New Delhi, Aug 13: Indian Railway Catering and Tourism Corporation (IRCTC) has started FY27 with strong revenue growth, highlighting the expanding role of rail travel, tourism and passenger services in supporting India’s wider travel economy.
Pic Credit: Pexel
IRCTC’s consolidated profit after tax stood at Rs 330.15 crore in the April-June quarter of FY27, broadly unchanged from Rs 330.70 crore in the same period last year. Revenue from operations, however, increased 18.1 per cent to Rs 1,369.53 crore.
The company’s performance reflects continued activity across several parts of the railway-linked travel ecosystem. Catering remained the largest revenue contributor, with income rising to Rs 732.26 crore from Rs 546.78 crore a year earlier.
The tourism business also recorded healthy growth. Revenue from the segment increased to Rs 168.07 crore, compared with Rs 147.70 crore in the year-ago quarter. Tourism segment profit rose to Rs 19.31 crore from Rs 12.87 crore.
Rail tourism has a wider economic impact beyond ticket sales. Increased passenger movement supports hotels, restaurants, local transport, tour operators, tourist attractions and small businesses in destinations connected by the railway network.
As more travellers use trains to visit different parts of the country, the railway tourism ecosystem can help generate demand for local services and create opportunities for businesses operating around major tourist destinations.
IRCTC’s internet ticketing business also remained a major contributor, although its segment profit moderated during the quarter. Railneer revenue recorded a modest increase to Rs 113.91 crore.
At the overall operating level, EBITDA declined to Rs 386.67 crore, while the EBITDA margin narrowed to 28.23 per cent from 34.26 per cent a year earlier. The pressure on margins meant that higher revenue did not result in a significant increase in net profit.
The company’s quarterly performance nevertheless points to the growing connection between India’s railway network and the country’s tourism and service economy. With rail connectivity reaching more destinations, rising passenger movement could continue to support tourism, hospitality, catering and local commerce.
A stronger rail-based tourism ecosystem can therefore contribute not only to passenger mobility but also to employment, local business activity, tourism revenues and broader economic growth across the country.
Leave a Reply