IRCTC - I R C T C

📊 NSE: IRCTC 🏢 Travel Agencies 📅 Last Updated: 12/14/2025 7:50

💰 Financial Performance

Revenue Growth by Segment

In Q2 FY26, total revenue reached INR 1,209 Cr, a 7.5% YoY increase. Segment performance included Internet Ticketing at INR 386 Cr (up 4% YoY), Catering at INR 520 Cr (up 8% YoY), Rail Neer at INR 91 Cr (up 4.6% YoY), and Tourism at INR 150 Cr (up 20.97% YoY).

Profitability Margins

Profit After Tax (PAT) for Q2 FY26 was INR 342 Cr, reflecting an 11% YoY growth. EBITDA rose to INR 404 Cr, an 8.31% YoY increase. The internet ticketing segment remains the most profitable with an EBITDA margin of 85%, up from 81% in the previous year.

EBITDA Margin

The overall EBITDA margin improved to 35.25% in Q2 FY26 from 35.05% in Q2 FY25, driven by cost management and operational efficiency across segments.

⚙️ Operational Drivers

Raw Materials

Key operational inputs include food ingredients for the catering segment (INR 520 Cr revenue) and PET preforms/water for Rail Neer production (INR 91 Cr revenue).

Capacity Expansion

Rail Neer plants at various stations are currently being commissioned slowly to expand production capacity and meet growing passenger demand.

Manufacturing Efficiency

Efficiency in the internet ticketing segment improved EBITDA margins from 81% to 85% YoY through better digital execution.

📈 Strategic Growth

Expected Growth Rate

11%

Growth Strategy

Growth will be driven by the new payment aggregator business (RBI in-principle approval received), a unified travel portal for cross-selling products, and the integration of AI/ML and Agentic AI to enhance UI/UX. Additionally, the company is expanding its loyalty program, which grew 26.65% to INR 15.35 Cr, and increasing non-convenience fee revenue, which rose 13%.

Products & Services

Online railway tickets, cooked meals for train passengers, Rail Neer bottled water, tour packages, and Bharat Gaurav train departures.

Brand Portfolio

IRCTC, Rail Neer, Bharat Gaurav.

New Products/Services

Payment aggregator services (proposal due by end of January) and a unified travel portal for integrated travel solutions.

Market Expansion

Expansion of Bharat Gaurav trains with 9 new coaches deployed to capture the growing religious and cultural tourism market.

Market Share & Ranking

IRCTC maintains a dominant 89.24% market share of total reserved tickets booked for Indian Railways.

Strategic Alliances

Co-branded credit card partnerships with State Bank of India (SBI) and RBL Bank to drive loyalty and digital payments.

🌍 External Factors

Industry Trends

The industry is seeing a steady demand recovery with 90% of railway tickets now booked online, alongside a growing volume of passengers requiring catering and value-added services.

Competitive Landscape

The company faces competition in the payment aggregator and tourism fields but leverages its massive existing customer base for cross-selling.

Competitive Moat

IRCTC possesses a strong moat through its 89.24% market share in online ticketing and a high-margin (85% EBITDA) digital ecosystem that is difficult for competitors to replicate.

Consumer Behavior

Shift toward digital platforms for all travel needs, evidenced by the high online ticketing penetration and growth in digital loyalty programs.

Geopolitical Risks

Geopolitical factors were cited as a cause for temporary disruptions in the tourism segment during the period.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with SEBI (LODR) Regulations 2015 regarding board composition, specifically the requirement for independent and woman directors.

Legal Contingencies

The company was fined INR 5,42,800 each by BSE and NSE for non-compliance with board composition regulations for the quarter ended September 30, 2025.