Target: ₹1,000CMP: ₹890.55RateGain Travel Technologies reported organic revenue growth of about 8.8 per cent in rupee terms (about 4 per cent year on year in dollar terms) in FY26. It reported a 25.7 per cent year-on-year increase in deal-wins in FY26, which excludes deal-wins from Sojern, despite Sojern being integrated for five months in the fiscal. The deal pipeline also rose about 14 per cent despite about 25.7 per cent growth in deal-wins, suggesting strong deal momentum, going forward. We believe the deal win momentum is led by multiple product launches over the last 12 months and higher GTM spends ($5 million). There is an opportunity to cross-sell Sojern’s offerings to RateGain’s existing customers.RateGain maintained a net cash position up to FY25. That said, it funded its acquisition of Sojern partially by way of borrowings (50 per cent of total consideration of $250 million) resulting in a net debt position in FY26. However, with limited capex required owing to its SaaS model, we expect the company’s FCF to increase, going forward, led by improving margin and consolidation of Sojern. We expect the company to return to a net cash position in FY28e.Even after recent run-up, we believe the stock is still trading at attractive valuations of 34.2/26.7x FY27/28e EPS. Thus, we continue to maintain Buy rating on the stock with an upwardly revised TP of ₹1,000 (from ₹875 earlier), valuing it at 30x FY28e EPS (vs 26x previously).Published on June 18, 2026