Indian Railway Catering & Tourism Corporation Ltd logo

Indian Railway Catering & Tourism Corporation Ltd

IRCTC NSE

Incorporated in 1999, IRCTC is a Navratna (Category 1, Central Public Sector Enterprises ) and the only company authorized by the Indian government to provide online railway tickets, catering services, and packaged drinking water at railway stations and trains in India[1]

AI Verdict: HOLD Confidence: 6%

IRCTC enjoys a debt-free monopoly with 37% 3-year ROE and healthy 49% dividend payout, but the stock trades at 9.63x book value and has delivered -32% returns over the past year. At a PE of 29.7x with single-digit profit growth (8% TTM), the risk-reward is balanced at current levels.

Key Fundamentals

MidcapTour & TravelLeisure Services
Market Cap
₹41,180 Cr
Volatility
Moderate
P/E Ratio
29.53
EBITDA
₹1,666 Cr
Return on Equity
34.4%
Debt to Equity
0.02
Book Value
₹53.86
EPS
₹14.87
52W High
₹798.6
52W Low
₹492.65

Technical Indicators

Key Insights

Strengths

3
  • Company is almost debt free.
  • Company has a good return on equity (ROE) track record: 3 Years ROE 37.1%
  • Company has been maintaining a healthy dividend payout of 49.0%

Weaknesses

1
  • Stock is trading at 9.57 times its book value

Growth Rate

Revenue Growth
6.34% ↗
Net Income Growth
3.19% ↗
Cash Flow Change
-5.53% ↘
ROE
4.33% ↗
ROCE
1.39% ↗
EBITDA Margin (Avg.)
-16.40% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 1d ago
HOLD
Risk medium

IRCTC enjoys a debt-free monopoly with 37% 3-year ROE and healthy 49% dividend payout, but the stock trades at 9.63x book value and has delivered -32% returns over the past year. At a PE of 29.7x with single-digit profit growth (8% TTM), the risk-reward is balanced at current levels.

Bull Case 8
  • Exceptional return on equity with 3-year average ROE of 37%, indicating highly efficient capital deployment for a services business
  • Company is virtually debt-free, eliminating balance sheet risk and interest burden — debt-to-equity is negligible
  • Monopoly business model with Indian Railways catering and ticketing, providing a durable competitive moat with no direct competitors
  • Consistent dividend payout of 49% with current yield of 1.64%, rewarding shareholders while retaining enough for growth
  • Compounded sales growth of 14% over 3 years and 12% TTM demonstrates steady revenue expansion despite a high base
  • Compounded profit growth of 54% over 5 years reflects strong operating leverage as volumes scaled post-COVID
  • 71.43% of analysts (5 out of 7) have a BUY rating, reflecting consensus confidence in the business fundamentals
  • Market cap of Rs 41,164 crore provides adequate liquidity and institutional participation for a mid-to-large cap holding
Bear Case 8
  • Stock has declined 32% over the past 1 year, indicating significant negative momentum and possible de-rating cycle
  • Trading at 9.63x price-to-book value is expensive for a capital-light services company, leaving limited margin of safety
  • TTM profit growth has decelerated sharply to just 8% versus 12% 3-year CAGR, signaling slowing earnings momentum
  • PE ratio of 29.7x is not cheap given single-digit near-term earnings growth, implying a PEG ratio above 3x
  • 3-year stock CAGR of -6% shows the stock has destroyed value for medium-term investors despite business growth
  • Government ownership and regulatory risk — convenience fee revisions and policy changes can directly impact revenue streams
  • 28.57% of analysts (2 out of 7) have a SELL rating, indicating meaningful disagreement on valuation
  • Limited diversification — core revenue heavily dependent on Indian Railways passenger traffic volumes and government policies

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Headwinds 8
  • Q4 profit drops 9% YoY May 26

    Net profit fell 8.89% to ₹326.40 crore in Q4 FY26, first decline in 10 quarters. EBITDA margin contracted 319 bps to 27.3% due to rising costs and adverse mix shift toward low-margin catering.

  • Stock at 5-year low, down 60% Jun 02

    IRCTC shares hit ₹516.90, a 60% decline from ATH of ₹1,279.25. Market now views it as a mature, heavily regulated business rather than a high-growth digital platform.

  • FSSAI notice over hygiene video May 29

    FSSAI issued suo motu notice after viral video showed utensils being washed in train toilet area on Train No. 12223 (LTT ERS Duronto Express), demanding immediate explanation from IRCTC.

  • Rail Neer 40% supply gap persists May 29

    IRCTC cannot bridge 40% Rail Neer supply shortfall; efforts to partner with beverage brands have yielded no results. Only 2 of 4 planned greenfield plants have land secured.

  • EBITDA margin eroding structurally Jun 02

    EBITDA margin compressed from ~50% in FY22 to 38% in FY26 as growth comes from low-margin catering/tourism while high-margin ticketing (85-90% online penetration) remains stagnant.

  • BSE/NSE fines for board non-compliance May 28

    IRCTC fined ₹5.31 lakh each by BSE and NSE for Q4 FY26 non-compliance with board composition rules, specifically failure to appoint a woman director.

  • IDBI Capital recommends sell Jun 10

    IDBI Capital's Kshitija Salvi recommended sell at ₹516, citing continuous lower-low formation on charts with downside target of ₹500. Technical analysts warn close below ₹490 could trigger fresh selling.

  • GST costs pressuring catering margins May 29

    Rising Vande Bharat revenue creates margin pressure through 5% GST that IRCTC cannot claim input tax credit on, plus ₹3 crore in additional direct GST costs in Q4.

Positives 6
  • FY26 PAT rises 6% to ₹1,393 cr May 26

    Full-year net profit grew 5.97% to ₹1,393.45 crore on revenue of ₹5,474.97 crore, surpassing management guidance. Revenue nearly tripled from ₹1,876.6 crore in FY22 to ₹5,214.9 crore in FY26.

  • Prabhudas Lilladher maintains buy May 27

    Brokerage maintains buy with ₹712 target (35x FY28E EPS), citing debt-free balance sheet, healthy return ratios, and 8%/9% sales/PAT CAGR over FY26-28E.

  • Bharat Gaurav train tours launched May 29

    IRCTC unveiled comprehensive range of Bharat Gaurav tourist train tours for June-July 2026 across multiple circuits, priced from ₹15,600 onwards, targeting pilgrimage and heritage tourism.

  • AI war room for food monitoring Jun 03

    IRCTC deployed AI-enabled 24/7 monitoring system at Delhi HQ detecting 9 types of kitchen hygiene errors with automated ticketing, integrating RailMadad, CCTV, GPS, and social media feeds.

  • Catering revenue surges 27% YoY May 27

    Catering segment grew 26.7% to ₹671 crore in Q4, contributing 46% of total sales. Loyalty programme enrolments surged 167% in Q4, highlighting strong brand equity.

  • Analysts see 34% upside potential May 27

    Average analyst 1-year target of ₹706.85 implies 34.5% upside from ₹525.50, with highest target at ₹850 (61.75% upside). Overall analyst consensus remains 'Buy'.

Neutral 7
  • CMD Sanjay Kumar Jain resigns Jun 23

    IRCTC CMD resigns effective July 20, 2026, approved by Ministry of Railways. Orders for additional charge to follow.

  • CFO exits, Rajneesh Narain appointed Jun 16

    CFO Sudhir Kumar relieved June 15, 2026 per Railway Board order. Rajneesh Narain appointed Additional Director (Finance) with 30+ years experience, serving until June 30, 2030.

  • Promoter holds zero encumbered shares Jun 19

    President of India holds 49,91,72,170 shares (62.4% promoter stake) in IRCTC with no encumbrance for FY ended March 31, 2026.

  • Independent Director tenure ends Jun 04

    Shri Devendra Pal Bharti ceased to be Independent Director on June 4, 2026 upon completion of tenure.

  • Electric cooking in pantry coaches May 27

    IRCTC permitted electric cooking in pantry coaches to address LPG shortages during Q4, ensuring uninterrupted onboard catering services.

  • New Group GM for North Zone Jun 19

    Shri Vivek Rawat appointed as Group General Manager (One Level Below Board) for North Zone effective June 19, 2026.

  • Final dividend of ₹0.50/share declared May 26

    Board recommended ₹0.50 final dividend for FY26, in addition to ₹5 first interim and ₹3.50 second interim dividends already paid in Dec 2025 and Mar 2026.

TL;DR: IRCTC delivered record FY26 revenue and 6% profit growth but faces structural margin compression as growth comes from low-margin catering while the high-margin ticketing business is near saturation. The stock trades at 5-year lows with a 60% drawdown from ATH, reflecting a market re-rating from growth to utility-like status. Leadership churn (CMD resignation, CFO change) adds near-term uncertainty. The forward outlook depends on whether Rail Neer expansion, AI-driven operational efficiency, and tourism growth can offset margin headwinds — analysts remain broadly bullish with ₹700+ targets, but technical patterns and sentiment remain bearish until proven otherwise.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
965
1,002
992
1,118
1,155
1,118
1,064
1,225
1,269
1,160
1,146
1,449
1,460
Expenses
640
659
626
724
792
743
691
808
883
762
742
984
1,061
Operating Profit
325
343
367
394
363
375
373
417
385
397
404
465
399
OPM %
34%
34%
37%
35%
31%
34%
35%
34%
30%
34%
35%
32%
27%
Other Income
65
-13
47
31
41
54
60
56
107
61
69
81
67
Interest
4
4
4
5
5
3
3
3
8
4
4
5
5
Depreciation
11
14
14
14
16
14
13
13
12
12
11
12
14
PBT
375
312
395
406
382
412
417
457
472
442
457
529
447
Tax %
26%
26%
25%
26%
26%
25%
26%
25%
24%
25%
25%
25%
27%
Net Profit
279
232
295
300
284
308
308
341
358
330
342
394
327
EPS in Rs
3.48
2.9
3.68
3.75
3.55
3.85
3.85
4.27
4.47
4.13
4.27
4.93
4.08
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
1,059
1,367
1,520
1,466
1,870
2,264
777
1,879
3,541
4,260
4,675
5,215
Expenses
907
1,176
1,206
1,192
1,487
1,562
589
1,005
2,265
2,794
3,124
3,549
Operating Profit
152
190
314
274
383
703
188
874
1,276
1,466
1,551
1,666
OPM %
14%
14%
21%
19%
20%
31%
24%
47%
36%
34%
33%
32%
Other Income
82
139
67
99
126
77
124
72
148
106
276
277
Interest
0
0
3
3
2
10
8
11
16
19
17
18
Depreciation
20
21
22
24
29
40
46
49
54
57
53
50
PBT
214
309
355
346
479
730
258
885
1,354
1,496
1,757
1,875
Tax %
39%
39%
35%
36%
36%
30%
27%
26%
26%
26%
25%
26%
Net Profit
131
189
229
221
309
513
187
660
1,006
1,111
1,315
1,393
EPS in Rs
13.06
18.86
11.45
11.03
3.86
6.41
2.34
8.24
12.57
13.89
16.43
17.42
Div. Payout %
20%
40%
49%
21%
98%
39%
43%
42%
44%
47%
49%
52%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
20
20
40
40
160
160
160
160
160
160
160
160
Reserves
424
522
747
915
911
1,154
1,296
1,710
2,318
3,070
3,503
4,148
Borrowings
0
0
0
0
0
0
79
105
84
60
90
81
Other Liabilities
718
895
1,040
1,365
1,523
1,928
1,618
1,909
2,526
2,801
3,046
3,190
Total Liabilities
1,162
1,437
1,826
2,319
2,594
3,241
3,153
3,884
5,089
6,091
6,799
7,579
Fixed Assets
155
159
170
190
182
285
311
335
351
343
813
839
CWIP
16
14
17
8
40
16
24
26
34
443
27
42
Investments
0
0
0
0
0
0
0
0
0
0
25
25
Other Assets
990
1,264
1,639
2,122
2,372
2,941
2,818
3,522
4,704
5,306
5,934
6,674
Total Assets
1,162
1,437
1,826
2,319
2,594
3,241
3,153
3,884
5,089
6,091
6,799
7,579
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
69
288
338
24
499
409
248
524
812
882
834
1,274
Investing
-46
7
94
40
-353
8
-453
-242
-317
-215
-239
-447
Financing
-17
-31
-136
-57
-179
-280
-47
-258
-434
-404
-910
-787
Net Cash Flow
6
263
296
7
-33
137
-252
23
61
262
-316
39
Free Cash Flow
-1
266
306
-11
445
374
170
503
744
650
787
1,228
CFO/OP
91
208
152
55
173
95
167
92
97
91
80
109
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
51
43
70
137
115
125
245
111
118
118
135
132
Inventory Days
15
13
11
11
23
26
50
27
18
16
15
—
Days Payable
62
80
237
218
568
451
4,492
2,391
1,595
1,483
1,371
—
Cash Conversion Cycle
4
-24
-157
-70
-430
-300
-4,197
-2,252
-1,459
-1,349
-1,221
132
Working Capital Days
-20
-51
-35
-10
-65
-35
-137
-29
3
20
56
40
ROCE %
—
63%
54%
40%
44%
62%
16%
51%
59%
54%
49%
46%

Shareholding Pattern

As of Mar 2026
Promoters 62.40%
Public 16.52%
DIIs 14.86%
FIIs 4.86%
Others 1.37%
Total 100.01%
  Mar 2021Jun 2021Sep 2021Nov 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
67.40%
67.40%
67.40%
67.40%
67.40%
67.40%
67.40%
67.40%
62.40%
62.40%
62.40%
62.40%
62.40%
62.40%
62.40%
62.40%
62.40%
62.40%
62.40%
62.40%
62.40%
62.40%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
7.10%
7.34%
8.08%
7.78%
7.54%
7.45%
7.37%
7.28%
7.27%
7.19%
4.86%
DIIs
10.16%
11.20%
8.41%
3.73%
4.68%
5.20%
5.28%
5.52%
8.73%
10.05%
9.78%
10.54%
11.99%
12.73%
13.76%
13.93%
13.72%
13.89%
14.16%
14.18%
14.02%
14.86%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
12.23%
11.47%
14.30%
20.98%
19.38%
19.45%
19.91%
19.86%
19.98%
19.63%
19.32%
18.68%
17.04%
15.70%
14.99%
15.08%
15.33%
15.27%
15.11%
15.06%
15.28%
16.52%
Others
10.21%
9.93%
9.89%
7.90%
8.55%
7.95%
7.42%
7.22%
8.89%
7.92%
8.51%
1.29%
1.24%
1.10%
1.06%
1.05%
1.10%
1.08%
1.06%
1.09%
1.11%
1.37%
No. of Shareholders
5,62,836
5,79,345
8,84,021
19,87,000
20,62,020
21,85,500
22,42,510
22,18,730
21,61,330
21,28,350
20,80,260
20,26,800
19,28,850
19,10,310
19,28,720
19,24,350
19,59,520
19,94,640
19,58,670
19,25,770
19,02,500
19,32,720

Documents

Frequently Asked Questions about Indian Railway Catering & Tourism Corporation Ltd

What does Indian Railway Catering & Tourism Corporation Ltd do?
Incorporated in 1999, IRCTC is a Navratna (Category 1, Central Public Sector Enterprises ) and the only company authorized by the Indian government to provide online railway tickets, catering services, and packaged drinking water at railway stations and trains in India[1]
Where is Indian Railway Catering & Tourism Corporation Ltd (IRCTC) listed?
Indian Railway Catering & Tourism Corporation Ltd is listed on the Indian stock exchanges. It is listed on NSE: IRCTC and BSE: 542830. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Indian Railway Catering & Tourism Corporation Ltd belong to?
Indian Railway Catering & Tourism Corporation Ltd operates in the Consumer Discretionary sector within the Leisure Services industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Indian Railway Catering & Tourism Corporation Ltd?
Indian Railway Catering & Tourism Corporation Ltd has a market capitalisation of approximately ₹41180.00 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Indian Railway Catering & Tourism Corporation Ltd?
The Price-to-Earnings (PE) ratio of Indian Railway Catering & Tourism Corporation Ltd is 29.53. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Indian Railway Catering & Tourism Corporation Ltd?
Over the past 52 weeks, Indian Railway Catering & Tourism Corporation Ltd has traded between a low of ₹492.65 and a high of ₹798.6. This range helps investors understand the stock's price volatility and recent trading levels.
Does Indian Railway Catering & Tourism Corporation Ltd pay dividends?
Yes, Indian Railway Catering & Tourism Corporation Ltd has a dividend yield of 1.65%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Indian Railway Catering & Tourism Corporation Ltd?
Indian Railway Catering & Tourism Corporation Ltd has a Return on Equity (ROE) of 34.40%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Indian Railway Catering & Tourism Corporation Ltd on Tapetide?
On Tapetide, you can view Indian Railway Catering & Tourism Corporation Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Incorporated in 1999, IRCTC is a Navratna (Category 1, Central Public Sector Enterprises ) and the only company authorized by the Indian government to provide online railway tickets, catering services, and packaged drinking water at railway stations and trains in India[1]

Website irctc.com
CEO Mr. Sanjay Kumar Jain
Employees 1,393
Listed 2019-10-14
Face Value ₹ 2
Issued Size 80,00,00,000

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