Indian Railway Catering and Tourism Corporation (IRCTC) Review
Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) is a public sector undertaking under the Ministry of Railways, Government of India, managing catering, tourism, and online ticketing operations. With its role in transforming railway operations throughout India, IRCTC often features in discussions about stocks to buy today for investors interested in the public railway sector.
Company Name: Indian Railway Catering and Tourism Corporation Ltd.
Ticker Symbol: IRCTC
Founded in: New Delhi, India (1999)
Market Cap: Approximately ₹57,884 crore
Share Prices: ₹723.65
P/E Ratio: 43.28
Industry: Online Services
Type: Mid Cap
Updated on October 28, 2025
Overview
IRCTC’s full form is Indian Railway Catering and Tourism Corporation Ltd. It was established on September 27, 1999, as an extended arm of Indian Railways, with the commission to professionalize and upgrade catering, hospitality, and tourism services across the railway network. Headquartered in New Delhi, IRCTC initially focused on enhancing customer satisfaction by providing reliable and convenient ticketing systems.
IRCTC has been a stock market success story since October 2019, when people who bought shares early saw their money double on the very first day of trading. The stock hit ₹6,393 by October 2021, then the company broke each share into five smaller ones (called a stock split). After the split, shares traded around ₹1,279 each and later reached ₹1,049.75 in January 2024. Despite market volatility, IRCTC has been a multibagger, rising over 200% in three years and establishing itself as a leading Indian e-commerce brand.
The company has successfully diversified beyond railway ticketing into e-catering, packaged water (Rail Neer), and tourism packages, positioning itself at the heart of India’s travel sector. Today, IRCTC boasts a market capitalization of ₹57,884 crore with shares trading at ₹723.65, reflecting robust financials and strong investor confidence in its continued growth
Timeline Expansion of Indian Railway Catering and Tourism Corporation Ltd. (IRCTC)
This IRCTC review highlights the company’s substantial timeline expansion since its establishment, showcasing its continuous evolution and growth over the years.
- 1999: IRCTC was incorporated as a subsidiary of Indian Railways to manage catering and tourism services.
- 2002: Launched online ticketing services on August 3, 2002, revolutionizing railway reservations in India by enabling passengers to book tickets online via its website and mobile apps.
- 2008: Granted Miniratna status, providing greater financial and operational autonomy.
- 2010: Faced challenges due to changes in catering policies but adapted by diversifying services, including expanding into e-catering and tourism.
- 2014: Introduced the Next Generation E-ticketing (NGeT) system, enhancing the ticket booking platform with higher capacity and better user interface; also launched e-catering services allowing passengers to order food online during their journey.
- 2019: IRCTC was listed on the National Stock Exchange and Bombay Stock Exchange, marking a significant milestone in its corporate journey.
- 2020: Launched a renovated and upgraded e-ticketing website and mobile app on December 31, 2020, with improved user experience, better security, and integrated services for meals and accommodation.
- 2021: Expanded services by launching online bus ticket booking, partnering with over 50,000 bus operators across India to provide a more comprehensive travel booking platform.
- 2020-2022: Expanded tourism services, including luxury train tours and travel packages, further diversifying its portfolio.
- 2025: Continues to innovate with digital initiatives and partnerships aimed at enhancing passenger experience, including the development of smart booking features and integrated travel solutions.
Products & Services of Indian Railway Catering and Tourism Corporation Ltd. (IRCTC)
Here’s a comprehensive overview of the core products and upcoming projects offered by the Indian Railway Catering and Tourism Corporation Ltd. (IRCTC):
Core Products and Services
| Core Products & Services | Description |
|---|---|
| Internet Ticketing | Primary online rail ticketing platform handling a majority of Indian Railways e-ticketing via website and app. |
| Catering | Catering services on trains, stations, and e-catering with diverse hygienic meal options. |
| Rail Neer | Packaged drinking water brand with expanding production facilities. |
| Tourism | Domestic/international tour packages, luxury trains (Maharajas’ Express, Golden Chariot), Bharat Gaurav trains. |
| Hospitality | Hotels, retiring rooms, railway lounges, food plazas, expanding into new locations. |
| Travel Insurance | Offers optional travel insurance coverage during ticket booking. |
| Fintech Services | Payment gateway (iPay), co-branded credit cards, loyalty programs, and bank integrations. |
| Multi-modal Travel Solutions | Booking for buses, flights, and accommodations for seamless travel planning. |
Upcoming Projects
| Upcoming Projects | Description |
|---|---|
| SwaRail Mobile App | A new app merging ticket booking, real-time train tracking, food ordering, and complaint management, aiming to enhance passenger convenience. |
| Executive Lounge at Bhopal Station | The most modern lounge featuring luxurious seating, dining services, and modern amenities, set to open soon. |
| Bharat Gaurav Tourist Trains | The spiritual train journeys—one to Uttarakhand’s Kedarnath (with added road or helicopter travel), and another across South India, covering popular temples designed for affordable and organized pilgrimages. |
Subsidiaries of Indian Railway Catering and Tourism Corporation Ltd. (IRCTC)
IRCTC railway has expanded its operations through subsidiary development, establishing IRCTC Payments Limited on February 10, 2024, with complete ownership. The IRCTC company was created to develop payment aggregator and gateway solutions under the iPay brand, reflecting IRCTC’s strategic entry into the fintech sector to complement its core railway and tourism services.
Profit & Loss of Indian Railway Catering and Tourism Corporation Ltd. (IRCTC)
As part of this IRCTC review, here is the profit and loss summary of Indian Railway Catering and Tourism Corporation Ltd. for the last five fiscal years:
| Fiscal Year | Revenue (₹ Crore) | Profit After Tax (PAT) (₹ Crore) | Profit Growth (%) |
|---|---|---|---|
| 2019-20 | 2,275 | 528 | — |
| 2020-21 | 782 | 189 | -64.06% |
| 2021-22 | 1,879 | 663 | 249.49% |
| 2022-23 | 3,540 | 1,005 | 51.62% |
| 2023-24 | 4,269 | 1,111 | 10.44% |
* Profit Growth (%) is calculated based on the year-over-year growth in Profit After Tax (PAT).
* Updated on May 2025
IRCTC’s financial performance over the past five years showcases remarkable resilience and recovery. The company faced a sharp fall in revenue and profit during 2020-21 due to COVID-19’s impact on travel and catering services. However, IRCTC railway demonstrated strong adaptability with a dramatic rebound in 2021-22, achieving a 249.49% increase in profit after tax, driven by recovering travel demand and operational improvements. The company kept getting more profitable each year, reaching its best performance in FY2023- 24. That year, they made a profit of ₹1,111 crores from total sales of ₹4,270 crores, which means they kept about 26% of every rupee they earned as profit. This financial data reflects IRCTC’s ability to not only recover from pandemic-induced challenges but also achieve enhanced profitability beyond pre-pandemic levels.
Is Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) a Good Investment?
As a summary of our Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) review, the IRCTC company is considered a strong investment due to its monopoly in online rail ticketing, diversified services such as catering, tourism, and luxury trains, and consistent financial performance. Backed by government support and digital innovations like the SwaRail app, it offers long-term growth potential.
However, the stock has traded at a high P/E ratio of around 51.14, indicating overvaluation concerns. IRCTC stock faces risks from valuation pressure, government policy changes, railway disruptions. It is also impacted by economic slowdowns, reduced travel demand, or potential competition threatening its monopoly. While fundamentals remain solid, investors should carefully weigh these risks before investing.
To compare Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) against other top performers in India’s stock market, explore our selected list of popular stocks that offer comprehensive sector analysis and performance comparisons.
Disclaimer
Investing in Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) involves market risks. The information provided is for educational and informational purposes only and should not be considered as investment advice or a recommendation to buy or sell any stock. Past performance is not indicative of future results. Always conduct your research and consult with a certified financial advisor before making any investment decisions.
FAQs
Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) is a public sector enterprise under Indian Railways, responsible for online ticketing, catering, and tourism services. It operates the e-ticketing website, manages catering on trains and stations, and promotes budget and luxury tourism packages like Bharat Gaurav and Maharajas’ Express.
IRCTC earns from ticket booking convenience fees, catering services, tourism packages, advertising, and selling packaged water (Rail Neer). Ticketing remains its top earner, with catering and tourism now rapidly growing segments.
IRCTC’s monopoly in railway e-ticketing and catering ensures steady revenue, while its asset-light model delivers high profitability with minimal capital needs. Government backing, strong margins, regular dividends, and expanding tourism ventures make it a unique defensive public sector undertaking (PSU) stock.
IRCTC is considered a strong long-term investment due to its monopoly in rail ticketing, catering, and tourism, and consistent revenue from Indian Railways. It has low debt, strong financials, and stable dividend payouts, making it a favored public sector undertaking (PSU) stock among long-term investors.
Key risks include regulatory changes, government pricing control, reduced margins from service revisions, and reliance on Indian Railways. Also, market volatility or limits on convenience fees can impact profitability in the short term.