I R C T C — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

IRCTC reported its highest-ever revenue and profitability in Q3 FY26, with revenue growing 18.2% to INR1,449 crores and PAT increasing 15.5% to INR394 crores. This strong performance was driven by robust contributions from Internet ticketing, Rail Neer, and Tourism segments. Despite a slight moderation in EBITDA margins to 32.1% due to a shift in revenue mix towards lower-margin catering, the company remains confident in its growth momentum, supported by strategic digital initiatives and capacity expansions.

Highlights

  • The company achieved its highest-ever revenue and profitability in Q3 FY26.

  • Revenue from operations grew robustly by 18.2% year-on-year to INR1,449 crores, reflecting strong performance across all business segments.

  • Profit After Tax (PAT) increased by 15.5% year-on-year to INR394 crores.

  • EBITDA grew by 11.5% year-on-year to INR465 crores, demonstrating strong operational efficiency.

  • Internet ticketing, Rail Neer, and Tourism segments showed strong performance, with Internet ticketing maintaining an 85% EBITDA margin and Tourism growing 29% YoY.

Concerns

  • EBITDA margins moderated slightly to 32.1% due to changes in revenue mix, particularly a higher contribution from catering and provisions.

  • Margins in the catering business were impacted by lower license fees and a 5% GST on Vande Bharat train operations, despite increased billing.

  • The company is still assessing the full impact of new labor code changes, which may add to costs related to gratuity and health checkups, though management expects to compensate through volume growth.

Key financials

  1. Revenue from Operations ₹1,449 Cr +18.2%YoY
  2. EBITDA ₹465 Cr +11.5%YoY
  3. EBITDA Margin 32.1%
  4. PAT ₹394 Cr +15.5%YoY

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

SegmentRevenueYoY Growth
Internet Ticketing₹401 Cr13.2%
Catering₹661 Cr19.1%
Rail Neer₹98 Cr6.5%
Tourism₹289 Cr29%
Other Business——

Capital allocation

low confidence
  • Capex Capex disclosed
    • Doubling capacity of existing Rail Neer plants at Danapur and Ambernath
    • Installation of 4 new Rail Neer plants at Mysore, Prayagraj, Bhagalpur and Ranchi
    You see, first of all, we are enhancing the capacity of our existing plant at Danapur and Ambernath. We are doubling its capacity. In addition, our Board has already sanctioned for installation of 4 new plants at Mysore, Prayagraj, Bhagalpur and Ranchi. So we'll be adding around 25% to 30% capacity in say in 1.5 years.

Guidance & targets

Overall Growth

  • Sustainable Growth Overall Growth · this year · High confidence 15%
    You see all of our segments have shown a very good increase and we are targeting to achieve 15% sustainable growth this year.

    — Mr. Sanjay Kumar Jain

Train Introduction

  • Vande Bharat Train Sets Train Introduction · over a period of years · Medium confidence 260
    So you must have seen the budget announcement and the discussion thereafter in the parliament and various media coverage, wherein it is very categorically told by rail ministry that they are going to introduce 260 Vande Bharat train sets.

    — Mr. Sanjay Kumar Jain

Rail Neer Capacity

  • Capacity Addition Rail Neer Capacity · in 1.5 years · High confidence 25-30%
    So we'll be adding around 25% to 30% capacity in say in 1.5 years.

    — Mr. Sanjay Kumar Jain

Rail Neer Demand Coverage

  • Demand Accommodation Rail Neer Demand Coverage · future · Medium confidence 100% capacity increase
    So basically, even if we increase our capacity by close to 100%, we will still be able to accommodate on the demand side of it.

    — Mr. Sanjay Kumar Jain

What to watch in Q4 FY26

Payment Aggregator License Submission

by August this year
Current In-principle approval received, documents to be submitted by August this year.
Target Documents submitted to RBI.

Why it matters

Successful submission is a key step towards commercializing the payment gateway, a strategic digital initiative.

So our document submission date has been extended by RBI till August this year. And we have already engaged our technology service provider. So most likely we'll be submitting the documents at the earliest.

Risks & concerns

  • Margin Moderation due to Revenue Mix

    medium

    EBITDA margins moderated slightly to 32.1% due to higher contribution from catering and provisions, which are lower-margin segments.

    Management acknowledged

  • Lower Profitability from Vande Bharat Operations

    medium

    Vande Bharat train operations, while contributing to revenue growth, offer lower license fees and are subject to 5% GST, impacting overall catering margins.

    Management acknowledged

  • Potential Cost Increase from New Labor Code

    medium

    The company is assessing the impact of new labor code changes, particularly regarding gratuity and health checkups, which may lead to increased costs, though management expects to offset this through volume growth.

    Analyst acknowledged

Q&A highlights

7 direct
Catering Business Growth and Vande Bharat Margins Direct
We have seen that our revenue from Vande Bharat train this time, the billing has increased by INR70 crores and so be the license fee. So the main reason for factoring business revenue enhancement is introduction of additional 40 trains during the period. And so far as margin is concerned, when we log the revenue for the Vande Bharat billing, it doesn't give us that much license fee. And additionally, 5% GST, we have to pay out of that.

Management clarified the drivers for strong catering growth (new trains) and the reasons for margin moderation (lower license fees and GST on Vande Bharat operations).

Asked by Jinesh Joshi

Future Outlook for Vande Bharat Trains Direct
So you must have seen the budget announcement and the discussion thereafter in the parliament and various media coverage, wherein it is very categorically told by rail ministry that they are going to introduce 260 Vande Bharat train sets. So these trains are already in the pipeline, and that is certainly going to add good business for IRCTC catering.

Provided long-term visibility on the significant pipeline of Vande Bharat trains, indicating sustained growth for the catering business over several years.

Asked by Jinesh Joshi

Payment Aggregator License Submission Timeline Direct
So our document submission date has been extended by RBI till August this year. And we have already engaged our technology service provider. So most likely we'll be submitting the documents at the earliest.

Clarified the revised timeline for submitting documents for the payment aggregator license, which is a key strategic initiative.

Asked by Kashish Mehta

Rail Neer Capacity Expansion Plans Direct
You see, first of all, we are enhancing the capacity of our existing plant at Danapur and Ambernath. We are doubling its capacity. In addition, our Board has already sanctioned for installation of 4 new plants at Mysore, Prayagraj, Bhagalpur and Ranchi. So we'll be adding around 25% to 30% capacity in say in 1.5 years.

Detailed specific plans for Rail Neer capacity expansion, including doubling existing plant capacity and adding four new greenfield plants, with a clear timeline for increased capacity.

Asked by Kashish Mehta

Impact of New Labor Code Partial
I don't see there is any major impact because we are still examining the impact as such in detail because there are 2 things which may come for us, like earlier gratuity that used to be given in 5 years. So it has been reduced to 1 year and health checkup. So like for our regular employees, we have no problem because we will see to that. And whatever the impact of that will be adding to our cost. But that we will compensate by increasing the volume and revenue of the business.

Addressed concerns about potential cost increases from new labor codes, indicating ongoing assessment but confidence in offsetting through business growth.

Asked by Harsh Yadav

Tourism Segment Performance and Q4 Seasonality Direct
You see, overall, this year, we'll be able to achieve 15%. And I don't see any dip in the -- because you see Maharaja Express is also running in this Q4. And that is giving us the highest ever revenue. And our state at and Bharat Gaurav trains are also -- in fact, we have added 1 train, Bharat Gaurav train. So that will add to our revenue.

Provided an optimistic outlook for the tourism segment in Q4, despite seasonality concerns, citing ongoing operations of key luxury trains and new additions.

Asked by Rahul Jain

Ticketing Business Growth Drivers and Non-Convenience Fees Direct
As I told earlier, we are focusing more on non-convenience fees. And in fact, this quarter, it has increased by 26%. So that's the main thing we are looking at looking -- looking forward.

Highlighted the strategic focus on growing non-convenience fee revenue as a key driver for the ticketing business, which showed significant growth this quarter.

Asked by Athif

Tejas Express Occupancy Rates Direct
Just a moment. It is -- Lucknow percentage is 69% and Ahmedabad is 109%.

Provided specific occupancy data for Tejas Express routes, offering insight into the performance of this premium train service.

Asked by Athif

2 min read 6 chapters

Detailed narrative

Q3 FY26 Financial Performance Highlights

IRCTC reported its highest-ever revenue and profitability in Q3 FY26. Revenue from operations increased by 18.2% year-on-year to INR1,449 crores, up from INR1,225 crores in the corresponding quarter last year. Profit After Tax (PAT) grew by 15.5% year-on-year to INR394 crores. EBITDA stood at INR465 crores, marking an 11.5% year-on-year jump, with an EBITDA margin of 32.1%.

Segmental Performance Overview

The strong financial performance was driven by robust contributions across all business segments. Internet ticketing remained the most profitable segment with INR401 crores revenue (up 13.2% YoY) and an impressive 85% EBITDA margin. Catering revenue grew 19.1% YoY to INR661 crores. Rail Neer generated INR98 crores in revenue, a 6.5% YoY growth, while Tourism delivered an excellent performance with 29% YoY revenue growth to INR289 crores and improved EBITDA margins to 19%.

Catering Business Dynamics and Vande Bharat Impact

Catering revenue saw robust growth of 19.1% year-on-year, primarily due to the introduction of 40 additional trains, including 19 Vande Bharat trains. However, margins were impacted by higher sales in train catering operations and pilot initiatives, as Vande Bharat operations yield lower license fees and are subject to a 5% GST. Management noted that 260 Vande Bharat train sets are in the pipeline over several years, promising continued business for IRCTC catering.

Rail Neer Expansion and Volume Growth

The Rail Neer segment reported INR98 crores in revenue, growing 6.5% year-on-year, with improved margins due to material cost efficiencies. The average daily bottle sales reached 12.68 lakhs. To meet growing demand, IRCTC is doubling capacity at existing plants in Danapur and Ambernath and has sanctioned four new greenfield plants in Mysore, Prayagraj, Bhagalpur, and Ranchi, aiming to add 25-30% capacity within 1.5 years.

Tourism Segment Resilience and Revenue Mix

The Tourism segment demonstrated strong resilience, growing 29% year-on-year to INR289 crores, with EBITDA margins improving to 19%. This growth was diversified, with Maharaja revenue up 39% to INR53.14 crores, State Tirth and Bharat Gaurav train revenue up 51% to INR118.91 crores, and air ticketing business growing 41% to INR6.7 crores. Management expects continued momentum in Q4 with Maharaja Express and new Bharat Gaurav trains running.

Strategic Digital Initiatives and Future Outlook

IRCTC is focusing on expanding new-age offerings and enhancing digital capabilities. The company received in-principle approval for a payment aggregator license, with document submission extended to August this year. They are also focusing on increasing non-convenience fee revenue in ticketing, which grew 26% this quarter. The company aims for 15% sustainable growth this year, leveraging its strong financial position and commitment to long-term stakeholder value.

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