Shares of Rategain Travel Techologies stumbled 8 percent on February 18 after the company lowered its revenue guidance for the second time in FY25. With losses in today's session, the stock also extended its losing run to the eighth consecutive session.

At 2.43 pm, shares of Rategain Travel Technologies were trading at Rs 498.40 on the NSE. The stock also hit an 18-month low of Rs 495.55 today.

RateGain Travel Technologies has revised its revenue growth forecast for FY25 to 12-13 percent, down from its earlier target of 15 percent, marking the second downward revision from its initial 20 percent projection. The company blamed deal delays and cautious enterprise spending, particularly in the US and European markets, as key factors behind the revision.

RateGain reported a 40 percent jump in net profit to Rs 56.5 crore for the quarter gone by, driven by an 11 percent year-on-year rise in revenue to Rs 279 crore. EBITDA surged 21 percent to Rs 62 crore, while margins improved to 22.2 percent from 20 percent in the prior year.

However, the company anticipates headwinds in Q4, that hint towards single-digit growth in the last quarter of FY25 due to prolonged decision-making cycles and a slowdown in discretionary spending.

Chairman and MD Bhanu Chopra attributed the delays to strategic restructuring and heightened caution among clients, particularly in politically sensitive regions. He also tempered margin expectations, stating that the current levels may not be sustainable in the near term due to increased investment in sales and marketing infrastructure.

“In the short term, we may see some compromise on margins, but in the long run, I am confident our business can achieve 25-30 percent margins as we scale and target Rs 2,000 crore-plus in revenue,” he stated.

The fall in today's session was further exacerbated by a steep spike in trading volumes. As much as nine lakh shares of the company changed hands on the exchanges thus far, already three-times the one-month daily traded average of three lakh shares. Rategain shares have also lost over 30 percent in the year-to-date period.