Indian Railway Catering and Tourism Corporation (IRCTC) has announced its second interim dividend of ₹3 per share along with its Q3 financial results for FY 2024-25.
The Railway PSU continues to show strong financial performance, making it an attractive stock for investors. Here’s a detailed look at IRCTC’s latest updates, including dividend details, Q3 earnings, and segment-wise growth.
IRCTC Declares ₹3 Per Share Second Interim Dividend
The Board of Directors of IRCTC, in a meeting held on Tuesday, February 11, 2025, approved a second interim dividend of ₹3 per equity share of face value ₹2 each. This represents a 150% dividend payout for the financial year 2024-25.
Key Dividend Details:
- Dividend Amount: ₹3 per equity share
- Face Value of Share: ₹2 per share
- Dividend Percentage: 150%
- Record Date: February 20, 2025
The company has set Thursday, February 20, 2025, as the record date to determine the eligibility of shareholders for receiving the interim dividend. Investors holding IRCTC shares on this date will be entitled to receive the dividend payout.
IRCTC Q3 FY25 Financial Performance
IRCTC continues to maintain a strong financial position with consistent growth in revenue and profits. The PSU has reported positive earnings for Q3 FY25, showcasing a robust performance across all segments.
IRCTC’s Q3 Profit Growth:
- Consolidated Net Profit: ₹341.08 crore
- YoY Growth: 13.69% (compared to ₹299.99 crore in Q3 FY24)
- QoQ Growth: 10.79% (compared to ₹307.86 crore in Q2 FY25)
Revenue Performance:
- Consolidated Revenue from Operations: ₹1224.65 crore
- Year-on-Year Growth: 9.7% (compared to ₹1115.48 crore in Q3 FY24)
- Sequential Growth: 15% (compared to ₹1063.99 crore in Q2 FY25)
IRCTC’s strong revenue performance highlights its consistent business expansion and increasing demand for its services, including catering, tourism, and Rail Neer.
IRCTC’s Total Expenses and Profitability
The company also saw a rise in its expenses during Q3 FY25.
Key Expense Figures:
- Total Expenses: ₹824.65 crore
- YoY Increase: 11.41% (compared to ₹740.17 crore in Q3 FY24)
Despite the increase in expenses, IRCTC’s profitability remains strong due to its diversified revenue streams and efficient cost management.
Segment-Wise Performance: IRCTC Business Growth
IRCTC operates in multiple business segments, including catering, packaged drinking water (Rail Neer), tourism, and internet ticketing. Here’s a breakdown of how each segment performed in Q3 FY25.
1. Catering Services:
The catering segment remains a key revenue driver for IRCTC, contributing significantly to overall growth.
- Catering Revenue in Q3 FY25: ₹554.81 crore
- Quarter-on-Quarter Growth: 9.26% (compared to ₹507.76 crore in Q2 FY25)
2. Packaged Drinking Water (Rail Neer):
IRCTC’s Rail Neer business continues to expand, benefiting from increased demand for hygienic packaged drinking water on trains and railway stations.
- Revenue from Rail Neer: ₹96.35 crore
- YoY Growth: 15.02%
3. Tourism and Online Ticketing:
IRCTC’s tourism and online ticketing services contribute a significant portion of its revenue. The company continues to benefit from rising online ticket bookings through its platform.
IRCTC Share Price and Market Outlook
IRCTC remains a strong player in the stock market, attracting long-term investors. The company’s consistent dividend payouts and strong financial performance make it a preferred PSU stock.
Factors Driving IRCTC’s Growth in 2025:
- Increased demand for railway services and catering
- Expansion of tourism services and luxury train offerings
- Growth in online railway ticketing through the IRCTC platform
- Enhanced revenue from packaged drinking water (Rail Neer)
- Dividend payouts maintaining investor confidence
Should You Invest in IRCTC Stock?
Why IRCTC Stock is Attractive for Investors?
- Strong Financial Performance – Continuous growth in profit and revenue.
- Regular Dividend Payouts – IRCTC maintains a good dividend history.
- Monopoly Business Model – IRCTC has a monopoly in railway catering, ticketing, and Rail Neer.
- Government-Backed PSU – Being a government-owned company, it offers stability.
- Long-Term Growth Potential – Expansion plans in tourism and catering offer future growth opportunities.
Risks to Consider:
- Regulatory Changes – Any policy changes by the government may impact IRCTC’s business.
- Market Volatility – Stock prices may fluctuate based on overall market conditions.
- Competition from Private Players – IRCTC faces competition in tourism and catering segments.
Conclusion: IRCTC’s Strong Growth Continues
IRCTC has once again delivered strong quarterly results with significant growth in profit, revenue, and segment-wise performance.
The second interim dividend of ₹3 per share further strengthens investor confidence. With its diverse revenue streams and expansion plans, IRCTC remains one of the most promising PSU stocks in India.
