IRCTC share steams ahead 5% as Macquarie initiates with 'Outperform'

IRCTC share price: Railway ticketing platform Indian Railway Catering and Tourism Corporation (IRCTC) shares were buzzing in trade on the last day of the week, Friday, January 10, 2025, as the stock soared 4.86 per cent to hit an intraday high of Rs 800.65 apiece. 

 

The northward movement in IRCTC share price came after foreign brokerage firm Macquarie initiated coverage with ‘Outperform’ rating, with a target price of Rs 900. The target price reflects an upside of 17.87 per cent from the previous close of Rs 763.50 on January 9, 2025. 

 

According to reports, Macquarie highlighted IRCTC’s monopoly in Indian Railways’ e-ticketing and catering services as a key driver of its robust net cash position. The company holds an 80 per cent direct market share in railway e-ticketing and achieves impressive financial metrics, including a 30 per cent free cash flow margin and a 30 per cent return on both capital employed and invested capital, all while maintaining minimal capital expenditure.

 

Additionally, IRCTC earns a fixed commission per ticket, determined by factors such as air-conditioned or non-air-conditioned seating and payment methods. The company also benefits from additional revenue through a 20 per cent indirect share via third-party online travel agents, the report said.

 

IRCTC financial performance

 

IRCTC’s consolidated net profit soared 4.5 per cent year-on-year (Y-o-Y) to Rs 307.9 crore in the September quarter of financial year 2025 (Q2FY25), from Rs 294.7 crore in the same quarter a year ago (Q2FY24).

 

The company’s revenue from operations climbed over 7 per cent annually to Rs 1,064 crore in Q2FY25, as against Rs 992.4 crore in Q2FY24. 

 

Total expense jumped 9.8 per cent Y-o-Y to Rs 707.4 crore in Q2FY25. The expenses of catering services stood at Rs 346.5 crore, up 18.9 per cent Y-o-Y, while tourism expenses stood at Rs 105 crore, down 23.7 per cent Y-o-Y.

 

About IRCTC 

 

IRCTC operates under the Ministry of Railways. The company is responsible for providing essential travel and tourism services. It operates the official online ticketing platform, enabling users to book train tickets, check PNR statuses, and access services like Tatkal for last-minute travel.  IRCTC also manages catering services on trains, offering both onboard meals and an e-catering option to deliver food to passengers' seats. Additionally, it provides tourism packages, including domestic and international tours, pilgrimage journeys, and luxury train experiences like the Maharajas’ Express.

 

Beyond railway services, IRCTC has expanded its offerings to include flight and hotel bookings, making it a one-stop travel solution. The platform is user-friendly, supports multiple payment options, and offers convenience through its mobile app, IRCTC Rail Connect. 

 

The market capitalisation of IRCTC is Rs 63,276 crore, according to BSE. The company falls under the BSE 200 category. 

 

At 12:06 PM, IRCTC share price stood at Rs 790.95 apiece, trading 3.60 per cent higher. In comparison, BSE Sensex was trading 0.17 per cent higher at 77,750.31 levels.