Mumbai: Indian Railway Catering and Tourism Corporation (IRCTC) reported a 23 percent year-on-year fall in consolidated net profit to Rs 263.6 crore for the September quarter of FY27. Revenue from operations rose 16 percent to Rs 1,333 crore, while a Rs 116.3 crore exceptional provision related to Rail Neer weighed on earnings.
Catering leads revenue growth
Catering remained IRCTC’s largest segment by revenue, with sales rising 26 percent to Rs 655 crore. Tourism revenue increased 28 percent to Rs 192 crore, while internet ticketing revenue edged up 1 percent to Rs 389.8 crore. Rail Neer revenue rose 7.5 percent to Rs 101.1 crore.
Total expenses rose 24 percent to Rs 941.4 crore, including Rs 511.5 crore in catering services expenses. Profit before exceptional items and tax rose 4.6 percent to Rs 472.3 crore. After the provision, pre-tax profit fell 22 percent to Rs 356 crore.
Profit falls sequentially
Compared with the June quarter, revenue fell 2.7 percent from Rs 1,370 crore and net profit declined 20 percent from Rs 330.2 crore. Profit before exceptional items and tax rose 6.9 percent from Rs 441.7 crore. Basic and diluted earnings per share fell to Rs 3.29 from Rs 4.13 in June and Rs 4.28 a year earlier.
For the April–September half year, revenue from operations increased 17 percent to Rs 2,703 crore from Rs 2,306 crore. Net profit fell 12 percent to Rs 593.7 crore from Rs 672.7 crore in the corresponding period.
Rail Neer order
The GST Appellate Tribunal directed IRCTC to deposit Rs 50.4 crore in central and state consumer welfare funds, plus interest at 18 percent a year, in a case concerning alleged profiteering on Rail Neer packaged drinking water. The provision covers the amount identified by the tribunal and interest accrued through 30 September. IRCTC said it was pursuing an appeal.
The tribunal also imposed a 10 percent penalty, which it said would be waived if IRCTC deposited the full amount and applicable interest within 30 days of the order. The Rail Neer segment posted a quarterly loss of Rs 106.1 crore before tax, interest and investment income, against a profit of Rs 8.7 crore a year earlier.
Auditor flags disputes
Nangia & Co LLP drew attention to disputed catering licence fees that IRCTC has yet to recognise as income and contested input tax credit claims involving four Rail Neer plants. The auditor’s limited-review conclusion remained unmodified.
Disclaimer: This report is based on unaudited financial results filed by the company and does not constitute investment advice.
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