IRCTC has received a GST Order-In-Original from tax authorities, resulting in a financial demand of ₹3.05 lakh related to alleged non-compliance for the financial year 2018-19. The company disclosed this development on December 31, 2025, under SEBI listing regulations.

GST Order Details

The Assistant Commissioner of Central Goods and Service Tax Commissionerate Delhi South issued the order on December 30, 2025. The order pertains to alleged non-payment of GST liability under the reverse charge mechanism for FY 2018-19.

Financial Impact Breakdown

The total demand of ₹3.05 lakh comprises equal components of tax liability and penalty imposed by the department.

Company's Position

Indian Railway Catering & Tourism Corporation Limited has indicated that while the financial exposure of ₹3.05 lakh has arisen due to the liability determined by the department, the penalty component specified in the order is litigative in nature. The company stated that this penalty can be contested before the appellate authorities within the stipulated timelines as provided under the law.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary and Compliance Officer Suman Kalra signed the disclosure document, ensuring compliance with mandatory reporting requirements for listed entities.

The order relates to the reverse charge mechanism under GST, where the recipient of goods or services is liable to pay tax instead of the supplier in certain specified circumstances.

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:

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.