NEW DELHI, India — Indian Railway Catering and Tourism Corporation (IRCTC) is looking to strengthen growth in FY27 by tapping a revival in spiritual tourism, expanding catering capacity and upgrading its digital platform, even as its first-quarter profitability remained broadly flat amid global pressures.
- IRCTC expects spiritual tourism to provide a meaningful boost to its tourism business in FY27.
- The company has scaled up two catering plants and plans to add four more.
- A redesigned, captcha-free IRCTC website is planned for a full rollout in Q2 FY27.
- Q1 FY27 net profit was Rs 330 crore, while revenue increased 18.1% year-on-year to Rs 1,370 crore.
IRCTC bets on spiritual tourism revival
IRCTC CMD Rahul Himalian said the company is seeing early signs of renewed interest in pilgrimage travel. The corporation expects the revival in spiritual tourism to support its tourism vertical during FY27.
The company is also seeking to broaden its non-fare revenue base. The strategy is aimed at creating additional sources of growth rather than relying heavily on one business segment.
IRCTC plans major catering capacity expansion
Catering remains a key part of IRCTC’s growth strategy. The company has already expanded two catering plants, while four additional plants are in the pipeline.
The expansion is expected to increase catering capacity during the year. The catering business was also the largest contributor to revenue growth in the June quarter.
IRCTC is targeting a 10-12% improvement in catering margins during FY27. The company is also working to maintain its overall EBITDA margin above 30% for the financial year.
New captcha-free IRCTC website planned for Q2 FY27
IRCTC is preparing to launch a redesigned website focused on improving the user experience. The new platform is expected to remove captcha verification, potentially making ticket booking and other online services more streamlined.
A beta version of the redesigned website is already live, while the full rollout is planned for the second quarter of FY27. The digital upgrade comes as competition in online travel and ticketing continues to increase.
IRCTC Q1 FY27 financial performance
IRCTC’s June quarter performance showed strong revenue growth but comparatively weaker profitability. Net profit for Q1 FY27 stood at Rs 330 crore, compared with Rs 331 crore in the corresponding quarter a year earlier.
| Financial Metric | Q1 FY27 | Year-on-Year Change |
|---|---|---|
| Net Profit | Rs 330 crore | Down 0.3% |
| Revenue | Rs 1,370 crore | Up 18.1% |
| EBITDA | Rs 387 crore | Down 2.7% |
| EBITDA Margin | 28.2% | Down from 34.3% |
Revenue rises despite pressure on profitability
Revenue increased from Rs 1,160 crore in the year-ago quarter to Rs 1,370 crore in Q1 FY27, representing an 18.1% year-on-year increase. The catering business was identified as the primary driver of the topline improvement.
However, EBITDA declined 2.7% to Rs 387 crore. The EBITDA margin also fell to 28.2% from 34.3% a year earlier, indicating pressure on operating profitability despite stronger revenue.
According to the supplied report, the West Asia crisis and other global disruptions weighed on profitability during the first quarter. IRCTC’s FY27 plans therefore combine capacity expansion with an effort to protect margins.
IRCTC’s FY27 growth strategy
The company’s plans bring together three major areas: spiritual tourism, catering expansion and digital modernisation. The combination is intended to support revenue growth while broadening IRCTC’s business base.
The performance of the catering business, progress on the additional plants and the rollout of the new website will be key developments to watch as IRCTC moves through FY27.
Frequently Asked Questions
What is IRCTC targeting for catering margins in FY27?
IRCTC is targeting a 10-12% improvement in catering margins during FY27, according to the supplied report.
When will IRCTC launch its new website?
IRCTC has a beta version of the redesigned website already live and plans the full rollout during the second quarter of FY27. The new platform is expected to be captcha-free.
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