RateGain Q4 Results Review - Operational Performance Improves; FY2025 Outlook Healthy: Dolat Capital

Dolat Capital Report

Rategain Travel Technologies Ltd. reported 1.5% QoQ growth, (our estimate: 1.9%), led by data-as-a-service (34% of revenue) and distribution (22% of revenue) segments growth of 6.4%/2% QoQ, while MarTech (44% of revenue) was down 2.3% on seasonal dip in Adara.

Ebitda stood at 21.2% (beat), up 57 bps QoQ on lower bonus provisioning for employees.

The company shared an optimistic outlook, guiding 20% YoY organic growth (~26% including acq) and Ebitda margin expansion of 100-200 bps for FY25.

Given strong operational performance over FY24-FY25, Rategain is likely to build a solid foundation for future growth, in our view.

We largely retain our estimates for FY25E/FY26E and expect the company to continue riding tailwinds of global travel demand. Maintain ‘Buy’ rating with discounted cash flow based target price of Rs 900 (implies 47 times of FY26E).

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