IRCTC Targets 10% Catering Growth in FY27, Bets on Spiritual Tourism

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628

expects its catering business to grow by around 10% in FY27, supported by rising passenger traffic and expansion of its food service operations. The company is also witnessing strong momentum in spiritual tourism, which it expects to become a key growth driver for its tourism segment. IRCTC plans to strengthen its non-fare revenue streams by expanding catering services, tourism offerings, and value-added businesses beyond ticketing. The company highlighted increasing demand for pilgrimage packages and religious tourism, driven by improved connectivity and growing interest in spiritual travel across the country. Management believes this trend will support sustained growth in its tourism business while complementing its core railway catering operations. Industry & Economic Impact: The company's outlook reflects the growing importance of spiritual tourism in India's travel and hospitality sector. Rising demand for pilgrimage travel is creating opportunities for tourism operators, hotels, transport providers, and catering businesses, while supporting the development of tourism infrastructure. From an economic perspective, growth in spiritual tourism boosts local economies by generating employment, increasing spending on hospitality and transportation, and promoting regional development. Expansion of catering and tourism services also supports the broader railway ecosystem and contributes to India's domestic tourism industry. Source: NDTV Profit No Recommendations