IRCTC Q2 Results: Revenue Rises 16%, Net Profit Falls 23%; Rail Neer Reports Heavy Loss – Indian PSU
Indian Railway Catering and Tourism Corporation (IRCTC), a Navratna PSU under the Ministry of Railways, reported a mixed performance in the second quarter of FY2026-27, with healthy revenue growth failing to translate into higher profitability.
The company’s consolidated net profit declined 22.9% year-on-year to ₹263.6 crore in Q2 FY27, against ₹342 crore in the corresponding quarter last year. Revenue from operations, however, increased 16.3% to ₹1,333.1 crore from ₹1,146 crore.
Margins under pressure despite growth across businesses
IRCTC’s EBITDA increased marginally by around 1% to ₹408 crore from ₹404 crore in Q2 FY26. However, EBITDA margin contracted sharply to 30.6% from 35.2% a year ago, indicating pressure on operating profitability.
The performance of individual business segments presented a mixed picture:
| Business segment | Q2 FY27 revenue | YoY growth |
|---|---|---|
| Catering | ₹655.01 crore | 26.05% |
| Internet Ticketing | ₹389.77 crore | 1.01% |
| Tourism | ₹192.03 crore | 28.42% |
| Rail Neer | ₹101.11 crore | 7.5% |
Rail Neer emerges as a major concern
One of the most striking developments in the results was the performance of the Rail Neer business.
Despite recording revenue growth of 7.5%, the segment reported a loss of ₹106.12 crore during Q2 FY27, compared with a profit of ₹8.68 crore in the corresponding quarter last year.
Catering segment profit also declined 3.7% to ₹64.48 crore, despite strong revenue growth.
In contrast, internet ticketing remained IRCTC’s biggest profit contributor, with segment profit increasing marginally to ₹328.56 crore. Tourism segment profit rose 31.44% to ₹13.42 crore.
Exceptional provision impacts standalone results
IRCTC’s standalone results also reflected an exceptional expense of ₹116.30 crore during the September quarter.
The company’s filing reported standalone profit before tax of ₹355.61 crore, against ₹456.99 crore in Q2 FY26. Standalone profit after tax stood at ₹263.32 crore, compared with ₹341.86 crore a year earlier.
The company also disclosed that the exceptional item had been recognised in the quarter’s financial results.
The larger picture
IRCTC’s Q2 FY27 performance highlights a widening gap between revenue expansion and profit growth. Catering and tourism delivered strong topline growth, but the sharp deterioration in Rail Neer’s profitability and contraction in operating margins weighed on the overall performance.
For a company whose internet ticketing business continues to provide a substantial earnings base, the challenge will be to improve profitability in its other operating verticals while sustaining revenue growth.
