Indian Railway Catering And Tourism Corporation Limited Earnings Summary — Q1 FY2027
IRCTC Maintains Steady Profitability Amidst Significant Catering Growth
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 6.2% sequentially in Q1 FY2027.
- Revenue of ₹1,370 Cr is 18.1% higher year-on-year.
- Revenue has compounded at 7.9% annualised over the last 10 quarters.
- Net profit of ₹330 Cr is 0.2% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 6.8% annualised across the period.
- Operating margin stands at 28.2% in Q1 FY2027.
- Operating margin compressed by 603 bps year-on-year.
- Over the last two years operating margin has contracted by 531 bps.
- PBT margin is 32.2%.
- Expenses grew 28.9% against revenue growth of 18.1%.
- Operating profit of ₹387 Cr is 2.7% lower year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 59/100 (Healthy) on the latest 10 quarters.
- Business momentum is broadly stable quarter to quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 1,370 | 1,460 | 1,449 | 1,146 | 1,160 | 1,269 | 1,225 | 1,064 | 1,118 | 1,155 |
| Expenses | Improving | 983 | 1,061 | 984 | 742 | 762 | 883 | 808 | 691 | 743 | 792 |
| Operating Profit | Stable | 387 | 399 | 465 | 404 | 397 | 385 | 417 | 373 | 375 | 363 |
| Operating Margin | Stable | 28.2% | 27.3% | 32.1% | 35.3% | 34.3% | 30.4% | 34.0% | 35.0% | 33.5% | 31.4% |
| Other Income | Improving | 71 | 67 | 81 | 69 | 61 | 107 | 56 | 60 | 54 | 41 |
| Interest | Volatile | 4 | 5 | 5 | 4 | 4 | 8 | 3 | 3 | 3 | 5 |
| Depreciation | Stable | 12 | 14 | 12 | 11 | 12 | 12 | 13 | 13 | 14 | 16 |
| Profit Before Tax | Stable | 441 | 447 | 529 | 457 | 442 | 472 | 457 | 417 | 412 | 382 |
| Tax | Stable | 111 | 120 | 135 | 115 | 111 | 114 | 115 | 109 | 104 | 98 |
| Net Profit | Stable | 330 | 327 | 394 | 342 | 330 | 358 | 341 | 308 | 308 | 284 |
| Net Margin | Stable | 24.1% | 22.4% | 27.2% | 29.8% | 28.5% | 28.2% | 27.9% | 28.9% | 27.5% | 24.6% |
Key Takeaways
- Revenue from operations grew 18.1% YoY to ₹1,369.5 Cr, primarily driven by a 33.9% surge in Catering segment revenue.
- Catering has become the largest revenue contributor (₹732.3 Cr), surpassing Internet Ticketing, though its margins remain lower.
- Internet Ticketing remains the primary profit engine, contributing ₹289.6 Cr to segment results with a robust 80.2% margin.
- Tourism revenue saw a sharp sequential decline of 44.6% QoQ from ₹303.6 Cr to ₹168.1 Cr, reflecting seasonal variations.
- Net Profit remained relatively flat YoY at ₹329.9 Cr, impacted by rising catering expenses and manufacturing costs.
- Ongoing legal disputes persist regarding GST Input Tax Credit with Railneer plant operators and a ₹50.4 Cr anti-profiteering notice.
- The Company maintains a strong liquid position with interest income contributing ₹53.6 Cr to the pre-tax profit.
Management Guidance
Management focus remains on the 'Premiumization' strategy through increased Vande Bharat train deployments and expanding the E-catering services footprint. The company is transitioning towards a comprehensive travel platform to leverage its high-margin digital ticketing cash flows.
Sentiment Shift
Stable
While revenue growth is healthy, the shift in segment mix toward lower-margin catering has led to a compression of overall operating margins compared to the previous year.
Outlook
The outlook remains positive for the digital ticketing segment as rail travel expands, but overall margin expansion is capped by the high growth in the catering and tourism segments. Legal outcomes regarding GST and catering tariffs remain key monitorables.
From the Annual Report (Key Quotes)
“Effect of enhancement of License Fee... has not been recognized as some of the licensees have challenged company's decision.”
“Assets and Liabilities used in the company's business are not identified to any of the reportable segments as these are used interchangeably.”
“The Company contends that Railneer drinking water falls under controlled price segment as the MRP is fixed by Ministry of Railways.”
Official Quarterly Documents
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This summary is AI-generated from Indian Railway Catering And Tourism Corporation Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.
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