Will IRCTC Continue Its Growth Journey Amid Tourism Revival?
About IRCTC Ltd
Indian Railway Catering and Tourism Corporation (IRCTC) operates online ticketing, catering, and tourism services for Indian Railways. It has a near-monopoly in rail e-ticketing with high-margin catering and tourism businesses.
IRCTC delivered another solid quarter with double-digit growth in revenue and profitability, supported by increased travel demand and catering expansion.
Financial Highlights (Q2 FY26)
| Metric | Q2 FY26 | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,095 Cr | +19% | +8% |
| EBITDA | ₹426 Cr | +17% | +9% |
| EBITDA Margin | 38.9% | vs 39.4% | vs 39.2% |
| Net Profit | ₹311 Cr | +18% | +7% |
Revenue ₹1,095 Cr — led by catering and tourism growth.
EBITDA ₹426 Cr — supported by higher ticketing volumes.
EBITDA Margin 38.9% — remains among the highest in PSU service sector.
Net Profit ₹311 Cr — consistent with strong operating leverage.
Traders can align intraday view using Nifty Intraday Call for PSU index trend.
Peer Comparison
| Company | EBITDA Margin | Revenue Growth |
|---|---|---|
| IRCTC | 38.9% | 19% |
| Indian Hotels | 33.1% | 21% |
| EIH Ltd | 29.7% | 18% |
IRCTC’s high-margin business model continues to benefit from strong travel and tourism revival.
Strengths & Weaknesses
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Valuation & Investment View
- Short-term: Positive near ₹970–₹990 range.
- Medium-term: Attractive PSU growth play with stable earnings.
- Long-term: Consistent dividend-paying company with low debt.
Sector setups can be observed using BankNifty Intraday Call for timing PSU exposure.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, emphasizes IRCTC’s resilient business model and secular growth prospects as a long-term PSU compounder. Explore more such insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only...
