Indian Railway Catering & Tourism Corp. Ltd. (IRCTC) AI Stock Analysis

Indian Railway Catering & Tourism Corp. Ltd.

(NSE:IRCTC)

Select Model

Rating:69Neutral

Price Target:INR 478.00▲(9.55% Upside)

Action:reiterated

Date:08/28/26

The score is primarily supported by strong financial performance—high margins, very low leverage, and solid cash conversion. This is meaningfully offset by weak technical conditions, with the stock below all major moving averages and negative momentum indicators. Valuation is neutral-to-slightly expensive at ~28x earnings with a ~1.95% dividend yield, limiting upside support in the near term.

Positive Factors

Strategic rail-linked positionIRCTC’s designated role in Indian Railways passenger reservations provides a structurally important position and recurring access to large transaction volumes. Its linked ticketing, catering, water, and tourism businesses also diversify monetization across the railway passenger ecosystem.

Negative Factors

Margin compressionMargin compression suggests that costs or business mix have become less favorable as revenue has grown. If this trend persists, additional sales may generate less incremental profit, limiting operating leverage and reducing the pace at which strong revenue growth converts into earnings.

Indian Railway Catering & Tourism Corp. Ltd. (IRCTC) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 371.28B
Dividend Yield: 2.06%
Average Volume (3M): 102.18K
Price to Earnings (P/E): 25.0
Beta (1Y): 1.26
Revenue Growth: 15.01%
EPS Growth: 4.11%
Country: India
Employees: 1,318
Sector: General
Sector Strength: 55
Industry: Travel Services

Indian Railway Catering & Tourism Corp. Ltd. Business Overview & Revenue Model

Company Description

Established in New Delhi, India in 1999, Indian Railway Catering & Tourism Corporation Limited (IRCTC) operates as a leading provider of diverse services across the nation. Its core business encompasses catering and hospitality, online ticket reserva...

How the Company Makes Money

IRCTC generates revenue through multiple, rail-linked business verticals: 1) Internet ticketing and passenger travel services - Convenience/service fees and related charges: IRCTC earns fees associated with facilitating online railway ticket bookings...

Indian Railway Catering & Tourism Corp. Ltd. Financial Statement Overview

Summary

Strong overall fundamentals driven by steady multi-year revenue growth and high profitability (EBIT margin ~31% and net margin ~26–28%). Balance sheet is a major strength with extremely low leverage (~2% debt-to-equity) and robust ROE (mid-30% to ~40% range in 2023–2025). Main offsets are margin compression versus 2022–2023 peaks and some variability in operating cash flow versus revenue despite strong free-cash-flow conversion (~94–95% of net income).

Income Statement

86Very Positive

Balance Sheet

92Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	54.25B	52.15B	46.74B	42.60B	35.41B	18.78B
Gross Profit	18.65B	18.61B	17.32B	16.13B	14.07B	9.60B
EBITDA	18.71B	19.43B	18.27B	15.72B	14.24B	9.45B
Net Income	13.93B	13.93B	13.15B	11.11B	10.06B	6.60B
Balance Sheet
Total Assets	0	75.80B	68.00B	60.91B	50.89B	38.84B
Cash, Cash Equivalents and Short-Term Investments	28.68B	28.68B	26.57B	22.76B	19.30B	17.30B
Total Debt	0	807.26M	897.96M	603.50M	841.62M	1.05B
Total Liabilities	-43.09B	32.71B	31.37B	28.61B	26.10B	20.14B
Stockholders Equity	43.09B	43.09B	36.63B	32.30B	24.78B	18.70B
Cash Flow
Free Cash Flow	8.07B	13.48B	7.62B	6.50B	7.43B	5.02B
Operating Cash Flow	8.34B	14.26B	8.10B	8.82B	8.12B	5.24B
Investing Cash Flow	-5.18B	-5.99B	-2.29B	-2.00B	-3.17B	-2.42B
Financing Cash Flow	-903.58M	-7.87B	-9.10B	-4.04B	-4.34B	-2.58B

Indian Railway Catering & Tourism Corp. Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price436.35

Price Trends

50DMA464.34Negative

100DMA485.48Negative

200DMA525.85Negative

Market Momentum

MACD-6.86Positive

RSI35.78Neutral

STOCH12.88Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IRCTC, the sentiment is Negative. The current price of 436.35 is below the 20-day moving average (MA) of 453.80, below the 50-day MA of 464.34, and below the 200-day MA of 525.85, indicating a bearish trend. The MACD of -6.86 indicates Positive momentum. The RSI at 35.78 is Neutral, neither overbought nor oversold. The STOCH value of 12.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:IRCTC.

Indian Railway Catering & Tourism Corp. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:IRCTC against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:BLS	79Outperform	INR 86.26B	12.20	―	1.20%	31.81%	24.89%
IN:BALMLAWRIE	78Outperform	INR 26.58B	9.52	―	5.47%	8.87%	2.96%
IN:IRCTC	69Neutral	INR 349.08B	25.04	―	2.06%	15.01%	4.11%
IN:TCI	69Neutral	INR 67.06B	14.70	―	1.15%	11.54%	5.66%
IN:VRLLOG	64Neutral	INR 45.47B	17.02	―	3.85%	5.59%	21.76%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SPICEJET	23Underperform	INR 11.43B	32.78	―	―	-14.50%	-239.75%

* General Sector Average

Performance Comparison

IN:IRCTC and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:IRCTC	Indian Railway Catering & Tourism Corp. Ltd.	436.35	-277.05	-38.84%
IN:BALMLAWRIE	Balmer Lawrie & Co. Ltd.	155.45	-36.62	-19.07%
IN:BLS	BLS International Services Ltd.	209.50	-105.00	-33.39%
IN:SPICEJET	SpiceJet Limited	7.49	-29.36	-79.67%
IN:TCI	Transport Corporation of India Limited	872.85	-317.97	-26.70%
IN:VRLLOG	VRL Logistics Ltd.	259.95	-16.97	-6.13%

Indian Railway Catering & Tourism Corp. Ltd. Corporate Events

IRCTC receives unsolicited ESG ‘Performer’ rating from Niche 99

Sep 18, 2026

Indian Railway Catering & Tourism Corporation disclosed that Niche Ninety Nine Capability and Certifications, a SEBI-registered ESG Rating Provider under Category II, has independently assigned the company an Environmental, Social and Governance...

IRCTC Appoints New Statutory Auditor for FY 2026-27

Sep 9, 2026

Indian Railway Catering & Tourism Corporation Ltd. has announced a change in its statutory auditor for the financial year 2026-27, following an appointment by the Comptroller & Auditor General of India. The move underscores IRCTC’s comp...

IRCTC Schedules Non-Deal Investor Roadshows in Mumbai

Aug 14, 2026

Indian Railway Catering & Tourism Corporation Ltd. has informed the stock exchanges that its management will hold non-deal roadshows with prospective investors in Mumbai on August 19 and August 21, 2026. The sessions will cover a corporate presen...

IRCTC Board Clears Q1 FY27 Unaudited Financial Results

Aug 12, 2026

Indian Railway Catering & Tourism Corporation Ltd. (IRCTC) is a Government of India Navratna enterprise engaged in rail catering, tourism, and online ticketing, serving passengers of Indian Railways and the wider travel market. It operates as a c...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 28, 2026

Indian Railway Catering & Tourism Corp. Ltd. AI Stock Analysis