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IRCTC catering hits 46% of revenue, up from 22% in FY22, as EBITDA margin falls to 32.2% from 46.8%

Our read

IRCTC's EBITDA margin will more likely than not stay close to FY26's 32.2%, well below FY22's 46.8%, while catering stays around 46% of revenue.

For operators

Catering has grown to 46% of IRCTC revenue from 22% in FY22 and pulled EBITDA margin down to 32.2% from 46.8%, so catering cost control and Rail Neer capacity (15.5 lakh bottles a day against 17.77 lakh) now decide profitability.

Watch

EBITDA margin below FY26's 32.2% in the Q2 FY27 results would mean catering mix is still diluting profit faster than ticketing and other income can offset.

The report,

IRCTC's margin squeeze reflects a shift from higher-margin ticketing, now 29% of revenue in FY26 against 54% in FY22, to catering. Rail Neer capacity is 17.77 lakh bottles a day against supply of around 15.5 lakh, with Ambernath and Danapur expansions planned.

EBITDA margin was 46.8% in FY22 and 32.2% in FY26; catering is 46% of revenue
EBITDA margin, FY2246.8%
EBITDA margin, FY2632.2%
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Reported figures

From the report. Source details below

Ambernath planned capacity: 3 lakh bottles per day
Danapur planned capacity: 2 lakh bottles per day
Online booking penetration in Q1 FY27: approximately 89%

Why it matters to operators and investors

With catering at 46% of revenue diluting margins, IRCTC is adding Rail Neer capacity itself (Ambernath 3 lakh a day, Danapur 2 lakh a day, to be finalised this financial year) rather than buying it, so any partnership opening sits in catering operations.

The source

Source Read the source at NDTV Profit Published

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