I R C T C

IRCTC reported an exceptional Q3 FY25, achieving an all-time high revenue of INR 1,225 crores and a PAT of INR 341 crores. This represents a robust ~10% year-on-year revenue growth and ~14% PAT growth. The company's EBITDA reached INR 417 crores, marking a 5.83% YoY and 11.8% QoQ increase, with an overall EBITDA margin of 34.04%. This strong performance highlights the company's resilience and operational efficiency.

The Internet Ticketing segment generated revenue of INR 353.72 crores, showing a 5.4% YoY growth despite a 4.65% QoQ decline attributed to seasonal booking patterns. Management noted that the segment is nearing saturation, with approximately 87.42% of tickets already booked through their portal. To counter this, IRCTC is actively exploring opportunities to enhance non-conventional income sources beyond convenience fees, which contributed an additional INR 5.64 crores QoQ.

The Catering segment demonstrated strong growth, with revenue rising to INR 554.81 crores, an increase of 15% QoQ and 9% YoY. However, the EBITDA margin for this segment declined to 12.19% in Q3 FY25 from 15.44% in Q3 FY24. This margin pressure was attributed to the closure of 9 departmental base kitchens and the transition to a licensing model under the new catering policy, as well as changes in the tendering process. Management expects margins to improve with new infrastructure and increased business.

The Tourism segment witnessed remarkable growth, with revenue reaching INR 224 crores in Q3 FY25, an 80% QoQ and 16% YoY increase. This exceptional performance was primarily driven by the operation of luxury segments such as Maharaja Express, which generated INR 38 crores in revenue (up from INR 27 crores last year), and State Teerth trains, including Bharat Gaurav trains, contributing INR 65 crores (up from INR 28 crores last year). Management expressed confidence in sustaining this growth and maintaining or improving the segment's EBITDA margin of 16.94%.

The Rail Neer segment reported steady revenue of INR 92.39 crores, reflecting a 7% QoQ and 16% YoY increase. The EBITDA margin remained stable at 12.84%, with absolute EBITDA increasing 32% QoQ and 464% YoY. The company inaugurated a new plant in Vijayawada in October '24 and plans to bring 3 more plants online in the coming financial year, which will add approximately 2 lakh bottles per day to the current capacity of 18.4 lakh bottles per day, further enhancing profitability.

IRCTC has applied to RBI for an in-principal approval for a payment aggregator license on December 12. Management anticipates receiving the approval soon and sees huge potential in this business, particularly within the government sector. They highlighted IRCTC's existing strong position in transaction value for website and mobile bookings, indicating a significant opportunity once the license is secured.

The company is actively involved in the Kumbh Mela, running 8 Bharat Gaurav tourist trains to destinations like Prayagraj and Ayodhya, which are fully booked. Additionally, IRCTC has set up a 100-room tent city, which is also fully sold out. These direct initiatives are expected to contribute significantly to revenue across ticketing, catering, and Rail Neer segments, leveraging the increased footfall and special train operations during the event.