IRCTC Shares: SEBI Analysts See Limited Upside Despite Tourism Revenue Boost In Q1
Synopsis
Analysts pointed to weak technical trends and valuations as reasons for caution, keeping a ‘Hold’ view with a short-term target of ₹755–₹770.
Shares of Indian Railway Catering and Tourism Corporation fell on Thursday after the company reported a 7.8% sequential drop in net profit to ₹330 crore for the quarter ended June 30, 2025, from ₹358 crore in the fourth quarter (Q4) of FY25.
Q1 Earnings Review
Year-on-year, profit rose 7% from ₹308 crore. Revenue rose 4% from a year earlier to ₹1,160 crore.
Catering income slipped slightly to ₹547 crore, but tourism revenue surged 21% to ₹148 crore. Earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed 6% to ₹397 crore, helped by stronger operating leverage.
SEBI-registered analyst Financial Independence said IRCTC delivered a steady quarter despite weak broader demand.
They cited growth in digital ticketing and e-catering adoption, stable performance in Rail Neer and tourism as disruptions eased, and a controlled cost base that helped cushion margin pressures.
The research firm added that continued momentum in e-commerce and tourism services should support a second-half recovery.
Technical Breakdown
SEBI-registered analyst Akhilesh Jat said IRCTC ended Wednesday at ₹727.35, up 0.94% on a value basis, which resulted in a market cap of ₹57,880 crore.
He also said that the stock is still 42.65% below its all-time high and 23.35% below its 52-week high, but is 11.81% above its 52-week low. In the technical analysis, he pointed out that the stock is forming a descending peak pattern.
The stock also continues to trade below its 50-day, 100-day, and 200-day simple moving averages, which indicates a weak trend.
He also mentioned some crucial metrics for IRCTC, which are: P/E 44.02, ROE 35.89%, and dividend yield 1.67%.
He maintained a ‘Hold’ rating on the stock with a short-term target of ₹755–₹770 based on its valuation, price action, and business performance.
What Is The Retail Mood?
On Stocktwits, retail sentiment was ‘neutral’ amid ‘high’ message volume.
IRCTC’s stock has declined 8.1% so far in 2025.
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