IRCTC Share Price Jumps 2% After Q4 FY25 Results: Should You Buy, Hold, or Sell the Stock Now?

New Delhi, May 29, 2025 — Shares of Indian Railway Catering and Tourism Corporation (IRCTC) gained nearly 2% in early trade on Thursday after the company reported its Q4 FY25 earnings, showing solid growth in net profit and a stable outlook across key verticals.

The rally comes amid a broader market recovery, and investors are now keenly evaluating whether this PSU stock still has steam left or if it’s time to book profits.

Here’s a detailed breakdown of the numbers, expert opinions, and a look into IRCTC’s future trajectory.

Q4 FY25 Financial Performance: Consistent Growth Across Segments

IRCTC reported steady revenue growth and robust bottom-line expansion, aided by a strong rebound in its catering, tourism, and internet ticketing divisions.

Key Numbers (Standalone)

• Revenue from Operations: ₹1,201 crore (up 21.4% YoY)

• Net Profit: ₹331 crore (up 29.2% YoY)

• EBITDA: ₹455 crore (up 18.7% YoY)

• EBITDA Margin: 37.9% vs 38.7% YoY

• Final Dividend: ₹2.50 per share

The slight dip in EBITDA margin was offset by higher volume across the board, especially in the catering and tourism segments, which saw double-digit growth thanks to increased rail traffic and holiday demand.

Segment-wise Performance: Ticketing Still a Cash Cow, But Catering Shines

Let’s take a closer look at IRCTC’s major business verticals:

Internet Ticketing

• Revenue: ₹350 crore (up 14% YoY)

• Contribution: 29% of total revenue

This remains IRCTC’s most profitable division, driven by continued preference for online ticket booking and low operating costs.

Catering Services

• Revenue: ₹530 crore (up 31% YoY)

• Contribution: 44% of total revenue

The catering arm witnessed impressive growth as more trains resumed pantry services and bulk catering orders picked up pace post-pandemic.

Tourism

• Revenue: ₹190 crore (up 23% YoY)

Growth in domestic packages and luxury train bookings contributed to strong tourism earnings, a positive indicator ahead of the peak travel season.

Rail Neer (Packaged Drinking Water)

• Revenue: ₹131 crore (up 19% YoY)

Margins remained steady despite inflationary pressures on packaging and distribution.

Dividend Update: Continuing Consistency

IRCTC announced a final dividend of ₹2.50 per share, taking the total FY25 payout to ₹5.50 per share, in line with its historical trend of rewarding shareholders.

At the current share price of ₹870, this implies a dividend yield of 0.63%, which, while not high, is backed by a strong balance sheet and regular cash flows.

Stock Market Reaction: Modest Gains on Heavy Volumes

Post the result declaration, IRCTC’s stock opened strong at ₹872 on the NSE, up from the previous close of ₹855.85.

Key Intraday Metrics:

• Day’s High: ₹884.45

• Day’s Low: ₹862.70

• At 2 PM: ₹870.30 (up 1.7%)

• Volume: 4.1 million shares (above 20-day average)

While the earnings met Street expectations, the moderate rally suggests that much of the performance was already priced in.

1-Year Performance Snapshot: Back in the Green

After a volatile 2023, IRCTC shares have rebounded significantly over the past six months.

The recovery is aligned with broader optimism in PSU and railway-linked stocks.

Analyst Recommendations: Is IRCTC Still a Buy?

Here’s how leading brokerages are reacting post-results:

Buy/Accumulate Stance

• Motilal Oswal: Target ₹940
  "IRCTC’s asset-light model, strong brand equity, and monopoly status in key verticals make it a defensive and steady long-term play."

• ICICI Securities: Target ₹925
  "With stable margins and consistent dividends, we see scope for 8–10% upside over the next 2 quarters."

Neutral or Hold Stance

• Kotak Institutional Equities: Target ₹885
  "Valuations are rich. Earnings momentum needs to be sustained for further upside."

• Axis Securities: Target ₹875
  "The stock is fairly priced. Investors should wait for price dips before accumulating further."

Valuation Metrics: Expensive but Backed by Fundamentals

IRCTC trades at a trailing P/E of 59.3x, which is on the higher side for a PSU. However, the premium valuation is supported by its:

• Near-monopoly status in railway ticketing

• High return on equity (ROE ~42%)

• Zero-debt balance sheet

• Consistent dividend payouts

Technical View: Limited Upside in Near Term

From a technical standpoint, IRCTC is facing resistance near ₹885, with support at ₹845.

• RSI: 59 (Neutral)

• 200-DMA: ₹808

• MACD: Mildly bullish

Traders may consider booking partial profits near ₹880–₹890 and re-entering on dips.

What’s Ahead: Key Triggers to Watch

Fundamental Strengths and Weaknesses: A Quick SWOT

Strengths

• Monopoly in internet ticketing

• High cash reserves and no debt

• Strong brand recall across India

• Asset-light, high-margin business model

Weaknesses

• Limited pricing power in catering/tourism

• Government ownership (~67%) may hinder agility

• Susceptible to regulatory or structural policy shifts

Opportunities

• New revenue streams (luxury trains, packaged tours)

• Digitization of Indian Railways

• Expansion into non-railway hospitality verticals

Threats

• Competition from third-party tourism aggregators

• Political interference or regulatory caps on commissions

• Macro risks like fuel inflation, travel bans

Retail Shareholding Trends: High Participation

Retail interest in IRCTC remains robust. As of March 2025:

• Retail + HNI Holding: 22.1%

• FII Holding: 6.4%

• DII Holding: 4.2%

• Government of India: 67.3%

Any stake sale by the government could pressure the stock in the near term, though none has been announced so far.

Should You Buy, Hold, or Sell IRCTC Post Q4?

IRCTC has once again demonstrated operational resilience and earnings visibility, key factors that long-term investors favor. While valuations remain on the higher side, the company’s strong fundamentals and monopoly positioning continue to justify a premium.

However, the recent rally might limit short-term upside. A staggered investment approach or buying on corrections could be ideal.

Verdict:

• Long-term Investors: Buy on dips, continue to hold

• Short-term Traders: Partial profit booking advised above ₹880

• Dividend Seekers: Hold for predictable payouts