IRCTC profit falls 22.94% as costs outpace revenue growth
The consolidated operating margin recovered sequentially, but negative other income and faster year-on-year expense growth pulled down profit.
Filed 12 Nov 2026, 17:32 IST · after market close · Indian Railway Catering & Tourism Corporation Ltd (IRCTC)
Key takeaways
- Consolidated net profit fell 22.94% year on year as expenses grew 24.72%, faster than revenue growth of 16.32%.
- Operating margin recovered 2.37 percentage points sequentially to 30.60% because expenses fell 5.87%, faster than the 2.66% revenue decline.
- Other income was negative and represented -10.04% of pre-tax profit, while the tax rate rose 0.77 percentage points year on year.
Price around the results
Year-on-year profit decline despite 16.32% revenue growth
IRCTC’s consolidated revenue grew 16.32% year on year, but expenses rose 24.72%, leaving operating profit growth at only 0.92%. Pre-tax profit fell 22.15% and net profit declined 22.94%, with EPS down 23.13%. The tax rate also increased by 0.77 percentage points, so taxation did not provide a benefit to reported profit.
Sequential margin recovery came from faster cost reduction
Revenue declined 2.66% sequentially, but expenses fell 5.87%, allowing operating profit to rise 5.50% and operating margin to improve by 2.37 percentage points. This was a recovery from 27.33% in Q4FY26 and 28.23% in Q1FY27, although the margin remained 4.67 percentage points below Q2FY26. The margin trend has therefore improved for two quarters after the Q4FY26 low, rather than returning to last year’s level.
Negative other income weakened profit quality
Other income was negative at -35.72 and accounted for -10.04% of pre-tax profit, creating a drag below operating profit. This contrasts with positive other income in the year-ago and immediately preceding quarters. The combination of that drag and the higher tax rate helps explain why net profit moved much worse than operating profit year on year.
Margin remains well above the reported sector median
IRCTC’s 30.60% operating margin was 19.37 percentage points above the 11.23% median among 329 Consumer Discretionary peers that had reported the same quarter. The company ranked 297th from the bottom on this measure, placing it well above most reported peers on operating margin. The comparison does not offset the year-on-year margin decline, but it puts the quarter’s profitability level in sector context.
Results were filed after market close
The results were filed after market close, so there is no current market reaction to assess. After its last eight results, the stock rose twice and fell six times, with a median absolute move of 1.09%. Its recent reaction history has therefore been more often negative, but the typical move size has been modest.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,333 cr | ₹1,370 cr | -2.66% | +16.32% |
| Other income | ₹-36 cr | ₹72 cr | — | — |
| Expenses | ₹925 cr | ₹983 cr | -5.87% | +24.72% |
| Operating profit | ₹408 cr | ₹387 cr | +5.50% | +0.92% |
| Operating margin (%) | 30.60% | 28.23% | — | — |
| Interest | ₹4 cr | ₹4 cr | -0.69% | -2.28% |
| Depreciation | ₹12 cr | ₹12 cr | -3.15% | +5.08% |
| Profit before tax | ₹356 cr | ₹442 cr | -19.41% | -22.15% |
| Tax | ₹92 cr | ₹112 cr | -17.16% | -19.79% |
| Net profit | ₹264 cr | ₹330 cr | -20.17% | -22.94% |
| EPS (₹) | ₹3.29 | ₹4.13 | -20.34% | -23.13% |
Operating margin of 30.60% compares with a Consumer Discretionary sector median of 11.23% across 329 peers that have reported Q2FY27.
What to watch
- Whether operating margin sustains the recovery from 27.33% in Q4FY26 to 30.60%.
- Whether expense growth remains below revenue growth after the year-on-year gap of 24.72% versus 16.32%.
- Whether other income turns positive after contributing -10.04% of pre-tax profit.