Shares of Indian Railway Catering and Tourism Corporation (IRCTC), the flagship tourism and ticketing arm of Indian Railways, are back in focus after the company announced its Q4FY26 earnings. Following the quarterly results, brokerage firm Prabhudas Lilladher (PL Capital) reiterated its ‘BUY’ rating on the stock and projected a strong upside potential for investors.
Although the company reported healthy revenue growth during the March quarter, pressure on margins and profitability prevented the results from fully meeting market expectations.
IRCTC Q4 Results: Revenue Rises 15%, But Margins Decline
According to PL Capital’s latest report, IRCTC posted total revenue of ₹14,597 million during the fourth quarter of FY26, reflecting a strong year-on-year growth of 15.1%.
However, the company’s EBITDA margin narrowed sharply from 30.4% in the same quarter last year to 27.3% this quarter. The brokerage attributed this decline primarily to:
CSR expenditure of ₹310 million
Expected Credit Loss (ECL) provisioning worth ₹160 million
Meanwhile, the company’s reported net profit (PAT) fell 8.9% year-on-year to ₹3,264 million, disappointing some investors despite strong topline growth.
Catering Business Emerges as Biggest Growth Driver
Among IRCTC’s various business verticals, the Catering segment delivered the strongest performance during the quarter.
Segment-Wise Performance
Catering Revenue: Up 26.7% YoY
Internet Ticketing Growth: Increased 4.8%
EBIT Margin in Ticketing: Strong at 76.3%
Rail Neer Revenue: Rose 4.4%
Tourism Segment: Grew 10.6%
The report further highlighted that IRCTC is actively expanding the production capacity of its Rail Neer plants located at Danapur and Ambernath to support future demand growth.
UPI Boom Strengthens IRCTC’s Digital Ecosystem
IRCTC also witnessed strong momentum in digital ticket bookings during the quarter. Around 134 million tickets were booked in Q4FY26, showcasing continued growth in railway e-ticketing demand across India.
The rise of UPI-based transactions remained one of the biggest highlights:
UPI contribution in ticket bookings surged to 51.7%
Last year’s corresponding figure stood at 46.3%
E-booking penetration remained extremely high at 89%
Analysts believe this trend aligns strongly with India’s rapidly expanding digital payments ecosystem under the ‘Digital India’ initiative.
PL Capital Revises IRCTC Share Price Target
Despite maintaining a bullish stance on the stock, PL Capital slightly revised its target price downward due to slower-than-expected recovery in margins.
Previous Target Price: ₹850
Revised Target Price: ₹712
Rating Maintained: BUY
The brokerage believes the stock still offers meaningful upside potential over current levels, supported by IRCTC’s monopoly-like business model, strong digital presence, expanding catering operations, and stable railway-linked growth prospects.
Why Analysts Remain Positive on IRCTC
Market experts believe IRCTC continues to remain one of the strongest PSU-linked consumer-facing businesses in India due to several key advantages:
Monopoly in railway e-ticketing
Strong cash-generating business model
Rapid digital payment adoption
Expanding packaged drinking water business
Growth in railway tourism and catering services
Although margin pressure remains a short-term concern, analysts expect operational efficiencies and scaling benefits to improve profitability over the coming quarters.
With railway modernization and digital booking penetration continuing to rise in India, IRCTC remains one of the most closely watched PSU stocks in the market.
Should You Restart Your Phone or Switch It Off Completely? Here’s What Tech Experts Say
Smartphones have become an inseparable part of modern life. From online payments and social media
WhatsApp for iPhone to Get Major Upgrade: Share Photos Without Leaving the Chat Window
WhatsApp is preparing to introduce a major usability upgrade for iPhone users that could signific
Residents across Delhi-NCR received much-needed relief from intense heat and humidity on Monday a
The end of June and the beginning of July are set to bring a wave of exciting smartphone launches
As temperatures continue to soar across India, air conditioners have become an essential applianc
The relentless rise in fuel prices across India continues to worry consumers as Compressed Natura
UK Social Media Ban for Under-16s: New Rules Target Social Platforms and AI Chatbots
In a major step aimed at protecting children from online risks, the United Kingdom is considering
Healthcare Technology Revolution: How Smartwatches and AI Are Helping People Stay Fit
Traditionally, most people visit a doctor only after experiencing a health problem. In many cases
AC Cooling Hack Goes Viral: Should You Pour Water on the Outdoor Unit? Experts Reveal the Truth
As temperatures continue to soar across the country, air conditioners have become an essential pa
AC Stabilizer Buying Guide: Is a Voltage Stabilizer Really Necessary for Your Air Conditioner?
As temperatures continue to soar during the summer season, the demand for air conditioners is ris
