Results: RateGain Travel Technologies Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

There's been a major selloff in RateGain Travel Technologies Limited (NSE:RATEGAIN) shares in the week since it released its third-quarter report, with the stock down 24% to ₹492. RateGain Travel Technologies reported ₹2.8b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹4.75 beat expectations, being 6.1% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for RateGain Travel Technologies

Following the latest results, RateGain Travel Technologies' eight analysts are now forecasting revenues of ₹12.5b in 2026. This would be a meaningful 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 16% to ₹20.16. In the lead-up to this report, the analysts had been modelling revenues of ₹13.1b and earnings per share (EPS) of ₹21.14 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

It'll come as no surprise then, to learn that the analysts have cut their price target 10% to ₹822. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on RateGain Travel Technologies, with the most bullish analyst valuing it at ₹1,050 and the most bearish at ₹630 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that RateGain Travel Technologies' revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2026 being well below the historical 30% p.a. growth over the last five years. Compare this to the 71 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 14% per year. So it's pretty clear that, while RateGain Travel Technologies' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for RateGain Travel Technologies. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on RateGain Travel Technologies. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for RateGain Travel Technologies going out to 2027, and you can see them free on our platform here..

We also provide an overview of the RateGain Travel Technologies Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.