Indian Railway Catering and Tourism Corporation Limited (IRCTC) is a 'Mini Ratna (Category-I)' Central Public Sector Enterprise under the Ministry of Railways, Government of India, engaged in hospitality, travel, and tourism. In July 2024, it became a Scheduled 'A' Public Sector Undertaking of the Government of India. The company was established on 27 September 1999 as a public sector undertaking completely owned by the Government of India through the Indian Railways.
IRCTC is an Indian public sector undertaking that provides ticketing, catering, and tourism services for the state-owned Indian Railways. The company has exclusive rights for onboard catering of food on all trains operated by the Indian Railways. As of December 2023, there are 66 million registered users with IRCTC with a daily average of 7.31 lakh tickets booked.
IRCTC's market capitalization stands at ₹62,492 crore as of 2025, with revenue of ₹4,675 crore and profit of ₹1,315 crore. For the full year ending March 2025, net profit rose 18.34% to ₹1,314.90 crore compared to ₹1,111.08 crore in the previous year, while sales rose 9.73% to ₹4,674.77 crore from ₹4,260.21 crore in the previous year.
**Q4 FY25 Results:**
Net profit rose 26.06% to ₹358.23 crore compared to ₹284.18 crore in Q4 FY24. Sales increased 9.85% to ₹1,268.53 crore from ₹1,154.77 crore in the previous year.
**Q3 FY25 Results:**
Net profit climbed 13.70% to ₹341.09 crore compared to ₹300.00 crore in Q3 FY24. Sales rose 9.51% to ₹1,224.66 crore from ₹1,118.30 crore in the previous year.
**Q2 FY25 Results:**
Total income rose to ₹1,123 crore, reflecting an 8.1% year-over-year growth from ₹1,039 crore in Q2 FY24. Net profit increased 4.5% to ₹307.8 crore from ₹294.7 crore in Q2 FY24.
IRCTC operates through four primary business segments: Catering & Hospitality, Travel & Tourism, Internet Ticketing, and Packaged Drinking Water.
Around 83% of all reserved train tickets in India are booked online today, and of these, 80% move through IRCTC's system. IRCTC has over 10 crore registered users - a number that puts it on par with some of India's biggest tech platforms. A convenience fee, typically ranging from ₹15 to ₹30 per ticket, is charged on each booking.
In Q4 FY25, the IT segment reported an 8.8% YoY revenue increase, reaching ₹372.47 crore. The daily average ticket booking increased to 14.33 lakh per day, up from 12.91 lakh per day in Q4FY24.
The catering business makes 38% of IRCTC's total revenue. For FY24, catering revenue was reported at over ₹1,200 crore. The company's operational reach extends across 1,265 trains with IRCTC-managed catering, 305 food plazas, and 141 refreshment rooms.
In Q4 FY25, revenue for the catering segment stood at ₹529.39 crore, indicating a 0.27% decrease from Q4FY24.
Tourism contributed more than ₹1,000 crore to revenue in FY24. In Q4 FY25, tourism revenue grew to ₹274.41 crore, up from ₹198.61 crore in Q4FY24. IRCTC runs three trains in the tourism sector: Bharat Gaurav, which reported an 8% profit in Q4 FY25; Maharajas' Express, with an 18%–20% profit; and the newly launched Golden Chariot.
Rail Neer, IRCTC's packaged water brand, contributed over ₹300 crore in FY24. The company operates 19 Rail Neer bottling plants across India.
IRCTC is the only company authorized by the Indian government to provide online railway tickets, catering services, and packaged drinking water at railway stations and trains in India. The monopoly granted to it by the Ministry of Railways further boosts its growth.
In financial terms, IRCTC processes over $4 billion in ticketing transactions every year. The Government of India's holding was reduced to 67% in December 2020 and further to 62.4% in December 2022.
The company is almost debt free. Company has delivered good profit growth of 20.0% CAGR over last 5 years and has a good return on equity (ROE) track record: 3 Years ROE 40.4%. The company has been maintaining a healthy dividend payout of 54.5%.
The company's board declared an interim dividend of ₹3 per share for the financial year 2024-25 with the record date set as 20 February 2025. In Q2 FY25, the company's board approved an interim dividend of ₹4 per share (200% of the paid-up share capital).
As of May 2025, IRCTC's stock trades at a P/E ratio of approximately 60x based on FY24 earnings of ₹1,111 crore and a market capitalization of around ₹80,000 crore. This is significantly higher than the industry average of 30–40x for travel and e-commerce companies like MakeMyTrip and EaseMyTrip.
The intrinsic value of one IRCTC stock under the Base Case scenario is ₹336.18. Compared to the current market price of ₹785.25, IRCTC is overvalued by 57%.
In July 2024, IRCTC was elevated to Schedule A status by the Government of India, enhancing its autonomy and access to resources. Starting July 1, 2025, IRCTC will require Aadhaar authentication for Tatkal ticket bookings to prevent misuse. Additionally, IRCTC plans to merge OTA platforms and seeks a payment aggregator license.
In May 2025, IRCTC launched a new ticket booking app, 'SwaRail'. The company has applied for a payment aggregator license and expects to receive in-principle approval in 2–3 months. The PA license would enable IRCTC to facilitate merchants and e-commerce sites in accepting various payment instruments from customers.
IRCTC continues to benefit from India's growing travel and tourism sector, supported by its monopolistic position in railway ticketing and catering services. However, investors should consider the premium valuation and potential regulatory changes while making investment decisions.
