Indian Railway Catering & Tourism Corp. Ltd. (IRCTC) AI Stock Analysis

• Market Cap: ₹502.04B
• Dividend Yield: 1.32%
• Average Volume (3M): 76.22K
• Price to Earnings (P/E): 36.6
• Beta (1Y): 1.32
• Revenue Growth: 7.66%
• EPS Growth: 14.36%
• Country: IN
• Employees: 1,407
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 4.20
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 77,850
• 30 Day Avg. Volume: 76,220
• PEG Ratio: 2.40
• Price to Book (P/B): 15.81
• Price to Sales (P/S): 12.39
• P/FCF Ratio: 76.02
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ₹695.00 ▲(3.26% Upside)

Indian Railway Catering & Tourism Corp. Ltd. scores well due to its strong financial performance, characterized by robust growth and financial stability. However, the stock's valuation appears high, which could limit upside potential. Technical indicators suggest moderate momentum, but resistance levels may pose challenges. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Strong cash generation

Consistent free cash flow growth strengthens IRCTC's ability to fund operations, capex, and shareholder returns without heavy external financing. Durable FCF supports reinvestment in platform capabilities and tourism offerings, enhancing long-term resilience through cycles.

Healthy balance sheet and low leverage

Low leverage and a strong equity base give IRCTC strategic flexibility to pursue growth, withstand demand shocks, and maintain investment-grade operational choices. This structural strength reduces refinancing risk and preserves capacity for strategic initiatives over the medium term.

Diversified revenue streams within rail ecosystem

Multiple durable revenue channels—service charges, catering, tourism packages, advertising and partnerships—reduce dependence on any single line and monetize a large captive passenger base. This business-model breadth supports steady cashflow and cross-sell opportunities over time.

Negative Factors

Government ownership and oversight

Being government-owned can constrain commercial flexibility: pricing, strategic partnerships, and expansion often require alignment with public policy. Over the medium term, political or policy priorities could limit margin improvement or speed of strategic decisions.

Concentration in rail-dependent services

IRCTC's core revenue remains tied to rail passenger volumes and related tourism. This concentration raises exposure to operational disruptions, shifts in travel patterns, or competitive displacement in rail services, which could materially affect revenues and growth durability.

Recent revenue growth moderation

A recent reported revenue growth of ~7.7% suggests moderation versus the multi-year CAGR noted in the income summary (>20%). Persistent slowing could indicate market saturation or cyclical headwinds, potentially curbing near-term expansion unless offset by new initiatives.

Indian Railway Catering & Tourism Corp. Ltd. Business Overview & Revenue Model

Company Description

Indian Railway Catering & Tourism Corporation Limited provides catering and hospitality, Internet ticketing, travel and tourism, and packaged drinking water services in India. It operates through five segments: Catering, Railneer, Tourism & Train Operation, State Teertha, and Internet Ticketing. The company offers mobile catering services, including Rajdhani, Shatabdi and Duronto; mail express, train side vending, Gatiman, and Tejas and Vande Bharat; e-catering; and other catering services, such as food plaza, fast food units, refreshment rooms, Jan Ahaars, cell kitchen, base kitchen, executive lounges, retiring rooms, RYN/BNR hotels, and non-railway catering. In addition, the company offers tourism products and services comprising domestic tour packages, inbound tourist targeted tours, mass tourism, outbound tour packages, and air ticket and corporate travel; and other tourism activities, such as event management, booking of charter trains and coaches, hill and heritage charters, saloon tours and charters, online reservation and accommodation facilities, and adventure tourism. Further, it offers packaged drinking water under the Rail Neer name; and train ticket booking and travel insurance services, as well as operates irctctourism.com, a tourism portal. The company was incorporated in 1999 and is based in New Delhi, India.

How the Company Makes Money

IRCTC generates revenue through multiple streams, primarily from e-ticketing services, where it earns a service charge on every ticket booked through its online platform. Additionally, the company derives income from catering services provided on trains and at railway stations, which includes meal services and food delivery options. The tourism sector also contributes significantly to its revenue, as IRCTC organizes packaged tours and travel-related services. Moreover, IRCTC earns revenue through advertising on its platforms, partnerships with hotels and travel agencies, and by offering value-added services to passengers. Strategic collaborations with various stakeholders, including state tourism boards and private operators, further enhance its revenue potential.

Indian Railway Catering & Tourism Corp. Ltd. Financial Statement Overview

Summary

Indian Railway Catering & Tourism Corp. Ltd. demonstrates strong financial performance with robust revenue growth, solid profitability metrics, and efficient cost management. The company maintains a healthy balance sheet with low leverage and strong cash flow generation, supporting its financial health and resilience.

Income Statement

Indian Railway Catering & Tourism Corp. Ltd. has demonstrated strong revenue growth, with a compound annual growth rate (CAGR) of over 20% in the last few years. The company maintains solid profitability metrics, with a gross profit margin consistently above 35% and increasing EBIT and EBITDA margins, indicating efficient cost management and operational effectiveness. Net profit margins have also been strong, highlighting robust bottom-line performance.

Balance Sheet

The company exhibits a healthy balance sheet with a low debt-to-equity ratio, reflecting financial stability and low leverage risk. The equity ratio indicates a strong asset base backed by equity, enhancing financial resilience. The return on equity has been impressive, driven by high net income, showcasing effective use of shareholder capital.

Cash Flow

Cash flow generation is strong, underpinned by a consistent increase in free cash flow over the years. The operating cash flow to net income ratio is robust, demonstrating efficient conversion of earnings into cash. The company has shown a positive trajectory in free cash flow growth, reinforcing its capacity to fund operations and investments without heavily relying on external financing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	47.17B	46.75B	42.70B	35.41B	18.78B	7.77B
Gross Profit	17.39B	17.16B	19.33B	14.07B	9.60B	2.57B
EBITDA	18.57B	18.27B	15.59B	14.24B	9.42B	3.10B
Net Income	13.38B	13.15B	11.11B	10.06B	6.60B	1.87B
Balance Sheet
Total Assets	0.00	68.00B	60.91B	50.89B	38.84B	31.53B
Cash, Cash Equivalents and Short-Term Investments	22.70B	26.57B	22.76B	19.30B	17.30B	14.59B
Total Debt	0.00	897.96M	603.50M	841.62M	1.05B	794.57M
Total Liabilities	-36.63B	31.37B	28.61B	26.10B	20.14B	16.97B
Stockholders Equity	36.63B	36.63B	32.30B	24.78B	18.70B	14.56B
Cash Flow
Free Cash Flow	0.00	7.62B	6.50B	7.43B	5.02B	1.70B
Operating Cash Flow	0.00	8.10B	8.82B	8.12B	5.24B	2.48B
Investing Cash Flow	0.00	-2.29B	-2.00B	-3.17B	-2.42B	-4.53B
Financing Cash Flow	0.00	-9.10B	-4.04B	-4.34B	-2.58B	-468.47M

Indian Railway Catering & Tourism Corp. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 673.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IRCTC, the sentiment is Negative. The current price of 673.05 is above the 20-day moving average (MA) of 670.17, below the 50-day MA of 680.55, and below the 200-day MA of 723.51, indicating a bearish trend. The MACD of -12.50 indicates Positive momentum. The RSI at 28.15 is Positive, neither overbought nor oversold. The STOCH value of 5.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:IRCTC.

Indian Railway Catering & Tourism Corp. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRCTC	72 Outperform	₹502.04B	36.59	―	1.32%	7.66%	14.36%
RAILTEL	66 Neutral	₹113.31B	35.33	―	0.79%	29.92%	22.87%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
THOMASCOOK	63 Neutral	₹64.61B	25.31	―	0.32%	11.02%	-9.59%
BHARTIHEXA	62 Neutral	₹819.63B	53.15	―	0.78%	―	―
DELHIVERY	57 Neutral	₹301.89B	217.48	―	―	9.17%	1685.95%
ITDC	53 Neutral	₹48.94B	67.75	―	0.50%	6.56%	4.21%

Indian Railway Catering & Tourism Corp. Ltd. Corporate Events

IRCTC Announces Senior Management Change in East Zone

IRCTC has announced a change in its senior management for the East Zone, with Group General Manager (East Zone) Manoj Kumar Singh being repatriated to his parent cadre in Eastern Railway and formally relieved from his duties at the company’s East Zone office in Kolkata, effective 26 December 2025. In the interim, Sandip Trivedi, Group General Manager (HRD) at IRCTC’s corporate office in New Delhi, has been assigned additional responsibility for overseeing the East Zone until a regular successor is appointed, signaling a transitional phase in regional leadership but ensuring continuity of oversight for stakeholders in that zone.

IRCTC Faces Fines for Board Composition Non-Compliance

Indian Railway Catering & Tourism Corporation Limited (IRCTC) has been fined by both BSE and NSE for non-compliance with SEBI regulations concerning board composition, specifically the absence of a woman director for the quarter ending September 30, 2025. Despite the fines, IRCTC states that the penalties do not impact its financial or operational activities and has requested a review, citing its status as a government company where director appointments are managed by the Ministry of Railways.

Supreme Court Ruling Favors IRCTC in Catering Dispute

The Indian Railway Catering & Tourism Corporation Limited (IRCTC) announced that the Supreme Court of India has ruled in its favor, overturning previous judgments by the Delhi High Court and an Arbitral Tribunal regarding a dispute with Brandavan Foods Pvt. Ltd. and other caterers. The Supreme Court found that the claims made by the caterers lacked a contractual and legal basis, thus absolving IRCTC of any financial liability. This judgment ensures that there is no financial or operational impact on IRCTC, reinforcing its authority to modify menus and tariffs unilaterally as per contractual terms and Railway Board circulars.