I R C T C

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.

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.

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.

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.

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.

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.