IRCTC margin drops as expenses outpace revenue growth
Sequential revenue was nearly flat, but expenses rose 7.81%, driving a 4.78-point margin decline and a 17.23% fall in net profit.
Filed 26 May 2026, 20:58 IST · after market close · Indian Railway Catering & Tourism Corporation Ltd (IRCTC)
Key takeaways
- Consolidated operating margin fell 4.78 percentage points sequentially as expenses grew 7.81% against 0.71% revenue growth.
- Net profit declined 8.89% year on year despite 15.07% revenue growth, as costs rose 20.14% and other income fell 37.66%.
- The stock fell 2.61% after the results, a larger move than the 0.94% median absolute reaction across its last eight results.
Price around the results
Q4 growth did not translate into profit growth
This was a consolidated quarter in which revenue grew 15.07% year on year, but operating profit rose only 3.47% because expenses increased 20.14%. Net profit fell 8.89% as other income dropped 37.66% and the tax rate rose 2.78 percentage points to 26.93%. Other income accounted for 14.91% of pre-tax profit, making the reported profit decline sharper than the operating-profit movement suggests.
Sequential margin contraction extended the recent downtrend
Revenue increased just 0.71% sequentially while expenses rose 7.81%, narrowing operating margin by 4.78 percentage points. Operating margin has now fallen from 35.27% in Q2FY26 to 32.11% in Q3FY26 and 27.33% in Q4FY26, reversing the improvement recorded in the first half of the year. Despite the decline, IRCTC remained 12.52 percentage points above the 14.81% median margin of the 93 Consumer Discretionary peers that had reported.
The market reaction was weaker than IRCTC's usual result-day move
The results were filed after market close, and the stock fell 2.61% on the next trading session, with a 1.51 times volume ratio. That decline was larger than the 0.94% median absolute move after IRCTC's last eight results, when six reactions were negative and two were positive. The stock was down 1.81% five sessions after the results.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,460 cr | ₹1,449 cr | +0.71% | +15.07% |
| Other income | ₹67 cr | ₹81 cr | -17.43% | -37.66% |
| Expenses | ₹1,061 cr | ₹984 cr | +7.81% | +20.14% |
| Operating profit | ₹399 cr | ₹465 cr | -14.30% | +3.47% |
| Operating margin (%) | 27.33% | 32.11% | — | — |
| Interest | ₹5 cr | ₹5 cr | +4.36% | -38.35% |
| Depreciation | ₹14 cr | ₹12 cr | +13.90% | +14.37% |
| Profit before tax | ₹447 cr | ₹529 cr | -15.60% | -5.43% |
| Tax | ₹120 cr | ₹135 cr | -10.83% | +5.43% |
| Net profit | ₹326 cr | ₹394 cr | -17.23% | -8.89% |
| EPS (₹) | ₹4.08 | ₹4.93 | -17.24% | -8.93% |
Operating margin of 27.33% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.61% | -2.58% |
| Next session | -5.09% | — |
| 5 sessions | -1.81% | +0.27% |
| 15 sessions | -2.46% | — |
| 30 sessions | -6.32% | — |
Volume on the results session was 1.51× its 20-day average.
What to watch
- Whether operating margin holds above 27.33% after the Q4FY26 decline.
- Whether expense growth moderates from 20.14% year on year.
- Whether other income remains close to 14.91% of pre-tax profit.