--- title: "RateGain’s revenue rose 153% with Sojern; its profit margin fell to 10.0% from 17.3%" summary: "RateGain’s July to September results, a year after buying Sojern: what the deal added to revenue, what it costs in interest and amortisation, and the loan left to repay." url: https://www.thetechbag.com/blog/rategain-revenue-153-percent-sojern-margin-10 format: Note desk: "SaaS & business software" region: India published: 2026-11-11 facts_checked: 2026-11-11 author: TechBag (The TechBag Journal) tags: ["RateGain results","RateGain Q2 results","RateGain share","RateGain Sojern","RateGain","Sojern","travel technology","hospitality","MarTech","acquisition","earnings","organic growth","acquisition debt","deferred consideration","adjusted EBITDA","HSBC","Citigroup","J.P. Morgan","Bhanu Chopra"] cover: https://www.thetechbag.com/blog/covers/rategain-revenue-153-percent-sojern-margin-10.png --- # RateGain’s revenue rose 153% with Sojern; its profit margin fell to 10.0% from 17.3% *RateGain’s July to September results, a year after buying Sojern: what the deal added to revenue, what it costs in interest and amortisation, and the loan left to repay.* Note · SaaS & business software · By TechBag · Published 2026-11-11 · Facts checked 2026-11-11 · Canonical: https://www.thetechbag.com/blog/rategain-revenue-153-percent-sojern-margin-10 RateGain, the Noida company that sells data, booking connections and marketing to hotels and travel firms, reported revenue of ₹745.4 crore for July–September, up 152.6%, because Sojern, the US travel-marketing company it bought a year ago, is now in its accounts. Revenue was 5.0% below April–June’s ₹785.0 crore.[1][2] Profit after tax rose 46.5% to ₹74.7 crore, but the margin fell to 10.0% of revenue from 17.3%.[1] It reported on 5 November. ₹745.4 cr revenue, July–September, up 152.6% with Sojern Press release −5.0% against April–June’s ₹785.0 crore Presentation 10.0% profit margin, from 17.3% a year earlier Press release ₹494 cr net debt on 30 September Press release ## What RateGain bought RateGain had three lines before the deal: pricing data on rivals’ rates for hotels, airlines and car-rental firms; distribution, the connections that send a hotel’s rates and rooms to online travel agents; and marketing. Sojern, which buys ads aimed at travellers using travel-intent data, made marketing the business: 80.2% of revenue in April–September, against 13.2% for data and 6.6% for distribution.[2] RateGain completed the purchase on 6 November 2025 for US$250.92 million (₹2,222.08 crore), about half of it paid with a US$125 million bank loan.[3] How much of the 152.6% is growth rather than the purchase, the filing does not say. On the call, the finance chief, Chetan Garg, put the combined business’s organic growth at 14% for the quarter, counting Sojern’s revenue from before the deal; Bhanu Chopra, the managing director, gave 15.7% for the half-year. Within marketing in the half-year, the hotel and destination-marketing businesses each grew more than 20%, while marketing for corporate clients such as airlines, car-rental firms and cruise lines fell about 14%.[4] Quarterly revenue had climbed from ₹295.0 crore a year earlier to ₹540.0 crore and then ₹715.5 crore in the two quarters after the deal closed.[7] **Figure: Sojern lifted quarterly revenue to ₹785 crore; July–September slipped 5%** *RateGain consolidated revenue from operations by quarter, July–September 2025 to July–September 2026, ₹ crore* | | Revenue | | --- | --- | | Jul–Sep 25 | 295 | | Oct–Dec 25 | 540 | | Jan–Mar 26 | 715.5 | | Apr–Jun 26 | 785 | | Jul–Sep 26 | 745.4 | Source: RateGain investor presentations of 21 May and 5 November 2026 · as of 5 November 2026 · Sojern is included from 6 November 2025, so October–December 2025 holds about eight weeks of it. Garg gave two reasons for the dip from April–June: that quarter held a one-time gain of about US$2.5 million from the FIFA World Cup, and destination marketers spend less in July–September, when many start new budgets.[4] ## Why profit grew slower than revenue The deal brought three costs below operating profit. Finance costs were ₹16.1 crore, against ₹0.3 crore a year earlier; amortisation of acquisition costs ₹35.4 crore, against ₹7.0 crore; and other income turned to minus ₹0.3 crore from ₹21.5 crore.[2] A fourth sits inside operating costs: ₹16.1 crore of deferred payment to Sojern’s team, owed only if Sojern meets revenue and EBITDA targets over three years to October–December 2028.[4] RateGain adds that back to report an adjusted EBITDA margin of 22.7% and adjusted profit of ₹90.8 crore.[1] TechBag countThe acquisition’s lines in one quarter Interest and acquisition amortisation came to ₹51.5 crore, against ₹7.3 crore a year earlier, while other income fell by ₹21.8 crore. Pre-tax profit rose ₹31.9 crore, to ₹97.4 crore.[2] ## The loan, and what to watch RateGain says it has now repaid 43% of the loan for Sojern.[1] Its filings show how: a further US$46.25 million paid on 5 November leaves US$31.25 million of the US$125 million HSBC and Citigroup loan, alongside a J.P. Morgan credit line of up to US$40 million drawn by Sojern. On the call, Garg put the repayment at US$53.75 million and said the US$40 million had been refinanced at a lower rate, SOFR plus 1.65 percentage points.[4][5][6] Debt was ₹733 crore and cash ₹239 crore on 30 September.[4] The company expects to be free of net debt by the year to March 2028.[4] It kept guidance for the upper end of ₹3,000–3,100 crore of revenue this year, with an adjusted EBITDA margin of 22.5–23.5%. New sales in Asia-Pacific, the Middle East and Africa were about US$2 million in the quarter, more than three times a year earlier, with share gains named in India, Singapore, the UAE and Saudi Arabia.[4] To reach the range, October–March revenue must be close to April–September’s ₹1,530.4 crore.[1] Another Indian company paying for a foreign buy with debt is [Persistent, for Nagarro](https://www.thetechbag.com/blog/persistent-nagarro-financing-debt-equity). How we did this Figures as of 11 November 2026, 8pm IST Results are from RateGain’s filings of 5 November; the quarterly series adds the October–December and January–March figures from its 21 May presentation. Organic growth, the FIFA effect, the line-of-business growth rates and the loan figures beyond the notices are management’s statements on the 5 November call, from the company’s transcript; the finance chief’s spoken “₹735.4 crores” there is the release’s ₹745.4 crore. Our arithmetic: the 43% reconciles as US$125 million minus the US$31.25 million left and the US$40 million credit line, which is US$53.75 million; counted against the original bank loan alone, 75% is repaid. The callout’s sums are ours from the presentation’s profit and loss table, as is the second-half revenue the guidance implies: ₹1,469.6–1,569.6 crore. The rupee value of the deal is the filing’s ₹22,220.83 million, written in crore. Spotted an error? Write to us; corrections are published at the foot of the piece. Sources 1. [RateGain Travel Technologies, press release on results for the quarter and half year to 30 September 2026 (filed with NSE and BSE)](https://ir.rategain.com/media/p2dpyxs1/rategain_05112026173256_pr_051126.pdf) — 5 November 2026 2. [RateGain, investor presentation, Q2 and H1 FY2027 (NSE): revenue mix and consolidated P&L](https://nsearchives.nseindia.com/corporate/RATEGAIN_05112026171837_RG_InvestorPresentation051126.pdf) — 5 November 2026 3. [RateGain, outcome of board meeting: unaudited results to 30 September 2026, note on the Sojern acquisition (NSE)](https://nsearchives.nseindia.com/corporate/RATEGAIN_05112026165347_RG_OBM_051126.pdf) — 5 November 2026 4. [RateGain, transcript of the Q2 and H1 FY27 earnings call held on 5 November](https://ir.rategain.com/media/v2vb1qmx/rg_transcript-q2-fy26-27.pdf) — 5 November 2026 5. [RateGain, intimation regarding prepayment of loan by RateGain Technologies Limited, UK (NSE)](https://nsearchives.nseindia.com/corporate/RATEGAIN_05112026141227_RG_Pre_Payment_051126.pdf) — 5 November 2026 6. [RateGain, disclosure of a J.P. Morgan line of credit of up to US$40 million to Sojern, Inc. (NSE)](https://nsearchives.nseindia.com/corporate/RATEGAIN_20082026181527_RG_20082026.pdf) — 20 August 2026 7. [RateGain, investor presentation, Q4 and FY2026 (NSE): revenue for October–December 2025 and January–March 2026](https://nsearchives.nseindia.com/corporate/RATEGAIN_21052026135738_RG_IP_210526.pdf) — 21 May 2026 **Disclosure.** TechBag is a software reseller: it earns a margin when a reader buys through it, including from vendors named here. The analysis is TechBag’s own; no vendor paid for or saw this piece before publication. Facts are labelled reported, TechBag count or our view. **Read this next:** [Six of nine mid-tier IT firms grew 10%-plus in rupees; in dollars, only two did](https://www.thetechbag.com/blog/mid-tier-indian-it-growth-rupee-flatters) — How to read an Indian results headline: nine mid-tier IT firms in rupees, dollars and constant currency, six above 10% in rupees and two in dollars. Go deeper on TechBag - [Persistent raised ₹11,865 crore for Nagarro](https://www.thetechbag.com/blog/persistent-nagarro-financing-debt-equity) — another Indian company paying for a foreign acquisition with debt - [The Trade Desk’s revenue fell 0.5%](https://www.thetechbag.com/blog/trade-desk-first-revenue-fall-since-2020) — ad buying for brands, the business Sojern runs for travel - [Amagi’s ad impressions rose 65%, revenue 27%](https://www.thetechbag.com/blog/amagi-ad-impressions-up-65-revenue-27) — another Indian software company paid through advertising