Revenue grew 18.10% YoY, but cost growth cut IRCTC margin by 6.03 points
Consolidated net profit was flat as expenses outpaced revenue, while the company’s margin remained 14.94 points above the Consumer Discretionary peer median.
Filed 12 Aug 2026, 20:21 IST · after market close · Indian Railway Catering & Tourism Corporation Ltd (IRCTC)
Key takeaways
- Consolidated revenue grew +18.10% YoY, but expenses rose +28.91%, reducing operating margin by 6.03 percentage points to 28.23%.
- Net profit was nearly flat at -0.16% YoY despite higher revenue, as operating profit fell -2.67% and other income contributed 16.24% of pre-tax profit.
- Operating margin recovered 0.90 percentage points QoQ to 28.23% after two consecutive quarterly declines, but remained below the 35.27% recorded in Q2FY26.
Price around the results
Revenue growth did not translate into profit growth
IRCTC’s consolidated revenue rose +18.10% YoY, but operating profit declined -2.67%, leaving net profit almost unchanged at -0.16%. Other income rose +17.19% and accounted for 16.24% of pre-tax profit, making reported earnings less dependent on operating profit. The tax rate was broadly unchanged, moving up 0.05 percentage points YoY.
Margins recovered QoQ but remain well below last year
Expenses grew +28.91% YoY, faster than revenue, which narrowed operating margin by 6.03 percentage points. Sequentially, revenue fell -6.18% and expenses fell faster at -7.35%, allowing margin to recover 0.90 percentage points from Q4FY26. The margin had declined from 35.27% in Q2FY26 to 32.11% in Q3FY26 and 27.33% in Q4FY26 before this recovery.
IRCTC remains above the reported sector median
Among 156 Consumer Discretionary companies that had reported the same quarter, IRCTC’s 28.23% operating margin was 14.94 percentage points above the sector median of 13.29%. This places the company’s margin above the median despite the year-on-year contraction.
Results were filed after market close
The Q1FY27 consolidated results were filed after market close, so there was no immediate market reaction to report. Across the last eight results, the stock moved down after six and up after two, with a median absolute move of 0.94%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,370 cr | ₹1,460 cr | -6.18% | +18.10% |
| Other income | ₹72 cr | ₹67 cr | +7.67% | +17.19% |
| Expenses | ₹983 cr | ₹1,061 cr | -7.35% | +28.91% |
| Operating profit | ₹387 cr | ₹399 cr | -3.06% | -2.67% |
| Operating margin (%) | 28.23% | 27.33% | — | — |
| Interest | ₹4 cr | ₹5 cr | -9.81% | -3.14% |
| Depreciation | ₹12 cr | ₹14 cr | -11.56% | +4.47% |
| Profit before tax | ₹442 cr | ₹447 cr | -1.12% | -0.10% |
| Tax | ₹112 cr | ₹120 cr | -7.27% | +0.09% |
| Net profit | ₹330 cr | ₹326 cr | +1.15% | -0.16% |
| EPS (₹) | ₹4.13 | ₹4.08 | +1.23% | +0.00% |
Operating margin of 28.23% compares with a Consumer Discretionary sector median of 13.29% across 156 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 28.23% after the YoY decline of 6.03 percentage points.
- Whether expenses grow slower than revenue after rising +28.91% YoY against revenue growth of +18.10%.
- Whether other income remains near its 16.24% share of pre-tax profit.