Indian Railway Catering and Tourism Corp. is betting on sustained expansion across its tourism and hospitality segments after reporting a strong 29% year‑on‑year jump in tourism revenue in the December quarter. The annual growth rate for the segment is aimed at 15% to 18%, Chairman and Managing Director Sanjay Kumar Jain told NDTV Profit on Monday.
Speaking about the drivers behind the performance, Jain highlighted broad‑based demand across tourism verticals. The Bharat Gaurav and State Teerth trains posted a robust 51% rise, while the premium Maharaja Express saw revenue increase by 39%. Budget hotels and curated travel packages also delivered double‑digit growth, contributing to IRCTC's expanding tourism footprint.
"We are seeking to close around 15% to 18% annually," he said.
On the catering side, margins slipped to 10% for the quarter, compared to the nine‑month average of around 12%. Jain attributed the temporary contraction to three factors: the rollout of a proof‑of‑concept initiative involving branded food partners such as TajSats, Haldiram and Mypure; higher GST outgo related to approximately Rs 70 crore of Vande Bharat catering billings; and elevated HR and overhead costs tied to higher revenue volumes. He reiterated that full‑year catering margins were still expected to hold near 12%.
The Rail Neer packaged water division also saw stable performance, with capacity utilisation improving. IRCTC has recently added a new plant in Vijayawada and is now pursuing major expansion, including doubling capacity at its Danapur and Ambernath units. The board has additionally approved four new plants in Manohar, Prayagraj, Bhagalpur and Ranchi as part of a broader market‑expansion strategy.
Commenting on the pending labour code provisioning, Jain said IRCTC was still assessing the financial impact but expressed confidence in meeting regulatory requirements without strain, supported by revenue growth and volume expansion.
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