He noted that over 200 such trains are expected to be launched in the next three to five years, resulting in a positive long-term outlook for the business.
The company projects a catering revenue increase of about 15% in FY27, while internet ticketing is predicted to rise by 9-10%. Rail Neer is likely to see a growth of around 5%. Additionally, IRCTC is focusing on enhancing revenue from advertising, loyalty programs, and its integrated digital platform.
Despite the ongoing crisis in West Asia, Jain stated that the company has successfully maintained smooth operations. IRCTC has continued to serve nearly 18 lakh meals daily by transitioning a large portion of its food preparation to induction cooking in pantry cars, thus reducing reliance on gas supplies.
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“I am pleased to report that, despite the crisis, we have achieved the highest influx of inbound tourism in India on our Maharaja Expresses,” he added.
The impressive tourism performance has enabled IRCTC to experience significant growth in its tourism sector, even amid global uncertainties. Domestic tourism has also remained strong, contributing to overall growth.
Regarding profitability, Jain indicated that the company is aiming for an earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of approximately 30% this year. While IRCTC’s business model is evolving, with tourism and digital sectors expected to contribute a larger share to revenue over time, the company remains optimistic about sustaining healthy margins.
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“This year we have achieved the highest revenue and EBITDA to date,” Jain stated.
Looking ahead, IRCTC expects its revenue mix to gradually evolve. Currently, catering accounts for about 45% of revenue, but the contributions from tourism, online travel services, and non-convenience fee income are projected to rise over the next five years, opening up new avenues for growth.
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The Indian Railway Catering and Tourism Corporation (IRCTC), which oversees online ticketing, catering, and tourism services for Indian Railways, has witnessed a nearly 34% drop in its shares over the last year. The company’s current market capitalization stands at approximately ₹41,536 crore.
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