Rategain Travel Technologies Limited (RATEGAIN) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Rate Gain Travel Technologies Q4 and Full Year FY26 Earnings Conference Call. As a reminder, all participants will be in the lesson-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal

an operator by pressing star then zero on a touch-tone phone.

Please note that this conference is being recorded. I now hand the conference over to Mr. Bhanu Chopra, founder and chairman from RateGain. Thank you, and over to you, Mr. Chopra.

Thank you so much, and good afternoon, everyone. Thank you for joining RateGain Travel Technologies Q4, FY26, and full-year earnings call. This call marks the close of a defining year for RateGain. One is in which we materially expanded both the scale of our platform and the breadth of our market opportunity. This was an important year for us, operationally, strategically, and structurally. And the opportunity ahead of us is the largest we have ever seen. For Q4, FY26, we reported the highest ever quarterly revenue of... $716 crores, up 175% year-on-year. Within this, the rate gain organic revenue stood at $311 crores, up 19.3% year-on-year, which is in line with the messaging shared with you in earlier calls of rate gain, getting back to double-digit organic growth by the end of fiscal year 2016. I have adjusted the pick-off of Q4. The EBITDA is adjusted for the deferred team consideration related to the Sojourn acquisition, which is due to be paid for three years, given the team meeting agreed upon revenue growth in EBITDA targets. For the full year, fiscal year 26, Revenue came in at 1,824 crores, reflecting a 69.4% growth year-on-year, and this is ahead of the revised guidance we gave post the acquisition. We have also now crossed a new record of 2,850 crores on annualized revenue run rate basis. Given the strong momentum on free cash flow generation, We expect to retire the balance of acquisition-related debt by Fiscal Year 28. By Fiscal Year 28 to end, we will be debt-free. Before I go into the business segment, I want to set the strategic context for this year because the numbers alone don't tell the full story. The 526 was the year... The completion of the Sojourn acquisition, the unification of Adara under the Sojourn brand, and the creation of the world's largest source of travel intent data were not just milestones. They were the foundation of a fundamentally different company. We entered fiscal year 26 as a strong travel technology platform. We are exhibiting it as the AI-powered operating system for travel revenue growth, connecting demand generation, distribution, and revenue optimization to one intelligent platform spanning marketing, data intelligence, and guest engagement. No other player in our market combines travel intent data at this scale, distribution infrastructure of this depth, And the AI-powered commercial intelligence under one roof. That integrated stack is our moat. Just to give you an update on the Sojourn integration, I'm pleased to say that it is ahead of plan. We've delivered the full cost synergies in Q4. Adara and Sojourn have been unified under a single brand, that is Sojourn. The underlying technology platforms of Sojourn and Adara are now consolidated into one platform. Full customer migration to that unified platform is on track and is set for completion by end of Q2. Equally important, we have also consolidated the data partnerships that Adara and Sojourn each brought into the combined entity. As a result, Radiant today operates the world's largest single source of travel intent data at a scale no other provider in our market can match. The integrated platform now delivers two things at once, operational efficiency on the cost side and an unmatched data moat on the revenue side. Both translate directly into pricing power and commodity momentum as we move through FI27. Our focus for FI27 is clear, driving GTN growth, and converting platform strength into commercial momentum. With 13,000-plus customers across the combined business, the cross-sell opportunity ahead of us is significant, and we are pursuing it with structure and urgency. Every product we are building, every promotion we are driving, is aligned to three outcomes for our customers. Acquire guests efficiently, engage them meaningfully, and expand wallet share over time. That is the integrated thesis, and that is the opportunity here. Let me walk you through now each of our businesses. Our number one engine is Amartek Engine. Cuttick continues to be our largest growth engine and an increasingly strategic differentiator for the company. I wanted to highlight some key points here. The Sojourn's property business is performing well, and with strong customer addition, improved conversion and sustained pipeline momentum. Our value proposition for hotels is clear. Drive direct bookings and improve marketing ROI. Atmea is our priority growth engine for FI27, where we see the strongest pipeline and fastest adoption. Our travel intent data platform was showcased through the FIFA World Cup 2026 Market Pulse dashboard. A free, real-time intelligence tool built on surgeons' travel intent data, tracking booking signals across all 16 host cities in the U.S., Canada, and Mexico. This serves as an early proof point of the combined platform's value, generating significant global media attention, and positioning us as the center of industry conversation regarding destination intelligence. As the world's largest travel and pen data company, we are increasingly the source for major media seek-out for expert commentary on global travel demand. In the first five months of 2026 alone, our data has driven record-breaking coverage across the world's most influential business publications. Including the New York Times, Walters, the Financial Times, Bloomberg, CNBC, Axia, and the Seattle Times. 78 dedicated articles since March alone. A single Reuters feature built on our Rate Gain World Cup Index was republished 104 times across global outlets, including NSN, the Independent, the Economic Times, and the Straits types. This is no longer simply a vendor of travel data. We are becoming the definite of wheat on global travel demand, and that is a position no competitor in our space holds today. AI is strategic focus. AI remains a core focus with investment centered on helping travel brands remain discoverable and commercially optimized as travel behavior towards AI-powered and intent-led experience. Our MarTech team won eight 2026 HSMAI Adrian Awards, one of the hospitality industry's highest market recognition, reinforcing the momentum the business is building. Let me now speak about our distribution business. Distribution had a soft year on headline growth, but the strategic work done in FI26 has meaningfully strengthened the platform and positioned as well for FI27. Enterprise conversations are increasingly moving beyond connectivity towards broader distribution optimization, profitability improvement, and AI-native automation across the full stack. This reflects the maturity of the Ulo platform. We are increasingly being viewed not simply as a connectivity provider, but as a strategic and outcome-oriented infrastructure partner for modern hotel commerce. A key strategic addition during the quarter was RateIQ, which addresses a challenge many large hotel chains face, being connected to dozens of OTAs. Without clear visibility into which channels are truly driving bookings and where revenue leakage exists. WaveIQ uses AI to surface gaps such as missing inventory, parity breaks, and underperforming ODA connections, while quantifying the commercial impact of each. We announced Agentic ARI, making Uno, industry's first channel manager, built on intelligent distribution logic, prioritizing rate and inventory updates by booking urgency and commercial impact. Hotels are seeing up to a 30% to 40% optimization in ARI traffic and meaningfully improved rate accuracy. This is a structural shift in how distribution technology works. One of the big global OPA has shown interest in piloting the Gentic ARI platform to pre-process their traffic from other sources, so to increase effectiveness of their integration and revenue strategies. We introduced RG Plane, a unified embedded payments infrastructure, bringing together localized payment acceptance. RGP is live with JustPay, RazorPay, EaseBuzz, and cash-free payments, and extends Rayclan's role deeper into the commerce infrastructure layout problem. Now let me talk about DAS. The DAS segment delivered steady performance through FY26 and continues to be a reliable contributor to overall growth. For our air segment, the air business continued its strong momentum with new airlinements across emerging and high-growth markets globally. Singapore Airlines extended its partnership with Raytheon for an additional four years, while new customer additions included Tiger Air, Myanmar Airways International, Mongolian Airlines, Kazakh Air, and Air Serbia, further spending air games' global presence. The business also secured marquee long-term partnerships with Vietnam Airlines and Philippine Airlines, reinforcing Airgame's growing position as a global air travel intelligence platform. On the product front, Airgame launched a new route performance digest, providing airlines deeper visibility into route-level performance and competitive positioning. AirGain is also preparing to launch the industry's first authentic AI interface, enabling faster insights and more intelligent decision-making for airlines. On the ODA, we continue to deepen our presence across key accounts and continue to see healthy volume momentum. In the car segment, we've delivered a solid performance with continued engagement with existing enterprise partners and expansion discussions progressing well across eMarket. On the hospitality side, we've evolved from a market monitoring tool into an active decision support platform with the launch of Lens. Our AI-powered conversational intelligence layer that enables revenue teams. To interact with complex pricing, clarity, and demand intelligence through a conversational interface, FI27 focus will be on scaling through these partnerships. Let me now talk about AI across our stack. Our approach is to really build AI agents that do the work in our industry. So, for instance, a revenue manager AI agent, a distribution AI agent, and a marketing AI agent. They are semi-autonomous first and then fully autonomous if the customer has built comfort with the AI agent. We currently provide tools to this audience, but ultimately we see that agents will do the work. So, some of it I have already... Mentioned in my commentary, but just to reiterate, we are building AI ads and campaign agents, running independent campaigns through AI agents to deliver higher ROI for our customers. Agentic AI that I spoke about earlier reduces the traffic by 30 to 40 percent, improves rate accuracy across channels. This data reduction translates directly into savings for our customers and reduction in errors. Uno Viva and its voice reservations across 30-plus languages is available 24 by 7 with hotels reporting up to 40% increase in revenue. AI Concierge, deployed across Red Group's 700-plus properties, is now delivering up to 300% improvement in ancillary revenue and 75% improvement in NPS. At rate gain, AI is no longer experimental. It's embedded across commercial workflows, delivering measurable revenue impact, operational efficiency, and stronger customer retention. This intelligence spans marketing, pricing, distribution, and guest engagement. That integrated stack, embedded, measurable, monetizing, is our mode. Let me now talk about people and culture. We are now over 1,300 people strong globally and recognized as a great place to work for the seventh consecutive year in India and for the first time in Spain and United States. Radian was named Emerging Company of the Year at the EEC Corporate Excellence Awards, one of India's most prestigious corporate recognition. To be recognized alongside some of the most iconic business leaders in the country is both humbling and validating. It reinforces the credibility of our acquisition strategy. The strength of our integrated platform thesis, the discipline of our execution, and the ambition of our long-term vision. Within people and capability development, we rolled out Delta, our AI-powered learning platform, delivering personalized role-specific learning journey. We announced the launch of Rate Gain Varsity, a digital marketing certification program for hotel commercial and marketing teams globally, bridging the clarity gap the industry faces in activating technology effectively. Let me now talk about the organic growth and guidance for FY27. We expect to grow the revenues to $30,000. 3,100 crores, which translates to 65% to 70% growth for the full year FY27 over FY26. This implies an organic growth of 12% to 15% for the combined NPD, both rate gain and considering social numbers from the prior year. On the margins front, we expect to deliver an EBITDA of 650 to 700 crores. That's a margin of 21.5% to 22.5% for FY27. This does not include the earn-out consideration related to the sojourn acquisition. In closing, FY26 was a year of transformation and foundation building and validation. As we enter FY27, our focus shifts from integration to monetization, scaling enterprise adoption, deepening customer wallet share, and translating platform scale into beautiful, profitable growth. Our ambition is to build a billion-dollar revenue company by FY3031, is grounded in the platform we have built, the markets we serve, and the commercial opportunities now opening across the combined business. The platform is built, the data is unmatched, the integration is on track, and the opportunity ahead is the largest in our history. We're building an integrated AI-powered travel technology stack focused on three outcomes for our customers. Guest acquisition, guest engagement, and guest wallet share expansion. And we are doing so with measurable outcomes. With that, I will hand it over to Ankit Agarwal to walk you through the financial. Thank you.

Thank you, Banu, and very warm welcome to everyone on this call. It is a pleasure to connect with everyone on the call today. This quarter marks another important milestone in Radcliffe's growth journey as we delivered strong all-around performance across revenue growth, profitability, and strategic execution, starting with an update on numbers for Q4FI26. We have reported our highest ever quarterly revenue of INR 716 crore, a growth of 175%, with operating margin coming at 20.5%, showcasing disciplined execution even as continue to invest. This revenue includes full quarter of SOGEN's revenue. RG organic revenue grew at a healthy pace, coming in at an all-time high of INR 311 crore, growing at 19% compared to the same period last year. RG organic growth is back in double digits as we had mentioned earlier in the last quarter. Within this, I am happy to report that Dash segment grew at 21.5% in Q4 FY26 with healthy performance across the organic Dash business. Ragegate MarTech business excluding Sojan grew at an impressive pace of 37.5% in Q4 with healthy performance across all three segments. As Bhanu had mentioned earlier, we have also reported an adjusted EBITDA margin of 23.5%, slightly ahead of our Q4 exit margin last year. This adjustment is part of earn-out consideration related to Susan acquisition, will be expensed over 3 years. This expense is in cash and SARs, will throw up to down in line with the actuals, since this entire payout is conditional in nature over a period of 3 years basis revenue growth and EBITDA target. And this amount will be in the range of INR 20 to 22 crores per quarter for 12 quarters from here on. With the earn out, consolidated EBITDA stands at 20.5%. RG organic Q4 EBITDA stood at 20% ahead of the stated guidance. The adjusted path for Q4 stood at INR 90.9 crore with a margin of 12.7% and INR 249.9 crore for FY26. with a margin of 13.6%. The PAT for the quarter stood at INR 70 crore with a margin of 9.8% and INR 194.4 crore for the full year FY26. I would like to walk through the bridge from EBITDA to PAT as it is important context for projecting EPS for 27 and beyond. The key recurring component of this delta are Amortization of Sujan purchase price consideration. This is a running USD 2.8 million per quarter and will continue for a duration of amortization schedule. Finance costs are running at approximately USD 1.6 million per quarter and will continue to reduce as we repay principal. On debt repayment, we have maintained strong discipline, having repaid USD 31.5 million to date, equivalent to 25.2% of the original loan, through a combination of scheduled installment and prepayment. This brings our current outstanding balance to USD 93.5 million. Unlike Q3, which carries an exceptional one-time charge of INR 34.6 crore related to M&A cost and labor loss changes, Q4 had no exceptional items. This is directly reflected in the strong sequential pad recovery from INR 26.5 crore in Q3 to INR 70 crore in Q4. PATH has also been impacted by a reduction in interest income as a surplus cash previously earning interest was deployed towards the SOZEN acquisition. This is a structural reallocation of capital and should not be did as recurring operational drag. At an overall level, recurring EBITDA to PATH delta is approximately USD 6 to 6.5 million per quarter. It is worth noting that actual cash impact of this delta is only USD 3 to 3.5 million per quarter as amortization is a non-cash charge. We are actively working to offset a significant portion of this. Office through a core synergy and operational leverage as integration benefits flow through. Sojourn integration is progressing ahead of plan and our focus remains on driving higher organic growth, accelerating cross-sell opportunities, and expanding our presence in high-growth geographies to make calibrated investment where we see the right opportunities. On synergies, I am pleased to report that we have exceeded our initial phase 1 target, and life course synergies now stand at USD 15 million, up from the USD 12 million we had communicated last quarter. This positions Sojan on a clear trajectory towards 19 to 20% EBITDA margins. Free cash flow generation in Q4 was healthy at INR 82 crore, bringing full year FY26 free cash flow to INR 230 crore. Going forward, we are confident of generating cash flow at a healthy pace and expect a free cash flow to EBITDA conversion to be higher than 75% in FY27. We continue to have a strong balance sheet with our net worth currently at INR 2005.8 crore, and our cash-in-cash equivalent balance at end of quarter stood at INR 199 crore. Net debt as on date is down to INR 722 crore. The broader travel industry continues to prioritize technology investment that can deliver measurable revenue outcomes and operational efficiency. We believe this positions rate gain strongly given our expanding global footprint, diversified product folio, and increasing relevance across the travel and hospitality ecosystem. As we move ahead, our focus remains sustaining profitable growth, driving integration synergies, So, thoughtfully, and continuing to strengthen our platform capabilities for long-term value creation. With that, I would like to close my remarks, and we are happy to open the floor for the questions. Thank you.

Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Karan Opal from Philip Capital, India. Please go ahead.

Yeah, thanks for the opportunity and congratulations on decent set of numbers. The first question is on the MarTech segment. You mentioned about, you know, the scale of your operations combining Adara and Sojourn. So, if you can just throw it some further color as to how many data partners are there in total with the combined Adara and Sojourn entity, how many unique travelers are being targeted by rate gains, you know, in a particular quarter, and how does these So, let's take a look at these metrics compared with the second or the third year, just to get content.

On the platform side, I think that's part of the question. So, essentially, both Adara and Sojourn, as you know, are in the same realm of business of doing digital marketing and were using independent platforms, and we took the decision to consolidate that platform into one platform. So, essentially, we have now merged the platforms. And every new customer that we bring on board will be executed on the new platform. In addition to that, we have now also, from a go-to-market perspective, consolidated the brand. So instead of operating as two separate brands, as Sojourn and Adara and Radiate, we are now taking our Martek brand largely as a Sojourn brand. So we have deprecated the Adara brand, and similarly, associated with that, we have combined now the different teams, the go-to-market teams, the product engineering teams, into one consolidated entity into our MarTech business that we are referring to as Sojourn. In terms of the number of data partners, Ankit, would you be able to give those numbers?

Yeah, this is Vivek. I think in terms of data partnerships, we would have on a combined basis over 320 data partners for the combined entity, combining both from Adara and Sojourn onto the one platform. And in terms of travel graph IDs that we are tracking, that would be over 1.5 billion graph IDs. That's not to say that that's individual travelers that we are tracking. Those are graph IDs that we are tracking.

Okay, and any matrix in terms of the sphere comparison, how do you relate to the second largest or the largest sphere?

So, as I mentioned in my commentary, there isn't really a true competitor to us now, which is even anywhere close, that is worth mentioning. We operate in largely three segments. On the property side, I would say there is pretty much very, very limited competition. If I had to compare, you know, the second nearest competitor to us, you know, that would be... Just one-fifth the size of our property's business alone. In fact, pretty much every major technology partner that requires digital marketing capability is right labeling our product now. On the DMO space, we are absolutely number one. The nearest competitor would be one-tenth our size. In the BMO space, and on the corporate side, I would say that we are largely competing with, when I say corporates, which is the large enterprise travel plan, we're largely competing with agencies which are non-tech, and we continue to see a shift of business from there to over to one.

Great. Thanks for that, Kala. Manu, just on AI, because of the changing customer behavior, a lot of planning and itinerary creation is happening on all these platforms like ChatGPT. So how does a player like Adara or Sojan capture the high-intent travel customers in this scenario? Do you plan to partner with these frontier AI companies to source this data, or will they be open to it? And secondly, how does the customer targeting be impacted as a lot of these high-intentioned travelers move to ASI?

Yeah, so we are in active conversations with all the AI services, both in terms of being able to get the data, but also being able to advertise. As you know, OpenAI is now contemplating selling ads, and we are in early conversations with them to enable self-serve ads on their platform. From a travel and hospitality perspective, and similarly, we are very heavily engaged with Google to leverage their platform, both from a perspective of using their admin inventory on the AI services, and also in terms of data partnership.

Okay.

Okay, thanks. Thanks for that. And thirdly, in terms of the organic tidings, which are shared 12 to 15% in IANA terms, if I just convert it into the dollar terms, it appears to be in, I think, mid-single digit to, you know, maybe high-single digit. It appears a bit conservative given the, you know, good deal events which we had. So, is it due to, let's say, the West Asia crisis, which is impacting travel? Any further color you can share on the organic guidance? And also, if you can share the outlook across that segment, stats distribution and marketing.

Thanks. So, on the USD guidance,

we are at about, I don't know where you are, single digit, we still believe we are double digit growth on the dollar guidance between 10 to 12%. On the individual

products, just give me a second. Vivek, would you be able to give the slide to Cecilia?

I can do that. So, if we were to break this down, as Vanu mentioned, on a USD term, we are looking at 10-12% kind of a growth is the outlook that we have. Within that, the DAS growth is probably expected to be like a low double digit number, which is going to be in the 10 to 14% growth range is where we expect DAS to grow as we still continue to see good traction with some of the marquee clients and growth opportunity, volume growth opportunities over there. Distribution, I'm happy to report from a soft year that I think it's safe to say that this quarter has kind of bottomed out. And from here on, we do expect to see growth going into next year, which will be anywhere like a mid-single-digit growth is what we see. And on the MarTech side, at a consolidated level, we see opportunity for about, again, 12 to 15% kind of a growth for the MarTech segment as a whole, within which we do see properties, business growth to be on the higher side, and then low double-digit growth across our destination segment. And Soho, which is a very small piece, is expected to grow at a very healthy 30% plus kind of a number. Please do keep in mind, Karan, that we'll always be very conservative with our guidance going forward. And this 10% to 12% number is the conservative number that we are guiding the market on. And from our perspective, the idea is to always outperform on guidance and beat it and outperform on that front. Perfect.

Sure, sure. Thanks. Thanks a lot, and come back.

Thank you. Next question is from the line of Nitin Padmanathan from Investec. Please go ahead.

Yeah. Hi. Good evening. Thank you for the opportunity and congrats on a solid quarter. I had a couple, actually. So, one is, you mentioned that APMEA is seeing very solid traction in terms of deal wins and stuff. If you could give some color around what's driving that strength, how are you seeing UNODU there? And how are we looking to sort of replicate this success in the other geographies? And what, at the moment, are constraints to be able to sort of replicate that at the moment? That's the first one.

Yeah, so I think we

talked about this a lot in the last few quarterly calls about our investments into go-to-market, and we had talked about investing about $5 million and largely in doing go-to-market investments, and most of those investments went into building out our APAC sales. Customer success teams. So, just to give you an idea, we were about 15 people at the beginning of 526, and today we are almost sitting at 85 people in that team. And we are seeing some excellent traction in terms of bookings velocity. As a result of that. Now, to your point about replicating similar process in other geographies, so that's the intent. We intend to take up Europe next. We already have a significant team in Europe, given the Sojourn acquisition, and they have a bunch of people there already. But our aim will be, as long as our thresholds on sales and marketing investments are being met, that we will continue to reinvest. So I do see acceleration of investment in Europe and Latin. And then in the U.S., I feel like we have a fairly large footprint already. But we are continuously seeking opportunities where we can double down on investment.

Got it. So in that context, well, we did, let's say, $5 million of GTM last year. Are we looking to up that? Because if I look at the guidance compared to this quarter's adjusted margin, you seem to be sort of highlighting a lower margin for next year. So is that sort of a certain level of GTM that you have in mind that you're already investing, or is this conservatism and this will sort of evolve as we go forward?

So we're taking a calibrated approach. The idea is we made a lot of investments. We are integrating the teams in U.S. and Europe between Sojourn and Brady. As we normalize those efforts, The idea would be to continue to invest where we see the opportunities. So, it's hard to suggest a number as of this point, a definitive number, but as you can imagine, integration has also created, you know, a larger footprint in some places. So, for instance, you know, we may have... From Surgeon and Rate Game, more number of people servicing a certain geography, and we have the ability to reallocate that to under-penetrated geos. So that's some of the work that we will do first, and then we will look to invest more. But we will keep you posted as we sort of go along, and it's hard to, you know, put out a number right now. Thank you. As I've been stating, the opportunity is there, and we will continue to accelerate the organic growth.

Sure. I ask that because the 15 million is a good almost 5% on revenue, and in that context, the guidance appears relatively conservative. So, yeah, so that's where I came from. Perfect. So that's helpful. The only other thing is that if you think of geographies, at the moment, you're the most bullish on APME, obviously, because a lot of work has gone into that geo last year. When you think of the other geographies, which geography do you think really leads growth from a geographic perspective between Europe and America, which is seeing more traction at the moment? And finally, I think from a deal wins as well, looks like we have not included sojourn, right? So while the deal wins have been solid on an organic basis, that number does not include sojourn, so maybe understated. So just wanted your thoughts there as well, in terms of how we should sort of broadly think about that.

Yeah, in terms of the growth regionally, I think the U.S. growth will mimic the consolidated growth numbers that we have projected, and as you know, it still is a majority of our revenue. And I do see an opportunity of acceleration both in Europe... And the reason I am, it's not that I'm not bullish about US, it's just that, you know, the revenue base in the US is significantly higher now than other regions. But I do see that ultimately APAC in Europe will probably be exceeding

our overall consolidated growth numbers.

Perfect. Very helpful. If I may, I'll just drop in one more. In the context of a lot of transaction-based revenue and what we are seeing today in terms of airfares going up and all of those things, do you think that in some form is a potential risk to growth for us? How should one think about that broadly?

Yeah, I almost feel like... Our business is counterintuitive in terms of growth to the overall industry growth. What do I mean by that? I feel like people usually come to us when they are slightly troubled and need ways to unlock revenue through technology. I mean, just to give you an example, for instance, in what's happening in Italy, right? The DMOs in the Middle East, obviously they have paused on what they have been doing with us, given the situation there. But the commentary they are giving to us that as soon as things stabilize, you know, the budgets that they have and what they will be willing to spend, you know, is something that we have never seen before. So while the living business may be, you know, may only go back up slowly. But because we are enablers of unlocking revenue opportunity, you know, we will be seeing a lot more opportunity from our PMO marketing activation perspective. And on the whole, it kind of does employ in other areas also because if the hotel is full and it's getting, it's able to charge more. They usually see a smaller need to use us. It's when they need opportunities to unlock revenue and drive more cost efficiency, that's when they think of us even in a good move. So, yeah, so I'm not worried and I see a very good opportunity ahead of us.

Super. That's very helpful, Banu. Thanks, Sartan, and all the very best for the next year.

Thank you.

Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the question queue, please restrict yourself to one question only. Should you have a follow-up question, please rejoin the queue. Next question is from the line of Ankit Kanodia from Zen Nivesh. Please go ahead.

Thank you for taking my question. I have just one question. In fact, I happen to read. One news article, which I got from your LinkedIn post only, which talks about, which we said, competing for relevance in the AI era. And I would just request you to kind of little expand on this theme, how we are positioned for this, and how do we see our business evolving based on this? And maybe some color as to, I'm not asking for a guidance, but maybe some color as to how our revenues will look like given this new era. If you can throw some light, that would be very helpful. Thank you.

Yeah, absolutely. So, let me break the question into a couple of parts on how I believe. AI is helping us internally and what we are doing with it externally and what I believe is it's going to help in terms of our story and scale in years to come. So, internally, what I am very, very excited about. It is, of course, the operational efficiency and the productivity that we are able to try of every employee and every function. But what excites me the most is our ability to prototype and test new concepts very, very quickly. So, I'm happy to report to you that as a result of AI tools now. Our ability to experiment has gone up several folds. So the number of experiments that we are running is several fold versus what we could run earlier. And also our cycle to prototype, take it to market, validate the thesis, has also shortened quite significantly as a result. As a tech company, ability to test new concepts and take it to market is very, very fascinating, and I've talked about, you know, internally how we are using it from an engineering perspective, from a product perspective, even in an HR, a lot of our retention. And, um, hiring capabilities and processes are now, I have AI embedded into it. Uh, we have our first AI HR person, which is Remo. Remo is available 24 by 7 in C30 languages. Um, on the external side, um, you know, I talked about a lot of our capabilities that we have launched on, uh, on our MarTech. We are running AI as we are running internal AI campaign agents. And one of the outcomes of being an AI-native product is to have an outcome-based pricing, which we already inherently had built in our business model. So, if you look at our MarTech business, we usually go to the hotel and say, That, look, we will take the onus of doing all your digital marketing, and for every booking that you get, you pay us an X percentage of that booking. So, there is no subscription fee to be paid. So, how we run those campaigns now internally is completely automated and being run by AI agents. On our distribution side, I talked about agentic ARI, which is reducing the traffic between the hotel and the OTA systems, and we're very encouraged by what I talked about in our opening remarks. We have one big OTA that wants to use our ARI agent to monitor the traffic between hotel and then we reduce that traffic because that reduction of traffic could mean... We have savings of hundreds of millions of dollars in token consumption and cloud bills, and so that's very exciting, and similarly, you know, we are using more bookings because we are enabling more real-time things between the hotel and OPA partners, and on the gas side, we have now moved from just not providing intelligence but actually doing the work. For a couple of segments, we are launching an AI Revenue Manager. And then one of the key AI offerings that we launched a couple of quarters ago that is seeing a lot of potential for us is our Viva product, which is an AI-enabled voice agent. So... It basically enables the hotel to receive calls through this AI agent and can answer any discoverability-related questions about the hotel, date bookings, etc. And a lot of our hotel customers, mid-sized customers, that have reservation offices are seeing a huge advantage in deploying AI agents. Why? Because the AI agent is available 24 by 7. They'll speak multiple languages, does not need to be continuously trained because, as you know, call centers have a huge problem, so we're able to solve for that. And overall, the fact that we have, I've talked about this, data is the new oil in this AI world, and we are the largest producers of traveling data, distribution and pricing data. That creates a moat for us in this AI world, and we are very confident of being able to commercialize this into AI agents that actually do the work for the segments that we serve. So instead of providing tools that a revenue manager, a distribution manager, and a marketing manager can use, We ultimately want to be able to provide autonomous agents that actually do the work. So think of us as, you know, being a vertical AI specialist that will be able to spawn out AI agents to take advantage of all these commercial opportunities that are presented.

No, that's very helpful. My question was more related to this point which the article talks about, which is basically the next era of travel marketing will be defined less by volume and more by relevance. If you can probably explain on this one, that would be very helpful. Thank you. That is my best question.

Yeah, I'm sorry, I don't recall the post because I have been posting a bunch about AI and... Also, why, you know, companies like us are in a position to take advantage of this AI opportunity. So, if you're talking about my recent post about relevance of AI, I think that post is referring about... How we are able to use, as I mentioned, our travel intent data to be able to personalize both cases, pricing, and the needs of the customer to drive a larger conversion and thus a larger return on ad spend.

And all the best for the team. Thank you.

Thank you. Next question is from the line of Mithin Shah, an individual investor. Please go ahead.

Yeah. Am I audible? Yes. Yes, sir, you are. Yeah, thanks. Thanks for giving me the opportunity, and congratulations on a great set of numbers. So, I just missed the initial call, you know, regarding the discussion regarding the guidance, FY27 guidance. Did I hear it correctly? I don't know. Somewhere targeting around 3,000 top line and around 600 as the bottom line with 21.5% margin. Was my understanding correct?

Yes, so we are projecting 3,000 to 3,100 crores in revenue, which translates to about 65% to 70% growth over this year. And on the margins front, we are targeting in a bit of 650 to 700 crores, which is a margin of 21.5% to 22.5%. But this does not include the earn-out payments. for sojourn.

Got it, got it. Thanks a lot for that clarity. And I believe, I mean, I don't know if you reflect, you know, Bhanu, I've been attending the concourse since the last four years, actually, almost since the inception when we got listed and invested until then. And my confidence keeps on increasing for every concourse that I attend. So thanks a lot for your kind guidance. And we expect $1 billion, I mean, I don't see, was it FI30, if I'm not mistaken? And I guess we are pretty much close to that. But only one thing what I wanted to ask, you know, if I see the presentation, Panu, you know, of all the verticals, you know, obviously, hospitality seems to be the major chunk, you know, somewhere around 45%. What I see is that the DAO constitutes almost one foot, almost 25%. Is that a larger term than even the airline sector by any chance? So, if I see the presentation, you know, the hospitality sector seems to be the larger chunk of our revenue, almost 45%. But I see that the DMOs constitute almost one-fourth, almost 25%, which is even larger than the airline sector. So, is it that the TAM on the DMOs sector is larger, or is it that we are less penetrated in airlines? Because I thought airlines would be a completely larger TAM as compared to the DMOs. But our DMOs constitutes 25%.

Yeah, I... I think it's something that I'll have to come back to you. My sense on the time for airlines is that it's significantly lower, but I will say at the same time, we are quite under-penetrated, and given now the combined unit, I think there is a huge opportunity for us to cross-sell and upsell to rate-gain customers because rate-gain has a much larger footprint with airlines on the daft side. We will now have the ability to cross-sell and upsell our market solutions to them, and we are seeing some very good early signs both on car rental and airlines. But we'll have to come back to you on how big that ban is. For airlines versus hotels.

No, the only reason why I asked is because our revenues, you know, in DMOs are almost 25% as compared to airlines, which is hardly less than 10%. So that's the reason why I asked this.

Mr. Mithen, I think I got a part of your question, so I'll take this offline with you, and I'll send you an email and connect with you over a call on this.

Not an issue. Thanks a lot once again. Thanks for the opportunity. Wish you all the best. Thank you.

Next question is from the line of Anmolgarh from Dam Capital. Please go ahead.

Yeah, hi. Thanks for the opportunity. One thing, in this particular quarter, how much was the impact because of Middle East war? And I just wanted to understand that we are talking about apnea being fastest growth geography, while I'm assuming that the revenue from Middle East will still be impacted. So how much does the Middle East contribute to our apnea vertical, apnea geography, and within this, when do you think that this revenue will start coming through for us?

So, in terms of the exact numbers on what was the impact on Middle East, I will let David Kurankit answer that, and maybe we'll connect offline and share with you, but I will say that we were definitely impacted, as I was saying earlier. Our BMO business was quite impacted. Our properties business was also impacted. Properties, meaning hotels business was impacted. So the exact magnitude of it, I'll let David Kurangji comment on it. In terms of when do we think that it will come back to normal? Well, look, I don't think anyone can give you a clear answer on that. I don't even think Donald Trump can give you an answer on that. So it's difficult for me to state when things normalize. But as soon as they normalize, as I was saying earlier, I think it will be a big boon to our business because we do expect, especially the BMOs. To go quite crazy in terms of their marketing spend, to rebuild the credibility and confidence to attract back the tools.

Yeah, I can take the number question, Bhadu. So, as you asked, it's 4% of the total revenue that we get from Middle East. And the impact which we are seeing is approximately $2 million, and that too also deferred, not the revenue rate.

Okay, understood, understood. And the small data point question is that within our Sojan and now combined Adara business, how much of the, you know, approximately when you come directly from, you know, from customers, while how much comes through agencies?

I think we can take that question offline.

Oh, okay. Thank you. Thank you. Ladies and gentlemen, we will take this as the last question for the day. I now hand the conference over to Mr. Bhanu Chopra for his closing remarks. Over to you, sir.

Yes, sir. I'm going to take this opportunity to thank our customers, our partners, our employees, and more importantly, our shareholders for the trust they have placed in us through what has been a defining year for RateGate. The opportunity ahead of us is the largest we've ever seen, and we are pursuing it with everything we have. So thank you, everyone.

Thank you, sir. On behalf of Raid Gain Travel Technologies, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.