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Railway PSU Indian Railway Catering and Tourism Corporation Ltd (IRCTC) on Thursday (November 12) reported a 22.9% year-on-year decline in net profit to ₹263.6 crore for the second quarter of FY27, compared with ₹342 crore in the corresponding quarter last year.
Revenue from operations increased 16.3% to ₹1,333.1 crore from ₹1,146 crore in the year-ago period.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose marginally by 1% to ₹408 crore from ₹404 crore a year earlier. However, the EBITDA margin contracted to 30.6% in the September quarter from 35.2% in the corresponding quarter last year.
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Segment Performance
Catering revenue increased 26.05% year-on-year to ₹655.01 crore in the September quarter from ₹519.66 crore a year earlier. Revenue from Rail Neer rose 7.5% to ₹101.11 crore from ₹94.06 crore. Internet ticketing revenue edged up 1.01% to ₹389.77 crore from ₹385.88 crore, while tourism revenue increased 28.42% to ₹192.03 crore from ₹149.53 crore.
However, the Rail Neer segment swung to a loss of ₹106.12 crore in the September quarter from a profit of ₹8.68 crore in the corresponding quarter last year.
Catering segment profit declined 3.7% to ₹64.48 crore from ₹66.96 crore, while internet ticketing profit rose 0.54% to ₹328.56 crore from ₹326.78 crore. Tourism segment profit increased 31.44% to ₹13.42 crore from ₹10.21 crore.
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Half-Year Results
For the half year ended September 30, 2026, IRCTC reported a consolidated net profit of ₹593.72 crore, down 11.7% from ₹672.73 crore in the corresponding period last year. Revenue from operations increased 17.2% to ₹2,702.60 crore from ₹2,305.67 crore.
The company's half-year results include an exceptional provision of ₹116.30 crore against an order passed by the Goods and Services Tax Appellate Tribunal (GSTAT) in connection with alleged profiteering on Rail Neer packaged drinking water.
The GSTAT, in its October 14, 2026 order, directed IRCTC to deposit the alleged profiteered amount of ₹50.41 crore in the Central and State Consumer Welfare Funds in a 50:50 ratio, along with interest at 18% per annum from June 28, 2019, until the date of deposit.
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The tribunal also imposed a penalty of 10% of the profiteered amount. However, the penalty will not be payable if the entire profiteered amount, along with applicable interest, is deposited within 30 days of the order.
IRCTC said it is filing an appeal against the order before the competent court. The company recognised a provision of ₹116.30 crore, including the alleged profiteered amount and interest at 18% up to September 30, 2026, as an exceptional item in its financial results.
Shares of Indian Railway Catering and Tourism Corporation Ltd ended at ₹470.85, down by ₹1.40, or 0.30%, on the BSE.
