Shares of Indian Railway Catering and Tourism Corporation Ltd (IRCTC), a Navratna PSU providing integrated services for Indian Railways and tourism, have seen modest gains. The company, which handles internet ticketing, catering, hospitality, and tourism packages, is a key player in India’s travel ecosystem. On Wednesday, IRCTC shares rose 0.2 percent, reaching a high of Rs. 685.95 per share, compared to the previous close of Rs. 684.40, with a market capitalization of Rs. 54,488 crore.
Integrated Services Drive Revenue
IRCTC generates revenue through multiple verticals, including online ticketing, on-board catering, station-based hospitality, travel packages, and luxury train experiences. Its digital services have simplified ticket booking for millions of passengers daily, reinforcing IRCTC’s position as a vital contributor to both tourism and the national transport system.
Segment-Wise Performance
- Catering: Catering services, covering on-board meals, e-catering, pantry car operations, and station-based food outlets, remain the largest revenue contributor. In Q2 FY26, catering revenue rose to Rs. 519.66 crore from Rs. 481.95 crore in Q2 FY25, up 7.8 percent year-on-year.
- Rail Neer: IRCTC’s packaged water brand generated Rs. 94.06 crore in Q2 FY26, a 4.2 percent increase from Rs. 90.21 crore the previous year.
- Internet Ticketing: The flagship online ticketing platform, including service charges and advertising, earned Rs. 385.87 crore, up 4 percent from Rs. 370.95 crore in Q2 FY25, accounting for roughly one-third of total revenue.
- Tourism: Travel packages, Bharat Gaurav trains, and hotel bookings generated Rs. 149.52 crore, up 20.15 percent from Rs. 124.44 crore, showing strong growth in domestic tourism.
Financial Performance
IRCTC’s total revenue for Q2 FY26 rose to Rs. 1,146 crore from Rs. 1,064 crore in the same quarter last year, while net profit increased from Rs. 308 crore to Rs. 342 crore. The company has maintained a robust five-year CAGR in profits of 20 percent, with ROCE at 49 percent and ROE at 37.2 percent. Its low debt-to-equity ratio of 0.02 and dividend payout of 46.4 percent reflect financial stability and shareholder value.
Capacity Expansion
Rail Neer is expanding production, with the Bilaspur plant restarting at 72,000 bottles/day and upgrades at Danapur and Ambernath plants from 1 lakh to 3 lakh bottles/day each. Four new plants are planned, with expansion and upgrades expected within the next fiscal year.
Future Outlook and Strategic Initiatives
Management is confident of sustaining growth through digital ecosystem enhancements, operational efficiency, and diversification into payments, unified travel, MICE, and expanded Rail Neer capacity. Key initiatives over the next 6–12 months include ramping up internal GMV capture to Rs. 70,000 crore, onboarding Amrit Bharat pre-paid catering, and ensuring smooth execution of cluster contracts. Tourism plans focus on MICE opportunities and maximizing Bharat Gaurav train and Maharajas’ Express bookings.
Ticketing Monopoly Remains Key
While IRCTC’s ticketing monopoly continues to be a major revenue driver, catering remains the largest segment. In Q2 FY26, Internet Ticketing contributed Rs. 385.87 crore (33 percent of total revenue), while Catering led with Rs. 519.66 crore. Other segments, including Tourism and Rail Neer, provide additional revenue streams, reflecting IRCTC’s diversified growth strategy.
