IRCTC Q2 FY26 Results: Steady Growth and Strong Dividend Declaration

IRCTC Q2 FY26 Results: The Indian Railway Catering and Tourism Corporation (IRCTC) announced its Q2 FY26 results, showcasing solid growth in revenue and profitability. The company’s consistent performance across its key segments including catering, internet ticketing, and tourism, reflects its dominant position in the railway services and hospitality sector.

Revenue and Profit Growth

In Q2 FY26, IRCTC reported a revenue of ₹1,146 crore, marking an increase of approximately 8% compared to ₹1,064 crore in the same quarter last year. The company’s net profit grew by 11%, reaching ₹342 crore, up from ₹308 crore in Q2 FY25. This growth is driven by higher operational efficiency and increased demand in its core services.

Segment-Wise Performance

Revenue from the catering business rose by nearly 8% to ₹520 crore, supported by the steady revival in railway food services. Internet ticketing continued to show resilience with a 4% increase in revenue. The tourism segment impressed with a 21% rise, indicating growing travel enthusiasm in the post-pandemic period. Meanwhile, the sale of packaged drinking water “Rail Neer” also saw a modest gain of 4%.

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Profitability and Margins

EBITDA for the quarter stood at ₹404 crore, growing 8% year-on-year. The EBITDA margin expanded by 30 basis points to 35.3%, highlighting better cost management and operational efficiencies. Profit before tax (PBT) also increased nearly 10% to ₹457 crore.

Dividend Announcement

Reflecting strong confidence in its business, IRCTC declared an interim dividend of ₹5 per share (on a face value of ₹2). The record date for shareholders to be eligible for this dividend is set for November 21, 2025. This dividend payout underlines IRCTC’s commitment to rewarding shareholders.

Market Outlook

IRCTC’s Q2 performance reflects a steady recovery and steady growth trajectory, supported by its monopoly in internet railway ticketing and expanding catering and tourism operations. As passenger traffic rebounds and discretionary spending on travel and food services increases, IRCTC is well-positioned to benefit going forward.

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Summary

  • Revenue rose 8% YoY to ₹1,146 crore in Q2 FY26
  • Net profit increased 11% YoY to ₹342 crore
  • Catering revenue up 8%, tourism up 21%, internet ticketing up 4%
  • EBITDA margin improved to 35.3%
  • Declared interim dividend of ₹5 per share
  • Strong operational performance amid growing travel demand

IRCTC’s consistent growth in key financial parameters and a generous dividend declaration make it an attractive stock within the PSU space. The company’s focus on digital ticketing and expanding hospitality services is set to drive sustained growth.

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