IRCTC Share: 5 Key Business Segments That Drove Revenue to ₹1,454 Cr in Q3

Synopsis: IRCTC’s Catering led revenue at ₹661.43 crore, while its Internet Ticketing monopoly contributed ₹400.63 crore in Q3. Ticketing, though smaller in revenue, is the most profitable due to low costs and high margins. Overall, IRCTC shows balanced growth across segments, with strong profitability, capital efficiency, and financial stability.

As a Navratna PSU and the exclusive online ticketing partner of Indian Railways, IRCTC operates at the intersection of transportation, hospitality, and tourism. With business segments spanning internet ticketing, catering and onboard services, packaged drinking water, and tourism promotion, the company has built a diversified revenue model. 

The key question, however, remains: are IRCTC’s revenues primarily driven by its ticketing monopoly, or do its other business segments contribute more significantly to its overall performance?.

With a market capitalization of Rs. 51,672.00 crores on the day’s trade, the shares of Indian Railway Catering and Tourism Corporation Ltd jumped upto 3.5 percent, making a high of Rs. 651.15 per share compared to its previous closing price of Rs. 628.85  per share.

Let’s explore the key driver of IRCTC’s Revenue

The company’s performance across its key segments highlights IRCTC’s strategic focus on growth and service diversification. Below is a breakdown of the consolidated segment-wise revenue for the quarter ended Q3 FY26. This comparison will help us understand whether ticketing continues to be the company’s primary revenue driver or if another business segment has emerged as the new leader in contributing to IRCTC’s earnings.

Catering

Catering, which includes on-board meals, e-catering, pantry car operations, and food services at station-based outlets and executive lounges, is a major contributor to IRCTC’s service portfolio.  Revenue increased from Rs. 554.81 crore in Q3FY25 to Rs. 661.43 crore in Q3FY26, registering a growth of Rs. 106.62 crore, up 19.2 percent year-on-year.

Internet Ticketing

Internet Ticketing, IRCTC’s flagship segment, includes the online booking of railway tickets through its website and mobile app, along with revenues from service charges, payment gateway fees, and advertising on the platform. Revenue rose from Rs. 353.72 crore in Q3FY25 to Rs. 400.63 crore in Q3FY26, an increase of Rs. 46.91 crore, reflecting 13.3 percent growth year-on-year.

Rail Neer

Rail Neer, IRCTC’s packaged drinking water brand, caters primarily to railway passengers across stations and trains. It plays a key role in ensuring access to safe and hygienic drinking water while supporting the company’s non-ticketing revenue. Revenue rose from Rs. 96.36 crore in Q3FY25 to Rs. 102.75 crore in Q3FY26, an increase of Rs. 6.39 crore, reflecting 6.6 percent growth year-on-year.

Tourism

Tourism, which includes travel packages, Bharat Gaurav trains, hotel bookings, and other leisure travel services offered by IRCTC, continues to expand its footprint in the domestic travel market. Revenue increased from Rs. 223.73 crore in Q3FY26 to Rs. 289.27 crore in Q3FY26, a rise of Rs. 65.54 crore, showing strong 29.3 pecrent year-on-year growth.

In Q3 FY26, IRCTC’s total revenue was Rs. 1,454.09 crore, with Catering contributing the largest share at 45.5%, followed by Internet Ticketing at 27.5%, Tourism at 19.9%, and Rail Neer at 7.1%, reflecting balanced growth across all key segments.

IRCTC’s total consolidated revenue for Q3 FY26 stood at Rs. 1,454.09 crore, up from Rs. 1,228.62 crore in Q3 FY25, reflecting a year-on-year growth of 18.4%, and this steady rise highlights balanced contributions from all key segments.

Segment Results (PBT)

In Q3 FY26, IRCTC’s Internet Ticketing segment remained the top contributor, generating Rs. 340.97 crore, up from Rs. 299.52 crore in Q3 FY25 before their taxes, reflecting good growth. The Catering segment brought in Rs. 68.48 crore, up from Rs. 67.47 crore, marking a marginal rise. This data indicates a notable shift, with Ticketing climbing to the top spot in revenue results, while catering, Tourism, and Rail Neer show strong growth momentum.

Indian Railway Catering and Tourism Corporation (IRCTC) is a key public sector enterprise under the Ministry of Railways, specializing in internet ticketing, catering, packaged drinking water, and tourism services. As a strategic arm of Indian Railways, IRCTC plays a crucial role in enhancing the passenger experience while contributing significantly to the national transport ecosystem.

The company generates revenue through its diversified verticals, including online ticket booking, on-board catering, hospitality services at stations, travel packages, and exclusive luxury train experiences, positioning itself as a unique, integrated service provider in the travel and tourism sector.

IRCTC has improved its digital services and customer support, making it easier and safer for millions of people to book train tickets every day. By running its services efficiently and at a large scale, the company helps boost tourism and provides reliable service. This makes IRCTC an important part of India’s travel system and overall economic progress.

The company demonstrates strong capital efficiency and profitability, with a ROCE of 49.0% and ROE of 37.2%, highlighting its ability to generate high returns from both equity and overall capital employed. Its 3-year average ROE of 40.4% further reinforces a consistent track record of superior performance.

Additionally, the company has delivered a strong 20.0% profit CAGR over the past five years, highlighting consistent growth momentum. It remains financially stable with a very low debt-to-equity ratio of 0.02, indicating minimal leverage risk. Trading at a P/E of 35.8 compared to the industry average of 44.2, the valuation appears reasonable relative to peers, while a healthy dividend payout of 46.4% reflects a balanced approach between rewarding shareholders and reinvesting for future expansion.

In Q3 FY26, the Catering segment continued to be the highest revenue-generating vertical for IRCTC, contributing ₹661.43 crore, maintaining its lead. On the other side, Internet Ticketing, a monopoly segment, contributed ₹400.63 crore, showing a healthy growth of 13.3% on a yearly basis.

Despite IRCTC’s exclusive monopoly in the online railway ticketing space, the Catering segment has consistently generated the highest overall revenue for the company. This is because catering includes many different services like meals on trains, food delivery, pantry services, and food shops at stations, which together earn a lot of money regularly.

However, when it comes to profitability, the Ticketing segment outperforms all other verticals. Although ticketing contributes comparatively less to total revenue than catering, it benefits from higher profit margins. This is largely due to the relatively low cost of providing digital ticketing services combined with service charges, payment gateway fees, and advertising revenues that IRCTC collects. The scalability and efficiency of the online platform allow IRCTC to generate substantial profits from ticketing with minimal incremental costs, making it the most profitable segment for IRCTC.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post IRCTC Share: 5 Key Business Segments That Drove Revenue to ₹1,454 Cr in Q3 appeared first on Trade Brains.