I R C T C

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%.

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 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.

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.

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.

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.