Earnings Review
IRCTC Q1 revenue growth slows on yr on lower catering sales
This story was originally published at 19:01 IST on 13 August 2025
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--IRCTC Apr-Jun PAT from continuing ops INR 3.30 bln vs INR 3.08 bln yr ago
--IRCTC Apr-Jun revenue INR 11.60 bln vs INR 11.18 bln year ago
--IRCTC Apr-Jun catering revenue INR 5.47 bln vs INR 5.59 bln year ago
--IRCTC Apr-Jun tourism revenue INR 1.48 bln vs INR 1.22 bln year ago
--IRCTC Q1 internet ticketing revenue INR 3.59 bln vs INR 3.29 bln year ago
--IRCTC Apr-Jun rail neer revenue INR 1.10 bln vs INR 1.11 bln year ago
By Arya S. Biju
MUMBAI – Indian Railway Catering and Tourism Corp. Ltd. reported a low-single-digit on-year rise in its top line for the June quarter, marking the slowest growth in revenue since its shares were listed on the stock market. This slower growth in sales was due to a decline in revenue from its largest vertical, catering, which offset the rise in revenues from its internet ticketing and tourism operations. Its bottom line for the quarter saw a high-single-digit on-year rise, supported by a slower growth in expenses. However, the company reported a sequential decline in both metrics.
The public sector company reported a net profit of INR 3.30 billion for the June quarter, up over 7% on year but down nearly 8% on a sequential basis. The net profit for the quarter was lower than the INR 3.34 billion estimated by Dolat Capital Market Pvt. Ltd. and INR 3.38 billion estimated by Prabhudas Lilladher Pvt. Ltd. The company's net sales for the quarter rose nearly 4% on year but fell around 9% on quarter to INR 11.60 billion. This was also below the INR 11.89 billion net sales estimated by Dolat Capital and INR 12.38 billion estimated by Prabhudas Lilladher.
Revenue from its catering business, which contributes around 47% of the company's total sales, fell over 2% on year to INR 5.47 billion. Revenue from the internet ticketing business, which contributed around 31% of its total sales, rose over 9% on year to INR 3.59 billion. Its tourism division sales jumped nearly 21% on year to INR 1.48 billion, while sales of its Rail Neer division, which sells packaged water, fell a little less than 1% to INR 1.10 billion.
The company's total expenses for the quarter rose around 3% on year but fell nearly 14% on quarter to INR 7.79 billion. As in the case of on-year growth in revenue, the near 3% on-year growth in expenses was the slowest since the company's listing. IRCTC's expenses related to catering services, which accounted for 54% of its total costs, rose over 6% on year to INR 4.19 billion.
Its expenses related to tourism grew around 19% on year to INR 1.13 billion, while costs related to the purchase of stock-in-trade fell around 38% on year to INR 446 million. The company had a tax expense of INR 1.11 billion, up around 7% on year but down 2% on quarter.
Wednesday, shares of IRCTC closed at INR 727.35 on the National Stock Exchange, up around 1%. The company announced its June quarter results after market hours. End
Edited by Saji George Titus
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