Broker’s call: IRCTC (Buy)

Indian Railway Catering and Tourism Corporation Ltd (IRCTC) continues to strengthen its digital moat by leveraging its exclusive position in online railway ticketing and evolving into a broader mobility platform.

E-ticketing penetration reached about 89 per cent of reserved bookings in FY26, indicating a strong digital adoption.

The company benefits from a large user base, providing multiple opportunities for monetisation through convenience fees, payments, advertising and cross-selling of travel services.

The ongoing premiumisation of passenger travel, driven by a rising AC mix (about 51 per cent) and increasing adoption of Vande Bharat trains, further enhances revenue potential through higher convenience fee realisation.

In addition, IRCTC’s proposed unified travel platform is expected to integrate rail, air, hotel, bus and tourism services into a single ecosystem, improving customer engagement and retention. These initiatives are expected to drive margin expansion over the medium-term.

Optionality: The launch of unified travel portal, final approval of the payment aggregator license.

Key risks: Government regulations, deepening UPI penetration, execution risk in new initiatives, and Rail Neer capacity constraints & operational risks.

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