Target: ₹825
CMP: ₹698.90
Indian Railway Catering and Tourism Corporation (IRCTC) maintains a positive revenue outlook, supported by resilient demand in ticketing, catering, tourism, and Rail Neer. Digital initiatives, new capacity, and cluster contracting will likely accelerate diversified topline momentum in the coming quarters. The recent announcement by the Indian Railways to hike fares w.e.f December 26 is a positive development for IRCTC.
IRCTC expects EBITDA margins to stay robust above 35 per cent, driven by disciplined cost management, digital efficiencies, and strong ticketing profitability. Segment margins in catering, Rail Neer, and tourism will remain stable, supported by volume growth and affordable pricing.
IRCTC holds the monopoly status with respect to ticket booking. With the expansion and ease of online railway ticket booking, passengers can now book railway tickets from the comfort of their homes 24/7. With the ongoing travel season, ticket bookings are expected to show exponential growth in Q3FY26.
Access to clean and hygienic food on trains is now one of the topmost priorities of Indian Railways and IRCTC also holds the key in this vertical.
The RBI’s approval to operate as an online payment aggregator allows IRCTC to process payments, serve as an intermediary for merchants, and expand its digital payment services. We would recommend a Buy with a target price of ₹825 in the next 9-12 months.