Indian Railway Catering and Tourism Corporation (IRCTC IN) – Q2FY26 Result Update – A mixed quarter – BUY
Published on 13 Nov 2025
IRCTC IN reported a mixed set of results with an EBITDA margin of 35.3% (PLe 36.4%) while PAT was marginally better than our estimate aided by higher other income of Rs630mn (PLe Rs559mn) As e-ticketing penetration has reached ~89%, we expect non-convenience pie to drive the revenue growth in internet ticketing division. As for rail neer, capacity expansion at Danapur & Ambernath and addition of 4 new plants will provide the growth fillip. We broadly maintain our estimates and expect sales/PAT CAGR of 7%/9% over FY25-FY28E. IRCTC trades at 37x/35x our FY27E/FY28E EPS estimates (1-year forward LPA is 48.3x) with healthy return ratios (average RoE/RoCE of 32%/38% over the next 3 years). Retain BUY with a TP of Rs840 (44x FY27E EPS; no change in target multiple).
