On a quarter-on-quarter (QoQ) basis, the company's profit declined 3% from INR 56.5 Cr.

RateGain's operating revenue grew 2% to INR 260.7 Cr during the quarter under review from INR 255.8 Cr in Q4 FY24. However, the top line contracted 7% from INR 278.7 Cr in Q3 FY25.

The EBITDA for the quarter rose 12% YoY to INR 60.6 Cr, while EBITDA margin expanded to 23.2% from 21.2% in the year-ago quarter. The company claimed that this was the highest quarterly EBITDA margin it has ever reported.

Including other income of INR 20.5 Cr, the company's total income for the quarter stood at INR 281.1 Cr. Meanwhile, total expenditure dipped to INR 208.8 Cr in Q4 FY25, down 1% YoY and 8% QoQ.

"We close out the year on a steady note, consolidating our position amidst a challenging demand environment and with a strong performance on margins. With a continued focus on disciplined execution and enhanced operational efficiency, the company has delivered a record margin of 23.2%," RateGain CFO Rohan Mittal said.

Breaking Down RateGain's FY25 Numbers

For the full fiscal year FY25, the company reported a 44% YoY surge in net profit to INR 208.9 Cr. Operating revenue grew 16% to INR 1,153.1 Cr from INR 998.6 Cr in FY24.

EBITDA rose 22% to INR 232.1 Cr in FY25, while EBITDA margin expanded 400 basis points to 21%.

The top 10 customers of the company accounted for 29.5% of its revenue in FY25 as against 28.3% in the previous fiscal year.

The revenue growth in FY25 was in line with the company's guidance for the fiscal year. In November 2024, RateGain reduced its FY25 revenue growth outlook to 15% from 20% in the previous year.

Martech was the biggest contributor to RateGain's revenue, bringing in INR 512.1 Cr and commanding about 43% share. This was a slight reduction from FY24, during which martech accounted for 45% of the company's revenue.

The enterprise tech company's annual recurring revenue (ARR) for the fiscal year stood at INR 1,076.8 Cr, slightly higher than INR 1,023.3 Cr in the previous fiscal year.

RateGain said it won new contracts worth INR 256.1 Cr in FY25, down 10.1% from the previous year. RateGain's client count also declined to 3,224 from 3,279 in FY24, which the company attributed to "some churn in longtail customers".

"Generally every year we win big contracts, but this year it didn't happen. We lost customers in our martech business due to seasonal trends," RateGain CEO Bhanu Chopra said in the company's post-earnings call.

Chopra added that a major client cancelled its contract in FY25, while the company also saw a "legacy client" renegotiate the terms of its contract. These led to a drop in its overall sales.

It is pertinent to note that while cutting its guidance for FY25 in November, RateGain said that it lost a major mid-market hotel chain customer in the martech segment due to M&A. Besides, the company also cited a weak order pipeline, lower travel demand among specific markets, and pricing pressure on some large contracts as the reason behind it.

Chopra said that the company is aiming for a 6% to 8% growth in top line for FY26, down significantly from previous years.

Founded in 2004, RateGain is a global provider of SaaS solutions for travel and hospitality sectors. It works with 3,000+ customers and 700+ partners in 100+ countries, helping them accelerate revenue generation through acquisition, retention, and wallet share expansion.

Shares of RateGain ended today's trading session up 3.93% to INR 525.25.