IRCTC Q1 profit remains flat at ₹330 crore; margin contracts, revenue up 18%

Indian Railway Catering and Tourism Corporation (IRCTC) reported a largely flat consolidated net profit for the first quarter of FY27, even as revenue from operations grew 18% year-on-year, with a sharp contraction in operating margins weighing on profitability.

Consolidated profit after tax stood at ₹330.15 crore in the quarter ended June 30, 2026, compared with ₹330.70 crore in the year-ago period, a marginal decline of 0.2%. Revenue from operations rose 18.1% to ₹1,369.53 crore from ₹1,159.68 crore a year earlier.

EBITDA, however, declined 2.7% to ₹386.67 crore from ₹397.26 crore, while the EBITDA margin contracted to 28.23% from 34.26%, a decline of around 603 basis points.

Total income, including other income, stood at ₹1,442.24 crore during the quarter. Profit before tax was ₹441.68 crore on a consolidated basis.

Tourism, catering drive revenue growth

Among IRCTC's business segments, catering remained the largest contributor, with revenue rising to ₹732.26 crore from ₹546.78 crore in the year-ago quarter.

Tourism also recorded strong growth, with revenue climbing to ₹168.07 crore from ₹147.70 crore. Railneer revenue increased marginally to ₹113.91 crore from ₹110.49 crore, while internet ticketing revenue stood at ₹360.99 crore compared with ₹358.75 crore a year earlier.

On the profitability front, internet ticketing continued to be IRCTC's biggest profit contributor, although segment profit declined to ₹289.63 crore from ₹301.93 crore in Q1 FY26.

Catering segment profit fell to ₹58.01 crore from ₹71.80 crore, while Railneer profit declined to ₹11.17 crore from ₹15.41 crore. Tourism was a bright spot, with segment profit rising to ₹19.31 crore from ₹12.87 crore.

Legal matters remain under watch

The company's financial statements also highlight certain ongoing legal matters. IRCTC said the impact of enhanced licence fees for post-paid and pre-paid trains has not been recognised because the matter remains sub judice, with some licensees challenging the company's decision before courts and through arbitration.

Separately, the company is seeking input tax credit information from developers operating four PPP Railneer plants. The operators of the Sankrail and Hapur plants have challenged IRCTC's recovery claims. The Delhi High Court has appointed an arbitrator in the Sankrail matter, while the Hapur matter is listed for hearing on September 2, 2026.

Shares of IRCTC Ltd ended 0.83% lower at ₹510.75 apiece on the NSE on Wednesday. The stock has declined more than 29% over the past year, underperforming the Nifty PSE index, which has gained nearly 3% during the same period.