Q2 FY27 results analysis · November 12, 2026
IRCTC Q2 FY27 Results Analysis: PAT Falls 23%, Revenue Grows 16%
−23.0%PAT year on year, Rs. 263.32 Cr
Source: Quarterly results filing (BSE)
Quick summary
Indian Railway Catering & Tourism Corporation Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 1,333.08 Cr (+16.33% YoY) and PAT growth of -22.97% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 12, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,333.08 Cr (+16.33% YoY) |
| PAT (Q2) | Rs. 263.32 Cr (-22.97% YoY) |
| EBITDA margin | 30.61% (-467 bps YoY) |
| EPS (Q2) | Rs. 3.29 (-22.95% YoY) |
Quarter Snapshot
Revenue grew 16.33% YoY to Rs.1,333.08 Cr with catering (+26.05%) and tourism (+28.42%) beating growth guidance, while the group EBITDA margin of 30.61% met the ~30% aspiration. Reported PAT fell 22.97% on the Rs.116.30 Cr GSTAT provision; normalized PAT grew 3.53%, but internet ticketing missed its +7% guidance at +1.01% and receivables rose 44.30% in six months. Execution was mixed — growth beats in low-margin segments offset by the ticketing stagnation and sub-guidance catering margin.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue/demand | "Demand indicators point ahead: record festive ticketing volumes… robust domestic GST collections" | Revenue +16.33% YoY | Played out |
| 30% EBITDA margin | "the margin guidance (30% group EBITDA…) is the harder test" | 30.61% | Played out |
| Catering margin recovery to 10–12% | "should be aided by the one-time Rs.10 Cr HR cost and proof-of-concept costs… rolling off" | 9.85% vs 9.29% in Q1 — improved but below band | Partially |
| Food-inflation headwind on fixed Rs.80 meals | "the food basket is the swing factor" | Catering margin still sub-10%; not separately quantified in filing | Partially |
| GSTAT accounting treatment | "provisioning/interest treatment of the Rs.50,41,44,461 liability plus 18% interest" | Rs.116.30 Cr exceptional provision including interest to 30.09.2026 | Played out |
| Non-convenience fee recovery | "depend on iPay, loyalty and ad-revenue reintroduction" | IT revenue +1.01% YoY; KPI undisclosed in filing | Contradicted on segment revenue direction |
| Receivables working-capital question | "keeps the working-capital question open" | Receivables +44.30% vs Mar-26 | Played out |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Group EBITDA margin ~30% | "we are aspiring to maintain 30%" — Q1 FY27 earnings call (reaffirmed at Q4 FY26 call) | 30.61% | Met |
| Catering margin 10–12% | Catering margin guidance — Q4/Q1 FY27 calls | 9.85% — below band | Stretch |
| Catering revenue +15% | Q4 FY26 earnings call | +26.05% YoY | Ahead |
| Tourism revenue +20% | Q4 FY26 earnings call | +28.42% YoY | On Track |
| Internet ticketing +7% | Q4 FY26 earnings call | +1.01% YoY | Missed |
| Tourism >Rs.1,000 Cr "next year" | Q1 FY27 earnings call | H1 Rs.360.10 Cr (~Rs.720 Cr annualized) | Stretch |
| Margin aspiration "to maintain 30%" | Q1 FY27 earnings call | 30.61% printed this quarter (Q1: 28.24%) | Confirmed for the quarter |
| IT margins to hold "in excess of 80%" despite reinvestment | Q1 FY27 earnings call | 84.30% | Confirmed |
| Catering one-off costs (PoC, HR) roll off from Q2 | Q1 FY27 earnings call | Catering margin 9.29% → 9.85%; employee costs −14.5% QoQ | Confirmed |
| "Confidence in sustaining growth momentum" | Q1 FY27 management commentary | Revenue +16.33% YoY | Confirmed |
Key Investment Insights
Key Positives
- Revenue from operations grew 16.33% YoY to Rs.1,333.08 Cr
- Catering revenue grew 26.05% YoY, ahead of management's +15% guidance
- Tourism revenue grew 28.42% YoY, on track with +20% guidance
- EBITDA margin of 30.61% met management's ~30% aspiration, recovering 237 bps QoQ from 28.24%
- Internet ticketing margin rebounded to 84.30% from 80.23% in Q1, confirming management's >80% claim
- Normalized PAT grew 3.53% YoY to Rs.349.43 Cr excluding the Rs.116.30 Cr GSTAT provision
- H1 CFO of Rs.890.14 Cr was 1.50x PAT; FCF of Rs.826.23 Cr
- Cash and bank balances of Rs.3,759.29 Cr against borrowings of Rs.2.48 Cr
Risk Factors
- Reported PAT fell 22.97% YoY to Rs.263.32 Cr on the Rs.116.30 Cr GSTAT anti-profiteering provision (Rail Neer)
- Internet ticketing revenue grew only 1.01% YoY vs management's +7% guidance
- Catering margin of 9.85% remained below the guided 10-12% band
- EBITDA margin compressed ~470 bps YoY to 30.61% from 35.28% on catering/tourism mix shift
- Trade receivables rose 44.30% in six months to Rs.2,717.41 Cr (~183 days), over 80% owed by Ministry of Railways
- Board lacks requisite independent directors since 15.04.2026; NSE and BSE fined the company Rs.10,23,060 each
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.