IRCTC Maintains Strong Revenue Outlook with ₹825 Target

IRCTC maintains a strong revenue outlook supported by resilient demand across its core business segments. The company's diversified revenue streams from ticketing, catering, tourism, and Rail Neer operations provide a solid foundation for sustained growth momentum.

Revenue Growth Drivers

The company's revenue prospects are bolstered by several key initiatives and market developments:

Digital transformation initiatives enhancing operational efficiency
New capacity additions across business segments
Implementation of cluster contracting strategies
Recent railway fare hike effective December 26, potentially creating positive revenue impact

Financial Performance Outlook

IRCTC's financial metrics demonstrate strong operational efficiency and profitability prospects:

Financial Metric	Target/Expectation
EBITDA Margins	Above 35%
Current Market Price	₹698.90
Target Price	₹825.00
Investment Horizon	9-12 months

The company expects to maintain robust EBITDA margins above 35% driven by disciplined cost management, digital efficiencies, and strong ticketing profitability. Segment margins across catering, Rail Neer, and tourism operations are projected to remain stable, supported by volume growth and competitive pricing strategies.

Business Segment Strengths

Ticketing Operations

IRCTC holds a monopoly position in railway ticket booking services. The expansion and digitization of online railway ticket booking enables passengers to book tickets conveniently 24/7 from their homes.

Catering Services

Access to clean and hygienic food on trains represents a top priority for Indian Railways, positioning IRCTC as a key player in this vertical. The company's catering operations benefit from its established network and quality standards.

Digital Payment Expansion

The Reserve Bank of India's approval for IRCTC to operate as an online payment aggregator represents a significant business development. This authorization allows the company to:

Process payments directly
Serve as an intermediary for merchant transactions
Expand digital payment services offerings

This approval enhances IRCTC's digital ecosystem and may create additional revenue opportunities beyond its traditional business segments.

Investment Recommendation

Based on the company's strong market position, diversified revenue streams, and positive regulatory developments, analysts recommend a Buy rating with a target price of ₹825 over the next 9-12 months. The recommendation reflects confidence in IRCTC's ability to capitalize on its monopoly advantages and expand its digital services portfolio.

IRCTC shows positive revenue momentum across ticketing, catering, and tourism segments. The railway fare hike from December 26 and RBI payment aggregator approval may boost growth prospects, supporting the target price of ₹825.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.34%	+2.24%	+1.54%	-10.40%	-11.92%	+140.43%

IRCTC has introduced significant changes to its online ticket booking system, restricting first-day advance reservation period bookings to Aadhaar-verified users starting Friday, December 29. The new policy represents the first phase of IRCTC's booking reform initiative designed to prioritize genuine passengers over ticket agents.

Phased Implementation Timeline

The railway authority has structured the rollout across three distinct phases with progressively extended booking windows for verified users:

Phase	Effective Date	Booking Window	Duration
Phase 1	December 29	8 am to 12 pm	4 hours
Phase 2	January 5	8 am to 4 pm	8 hours
Phase 3	January 12	8 am to 12 am	16 hours

The exclusive booking window applies specifically to the first day of the Advance Reservation Period, when demand typically peaks as passengers secure tickets for popular routes and travel dates.

Scope and Limitations

These restrictions affect only online ticket bookings through IRCTC's website and mobile application platforms. Manual ticket booking procedures at Passenger Reservation System (PRS) counters remain unchanged, continuing to accept valid identification documents without Aadhaar verification requirements.

IRCTC, the government-owned entity that manages catering, online ticketing, and tourism services for Indian Railways, has positioned this initiative as part of broader efforts to ensure legitimate passenger access to railway services.

Previous Authentication Measures

IRCTC previously implemented Aadhaar verification requirements for its Tatkal booking scheme in June, restricting last-minute ticket reservations to authenticated users only. The railway ministry stated this measure aimed to curb misuse and ensure genuine passengers benefit from the service rather than commercial agents.

Additional System Improvements

Beyond booking restrictions, Indian Railways has revised its chart preparation timing, finalizing reservation charts 10 hours before scheduled departure time compared to the previous 4-hour window. This enhancement provides passengers greater certainty about seat confirmation without requiring last-minute station visits to verify booking status.

The comprehensive reforms reflect Indian Railways' systematic approach to improving service delivery while maintaining equitable access for verified passengers across its extensive network. These changes are expected to help curb agent misuse and prioritize genuine passengers in the ticket booking process.