New Delhi: Indian Railway Catering and Tourism Corporation (IRCTC) reported a mixed financial performance for the second quarter of FY2026-27, as strong revenue growth across key business segments failed to translate into higher profitability. The company’s consolidated net profit declined 22.9% year-on-year (YoY) to ₹263.6 crore in Q2 FY27, compared with ₹342 crore in the corresponding quarter of the previous financial year.
Despite the decline in profit, IRCTC recorded a 16.3% increase in revenue from operations to ₹1,333.1 crore during the September quarter, against ₹1,146 crore in Q2 FY26. The results highlight pressure on the company’s operating margins and profitability, particularly due to the weak performance of its Rail Neer segment.
IRCTC Q2 FY27 Financial Performance
IRCTC’s consolidated financial results reflected a gap between revenue growth and earnings performance. While revenue from operations registered healthy growth, the increase in operating earnings remained limited.
The company’s EBITDA rose marginally by around 1% to ₹408 crore in Q2 FY27, compared with ₹404 crore in the same quarter last year. However, EBITDA margin declined significantly to 30.6% from 35.2% in Q2 FY26, indicating increased pressure on operating profitability.
The contraction in margins suggests that higher revenue generation did not result in a proportionate improvement in operating earnings.
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IRCTC Segment-Wise Revenue
IRCTC recorded revenue growth across all four major business segments during Q2 FY27. Catering and tourism emerged as the leading contributors to revenue growth, while internet ticketing registered relatively modest growth.
The segment-wise revenue performance was as follows:
- Catering: Revenue stood at ₹655.01 crore, registering a year-on-year growth of 26.05%.
- Internet Ticketing: Revenue increased 1.01% to ₹389.77 crore.
- Tourism: Revenue rose 28.42% to ₹192.03 crore.
- Rail Neer: Revenue grew 7.5% to ₹101.11 crore.
Catering remained IRCTC’s largest revenue-generating segment, with revenue increasing 26.05% year-on-year to ₹655.01 crore. Tourism also delivered strong growth of 28.42%, taking its revenue to ₹192.03 crore.
Meanwhile, internet ticketing revenue increased 1.01% to ₹389.77 crore, while Rail Neer recorded revenue of ₹101.11 crore, registering 7.5% growth.
Rail Neer Segment Reports ₹106.12 Crore Loss
The Rail Neer business emerged as a major concern in IRCTC’s Q2 FY27 results. Despite reporting a 7.5% increase in revenue, the segment recorded a loss of ₹106.12 crore during the September quarter.
This marked a significant deterioration compared with the corresponding quarter of the previous year, when Rail Neer had reported a segment profit of ₹8.68 crore.
The shift from profit to loss indicates a substantial decline in the segment’s financial performance and weighed on the company’s overall profitability.
Catering Profit Falls 3.7% Despite Strong Revenue Growth
IRCTC’s catering segment delivered strong revenue growth during Q2 FY27, but its profitability remained under pressure.
The segment’s revenue increased 26.05% year-on-year to ₹655.01 crore. However, catering segment profit declined 3.7% to ₹64.48 crore, indicating that higher business activity did not translate into improved segment earnings.
The contrasting performance highlights the impact of cost and margin pressures on the company’s catering operations.
Internet Ticketing Remains IRCTC’s Biggest Profit Contributor
Internet ticketing continued to be IRCTC’s largest profit-generating business segment during the September quarter.
The segment reported a profit of ₹328.56 crore, registering a marginal increase compared with the corresponding quarter last year.
Tourism also delivered a positive performance, with segment profit rising 31.44% year-on-year to ₹13.42 crore.
The performance of these two segments provided support to the company’s earnings, although the losses in Rail Neer and lower catering profitability affected the overall financial results.
Exceptional Provision Impacts IRCTC Standalone Results
IRCTC’s standalone financial performance also reflected the impact of an exceptional expense during Q2 FY27.
According to the company’s financial filing, an exceptional item amounting to ₹116.30 crore was recognised during the September quarter.
Standalone profit before tax (PBT) declined to ₹355.61 crore in Q2 FY27 from ₹456.99 crore in the corresponding quarter of the previous financial year.
Similarly, standalone profit after tax (PAT) stood at ₹263.32 crore, compared with ₹341.86 crore in Q2 FY26.
The exceptional provision was an additional factor reflected in the company’s standalone quarterly financial performance.
IRCTC Q2 FY27 Results: Key Takeaways
IRCTC’s September quarter results highlight the challenges of converting revenue growth into higher profitability.
Key developments during Q2 FY27 include:
- Consolidated revenue from operations increased 16.3% to ₹1,333.1 crore.
- Consolidated net profit declined 22.9% to ₹263.6 crore.
- EBITDA increased marginally by around 1% to ₹408 crore.
- EBITDA margin contracted to 30.6% from 35.2%.
- Catering revenue grew 26.05%, but segment profit declined 3.7%.
- Rail Neer reported a loss of ₹106.12 crore against a profit of ₹8.68 crore last year.
- Internet ticketing remained the largest profit contributor, with segment profit of ₹328.56 crore.
- Tourism segment profit increased 31.44% to ₹13.42 crore.
- Standalone results included an exceptional expense of ₹116.30 crore.
About Indian Railway Catering and Tourism Corporation (IRCTC)
Indian Railway Catering and Tourism Corporation (IRCTC) is a Navratna public sector undertaking (PSU) under the Ministry of Railways, Government of India. The company provides catering and hospitality services to railway passengers, operates the online railway ticketing platform, offers tourism and travel-related services, and supplies packaged drinking water under the Rail Neer brand. Through its diversified business operations, IRCTC plays an important role in improving passenger services and supporting India’s railway tourism and catering ecosystem.
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