IRCTC stays on slow track in Q4

Indian Railway Catering and Tourism Corp. Ltd (IRCTC)'s results for the three months ended March (Q4FY25) proved unimpressive versus expectations of a solid quarter due to the Mahakumbh-related push.

- Manish Joshi

Ebitda growth was 6% year-on-year to ₹385 crore, with margin compressing by almost 100 basis points to 30.4%.

IRCTC had offered food service in Aastha Express to Ayodhya in Q4FY24 during the consecration ceremony of the Ram temple. Thus, there was hope that it would be done for Mahakumbh special trains, too. In the Q4FY25 earnings call, the management said these trains operated without catering because the government's aim was to accommodate more passengers and also clear the subsequent Mahakumbh rush.

The outcome: IRCTC's catering revenue was unchanged year-on-year at ₹529 crore. The segment's profitability isn't impressive either, as the base quarter had an abnormally low margin. Sequentially, the margin was flat at 12%.