IRCTC stock in focus on Q1 revenue growth, margin gain
IRCTC posts a 7% YoY profit increase for Q1, closing at ₹728.90 on the NSE. Board approves winding-up of joint venture RIRTL with Cox & Kings. Legal disputes over GST and licence fees persist.
- Aug 14, 2025,
- Updated Aug 14, 2025 8:41 AM IST
Shares of Indian Railway Catering and Tourism Corporation Ltd (IRCTC) are in focus today after the railway firm posted a 7.4% year-on-year rise in consolidated net profit for the June quarter. Net profit rose to ₹331 crore in Q1 compared to ₹308 crore the previous year. Revenue grew 11.8% to ₹1,159.6 crore, bolstered by strong contributions from key segments such as catering and internet ticketing.
The company's operating profit climbed 5.8% to ₹396 crore, with margins improving to 34.2% from 33.5% a year earlier. IRCTC shares closed at ₹727.55 on the BSE, marking a 0.96% increase.
The Board of IRCTC also approved initiating winding-up proceedings against Royale Indian Rail Tours Limited (RIRTL), a joint venture with Cox & Kings Limited. The petition will be filed with the National Company Law Tribunal in New Delhi under the Companies Act, 2013.
IRCTC is currently dealing with several legal challenges, primarily concerning enhanced licence fees for catering services on trains—a dispute that remains unresolved in court. The financial implications of this matter are yet to be reflected in the company's accounts.
Further compounding legal issues, IRCTC faces disputes over Goods and Services Tax (GST) reimbursements with Developer-cum-Operators of Railneer plants due to discrepancies in Input Tax Credit data. The National Anti-Profiteering Authority's notice concerning alleged profiteering on Railneer sales is under review by the Competition Commission of India.
Despite these challenges, the Board of Directors has expressed confidence in IRCTC's long-term growth prospects. They reaffirmed the company's focus on navigating regulatory hurdles while maintaining a strong market position and delivering shareholder value.
IRCTC's competitors in the railway and tourism sector include major players such as MakeMyTrip and Thomas Cook, which continue to influence the market dynamics. IRCTC's strategic decisions will be critical in maintaining its competitive edge.
Looking ahead, analysts suggest that successfully addressing current legal and regulatory challenges will be crucial for IRCTC's future growth. The company's solid market fundamentals provide a favourable outlook amidst sectoral challenges.
Shares of Indian Railway Catering and Tourism Corporation Ltd (IRCTC) are in focus today after the railway firm posted a 7.4% year-on-year rise in consolidated net profit for the June quarter. Net profit rose to ₹331 crore in Q1 compared to ₹308 crore the previous year. Revenue grew 11.8% to ₹1,159.6 crore, bolstered by strong contributions from key segments such as catering and internet ticketing.
The company's operating profit climbed 5.8% to ₹396 crore, with margins improving to 34.2% from 33.5% a year earlier. IRCTC shares closed at ₹727.55 on the BSE, marking a 0.96% increase.
The Board of IRCTC also approved initiating winding-up proceedings against Royale Indian Rail Tours Limited (RIRTL), a joint venture with Cox & Kings Limited. The petition will be filed with the National Company Law Tribunal in New Delhi under the Companies Act, 2013.
IRCTC is currently dealing with several legal challenges, primarily concerning enhanced licence fees for catering services on trains—a dispute that remains unresolved in court. The financial implications of this matter are yet to be reflected in the company's accounts.
Further compounding legal issues, IRCTC faces disputes over Goods and Services Tax (GST) reimbursements with Developer-cum-Operators of Railneer plants due to discrepancies in Input Tax Credit data. The National Anti-Profiteering Authority's notice concerning alleged profiteering on Railneer sales is under review by the Competition Commission of India.
Despite these challenges, the Board of Directors has expressed confidence in IRCTC's long-term growth prospects. They reaffirmed the company's focus on navigating regulatory hurdles while maintaining a strong market position and delivering shareholder value.
IRCTC's competitors in the railway and tourism sector include major players such as MakeMyTrip and Thomas Cook, which continue to influence the market dynamics. IRCTC's strategic decisions will be critical in maintaining its competitive edge.
Looking ahead, analysts suggest that successfully addressing current legal and regulatory challenges will be crucial for IRCTC's future growth. The company's solid market fundamentals provide a favourable outlook amidst sectoral challenges.