I R C T C — Q4 FY25 earnings call

Call held 29 May 2025

Management summary

IRCTC delivered a strong Q4 and full year FY25, achieving record operating revenue and significant PAT growth, driven by robust performance in Internet Ticketing, Rail Neer, and Tourism segments. The company declared its highest-ever dividend for FY25, reflecting its commitment to shareholder returns. While facing seasonal moderation in catering and pending regulatory approvals, management expressed confidence in continued growth and operational efficiency.

Highlights

  • Operating revenue reached an all-time high of ₹1,269 crores in Q4 FY25, representing a 10% YoY growth.

  • Full year FY25 operating revenue grew 9.73% to ₹4,675 crores, demonstrating strong annual performance.

  • PAT for FY25 increased by a commendable 18.30% to ₹1,315 crores, highlighting solid financial foundation.

  • EBITDA for FY25 grew 5.71% to ₹1,549 crores, maintaining a healthy margin of 33.15%.

  • The Board recommended a total dividend of ₹8 per share for FY25, the highest ever, amounting to ₹640 crores.

Concerns

  • Catering revenue moderated in Q4 FY25 to ₹529.4 crores due to seasonal variations, though EBITDA grew 51.12%.

  • RBI payment aggregator license is still pending final approval, with in-principle approval expected in 2-3 months.

  • Significant increase in bills receivables, largely from Indian Railways, impacting working capital.

Key financials

2 periods

Q4 FY25

  • Operating Revenue
    ₹1,269 Cr
    YoY +10%

FY25

  • Operating Revenue
    ₹4,675 Cr
    YoY +9.7%
  • PAT
    ₹1,315 Cr
    YoY +18.3%
  • EBITDA
    ₹1,549 Cr
    YoY +5.7%
  • EBITDA Margin
    33.1%
  • Net Worth
    ₹3,663 Cr
    YoY +13.4%

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 (Q4 FY25)
₹1,268.5 Cr Total
  • Catering ₹529.4 Cr 41.7%
  • Internet Ticketing ₹372.5 Cr 29.4%
  • Tourism ₹274.4 Cr 21.6%
  • Rail Neer ₹92.2 Cr 7.3%

Capital allocation

high confidence
  • Dividend ₹1/share (final)
    The Board of Directors has recommended a final dividend of INR1 per share, subject to the shareholders' approval, taking the total dividend for financial year '24-'25 to INR8 per share, the highest ever dividend amounting to INR640 crores, which is 400% of the share capital as compared to INR520 crores in financial year '23-'24.

Guidance & targets

Regulatory Approval

  • RBI Payment Aggregator License In-Principle Approval Regulatory Approval · Next 2-3 months · Medium confidence In-principle approval
    We are likely to get this in principle approval in this quarter, I believe, or next 2 months, 3 months.

    — Sanjay Jain

  • RBI Payment Aggregator License Final Approval Regulatory Approval · Around a year after in-principle approval · Medium confidence Final approval
    No, then we'll have to go for final approval. That will take around a year.

    — Sanjay Jain

Tourism

  • Tourism Revenue Growth Tourism · Ongoing · Low confidence Will grow and grow only
    You see revenue from tourism will grow and grow only. That much I can say.

    — Sanjay Jain

  • Additional Bharat Gaurav Rakes Tourism · This year · Medium confidence One rake
    One rake we are planning under discussion.

    — Sanjay Jain

What to watch in Q1 FY26

RBI Payment Aggregator License In-Principle Approval

Next 2-3 months
Current Submitted for in-principle approval in Dec '24, awaiting response after clarifications.
Target In-principle approval received.

Why it matters

Crucial for expanding digital payment services and potential monetization avenues for IRCTC.

We are likely to get this in principle approval in this quarter, I believe, or next 2 months, 3 months.

Risks & concerns

  • RBI Payment Aggregator License Delay

    medium

    In-principle approval is pending, and final approval could take up to a year, impacting potential monetization.

    Analyst acknowledged

  • Bills Receivables from Indian Railways

    medium

    Significant increase in receivables, largely from the parent organization, affecting working capital, though a new advance system is being implemented.

    Analyst acknowledged

  • Catering Vendor Litigation

    medium

    Litigation is ongoing regarding vendors who did not agree to revised pricing, with resolution dependent on court proceedings.

    Analyst acknowledged

  • Government Policy Changes (Advance Booking Period)

    low

    Changes in advance booking period from 6 to 2 months are a government decision and management believes it will not affect IRCTC's business.

    Analyst downplayed

Q&A highlights

6 direct
RBI Payment Aggregator License Status Partial
As about the RBI license, we have submitted in principle approval with RBI in December '24. They have asked for certain clarification, which we have already replied and awaiting their response.

Analyst sought clarity on a key regulatory approval; management provided an update but indicated it's still pending.

Asked by Navani Naredi

Bills Receivables from Indian Railways Partial
this is largely with Indian Railways. And you know this is our parent organization, and we have a huge business. Largely IRCTC is dependent on their business. So we are getting it clear from time to time.

Analyst raised concern about increasing receivables; management acknowledged it's with the parent company and they are working on a system for advances.

Asked by Navani Naredi

Catering Revenue Flatness in Q4 FY25 Direct
You see, if you compare Q4 of this year with Q4 of last year, you will find one distinct difference that this year, Mahakumbh, when the trains were run, these were without catering facility because the main target of government was to take more and more passengers to the Mahakumbh and clear the rush from there.

Analyst questioned a key segment's performance; management provided a clear explanation for the moderation.

Asked by Jinesh Joshi

Exceptional Gain from Legacy Business Reconciliation Direct
See, we have legacy items since many years. And this year, we could clear the legacy transactions. And one time you are right that we have gained a onetime revenue out of this. And this was essentially required to clean up our balance sheet.

Analyst sought details on a significant one-time gain; management clarified its source and purpose.

Asked by Jinesh Joshi

Tejas Trains Performance Direct
Yes. Tejas occupancy in this quarter, we are running two Tejas Express. And the average occupancy in this quarter is 93.2% as against last -- Q4 last year, 85%.

Analyst inquired about a specific operational asset; management provided detailed performance metrics including occupancy and profitability.

Asked by Hardik

SwaRail Monetization Features Direct
SwaRail provides reservation -- tickets for reservation, UTS, parcel, goods and any business related to railway. We are dealing only with one part of it, that is reservation, so reserve ticketing. So far, ticketing is concerned, it will continue like that. And we are not entering into other ventures.

Analyst asked about new monetization avenues; management clarified the scope of SwaRail and IRCTC's involvement.

Asked by Shrinarayan Mishra

E-catering (Zomato/Swiggy) Performance Direct
Like annually, we grew from INR33 crores last year to INR54 crores this year. That is a growth of 63%. And in Q4 itself, we have grown from INR9 crores to INR15 crores. That is a 53% increase.

Analyst sought performance data for e-catering; management provided strong growth figures for the segment.

Asked by Hardik

Non-Railway Revenue Strategy Direct
Yes. So basically, you have two questions. One is what is the non-railway revenue. So we have around 30% we are going in the non-railway revenue also. And we are planning to merge our -- all the OTA platforms for improving our hotel bookings and MICE activities and air bookings, we are planning to have a unified portal and which will be a good trigger to give a good business going forward, non-railway.

Analyst questioned strategic direction; management outlined plans for diversification and a unified portal for non-railway tourism.

Asked by Rahul Jain

3 min read 6 chapters

Detailed narrative

Strong Q4 and Full Year FY25 Financial Performance

IRCTC reported an exceptional Q4 FY25 with operating revenue reaching an all-time high of ₹1,269 crores, marking a 10% year-on-year growth. For the full fiscal year 2025, operating revenue stood at ₹4,675 crores, reflecting a strong annual growth of 9.73%. Profit After Tax (PAT) for FY25 rose to ₹1,315 crores, an 18.30% increase from the previous financial year, underscoring the company's robust financial foundation. Absolute EBITDA for FY25 improved to ₹1,549 crores, registering a 5.71% year-on-year growth with a healthy margin of 33.15%.

Segmental Performance Highlights

The strong performance was primarily driven by Internet Ticketing, Rail Neer, and Tourism segments. Internet Ticketing revenue grew 8.78% YoY to ₹372.5 crores in Q4 FY25, achieving an impressive 82.4% EBITDA margin. Tourism revenue surged 38.17% YoY to ₹274.4 crores in Q4, with EBITDA growing 118.49% YoY to ₹49.6 crores. Rail Neer maintained steady performance, posting ₹92.2 crores in revenue, up 15.49% YoY. Catering revenue, however, moderated to ₹529.4 crores in Q4 due to seasonal variations, but its EBITDA rose 51.12% YoY to ₹64.6 crores.

Dividend and Shareholder Value Creation

The Board of Directors recommended a final dividend of ₹1 per share, bringing the total dividend for FY25 to ₹8 per share. This represents the highest ever dividend payout, amounting to ₹640 crores, which is a 400% increase of the share capital compared to ₹520 crores in FY24. The company's net worth increased to ₹3,663 crores in FY25, up 13.40% from ₹3,230 crores in FY24, reflecting a significant addition to shareholders' wealth.

Regulatory and Operational Updates

IRCTC has submitted for in-principle approval for its RBI payment aggregator license in December '24 and is awaiting a response after providing clarifications, with in-principle approval expected in the next 2-3 months and final approval in about a year. Management clarified that changes in advance ticketing reservation periods are a decision of the Ministry of Railways and will not impact IRCTC's business. An exceptional gain of approximately ₹40 crores was recognized in Q4 FY25 from the reconciliation of legacy business transactions, including dues from KTDC and excess PRP provisioning, contributing to balance sheet cleanup.

Non-Railway Revenue Expansion Strategy

IRCTC is actively pursuing growth in non-railway revenue, which currently accounts for around 30% of its total revenue. The company plans to merge all its OTA platforms to create a unified portal for hotel bookings, MICE activities, and air bookings. This initiative is expected to be a significant trigger for future growth in the non-railway business segment. The air packages segment already saw a 28% growth, with revenue increasing from ₹68 crores last year to ₹87 crores this year.

Tourism Train Performance and Future Plans

The company provided insights into its tourism train operations. The two Tejas Express trains achieved an average occupancy of 93.2% in Q4 FY25, up from 85% last year, generating ₹9.18 crores profit on ₹177 crores revenue. Bharat Gaurav trains contributed ₹277 crores in revenue with approximately 8% profit, while Maharajas' Express generated ₹92 crores with 18-20% profit. The Golden Chariot, which recently started operations, generated ₹2.83 crores in revenue and is nearing breakeven. IRCTC is also planning to add one more rake to its Bharat Gaurav fleet this year.

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