Navratna stock in focus after company to be removed from F&O segment

SYNOPSIS: IRCTC will be phased out of the F&O segment under revised SEBI norms, with no new contracts issued. Existing derivative contracts will continue trading until their respective expiries by February 2026.

Shares of a Navratna PSU and the only company authorised by the Indian government to provide online railway tickets, catering services, and packaged drinking water at railway stations and trains in India are in focus on the stock exchanges, after exclusion from the F&O segment from February 2026.

At 11:00 a.m., shares of Indian Railway Catering & Tourism Corporation Limited were trading in green at Rs. 682.5 on BSE, compared to its previous closing price of Rs. 681.55, with a market cap of Rs. 54,600 crores. The stock has delivered negative returns of over 13 percent in one year, and has fallen by around 0.3 percent in the last one month.

What’s the News

Following a review under the revised stock eligibility norms issued by the Securities and Exchange Board of India (SEBI), futures and options (F&O) contracts on Indian Railway Catering and Tourism Corporation (IRCTC) Limited are set to be gradually withdrawn. Once the ongoing series expires, the National Stock Exchange of India (NSE) will stop issuing fresh IRCTC contracts with expiration months.

IRCTC will formally exit the F&O segment from 25th February 2026. However, all existing contracts with expiries on December 2025, January 2026, and February 2026 will remain available for trading until they mature. The exchange will also continue to introduce new strikes within these existing contract months.

Financials & More

IRCTC reported a growth in its revenue from operations, showing a year-on-year increase of nearly 8 percent from Rs. 1,064 crores in Q2 FY25 to Rs. 1,146 crores in Q2 FY26. Likewise, the company reported a net profit of Rs. 342 crores, representing a rise of around 11 percent from Rs. 308 crores, over the same period.

As of Q2 FY26, IRCTC’s segment-wise revenue reflects a well-diversified business mix. Catering remained the largest contributor, generating Rs. 519.66 crore, accounting for about 45 percent of total segment revenue. 

Internet Ticketing followed closely with Rs. 385.87 crore, contributing around 34 percent, highlighting the strength of IRCTC’s digital platform. The Tourism segment reported revenue of Rs. 149.5 crore, forming nearly 13 percent of the total, while Rail Neer added Rs. 94 crore, contributing about 8 percent. Overall, the revenue mix underscores IRCTC’s strong reliance on catering and ticketing, supported by steady contributions from tourism and packaged drinking water.

IRCTC is a ‘Navratna’- public sector enterprise under the Ministry of Railways, Government of India. Its primary operational activities include food and hospitality services, internet ticketing and travel and tourism, aligning with its strategic vision of providing a comprehensive one-stop travel solution for its passengers. To elevate the passenger experience, IRCTC also manages executive lounges, budget hotels and retiring rooms. 

Beyond railway services, IRCTC has expanded its portfolio to include hotel bookings, tour packages via rail, land, and cruise, along with air ticket bookings, positioning itself as a prominent travel and tourism service provider catering to a wide range of tourists.

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