, +152.6% YoY, confirming that the Sojern-acquired scale remains embedded in the reported base.
- Derived consolidated operating profit was 1,530.47 million, giving a 20.5% operating margin despite employee costs of 2,845.75 million and other expenses of 3,077.80 million.
- Gross borrowings fell to 7,332.50 million from 9,212.36 million at 31 March 2026 while cash rose to 2,321.69 million from 1,731.19 million.
Key concerns
- Revenue declined 5.0% sequentially from 7,850.12 million, so the post-acquisition growth trajectory has not yet reaccelerated quarter on quarter.
- Finance costs increased from 2.92 million to 161.14 million YoY, reflecting the debt-funded portion of the Sojern acquisition.
- Depreciation and amortisation rose 320.1% YoY to 392.70 million, creating a materially higher non-cash charge against the enlarged intangible asset base.
- Standalone PAT fell 67.5% YoY to 65.95 million as other income dropped to 27.23 million from 193.55 million, showing that the parent-company result is not representative of the consolidated earnings engine.
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