I R C T C — Q2 FY26 earnings call

Call held 13 Nov 2025

Management summary

IRCTC reported a strong Q2 FY26, driven by robust performance in internet ticketing, catering, and tourism segments. Revenue from operations grew 7.71% YoY to ₹1,146 crores, and PAT increased 11% YoY to ₹342 crores. The company highlighted strategic initiatives like a payment aggregator business and a unified travel portal, alongside significant capacity expansion plans for Rail Neer. Management emphasized a volume-driven growth strategy and efforts to improve operational efficiency and reduce debtor days through automation.

Highlights

  • Revenue from operations stood at ₹1,146 crores, up 7.71% from ₹1,064 crores in Q2 FY25.

  • Profit After Tax (PAT) reached ₹342 crores, reflecting an 11% year-on-year growth.

  • EBITDA for the quarter was ₹404 crores, an 8.31% year-on-year increase, with an EBITDA margin of 35.25% (up from 35.05% in Q2 FY25).

  • Tourism segment delivered robust performance with revenue of ₹150 crores, a 20.97% YoY increase, and achieved a 7% EBITDA margin (vs. negative last year).

  • Internet ticketing segment reported an 85% EBITDA margin, an improvement from 81% last year, on revenue of ₹386 crores (4% YoY growth).

Concerns

  • Debtor days are currently over 100, primarily from railways, indicating a working capital management challenge.

  • Ongoing station upgrades (ABSS) are temporarily impacting static units, though expected to yield good business in the future.

  • Temporary disruptions caused by geopolitical factors affected the tourism segment during the quarter, despite overall robust performance.

Key financials

  1. Revenue from Operations ₹1,146 Cr +7.7%YoY
  2. PAT ₹342 Cr +11%YoY
  3. EBITDA ₹404 Cr +8.3%YoY
  4. EBITDA Margin 35.3%
  5. Total Tickets Booked ₹13.55 Cr
  6. Convenience Fee Share ₹252 Cr

What they filed

Q1 FY27: revenue up 18.1%, net profit up 0.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,064 1,225 1,269 1,160 1,146 +8%1,449 +18%1,460 +15%1,370 +18%
EBITDA373 417 385 397 404 +8%465 +12%399 +4%387 −3%
Net profit308 341 358 330 342 +11%394 +16%327 −9%330 +0%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹1,147 Cr Total
  • Catering ₹520 Cr 45.3%
  • Internet Ticketing ₹386 Cr 33.7%
  • Tourism ₹150 Cr 13.1%
  • Rail Neer ₹91 Cr 7.9%

Guidance & targets

Other

  • Payment Aggregator License Submission Other · by end of January 2026 · High confidence Proposal application submitted
    We have already got in-principle approval from RBI on 4th of August and we have been given six months' time to submit our proposal application for acquiring license finally. So, that we will be able to submit by the end of January.

    — Sanjay Kumar Jain

Strategy

  • Unified Travel Portal Launch Strategy · Ongoing · Medium confidence Launch of unified travel portal
    The other big plan for IRCTC is, besides its normal business, is unified travel portal. Here we are aspiring to give a travel solution through a unified portal and by making this portal, we aspire to cross-sell the product to our existing customers and to the additional customers.

    — Sanjay Kumar Jain

  • Pricing Strategy Strategy · Ongoing · High confidence Increase volume, not price
    You see, in that scenario, you have only two ways to do these things. Firstly, you increase your price or you increase your volume. So, we believe in increasing our volume because in most of the sectors we are known for our delivery at affordable prices.

    — Sanjay Kumar Jain

Capacity

  • Rail Neer Bilaspur Plant Capacity Capacity · Very soon · High confidence 72,000 bottles per day
    First of all our Bilaspur plant which is not working at the moment because of some reasons of state government, so now the issue is resolved and we will be very soon starting the Bilaspur plant. So, that will add capacity of 72,000 bottles per day.

    — Sanjay Kumar Jain

  • Rail Neer Danapur and Ambernath Capacity Enhancement Capacity · Within next 12 months (for brownfield) · High confidence 3 lakh bottles

    From 1 lakh bottles today

    Besides, we are in the process of enhancing the capacity of our Danapur and Ambernath plant from 1 lakh bottles to 3 lakh bottles and we are also hoping to install four more plants across India... Brownfield capacity can come in next 12 months but the four more plants might come probably in the next fiscal?

    — Sanjay Kumar Jain

  • Rail Neer New Plants Capacity · Next fiscal · Medium confidence 4 more plants

    — Sanjay Kumar Jain

Profitability

  • MICE Event Minimum Margin Profitability · Ongoing · High confidence 8%
    You see, it will be what we have thought of as a minimum margin of 8% will keep. And as I told earlier that we work on an affordable model, so whatever benefit we can derive because of our capacity or our market presence will certainly give benefit to the organization so that we get more and more business, of course with the 8% return.

    — Sanjay Kumar Jain

Market Share

  • Internal Payment Business GMP Value Market Share · Future · Medium confidence 100% of total transaction GMP value

    From 20% of total transaction GMP value today

    presently we are doing with our I-Pay only 20% of the total transaction GMP value, which we have a scope of around going up to 100%. So, something around 70,000 crore, whereas we are doing only 13,000 crore round business, this business already existing, we'll tap that.

    — Sanjay Kumar Jain

Operational Efficiency

  • Debtor Days Automation Implementation Operational Efficiency · by the end of next financial year · High confidence Full implementation

    From Pilot phase today

    It is already in the process. We'll first do it on a pilot basis. And if it is getting through, then we'll be going all on by the end of next financial year.

    — Sanjay Kumar Jain

What to watch in Q3 FY26

Payment Aggregator License Submission

by end of January 2026
Current In-principle RBI approval received
Target Proposal application submitted

Why it matters

This is a new, potentially leading business for IRCTC, crucial for its strategic diversification.

We have already got in-principle approval from RBI on 4th of August and we have been given six months' time to submit our proposal application for acquiring license finally. So, that we will be able to submit by the end of January.

Risks & concerns

  • Geopolitical factors impacting tourism

    medium

    Temporary disruptions caused by geopolitical factors affected the tourism segment during Q2 FY26, though the segment still performed robustly.

    Management acknowledged

  • High debtor days from railways

    medium

    Debtor days are currently over 100, with more than 80% attributed to payments from Indian Railways, impacting working capital.

    Analyst acknowledged

  • Temporary impact from ABSS station upgrades

    low

    Ongoing station upgrades are temporarily affecting static units, but management expects this to lead to significant business in the years to come.

    Analyst acknowledged

Q&A highlights

8 direct
IRCTC's future strategy beyond ticketing and catering Direct
We are already making our road for two major activities. One is our payment aggregator business... The other big plan for IRCTC is, besides its normal business, is unified travel portal.

Reveals two major strategic initiatives (payment aggregator and unified travel portal) that are expected to drive future growth and competitive advantage.

Asked by Sucrit Patil

Margin and cost planning strategy to maintain profitability Direct
You see, in that scenario, you have only two ways to do these things. Firstly, you increase your price or you increase your volume. So, we believe in increasing our volume because in most of the sectors we are known for our delivery at affordable prices.

Clarifies IRCTC's core business strategy of prioritizing volume growth and affordability over price increases to sustain profitability.

Asked by Sucrit Patil

Amrit Bharat Train catering model and current service universe Direct
Whole universe today it is 1,318 trains and out of which around 15 Amrit Bharat trains we are serving. At the moment none of the Amrit Bharat trains we are running on pre-paid model but yes, the policy is out. Of course, this will give us a good gain but we are putting our system in place to take up this work.

Provides current operational scale for Amrit Bharat trains and indicates future revenue potential from the upcoming pre-paid catering model.

Asked by Jinesh Joshi

Tejas Express exceptional item (haulage charges discount) and profitability Direct
Yes, this exceptional item is because of the discount we got from Indian Railways on the haulage charges of Tejas Express. This is 5.8 crores... Total Tejas revenue is Rs. 37.31 crores out of which Rs. 3.38 crores is our profit. And our occupancy of Ahmedabad is 87% and Lucknow is 56%.

Explains a one-time gain of ₹5.8 crores and provides key operational metrics (revenue, profit, occupancy) for the Tejas Express, confirming its profitability.

Asked by Rahul Jain

Rail Neer capacity expansion plans Direct
First of all our Bilaspur plant which is not working at the moment because of some reasons of state government, so now the issue is resolved and we will be very soon starting the Bilaspur plant. So, that will add capacity of 72,000 bottles per day. Besides, we are in the process of enhancing the capacity of our Danapur and Ambernath plant from 1 lakh bottles to 3 lakh bottles and we are also hoping to install four more plants across India.

Details concrete plans for significant capacity expansion in the Rail Neer segment, including new plants and existing plant upgrades, indicating future growth potential.

Asked by Rahul Jain

Diversification in the tourism business, specifically MICE events Direct
I am happy to inform you that we have started taking up MICE event. And recently we have done it for Indo-ASEAN countries Mart, where IRCTC in Bangkok for the first time organized the Mart infrastructure. We participated in PATA, and we have been given by MEA this work, not to Ministry of Tourism.

Highlights a new, government-backed revenue stream in the tourism segment (MICE events), showcasing diversification efforts and potential for growth.

Asked by Rahul Jain

High debtor days and strategy to reduce them through automation Direct
Yes, mostly this is more than 80% with railways... We are trying to use this automation also where HST... we are in the process of linking this HST with our billing process. So, once this is done, of course, it will certainly help us in at least getting it verified quickly, and that much time we will be able to save. So, I am very hopeful to get it a better proportion.

Addresses a significant working capital concern (over 100 debtor days) and outlines a technological solution with a timeline for implementation, aiming for improved cash flow.

Asked by Kartik Gada

Potential of the internal payment business with aggregator license Direct
presently we are doing with our I-Pay only 20% of the total transaction GMP value, which we have a scope of around going up to 100%. So, something around 70,000 crore, whereas we are doing only 13,000 crore round business, this business already existing, we'll tap that.

Quantifies the substantial growth potential for IRCTC's internal payment processing business, indicating a possible increase from ₹13,000 crores to ₹70,000 crores in transaction value.

Asked by Kartik Gada

3 min read 6 chapters

Detailed narrative

Q2 FY26 Financial Performance Overview

IRCTC reported a stable and profitable Q2 FY26, with revenue from operations reaching ₹1,146 crores, a 7.71% year-on-year growth. Profit After Tax (PAT) increased by 11% to ₹342 crores. The company's EBITDA stood at ₹404 crores, an 8.31% YoY increase, with the EBITDA margin improving slightly to 35.25% from 35.05% in Q2 FY25. This performance was attributed to strong operational fundamentals and sustained business momentum across segments.

Segmental Performance Analysis

The Internet Ticketing segment remained a strong driver, with ₹386 crores in revenue (4% YoY growth) and an improved EBITDA margin of 85%. Catering revenue grew 8% YoY to ₹520 crores, maintaining a stable EBITDA margin of 13%. Rail Neer reported ₹91 crores in revenue (4.6% YoY growth) with a 10% EBITDA margin. The Tourism segment showed robust growth, with revenue surging 20.97% YoY to ₹150 crores, and notably achieved a 7% EBITDA margin, turning profitable from a negative margin in the previous year.

Strategic Growth Pillars: Payment Aggregator & Unified Travel Portal

IRCTC is actively pursuing two major strategic initiatives for future growth. The company has received in-principle approval from RBI for a payment aggregator business and plans to submit its final proposal by the end of January 2026. Management views this as a future leading business, with potential to expand its internal payment processing from ₹13,000 crores to ₹70,000 crores. Additionally, IRCTC is developing a unified travel portal to offer comprehensive travel solutions, leveraging AI/ML for enhanced customer experience and cross-selling opportunities.

Rail Neer Capacity Expansion and Efficiency

Significant capacity expansion is underway for the Rail Neer segment. The Bilaspur plant, currently non-operational, is expected to restart soon, adding 72,000 bottles per day. Furthermore, IRCTC is enhancing the capacity of its Danapur and Ambernath plants from 1 lakh to 3 lakh bottles. The company also plans to install four more plants across India, with brownfield expansions expected within 12 months and new plants potentially in the next fiscal year, reflecting sustained operational efficiency and strong brand acceptance.

Tourism Segment Resilience and Diversification

Despite temporary disruptions from geopolitical factors, the Tourism segment demonstrated strong resilience, achieving a 20.97% YoY revenue growth to ₹150 crores and turning profitable with a 7% EBITDA margin. IRCTC is actively diversifying its tourism offerings, including venturing into MICE (Meetings, Incentives, Conferences, and Exhibitions) events. The company recently organized an Indo-ASEAN countries Mart in Bangkok, a project awarded by the Ministry of External Affairs, and aims for a minimum 8% margin from such initiatives.

Operational Efficiency and Working Capital Management

IRCTC is focused on cost optimization and operational excellence. The company's strategy emphasizes increasing volume rather than hiking prices to maintain affordability. A key area of focus is reducing high debtor days, currently over 100, primarily from Indian Railways. IRCTC is implementing an automation initiative, linking its HST (Hand Held Terminal) system with the billing process, which is expected to be fully rolled out by the end of the next financial year to expedite bill verification and improve working capital management.

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