✨ At a Glance
IRCTC went from a boring PSU to a demigod of retail investors overnight. From monopoly train ticketing to selling Rail Neer at 500% markup, this ‘Mini Ratna’ is more cash machine than utility. But post-COVID and post-stock split hype, has the train slowed down? Let’s find out.
🌟 Part 1: What is IRCTC Actually?
- Full Name: Indian Railway Catering and Tourism Corporation
- Incorporated: 1999, Ministry of Railways baby
- Mini Ratna: Now upgraded to ‘Scheduled A’ PSU in 2024
- Businesses:
- Internet Ticketing (36% of rev): Monopoly via irctc.co.in
- Catering Services (40%): Train food, station stalls
- Rail Neer (Packaged Water) (5%)
- Tourism (19%): Bharat Gaurav trains, packages, air tickets
Basically, it sells everything you touch in a train journey. Except patience.
📊 Part 2: 5-Year Financial Recap (FY20 – FY25)
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) | OPM % | ROCE % |
|---|---|---|---|---|---|
| FY20 | 2,264 | 513 | 6.41 | 31% | 62% |
| FY21 | 777 | 187 | 2.34 | 24% | 16% |
| FY22 | 1,879 | 660 | 8.24 | 47% | 51% |
| FY23 | 3,541 | 1,006 | 12.57 | 36% | 59% |
| FY24 | 4,270 | 1,111 | 13.89 | 34% | 54% |
| FY25 | 4,675 | 1,315 | 16.43 | 33% | 49% |
- COVID was a full derailment (FY21 revenue dropped 65%)
- But since then: Revenue up 5.7x, Profits up 7x, Margins still elite
- OPM >30% consistently. PSU mein bhi profitability hoti hai, baba!
📊 Part 3: FY25 & Q4 Highlights
FY25
- Revenue: ₹4,675 Cr (up 9%)
- Net Profit: ₹1,315 Cr
- EPS: ₹16.43
- OPM: 33%
Q4FY25 (Mar 2025)
- Sales: ₹1,269 Cr (up 9.85% YoY)
- Net Profit: ₹358 Cr
- OPM: 30%
- EPS: ₹4.47
- Tourism & catering rebounded. Ticketing steady but growth saturating
🤝 Part 4: Shareholding Drama
| Category | Jun ’22 | Mar ’25 |
|---|---|---|
| Promoters | 67.4% | 62.4% |
| FIIs | 5.87% | 7.37% |
| DIIs | 5.32% | 13.89% |
| Public | 21.4% | 16.35% |
- Govt is gradually offloading
- DIIs love it (LIC spotted 🐘)
- Public trimmed exposure post high P/E concerns
🚒 Part 5: Business Strengths
- Monopoly on ticketing: Still charges service fee despite UPI
- Zero working capital stress: Customers prepay everything
- Operating leverage king: Margins rise without extra cost
- Rail Neer margins > Bisleri: PSU paani, MNC profits
🪖 Part 6: Valuation Check (as of June 2025)
- CMP: ₹769
- TTM EPS: ₹16.43
- P/E: ~47x
- PSU peers trade at 10-15x, but IRCTC is no ordinary PSU
Peer Benchmarking
- BLS International: 29x P/E
- TBO Tek: 63x
- Easy Trip: 35x
- Median sector P/E: 37x
🔢 Fair Value Calculation
- Base EPS estimate FY26: ₹18
- Fair P/E Range: 35x to 45x
FV Range = ₹630 to ₹810
=> Current price is near upper band. Risk-reward is okay, not mouthwatering.
⚠️ Part 7: Risks & Red Flags
- NSE/BSE fined IRCTC for board composition non-compliance
- Promoter stake still >60%, PSU overhang continues
- Railway policy dependency = zero pricing power
- Tourism biz is discretionary & seasonal
🧬 Final Edu Verdict
IRCTC is not your average PSU. It has:
- ✔ Stellar ROCE and cash flows
- ✔ Monopoly in a massive sector
- ✔ Recovered post-COVID like a champ
- ❌ Limited long-term growth levers
- ❌ Valuation no longer cheap
Great business, elite margins, PSU efficiency (rare!)
But unless it gets into air travel or becomes a full-fledged travel-tech player, the growth runway may hit saturation.
Hold for dividend? Sure. But don’t expect another stock split + 20x run anytime soon.
📝 Written by Prashant | 🗕️ June 18, 2025
Tags: IRCTC, PSU Stocks, Ticketing Monopoly, Rail Neer, FY25 Results, Stock Analysis, EduInvesting
