IRCTC Q2 revenue up 16.3%, profit down 22.9%

Indian Railway Catering and Tourism Corporation Limited (NSE: IRCTC) IRCTC reported Q2 consolidated revenue of ₹1,333.07 crore, up 16.3% from ₹1,145.99 crore a year ago. Net profit fell 22.9% to ₹263.56 crore from ₹342.02 crore, mainly because of a one-off provision. What happened: Revenue rose ₹187.08 crore YoY. EBITDA was ₹408 crore against ₹404 crore last year, almost flat. EBITDA margin fell 467 basis points to 30.6% from 35.27%. The company also booked an exceptional ₹116.30 crore provision tied to the Rail Neer GST dispute. Why it matters: Sales grew 16.3% but EBITDA grew only about 1%. Most of the extra revenue did not reach operating profit. The company cites higher catering execution costs and a shift in business mix. My view: Two separate things are in this result. The provision is one-off and hits net profit, not operations. Adding it back would put profit above last year’s ₹342.02 crore on paper, but the post-tax effect is not given, so I would not treat that as a clean number. The margin is the bigger concern. EBITDA stayed flat while sales rose, so growth is currently coming at lower profitability. The segment split is not in my data, so I cannot size how much each driver contributed. What I am watching (next 0-3 months): Clarity on the ₹116.30 crore Rail Neer GST demand, online ticketing volume growth on the platform, and any margin revision in catering contracts. Further tax assessments, food inflation and any change in convenience fee sharing with Indian Railways are the risks. Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations.