Catering and Tourism Corporation Fell Nearly 2% on Friday, Closing at a Low of ₹495.30 From the Previous Close of ₹504.45, After the Company

The stock remained in focus as consolidated revenue from operations rose 18% year-on-year to ₹1,369.52 crore, while consolidated profit after tax was nearly flat at ₹330.16 crore. IRCTC posted a standalone profit after tax (PAT) of ₹329.86 crore in Q1FY27, compared with ₹303.45 crore in Q1FY26. Brokerage firm PL Capital said IRCTC reported weak operational performance, with EBITDA margin at 28.2% against its estimate of 33.4%. The margin was impacted by a one-time employee cost hit of ₹2 crore arising from gratuity and post-retirement benefits, input cost inflation, and a ₹1 crore maintenance charge dent within the ticketing division.

Revenue grew 18.1% year-on-year to ₹136.95 crore, compared with PL Capital's estimate of ₹127.14 crore. The brokerage attributed the growth to strong traction in the catering division, driven by healthy growth in prepaid trains, license fees, e-catering and election special trains. PL Capital expects sales CAGR of 11% over FY26-FY28E, led by capacity expansion at Rail Neer, with four plants to be added, and healthy growth in the catering division.

The brokerage expects EBITDA margin of 30.9% and 30.5% for FY27E and FY28E respectively, as the share of lower-yielding catering business rises. Given decent growth prospects, a debt-free balance sheet and healthy return ratios, the brokerage retained its buy rating with a target price of ₹706.