Q1 2027 Indian Railway Catering & Tourism Corp Ltd Earnings Call

August 13, 2026

Operator: Ladies and gentlemen, good day and welcome to the IRCTC Limited Q1 FY26 earnings call hosted by Dolat Capital. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after our presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand conference over to Mr. Rahul Jain from Dolat Capital. Thank you, and over to you, Mr. Rahul.

Speaker #1: Should you need assistance during the conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Rahul Jain from Dolet Capital. Thank you, and over to you, Mr. Rahul.

Speaker #2: Thank you, Nitish. Good afternoon, everyone. On behalf of Dolet Capital, we welcome you all to the Q1 FY27 earnings conference call of IRCTC Limited.

Rahul Jain: Thank you, Nitesh. Good afternoon, everyone. On behalf of Dolat Capital, we welcome you all to the Q1 FY27 earning conference call of IRCTC Limited. I take this opportunity to welcome the management of IRCTC, represented by Mr. Rahul Himalian, who is CMD and Director of Tourism and Marketing, Mr. Rajneesh Narain, who is Director of Finance and CFO, and also we have today with us Mr. Manoj Kumar Sharma, who is Director of Catering Services of the company. Now, I would like to hand the conference over to IRCTC management to take the proceedings forward. Over to you, Mr. CMD.

Speaker #2: I take this opportunity to welcome the management of IRCTC, represented by Mr. Rahul Himalayan Ji, who is CMD and Director, Tourism and Marketing; Mr. Rajneesh Narayan, who is Director, Finance and CFO; and also we have today with us Mr. Manoj Kumar Sharma, who is Director, Catering Services of the company.

Speaker #2: Now I would like to hand the conference over to IRCTC management to take the proceedings forward. Over to you, Mr. CMD.

Speaker #3: Namaskar. Good afternoon, ladies and gentlemen. I am Rahul Himalayan, Director, Tourism and Marketing, and Chairman and Managing Director. It is my pleasure to welcome you to IRCTC's earnings call for the first quarter of the financial year 2026-27.

Rahul Himalian: Namaskar. Good afternoon, ladies and gentlemen. I am Rahul Himalian, Director of Tourism and Marketing and Chairman and Managing Director looking after. It is my pleasure to welcome you to IRCTC's earning call for the first quarter of this financial year 2026-27. The financial results for the quarter were announced yesterday and have been duly filed with the stock exchanges. I would like to begin by sharing a brief overview of our performance, following which our Director of Finance and CFO, Mr. Rajneesh Narain, will take you through the detailed financial and segment-wise performance. Q1 of financial year 2026-27 has been a quarter of resilient performance for IRCTC, reflecting the strength of a diversified business model and the continued momentum across our core business segments. During the quarter, profit after tax stood at INR 330 crores, supported by healthy performance across our Catering, Tourism, and Internet Ticketing segments.

Speaker #3: The financial results for the quarter were announced yesterday and have been duly filed with the stock exchanges. I would like to begin by sharing a brief overview of our performance.

Speaker #3: Following this, our Director of Finance and CFO, Mr. Rajneesh Narayan, will take you through the detailed financial and segment-wise performance. Quarter one of financial year 2026-27 has been a quarter of resilient performance for IRCTC, reflecting the strength of our diversified business model and the continued momentum across our core business segments.

Speaker #3: During the quarter, profit after tax stood at ₹330 crore, supported by healthy performance across our catering, tourism, and internet ticketing segments. This performance was further supported by improved operational efficiencies and disciplined cost management.

Rahul Himalian: This performance was further supported by improved operational efficiencies and disciplined cost management. EBITDA stood at INR 386 crores, registering a year-on-year decline of 2.77%. Despite this moderation, the company continued to maintain a strong operating performance during the quarter. Our revenue from operations increased to INR 1,370 crores from INR 1,160 crores in the corresponding quarter of the previous year, representing a robust year-on-year growth of 18.10%. The growth was primarily driven by strong contributions from the catering and tourism segments. Our performance continues to be supported by a strong brand, extensive customer reach, diversified business portfolio, and growing digital capabilities. We remain focused on enhancing operational efficiency while continuously improving the customer experience. Looking ahead, we remain committed to strengthening our existing business and developing new age offerings. We will continue to leverage technology, enhance operational capabilities, and explore emerging opportunities across tourism, hospitality, and value-added services.

Speaker #3: EBITDA stood at ₹386 crores, registering a year-on-year decline of 2.77%. Despite this moderation, the company continued to maintain a strong operating performance during the quarter.

Speaker #3: Our revenue from operations increased to ₹1,370 crores from ₹1,160 crores in the corresponding quarter of the previous year, representing a robust year-on-year growth of 18.10%.

Speaker #3: The growth was primarily driven by strong contributions from the catering and tourism segments. Our performance continues to be supported by a strong brand, extensive customer reach, diversified business portfolio, and growing digital capabilities.

Speaker #3: We remain focused on enhancing operational efficiency while continuously improving the customer experience. Looking ahead, we remain committed to strengthening our existing business and developing new-age offerings.

Speaker #3: We will continue to leverage technology-enhanced operational capabilities and explore emerging opportunities across tourism, hospitality, and value-added services. We remain confident that a strong financial position, resilient business model, and focus on operational excellence will enable us to sustain our growth momentum and create long-term and enduring value for all our stakeholders.

Rahul Himalian: We remain confident that our strong financial position, resilient business model, and focus on operational excellence will enable us to sustain our growth momentum and create long-term and enduring value for all our stakeholders. Before I end, I would like to say that IRCTC is a customer-centric organization. For that matter, for the external customer, it stands for I really care towards the customer, IRCTC. For the internal customer, our workforce, only when they are highly inspired and motivated. So for them, IRCTC stands for I really care to contribute. So with this, the entire circle gets completed, and customer is God for us. With this brief overview, I would now like to hand over the call to Mr. Rajneesh Narain, Director of Finance and CFO, who will take you through the detailed financial and segmental performance.

Speaker #3: And before I end, I would like to say that IRCTC is a customer-centric organization. For that matter, for the external customer, it stands for 'I Really Care Towards the Customer' – IRCTC. And for the internal customer, our workforce, only when they are highly inspired and motivated.

Speaker #3: So for them, IRCTC stands for 'I Really Care To Contribute.' With this, the entire circle gets completed, and the customer is God for us.

Speaker #3: With this brief overview, I would now like to hand over the call to Mr. Rajneesh Narayan, Director, Finance and CFO, who will take you through the detailed financial and segmental performance.

Speaker #3: Thank you, and I wish all of you a very productive discussion. Thank you. Thank you, sir. Good afternoon, ladies and gentlemen. On behalf of the management of IRCTC, I extend a warm welcome to all of you to this earnings call to discuss our financial and operational performance for Q1 2027.

Rahul Himalian: Thank you, and I wish all of you a very productive discussion. Thank you.

Rajneesh Narain: Thank you, sir. Good afternoon, ladies and gentlemen. On behalf of the management of IRCTC, I extend a warm welcome to all of you to this earnings call to discuss our financial and operational performance for Q1 FY27. I am pleased to share that the company has delivered increased revenue during the quarter, reflecting our diversified business model and disciplined execution. Profit after tax stood sustainably at INR 330 crores as compared by year-on-year for the mentioned period. Total revenue for the quarter reached INR 1,370 crores, representing an 18.1% increase over the corresponding period last year. EBITDA stood at INR 386 crores with a healthy EBITDA margin of 28.17%.

Speaker #3: I am pleased to share that the company has delivered increased revenue during the quarter, reflecting our diversified business model and disciplined execution. Profit after tax stood sustainably at ₹330 crore, as compared year-on-year for the mentioned period.

Speaker #3: Total revenue for the quarter reached ₹1,370 crore, representing an 18.1% increase over the corresponding period last year. EBITDA stood at ₹386 crore, with a healthy EBITDA margin of 28.17%.

Speaker #3: Although there is a slight decline in the margins due to changes in revenue mix, particularly higher contribution from catering and the implication of additional HR cost of around ₹20 crore, and an increase of direct cost in the ticketing segment, our overall profitability remained strong and sustainable.

Rajneesh Narain: Although there is a slight decline in the margins due to changes in revenue mix, particularly higher contribution from catering and implication of additional HR cost of around INR 20 crores, and increase of direct cost in ticketing segment, our overall profitability remained strong and sustainable. Let me now briefly highlight the segment-wise performance. Internet ticketing revenues stood at INR 361 crores, up by about half a percent, and nearly 89% of the reserved railway tickets in India are now booked through our online platform, underscoring our leadership in digital ticketing. This segment delivered an impressive EBITDA in excess of 80%, reflecting strong operating leverage and cost efficiency. Next, catering recorded revenue of INR 732 crores, achieving a robust growth of 33.82% year-on-year.

Speaker #3: Let me now briefly highlight the segment-wise performance. Internet ticketing: revenue stood at Rs 361 crore, up by about half a percent, and nearly 89% of the reserved railway tickets in India are now booked through our online platform.

Speaker #3: Underscoring our leadership in digital ticketing, this segment delivered an impressive EBITDA in excess of 80%, reflecting strong operating leverage and cost efficiency. Next, catering recorded revenue of ₹732 crore, achieving a robust growth of 33.82% year-on-year.

Speaker #3: Margins were impacted due to higher sales in train catering operations and pilot initiatives such as branded catering projects, along with our continued focus on enhancing customer value and passenger satisfaction.

Rajneesh Narain: Margins were impacted due to higher sales in train catering operations and pilot initiatives such as branded catering projects, along with our continued focus on enhancing customer value and passenger satisfaction. Despite this, the segment remains a steady and scalable growth driver, supported by rising passenger volumes and ongoing service improvements. The related sector, Rail Neer, generated revenue of INR 109 crores, registering a 2.83% year-on-year growth, with a margin of about 10%. Tourism delivered a positive performance with revenue of INR 168 crores, marking an increase in revenue with 13.5% year-on-year. Despite temporary geopolitical disruptions, EBITDA margins improved to 11.31% from 8.78%, reflecting a better product mix and focused cost realization initiatives. Our overall first quarter results demonstrate the resilience of our business, disciplined cost management, a strong digital backbone, and unwavering focus on operational excellence.

Speaker #3: Despite this, the segment remains a steady and scalable growth driver, supported by rising passenger volumes and ongoing service improvements. The related sector, rail neads, generated revenue of Rs 109 crore, registering a 2.83% year-on-year growth with a margin of about 10%.

Speaker #3: Tourism delivered a positive performance, with revenue of ₹168 crore, marking an increase in revenue of 13.5% year-on-year. Despite temporary geopolitical disruptions, EBITDA margins improved to 11.31% from 8.78%, reflecting a better product mix and focused cost realization initiatives.

Speaker #3: Our overall first quarter results demonstrate the resilience of our business, disciplined cost management, a strong digital backbone, and unwavering focus on operational excellence. We remain confident in our growth momentum and are well-positioned to create sustainable, long-term value for our stakeholders.

Rajneesh Narain: We remain confident in our growth momentum and are well-positioned to create sustainable long-term value for our stakeholders. With this, I conclude my remarks. We will now open the floor for questions. Thank you.

Speaker #3: With this, I conclude my remarks. We will now open the floor for questions. Thank you.

Speaker #2: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their desktop telephone.

Operator 2: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question from the line of Sanjeev Gupta from FS Family House. Please go ahead.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question from the line of Sanjeev Gupta from FS Family House. Please go ahead.

Speaker #2: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #2: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question from the line of Kanish Gupta from SS Family House. Please go ahead.

Speaker #4: Hello, sir. A very good afternoon. My first question.

Sanjeev Gupta: Hello, sir. A very good afternoon.

Rajneesh Narain: Good afternoon.

Sanjeev Gupta: My first question will be regarding the resignation Sanjay-ji made, although there was no reason specified there in the letter that he shared. Can you please tell the reason of his resignation and assure the shareholders and stakeholders that there are no material discrepancies within the company?

Speaker #3: Good afternoon.

Speaker #4: Would it be regarding the resignation? Sanjay ji made all the—there was no reason specified in the letter that he shared, so can you please tell the reason for his resignation and assure the shareholders and stakeholders that there are no material discrepancies within the company?

Speaker #3: So, do you want me to answer this, or will you ask the remaining questions?

Rahul Himalian: Do you want me to answer this or you will ask the remaining questions?

Speaker #4: No sir, you can answer this definitely.

Sanjeev Gupta: No, sir, you can answer this, definitely.

Speaker #3: Yeah, yeah. See, first of all, the performance, the leadership of Sanjay sir was phenomenal, in Railways as well as in IRCTC. This was a completely personal decision and IRCTC will continue to grow stronger day by day, and even emulating his leadership skills will be a matter of pride for us. In personal and professional life, you have work-life balance—certain situations come across, we respect that thing. But IRCTC as an organization will continue to grow stronger, with even Sanjay Jain sir supporting from the outside in whatever capacity he can.

Rahul Himalian: Yeah. See, first of all, the performance, the leadership of Sanjay Jain sir was phenomenal. In Indian Railways as well as in IRCTC, this was a completely personal decision, and IRCTC will continue to grow stronger day by day, and even emulating his leadership skills will be a matter of pride for us. In personal and professional, you have work-life balance. Certain situations come across. We respect that thing. But IRCTC as an organization will continue to grow stronger with even Sanjay Jain sir supporting from the outside in whatever capacity he can. So that we can assure you.

Speaker #3: So that we can assure you.

Speaker #4: Okay, sir. And my second question would be on rail need. Sir, I would like to ask that during the channel checks conducted, we have seen meaningful availability of third-party bottled water brands across non-AC train categories and several station kiosks. So, could you help us understand whether this reflects supply constraint, distribution gaps, or any kind of compliance issues?

Sanjeev Gupta: Okay, sir.

Rahul Himalian: Thank you.

Sanjeev Gupta: My second question would be on Rail Neer. Sir, I would like to ask that during the channel checks conducted, we have seen meaningful availability of third-party bottled water brands across non-AC train categories and several station kiosks. Could you help us understand whether this reflects supply constraint, distribution gaps, or any kind of compliance issues? Additionally, how should the investors think about the incremental revenue potential if Rail Neer were able to materially improve its share in these channels?

Speaker #4: And additionally, how should the investors think about the incremental revenue potential if Rail Neer were able to materially improve its share in these channels?

Speaker #3: See, Rail Neer at present is comfortable, and it has got a USP that it is priced at ₹14 as compared to other PDWs in the market.

Rahul Himalian: See, Rail Neer at present is comfortably, and it has got a USP that it is priced at INR 14 as compared to other PDW in the market. Now we are talking about the capacity. The capacity of Rail Neer, the installed capacity is around 17.77. It has reduced from 18.4 because of closure of one plant. The supply is around 15.5 lakh bottles per day. The requirement is much higher. That is why we have few stations which are around 30 plus, 25 plus, 25 lakh bottles per day. The issue remains that there are some mandatory stations around which Rail Neer bottles are compulsory. This gap sometimes is unfortunately utilized by the unauthorized vendors. It is a problem which is duly recognized by the railways, by IRCTC also, that these PDW should not come.

Speaker #3: But now we are talking about the capacity—the capacity of rail. The installed capacity is around 17.77; it has reduced from 18.4 because of the closure of one plant.

Speaker #3: The requirement for supply is around 15.5 lakh bottles per day. The requirement is much higher, that is why we have a few stations which are around 30 plus, 25 plus, 25 lakh bottles per day, but the issue remains that there are some mandatory stations around which rail needs bottles are compulsory.

Speaker #3: Now, this gap is sometimes unfortunately utilized by unauthorized vendors. It is a problem which is duly recognized by the Railways and by IRCTC also, that these PDW should not come. But the immediate approach for IRCTC is, one, the augmentation of the existing capacity, for which at Amarnath we are going from 2 lakh bottles to 3 lakh; for Danapur, we are trying to increase from 1 lakh to 2 lakh bottles per day. Other than that, we are coming up with four new upcoming plants.

Rahul Himalian: The immediate approach for IRCTC is, one, the augmentation of the existing capacity for which Ambernath, we are going from 2 lakh bottles to 3 lakh. For Danapur, we are trying to increase from 1 lakh to 2 lakh bottles per day. Other than that, we are coming with upcoming four new plants, Prayagraj, Mysore, Ranchi, and Bhagalpur. In which in Prayagraj and Mysore, the land has been allotted. In Ranchi, the confirmation for the land allotment has just come yesterday. This is the conventional approach that we are trying to meet the gap by expansion of the existing plants and also by introduction of new plants. Seeing the entire ecosystem across the country of packaged drinking water and how we can leverage and utilize it is a question which will be decided by many policy decisions.

Speaker #3: Prayagraj, Mysore, Ranchi, and Bhagalpur—in which, in Prayagraj and Mysore, the land has been allotted. In Ranchi, the confirmation for the land allotment has just come yesterday. So, this is the conventional approach: we are trying to meet the gap by expansion of the existing plants and also by introduction of new plants.

Speaker #3: Now, in seeing the entire ecosystem across the country of packaged drinking water and how we can leverage and utilize it is a question which will be decided by many policy decisions. But the fact remains that we are within the conventional system, and within the existing framework, we are going for the new plants, and production capacity of existing plants is being augmented.

Rahul Himalian: The fact remains that within the conventional system and within the existing framework, we are going for the new plants, and production capacity of existing plant is being augmented. Thank you.

Speaker #3: Thank you.

Speaker #4: And sir, I would also like to ask if you can give the timeline by which these new plants will become operational.

Sanjeev Gupta: And sir, I would also like to ask if you can give the timeline by which these new plants will become operational.

Speaker #3: See, right now the land has only been allotted. It might spill over to the next financial year, with focus on Prayagraj, Mysore, and Ranchi first. There are upcoming plants also, for which we cannot say—like you may have plants in Varanasi, Pune, and other places also, depending upon the requirements. We have a radius of around 250 kilometers to which a plant can comfortably serve.

Rahul Himalian: See, right now the land has only been allotted. It might spill over to the next financial year with focus on Prayagraj, Mysore, and Ranchi first. There are upcoming plants also, for which we cannot say. We may have plants in Varanasi, Pune, and other places also. Depending upon the, we have a radius of around 250 kilometers to which a plant can comfortably serve. So the timeline can easily extend to the financial year beyond 2026, 2027. By this year, we will have augmentation. Augmentation of two plants should be finalized if everything goes well by this financial year. That is Ambernath from 2 lakh bottles to 3 lakh bottles, and Danapur from 1 lakh to 2 lakh bottles. That should be finalized this year.

Speaker #3: So, the timeline can be easily extended to the financial year beyond 2026-27. And by this year, we will have augmentation—augmentation of two plants should be finalized, if everything goes well, by this financial year. That is, Ammanath from 2 lakh bottles to 3 lakh bottles, and Danapur from 1 lakh to 2 lakh bottles.

Speaker #3: That should be finalized this year.

Speaker #4: And sir, final question would be on the catering side so could you share any kind of trends in the catering attachment rates over the last few years and to what extent do you believe that food quality perception are affecting demand and what measurable steps are being taken to improve the passenger experience and drive higher catering consumption and on the quantitative side so can you also quantify the mix of people who opt out and opt in for food for FY 26 and Q1 FY 27?

Sanjeev Gupta: And sir, final question would be on the catering side. Could you share any kind of trends in the catering attachment rates over the last few years? To what extent do you believe that food quality perception are affecting demand? What measurable steps are being taken to improve the passenger experience and drive higher catering consumption? On the quantitative side, can you also quantify the mix of people who opt out and opt in for food for FY26 and Q1 FY27?

Speaker #3: Yeah. See, as far as the catering is concerned, like you know, there are various categories of trains, including the prepared trains like Vande Bharat, Rajdhani, Shatabdi, Tejas, Toranto, Gatimaan Express.

Rahul Himalian: Yeah. See, as far as the catering is concerned, you know that there are various category of trains, including prepaid trains like Vande Bharat, Rajdhani, Shatabdi, Tejas, Duronto, Gatiman Express. Then comes mail express trains, which have got pantry car, and TSV train-side vending, which does not have a pantry car. But now, like I said earlier also, the focus of IRCTC is customer-centric. In the given regime, we also have the option of e-catering, which has grown from around 1.25 lakh meals to more than 1.6 lakh meals per day. We have also introduced the concept of e-pantry. E-pantry, we are reaching around more than 50 plus trains, in which the passenger can order meals from the same train through his mobile or QR code, in which the concept of overcharging will be obviated, which may reach around 100 trains.

Speaker #3: Then come mail express trains, which have got pantry cars, and TSV trains—train side vending—which do not have a pantry car. But now, like I said earlier also, the focus of IRCTC is customer centric.

Speaker #3: In the given regime, we also have the option of e-catering, which has grown from around 1.25 lakh meals to more than 1.6 lakh meals per day, and we have also introduced the concept of e-pantry.

Speaker #3: E-pantries—we are reaching around more than 50 trains in which the passenger can order meals from the same train through his mobile or QR code, by which the concept of overcharging will be obviated. This may reach around 100 trains.

Speaker #3: So, in the same ecosystem, we are giving the passenger the option of various things. Now, this is regarding quality. This is still at the policy formulation stage.

Rahul Himalian: So in the same ecosystem, we are giving the passenger option of various things. This is regarding quality. This is still at policy formulation. We at IRCTC understand that the quality has to. We are also thinking, guided by our Ministry, of bringing in branded players, how their willingness, bringing them into the ecosystem and by way of competition or by way of quality competition, we will try to. This exercise may take some time, but this is the need of the hour, the need of the customer, and we will go towards this.

Speaker #3: We at IRCTC understand that the quality has to — so we are also thinking, as guided by the ministry, of bringing in branded players, understanding their willingness, and bringing them into the ecosystem. By way of competition — or by way of quality competition — we will try to... This exercise may take some time, but this is the need of the hour, the need of the customer, and we will go towards this.

Speaker #4: And sir, on the prepaid mix, what would be the percentage of people who opt in and opt out for food while booking their tickets via IRCTC?

Sanjeev Gupta: And sir, on the prepaid mix, what would be the percentage of people who opt in and opt out for food while booking their tickets via IRCTC?

Kartik Gada: Quality complaints are 0.03%.

Speaker #3: See, opt out like I said that it is it will be around 15 to 30 percent and in the complaints also we are focusing focusing upon around 58 crore meals per annum.

Rahul Himalian: The opt-outs, like I said that it will be around 15% to 30%. And in the complaints also, we are focusing upon around 58 crore meals per annum. We have a complaint ratio of 0.0008%. Our aim is to reduce. Whenever the complaint is purely on some anomaly like maybe the staleness of the food or some staff behavior, then we take it upon us, but sometimes it is on taste preferences, perception and all. And many complaints are of suggestions, improvements, noted, demand for water, demand for baby food and all. So of around 300 to 500 complaints which are logged on a daily basis, out of around 18 lakh meals supplied on a daily basis, it comes to less than around 0.0008%. Opt-out is around 25% to 30%, but this figure will be confirmed. This is an offhand figure I am giving for opt-out.

Speaker #3: We have a complaint ratio of 0.0008 percent. Our aim is to reduce it. Sometimes, it is on percent. Whenever the complaint is purely on some anomaly, like maybe the staleness of the food or the staff behavior, then we take it upon ourselves. But sometimes, it is on taste preferences, perceptions, and all. Many complaints are of suggestions, improvements noted, demand for water, demand for baby food, and so on.

Speaker #3: So, of around 300 to 500 complaints which are logged on a daily basis, out of around 18 lakh meals supplied on a daily basis, it comes to less than around 0.0008 percent.

Speaker #3: Opt-out is around 25 to 30 percent, but this figure will be confirmed. This is an offhand figure I am giving for opt-out, but this again shows that we have given the facility. Earlier it was more of opt-in; people have started opting out and saving the catering charges.

Rahul Himalian: But this again shows that we have given the facility. Earlier, it was more of opt-in. The people have started opting out and saving the catering charges.

Speaker #4: Sir, if these necessary KPIs can be included in investor presentations for investors to look at, that would be really helpful next quarter onwards.

Sanjeev Gupta: Sir, if these necessary KPIs can be included in an investor presentations for investors to look at better, that would be really helpful next quarter onwards.

Speaker #3: Yeah, thank you very much. We take note of your suggestion. We'll go for the implementation.

Rahul Himalian: Yes. Thank you very much. We take note of your suggestion. We will go for the implement.

Speaker #4: Sir, and all the very best for the future.

Sanjeev Gupta: Thank you very much, sir. And all the very best for the future.

Speaker #3: Thank you. Thank you very much.

Rahul Himalian: Thank you. Thank you very much.

Speaker #4: Thank you. We have the next question from the line of Kashish Mehta from Dollard Capital. Please go ahead.

Operator 2: Thank you. We have next question from the line of Kashish Mehta from Dolat Capital. Please go ahead.

Operator: Thank you. We have next question from the line of Kashish Mehta from Dolat Capital. Please go ahead.

Speaker #5: Hi team. Hi thank you for taking my question. Thank you for the opportunity. I would like to start you know I just read a very interesting article I think today morning or just yesterday about you know Tejas the advertising rights for Tejas being given to Sprite and it is going to be rebranded as Sprite Tejas which is you know quite new because as of yet you know a lot of times we see posters or some banners on trains but you know just rebranding the whole train as a certain advertisement and you know just drawing those advertisement actions back to the margins which have improved sequentially for tourism.

Kashish Mehta: Hi, team. Thank you for taking my question, and thank you for the opportunity. I would like to start, I just read a very interesting article, I think today morning or just yesterday, about the advertising rights for Tejas being given to Sprite, and it is going to be rebranded as Sprite Tejas, which is quite new because as of yet, a lot of times we see posters or some banners on trains, but just rebranding the whole train as a certain advertisement and just drawing those advertisement actions back to the margins, which have improved sequentially for tourism. Just wanted to get insights. Is there some new leg that the company is now looking into, and if these actions propel forward, how is it looking for margin in the tourism sector?

Speaker #5: So you know just wanted to get insights you know is there some new leg that the company is now looking into and how you know if these actions you know propel forward how is it looking for margins in the tourism sector.

Speaker #3: First, good afternoon to you. IRCTC operates two private trains. These are the only corporate trains that are operated across Indian Railways.

Rahul Himalian: First, good afternoon to you. IRCTC operates two private trains. These are the only corporate trains that are operated all over Indian Railways. One is Lucknow Junction NDLS Tejas Express, other one is Ahmedabad Mumbai Tejas Express. Now, in this entire setup, we have a comprehensive services of catering, security, housekeeping, and ticket checking to be done by IRCTC staff only. So the experience is elevated in terms of there are rail hostesses, then there is a lot of automation, GPS, CCTV on the train itself. In this very thing, we have a concept of NFR, non-fare revenue, in which comes the vinyl wrapping of the coaches, either on an individual basis or a whole train basis, transcripts or boards being attached in the coaches inside, in which parties can come up. We have a policy for this and naming of the train.

Speaker #3: One is the Lucknow Junction NDLS Tejas Express; the other one is the Ahmedabad-Mumbai Tejas Express. Now, in this entire setup, we have comprehensive services of catering, security, housekeeping, and ticket checking to be done by IRCTC staff only.

Speaker #3: So the experience is elevated in terms of this—there are rail hostesses, then there's a lot of automation, GPS, CCTV on the train itself. And in this very thing, we have a concept of NFR, non-fare revenue.

Speaker #3: With regard to the vinyl wrapping of the coaches, either on an individual basis or for the whole train, there are transcripts of boards being attached inside the coaches. Parties can come up, and we have a policy for this as well as for the naming of the train.

Speaker #3: Like you can have a LIC Tejas Express, you can have a Sprite Tejas Express. Now, in those there are amounts fixed. So in this way, the profitability and viability of the trains can come up.

Rahul Himalian: Like you can have a LIC Tejas Express, you have a Sprite Tejas Express. Now, there are amounts fixed. In this way, the profitability and viability of the trains can come up. Other than the fare revenue and the catering charges and all, catering license fee, this is one of the ways. This had come up in the beginning when the trains came up. It became a little slow. Now with the regional offices and zonal offices picking up, this concept of NFR will be promoted further. This is just one step. It was always there like a dormant volcano. Now it has come up for the first time. Let me inform you, the naming of the train of Tejas Express is being done for the very first time.

Speaker #3: Other than the fare revenue and the catering charges and all catering license fees, so this is one of the ways. This had come up in the beginning when the trains came up—it became a little slow.

Speaker #3: Now, with regional offices and zonal offices picking up, this concept of NFR will be promoted further. So this is just one step. It was always there, like a dormant volcano.

Speaker #3: So, it has come up for the first time. Let me inform you, the naming of the train as Tejas Express is being done for the very first time.

Speaker #3: Thank you.

Kashish Mehta: Thank you. Sure. Okay. Thank you. That was quite helpful. Sir, coming on to the catering vertical. You did touch up broadly upon what is propelling the vertical. But to again confine it to a quarter-on-quarter movement, it has been really wonderful, and something like that is offbeat from the past trends, where Q1 for catering is usually a bit softer, but this time it has really come up in the revenue numbers. Could you just break it down, what specifically has helped these numbers for the quarter per se?

Speaker #5: Sure. Sure. Just okay. Okay. Next question. Thank you. That was quite helpful. Sir, coming on to the catering vertical. So you did touch up you know broadly upon what is propelling the vertical.

Speaker #5: But to again confine it to a quarter-on-quarter movement, it has been really wonderful, you know, and it's something offbeat from the past trends, where Q1 for catering is usually a bit softer. But this time it has really, you know, come up in the revenue numbers.

Speaker #5: So could you just break it down—you know, what specifically has helped these numbers for the quarter, per se?

Speaker #3: Hi. Yeah. I would answer your question, just one thing. See, first of all, I would like to say before you understand, I go into the VB section of catering, if you understand that out of 1,300 crores, 1,160 crores was done in quarter one of financial year ‘26. We reached 1,370 crores in quarter one of financial year ‘27.

Rahul Himalian: Hi. I would answer your question. Just one thing. First of all, I would like to say, before you understand, I go into the vivid section of catering. If you understand that out of INR 1,160 crores done in Q1 FY26, we reached INR 1,370 crores in Q1 FY27. Okay? Of which catering was 732, Rail Neer 109, tourism 168, and IT 361. Catering itself was around 54%, and the delta between Q1 FY27 and Q1 FY26 was 732 minus 547. That is around INR 185 crores from catering itself. While the delta in Rail Neer was only three, tourism 20, and IT two. Okay. Now, catering at INR 185 crore delta, out of which onboard sale from prepaid trains rose from 301 to 413 crores. Number two, licensee of these prepaid mobile trains, plus other trains, rose from 192 to 224.

Speaker #3: Okay. So of which catering was 732 rail near 109 tourism 168 and IT 361 catering itself was around 54 percent and the delta between quarter one 27 and quarter one 26 was 732 minus 547 that is around 185 crores from catering itself while the delta in rail near was only 3 tourism 20 and IT 2.

Speaker #3: Okay. So now, catering at ₹185 crores delta, out of which onboard sales from prepaid trains rose from ₹301 crores to ₹413 crores. Number two, license fee of these prepaid mobile trains plus other trains rose from ₹192 crores to ₹224 crores—that is, there was a rise of around ₹105 crores from these two combined together. Then, license fee from static units grew from ₹20 crores to ₹33 crores, and license fee for e-catering grew from ₹9 crores to ₹22 crores. E-catering is another growing segment, which has grown to around 1.05 lakh meals from FY25-26 to 1.69 lakh meals in FY26-27, and e-catering revenue has grown by ₹6 crores, from ₹16 crores to ₹22 crores.

Rahul Himalian: That is, there was a rise of around INR 105 crores from these two combined together. Licensee from static units grew from 20 to 33, and licensee for e-catering grew from nine to 22. E-catering is another growing segment, which has grown to around 1.05 lakh meals from 2026 to 1.69 lakh meals in FY26, 2027. E-catering revenue has grown by INR 6 crores, from 16 to 22 crores. The election specials grew from INR 5 crores to 41 crores. Combining these onboard sales at INR 413 crore, licensee for mobile trains at 224, licensees from static units 33, licensee e-catering 22, election special at INR 41 crores and other income INR 15 crores, the total came out to be INR 747 crores. That was the breakup of your catering. Thank you.

Speaker #3: Then the election specials grew from ₹5 crore to ₹41 crore. So, combining this: onboard sales at ₹413 crore, license fee for mobile trains at ₹224 crore, license fee from static units ₹33 crore, license fee e-catering ₹22 crore, election specials at ₹41 crore, and other income ₹15 crore, the total came out to be ₹747 crore. So that was the breakup of your catering.

Speaker #3: Thank you.

Speaker #5: Right. Right. Thank you. Thank you. And sir the last question is again a bit on the regulatory fund regarding the payment aggregator license you know that so what is you know the progress what is the status and how are we looking to monetize it you know in terms of integration or what are the plans that the company is actively working on right now.

Kashish Mehta: Right. Thank you. And sir, the last question is again a bit on the regulatory front regarding the payment aggregator license. What is the progress? What is the status, and how are we looking to monetize it in terms of integration? What are the plans that the company is actively working on right now?

Speaker #3: See, in in in this the IPA IRCTC payments limited first of all we started off with the in principle approval being given by RBI last year and they had given us a time limit for submitting the final application on 4th August 2025 we have 26 we have submitted the final application number one number two the final application required a submission of SAR and MVP that is system audit report and minimum viable product feasibility that we have submitted it should take this financial year for RB RBI to respond at the same time they wanted a TSP to be finalized by the technological service provider which we have already engaged so once the IPA is in position because right now out of 16 lakh tickets which are booked on a daily basis around 90 percent are booked online by IRCTC which comprise around 53 to 54 percent by RailConnect mobile app and around 17 percent by IRCTC website the remaining 30 percent 2 percent is G2G for various BSF NSG CRPF CISF and paramilitary forces including army and around 28 percent with business associates now in this entire setup IPA does around 2.7 lakh transactions as of now because it cannot monopolize the entire system since it has not got the RBI license but once we have the RBI license we may express expense across IRCTC number one number two we can go to railways or various passenger and freight freight related services like terminal management system and FOIS and all number one number two number three we can go to the railways as far as GEM is concerned as far as pension scheme is concerned and then number three we can go to the private market so all these thing have to go step by step on a ladder if touch wood if everything remains good we go with the RBI license then we can expand like any other payment aggregator like RailPay PhonePe and all.

Rahul Himalian: See, in this, the IRCTC Payments Limited. First of all, we started off with the in-principle approval being given by RBI last year, and they had given us a time limit for submitting the final application. On 4 August 2026, we have submitted the final application, number one. Number two, the final application required a submission of SAR and MVP. That is System Audit Report and Minimum Viable Product feasibility. That we have submitted. It should take this financial year for RBI to respond. At the same time, they wanted a TSP to be finalized by us. There is a technological service provider, which we have already engaged.

Rahul Himalian: So once the IPA is in position, because right now out of 16 lakh tickets which are booked on a daily basis, around 90% are booked online by IRCTC, which comprise around 53% to 54% by Rail Connect mobile app and around 17% by IRCTC website. The remaining 32% is G2G for various BSF, NSG, CRPF, CISF and paramilitary forces, including army. And around 28% with business associates. Now, in this entire setup, IPA does around 2.7 lakh transactions as on now because it cannot monopolize the entire system since it has not got the RBI license. But once we have the RBI license, we may express our expanse across IRCTC, number one. Number two, we can go to railways for various passenger and freight-related services like terminal management system and FOIS and all, number one.

Rahul Himalian: Number three, we can go to the railways as far as GeM is concerned, as far as pension scheme is concerned, and then number three, we can go to the private market. So all these things have to go step by step on a ladder. Touch wood, if everything remains good, we go with the RBI license, then we can expand like any other payment aggregator, like Razorpay or PhonePe and all. Thank you.

Speaker #3: Thank you.

Speaker #5: Right. Right. That is all. I just joined the queue back again for follow-up questions later on. Thank you.

Kashish Mehta: Right. That is all. I will just join the queue back again for follow-up questions later on. Thank you.

Speaker #3: Okay. Thank you.

Rahul Himalian: Thank you.

Speaker #2: Thank you. We have the next question from the line of Naveen from I Thought PMS. Please go ahead.

Operator 2: Thank you. We have next question from the line of Naveen from iThought PMS. Please go ahead.

Operator: Thank you. We have next question from the line of Navin from iThought PMS. Please go ahead.

Speaker #4: Yeah, thank you for taking my question. Congratulations on a good set of numbers. So, I just wanted to understand a couple of things. One thing is regarding the non-convenience fee.

[Company Representative] (ITUS Capital): Yeah. Thank you for taking my question. Congratulations on a good set of numbers. I just wanted to understand a couple of things. One thing is regarding the non-convenience fee. It would be great if you could provide the breakup between non-convenience and convenience first, and then also talk about some of the initiatives that are working, that are not working with respect to driving this non-convenience fee revenue. For example, the Rail Connect initiative and some of the other cross-sells that we are trying to do, including IPA. If you could just throw some light on that. You could answer the question first, and then I will ask my next question.

Navin Koushik M.: Yeah. Thank you for taking my question. Congratulations on a good set of numbers. I just wanted to understand a couple of things. One thing is regarding the non-convenience fee. It would be great if you could provide the breakup between non-convenience and convenience first, and then also talk about some of the initiatives that are working, that are not working with respect to driving this non-convenience fee revenue. For example, the Rail Connect initiative and some of the other cross-sells that we are trying to do, including IPA. If you could just throw some light on that. You could answer the question first, and then I will ask my next question.

Speaker #4: So it would be great if you could provide the breakup between non-convenience and convenience first, and then also talk about some of the initiatives that have worked and are not working with respect to driving this non-convenience fee revenue.

Speaker #4: So, for example, the Rail One initiative and some of the other cross-sales that we are trying to do, including IPA. If you could just throw some light on that.

Speaker #4: You could answer the question first, and then I'll ask my next question.

Speaker #3: Yeah, thank you very much. So, as far as internet ticketing is concerned—in convenience fee, I'll start with—we had a revenue increase from 236 to 248. But in non-convenience fee, we went from 123 to 113.

Rahul Himalian: Yeah. Thank you very much. As far as internet ticketing is concerned, in convenience fee, I will start with, we had a 236% to 248% revenue increase. But in non-convenience fee, where we went from 123% to 113%. Non-convenience fee comes from two things. One is the spin-offs, which are attached with your ticketing business, which are moving around the periphery, whether it is marketing or ad revenue or agent business or IP commission or payment gateway business or e-wallet loyalty program. There has been a marginal one thing you will have to appreciate, like I said earlier also, that our complete focus is on customer centricity. You must have seen an announcement and unveiling of the beta version of the UI/UX transformed IRCTC website, for which we are trying to launch the full version of it very soon.

Speaker #3: Now in in non-convenience fee comes from two things. One is the spin offs which are attached with your ticketing business which are moving around the periphery whether it is marketing or ads revenue or agent business or IPA commission or payment gateway business or e-wallet loyalty program.

Speaker #3: Now there has been a marginal we have also one thing you'll have to appreciate that like I said earlier also there are complete focuses on customer centricity so you must have seen in a announcement and unveiling of the beta version of the UI UX transformed IRCTC website for which we are trying to launch the full version of it very soon so that some somewhat impacted because we are removing all the for the time being removing the marketing and ad revenue from the website but in a non-invasive way we will reintroduce it first of all is to win the confidence and customer the confidence of the customers the agent business also like we have seen that at times of 8:00 a.m.

Rahul Himalian: That somewhat impacted because we are, for the time being, removing the marketing and ad revenue from the website. But in a non-invasive way, we will reintroduce it. First of all, it is to win the confidence of the customers. The agent business also, we have seen that at times of 8:00 AM, 10:00 AM, and 11:00 AM, we have lots of unauthorized, non-genuine, spurious, you can say, users who are trying to clog the site. For this, we have built a regimen other than employing Akamai, who does the bot mitigation and CDN delivery, content delivery network by offloading the static content, and other agencies who try to ensure that these scurries do not come in. We have built a regimen in which the time limit has been increased from 15 minutes of non-usage of this website by the agents to now 30 minutes.

Speaker #3: Between 10:00 a.m. and 11:00 a.m., we have lots of unauthorized, non-genuine, spurious—you can say—users who are trying to clog the site. For this, we have built a regimen, other than employing Akamai, who does the bot mitigation and CDN, content delivery networks, by offloading the static content, and other agencies who try to ensure that these spurious users do not come in. We have built a regimen in which the time limit has increased from 15 minutes of non-usage of this website by the agents to now 30 minutes. So this has impacted, in one way. Third is about Rail One. Like you have been speaking about Rail One—now the platform of Rail One ends on IRCTC and Gate only. They have got a comprehensive set of services: unreserved ticketing, reserved ticketing, platform ticketing. Later on, they will get freight also, parcel also. Now, it ends on this. So there has been some diversion to Rail One, which I said. For us, the prime most is the customer. If he gets an opportunity through Rail One, IRCTC RailConnect, or the website—for us, it is one and the same thing because it comes to IRCTC. The convenience fee remains unchanged, but at the same time, it gives us rigor and vigor to focus and improve our website also. Thank you.

Rahul Himalian: This has impacted one way. Third is about Rail Neer. You have been speaking about Rail Neer. The platform of Rail Neer ends on IRCTC NGeT only. They have got comprehensive services of unreserved ticketing, reserved ticketing, platform ticketing. Later on, they will get freight also, parcel also. It ends on this. There has been some diversion to Rail Neer, which I said, for us, the prime most is the customer. If he gets an opportunity through Rail Neer, IRCTC, RailConnect, or the website, for us, it is one and the same thing. When it comes to IRCTC, the convenience fee remains unchanged. But at the same time, it gives us rigor and vigor to focus and improve our website also. Thank you.

Speaker #4: So just a small follow up on your answer. So I'm seeing that you know compared to our historical margins earlier around the mid 80s where around you know the the 80 range low 80 range.

[Company Representative] (ITUS Capital): Sir, just a small follow-up on your answer. I am seeing that, compared to our historical margins earlier around the mid 80s, we are around the low 80 range.

Navin Koushik M.: Sir, just a small follow-up on your answer. I am seeing that, compared to our historical margins earlier around the mid 80s, we are around the low 80 range.

Rahul Himalian: Correct.

Speaker #4: Would reinvestments into the business or the segment be one of the reasons why you're seeing a margin dip?

[Company Representative] (ITUS Capital): Would reinvestments into the business or the segment be one of the reasons why we are seeing a margin dip?

Navin Koushik M.: Would reinvestments into the business or the segment be one of the reasons why we are seeing a margin dip?

Speaker #3: Could you please explain your question again?

Rahul Himalian: Could you please explain your question again?

Speaker #4: No. So, from the historical EBIT margin levels for the internet ticketing segment of around 85 percent or 84 percent, we're seeing a margin decline over the last two quarters, with the current quarter being 80 percent.

[Company Representative] (ITUS Capital): From the historical EBIT margins level for the internet ticketing segment of around 85% or 84%, we are seeing a margin decline over the last two quarters, even the current quarter being 80%. I understand we had some one-offs in the previous quarter, but is my understanding right in the sense that we are investing back into the business and trying to make our app better, website better? Is that why the margins are taking a hit, or is my understanding wrong?

Navin Koushik M.: From the historical EBIT margins level for the internet ticketing segment of around 85% or 84%, we are seeing a margin decline over the last two quarters, even the current quarter being 80%. I understand we had some one-offs in the previous quarter, but is my understanding right in the sense that we are investing back into the business and trying to make our app better, website better? Is that why the margins are taking a hit, or is my understanding wrong?

Speaker #4: So I understand we had some one-offs in the previous quarter, but is my understanding right in the sense that we're investing back into the business and trying to make our app better and website better?

Speaker #4: Is that why the margins have taken a hit, or is my understanding wrong?

Speaker #3: Yeah, there is something more to it, which I'll share with you. After 2014, and in 2018 and 2019, we tried to infuse something. There are two things we are trying to introduce.

Rahul Himalian: Yeah. There is something more to it, which I will share you. After 2014, and in 2018 and 2019, we tried to infuse something. There are two things we are trying to introduce. One is the NGeT infra refresh. NGeT is Next Generation eTicketing, which is the platform for the IRCTC. We are trying to upgrade its hardware by the storage, the servers, and the networking, plus the software. We will increase. Like you have seen, we have reached around 37,000 tickets per minute. This may increase to more than 1 lakh and all. This has been done with RPF modernization. The figures I am not very exact, but around INR 150 crore has been infused into it, number one.

Speaker #3: One is the NGET infra refresh. NGET is next generation e-ticketing which is the platform for the IRCTC. We are trying to upgrade its hardware by the by the storage the servers and the networking plus the software so by we will increase like you have seen we have reached around 37,000 tickets per minute this way increase to more than a lakh and all this has been done with PRF modernization so around one the figures I'm not very exact but around 150 crore has been infused into it number one secondly this this quarter 10 crores were booked for maintenance charges for this and very soon which will impact the second third or fourth quarter of the financial year will be the disaster recovery we are trying to go for an active active disaster recovery because sometimes if the website is down then the passengers will have to face and we are very much behind that one minute or two minute which become the golden hour for us so in the if you'll have a disaster recovery most probably coming up at Secunderabad then again because we'll have to invest so that investment is setting up across our earnings so that is impacting and bringing it normally it remains between 80 to 85 percent so it is like you have seen it is around 80 percent this time.

Rahul Himalian: Secondly, this quarter, INR 10 crores were booked for maintenance charges for this, and very soon, which will impact the third or fourth quarter of the financial year, will be the disaster recovery. We are trying to go for an active-active disaster recovery because sometimes if the website is down, then the passengers will have to face, and we are very much behind that 1 minute or 2 minute. This become the golden hour for us. If we will have a disaster recovery, most probably coming up at Secunderabad. Then again, because we will have to invest. So that investment is setting up across our earnings. So that is impacting and bringing it. Normally, it remains between 80% to 85%, so like you have seen, it is around 80% this time. These are some of the reasons which I would like to share with you. Thank you.

Speaker #3: So, these are some of the reasons which I would like to share with you. Thank you.

Speaker #4: So, one more question before I jump back into the queue, sir. With respect to the catering segment, could you just clarify on our business model further, like for 'One Day Bharat' and those kinds of trains?

[Company Representative] (ITUS Capital): So one more question before I jump back into the queue, sir. So with respect to the catering segment, could you just clarify on our business model for the Vande Bharat and those kind of trains? Is it 100% onboard catering done by our staff, or is there a potential for us to give contracts out for that as well? Just trying to understand. Incrementally, we are adding many more premium trains like the Vande Bharat. So we want to understand if most of the business will be on our P&L or if we will give contracts out. Thank you, sir.

Navin Koushik M.: So one more question before I jump back into the queue, sir. So with respect to the catering segment, could you just clarify on our business model for the Vande Bharat and those kind of trains? Is it 100% onboard catering done by our staff, or is there a potential for us to give contracts out for that as well? Just trying to understand. Incrementally, we are adding many more premium trains like the Vande Bharat. So we want to understand if most of the business will be on our P&L or if we will give contracts out. Thank you, sir.

Speaker #4: Is it a hundred percent, like, on-board catering done by our staff, or is there a potential for us to give contract out for that as well?

Speaker #4: I'm just trying to understand—incrementally, we're adding many more premium trains, like the Vande Bharat. So I want to understand if most of the business will be on our P&L, or if we'll give contracts out.

Speaker #4: Thank you sir.

Speaker #3: Yeah. IRCTC model is largely based on licensing so in one day Bharat also we have got empanelled service providers for which we float a limited tender and then we give it out as far as the catering is concerned in future the must have seen the shift from the chair car one day Bharat is going towards one day Bharat sleeper so this in one way will help our revenue in ticketing also and catering also the lead will increase and the capacity will also increase in one day Bharat also chair car there is a trend of augmentation and the number of coaches are increasing but all the services catering services right now in 81 one day Bharat are being done by IRCTC.

Rahul Himalian: Yeah. You see, IRCTC model is largely based on licensing. So in Vande Bharat also, we have got empaneled service providers for which we float a limited tender, and then we give it out as far as the catering is concerned. In future, you must have seen the shift from the chair car Vande Bharat is going towards Vande Bharat Sleeper. So this, in one way, will help our revenue in ticketing also and catering also. The lead will increase, and the capacity will also increase. In Vande Bharat also, chair car, there is a trend of augmentation. The number of coaches are increasing. But all the services, catering services right now in 81 Vande Bharat are being done by IRCTC.

Speaker #4: Got it, sir. Thank you. I'll jump back into the queue.

[Company Representative] (ITUS Capital): Got it, sir. Thank you. I will jump back in the queue.

Navin Koushik M.: Got it, sir. Thank you. I will jump back in the queue.

Speaker #1: Thank you.

Rahul Himalian: Thank you.

Speaker #3: Thank you.

Operator 2: Thank you.

Operator: [Crosstalk]

Operator 2: We have next question from the line of Jinesh Joshi from PL Capital. Please go ahead.

Operator: We have next question from the line of Jinesh Joshi from PL Capital. Please go ahead.

Speaker #4: Best question.

Speaker #1: We have the next question from the line of Jignesh Joshi from PL Capital. Please go ahead.

Speaker #3: Thank you for the opportunity. Sir, I have a question about our margins in the catering division, which were at about 9 percent. I think in the opening commentary you mentioned that there were some transit catering projects which led to a deterioration in margins.

Jinesh Joshi: Thanks for the opportunity. Sir, I have a question on our margins in catering division, which were at about 9%. I think in the opening commentary, you mentioned that there were some transit catering projects which led to deterioration in margins. If you can clarify a bit on this aspect, and I think there was another reason that was highlighted, so I missed that. Also, if you can just maybe touch upon that. Secondly, also from a future perspective, given the fact that share of prepaid trains is rising, and if my understanding is correct, we do not get the ITC benefit on the prepaid trains, which essentially means that our margins tend to be slightly lower. How to think of the steady-state trajectory over here?

Speaker #3: So if you can clarify a bit on this aspect and I think there was another reason that was highlighted so I missed that. So also if you can just maybe touch upon that and secondly also from a future perspective given the fact that share of prepaid trains is rising and if my understanding is correct we do not get the ITC benefit on the prepaid trains which essentially means that our margins tend to be slightly lower so how to think of the steady state trajectory over here.

Speaker #3: The IRCTC is a Navratna PSC of Indian Railways so we have to align with the socioeconomic fabric of the country also so as far as the GST part you said you said rightly if you take the one day Bharat GST plus license fee for this quarter we are earning 105 rupees but if you take GST 5 percent for which we cannot claim input tax credit like the one day Bharat charges it is 222 rupees we give to the licensee 222 rupees for arranging food and all out of which GST is 5 percent which we have to pay that is around 11 rupees so we lose their 18 rupees but as a combined project of license fee from that plus the GST we earn around 105 so the one day Bharat trains have to be proliferated this aspect we will address but at the same time we cannot stop providing service and all this is a small retrograde step as the GST thing but overall it increases and rest you the remaining part of the question can you please repeat?

Rahul Himalian: See, IRCTC is a Navratna PSU of Indian Railways, so we have to align with the socioeconomic fabric of the country also. As far as the GST part you said, you said rightly. If you take the Vande Bharat GST plus license fee, for this quarter, we are earning INR 105. But if you take GST 5%, for which we cannot claim input tax credit, like the Vande Bharat charges, that is INR 222, we give to the licensee INR 222 for arranging food and all, out of which GST is 5%, which we have to pay, that is around INR 11. So we lose there INR 18, but as a combined project of license fee from that, plus the GST, we earn around INR 105. The Vande Bharat trains have to be proliferated. This aspect we will address, but at the same time, we cannot stop providing service and all.

Rahul Himalian: So we lose there INR 18, but as a combined project of license fee from that, plus the GST, we earn around INR 105. The Vande Bharat trains have to be proliferated. This aspect we will address, but at the same time, we cannot stop providing service and all.

Rahul Himalian: This is a small retrograde step as the GST thing, but overall it increases. The remaining part of the question, can you please repeat?

Speaker #4: Reason why the margins were lower you mentioned some transit catering projects were there last year in quarter one financial year 2025 26 quarter one we did not you must have heard about proof of concept so we are we introduced the proof of concept in few trains right now five trains were there in which six trains were there but the issue is that in that proof of concept we increase the amount to be given to the licensees at the cost of IRCTC focusing on the customer and taken as an experiment so in this quarter the impact of that proof of concept on six trains around about maybe around more than four crores was was impacted plus there are two more impacts on the catering margins because you have seen the margin has come to 9.29 percent while while it was around 10.42 percent for the financial year 25 26 one was the gratuity has increased from 20 to 25 lakhs and the HR cost of 10 crore has been booked in this segment because catering takes care of around 54 percent of the entire revenue this 10 crores includes the gratuity impact plus the post retirement benefits to the employees this thing will not be repeated for the next quarter because it has already been taken care of the next quarter so the next quarters can be immune or safe from this aspect so this is one and proof of concept will slowly die down there are two trains I think they will finish by September and the remaining two trains will finish by November so that way it will help and the catering margins traditionally have been between 10 to 12 percent so we'll try to maintain that.

Jinesh Joshi: Reason why the margins were lower. You mentioned some transit catering projects were there

Rahul Himalian: Yeah.

Jinesh Joshi: Some other.

Rahul Himalian: Last year in Q1, financial year 2025-26, you must have heard about proof of concept. We introduced the proof of concept in few trains. Right now, five trains were there. Six trains were there, but the issue is that in that proof of concept, we increased the amount to be given to the licensees at the cost of IRCTC focusing on the customer and take it as an experiment. In this quarter, the impact of that proof of concept on six trains, maybe around more than INR 4 crores was impacted. Plus, there are two more impacts on the catering margins, because you have seen the margin has come to 9.29%, while it was around 10.42% for the financial year 2025-26.

Rahul Himalian: One was the gratuity has increased from 20 to 25 lakhs, and the HR cost of INR 10 crore has been booked in this segment because catering takes care of around 54% of the entire revenue. This INR 10 crores includes the gratuity impact plus the post-retirement benefits to the employees. This thing will not be repeated for the next quarter because it has already been taken care of this next quarter. The next quarters can be immune or safe from this aspect. This is one, and proof of concept will slowly die down. There are two trains, I think they will finish by September, and the remaining two trains will finish by November. That way, it will help. The catering margins traditionally have been between 10% to 12%, so we will try to maintain that.

Speaker #4: Plus, considering the fact that there will be an increase in the number of passengers, there will be an increase in the number of trains to 20 trains. They will include—then there's an 8% growth in passengers also, year on year, from the Railways figure.

Rahul Himalian: Plus, considering the fact that there will be increased number of passengers, there will be increased number of trains, the 20 trains will include, and there is 8% growth in passengers also year-on-year from the railways figure. Thank you.

Speaker #3: Thank you. Sure, sir. And just one follow-up on this part, especially with respect to that ₹10 crore HR cost hit that you spoke about in the catering division.

Jinesh Joshi: Sure, sir. Just one follow-up on this part, especially with respect to that INR 10 crore of HR cost hit that you spoke about in the catering division. If I look at our overall company-wide employee expenses, well, it is up by about 37%, to about INR 104 crores in this quarter. I think in the opening commentary, you also mentioned some incremental HR cost of about INR 20 crores odd. If you can maybe just sum up what was the total incremental hit that has come for all the reasons that you highlighted, and how to think about this cost going ahead on a steady-state basis.

Speaker #3: If I look at our overall company-wide employee expenses, well, it is up by about 37 percent to around ₹104 crore in this quarter. I think in the opening commentary you also mentioned some incremental HR costs of about ₹20 crore.

Speaker #3: So if you can maybe just sum up, what was the total incremental hit that has come for all the reasons that you highlighted, and how should we think about this cost going ahead on a steady-state basis?

Speaker #4: See like I said that this was a one time exercise as far as the HR cost was concerned the HR cost impact has been of around 20 crores which includes the gratuity increase from 20 to 25 lakhs and some post retirement benefits that we have adjusted for this so that 20 crores for this quarter has out of the 10 crores because 54 percent is the revenue for catering to 10 crores we have accommodated for catering that has let a little setback on the margin for on the catering profit and for POC as I said that the impact of four crores will die down because there are four trains in quarter two and two trains left in quarter three.

Rahul Himalian: See, like I said that this was a one-time expense as far as the HR cost was concerned. The HR cost impact has been of around INR 20 crores, which includes the gratuity increase from INR 20 lakhs to INR 25 lakhs and some post-retirement benefits that we have adjusted for this. So INR 20 crores for this quarter out of the INR 10 crores, because 54% is the revenue for catering. So INR 10 crores we have accommodated for catering. That has led a little setback on the margin on the catering profit. For POC, as I said that the impact of INR 4 crores will die down because there are 4 trains in Q2 and 2 trains left in Q3. Q4, there will be nil trains.

Speaker #4: Quarter Four, there will be nil trains because right now we'll go for temporary, or we are thinking of a concept which is at a very nascent stage to comment upon. It is the engagement of branded players to improve catering, and the importance of capable automated hygienic kitchens to be induced into this entire catering ecosystem.

Rahul Himalian: Because right now, we will go for temporary or we are thinking of a concept which is very nascent stage to comment upon is the engagement of branded players to improve catering. The importance of capable, automated, hygienic kitchens to be induced into this entire catering ecosystem.

Speaker #3: Sure, sir. One last question from my side. I think our election special revenue in this quarter was at about ₹41 crore, if I heard you right.

Jinesh Joshi: Sure, sir. One last question from my side. I think our election special revenue in this quarter was at about INR 41 crores, if I heard you right. Just wanted to know on this bit that our margins in our election special trains are akin to our margins that we earn in the prepaid train, or is it higher, lower, and how to think about that? Was that also one of the reasons why our margins got impacted, just in case if they are lower? Trying to think from that perspective.

Speaker #3: Just wanted to know, on this bit, that our margins in our election special trains—are they akin to the margins that we earn in the prepaid train, or are they higher, lower, and how should we think about that?

Speaker #3: And was that also one of the reasons why our margins got impacted, just in case if they are lower? I’m trying to think from that perspective.

Rahul Himalian: In election special, it all depends on elections. Like this time it was in West Bengal and Tamil Nadu and Puducherry and.

Speaker #4: In the election special, it all depends—like this time it was in West Bengal, Tamil Nadu, Puducherry, and Kerala. So, basically, in the election special we get revenue from two sources: that is, the FTR business and the catering business.

Jinesh Joshi: Right. I tested.

Rahul Himalian: Kerala. Basically, in election special, we get revenue from two sources. That is the FTR business and the catering business. The catering business varies from 11% to 13%, 14%, and FTR, it is fixed 5% convenience fee. The ticketing revenue goes to railways and 5% service charges, you can call it service charges, by IRCTC to facilitate this. That way, election special, we all depend upon the election happening in the country, but we come into view to the extent of, you can say, around 10% to 12%. The catering component is high.

Speaker #4: So, the catering business varies from 11 to 13-14 percent, and for FTR it is a fixed 5 percent convenience fee. The ticketing revenue goes to railways, and the 5 percent service charges—you can call it service charges—by IRCTC are to facilitate this.

Speaker #4: So, in that way, election special—we all depend upon the election happening in the country—but we come into view to the extent of, you can say, around 10 to 12 percent, for the catering component is high.

Speaker #3: Sure, sir. Understood. Thank you. Thank you so much.

Jinesh Joshi: Sure, sir. Understood. Thank you. Thank you so much.

Speaker #4: Thank you. Thank you.

Rahul Himalian: Thank you.

Operator 2: Thank you. A reminder to all the participants, please restrict yourself to two per question. We have next question from the line of Balaji Subramanian from IIFL. Please go ahead.

Operator: Thank you. A reminder to all the participants, please restrict yourself to two per question. We have next question from the line of Balaji Subramanian from IIFL. Please go ahead.

Speaker #3: Thank you. A reminder to all the participants, please restrict yourself to two questions. We have the next question from the line of Balaji Subramaniam from IIFL.

Speaker #3: Please go ahead.

Speaker #4: Thanks for taking my question. Most of them have been answered. Just a quick housekeeping question: can you share the number of tickets that were booked on your portal and app in this quarter?

Balaji Subramanian: Thanks for taking my question. Most of them have been answered. Just a quick housekeeping question. Can you just share the number of tickets that were booked on your portal and app in this quarter? Thanks.

Speaker #4: Thanks.

Speaker #3: Good evening. As far as the daily average tickets were 14.58 lakh, the total number of tickets booked in crore for the quarter financial 27 was 13.27 crore, with a breakup of 6.92 crore from AC and 6.35 crore for non-AC.

Rahul Himalian: Good evening. See, as far as the daily average tickets were 14.58 lakhs. Total number of tickets booked in crores for the quarter Q1 FY27 was 13.27 crores, with a breakup of 6.92 crores from AC and 6.35 for non-AC. Our share in railway rose from 88.78% to 88.92%.

Speaker #3: And our share in railways rose from 88.78% marginally to 88.92%.

Speaker #4: Thank you, and all the best.

Balaji Subramanian: Thank you, and all the best.

Speaker #3: Thank you. Thank you. We have the next question from the line of Madhuchandra Te from MC Pro. Please go ahead.

Rahul Himalian: Thank you.

Operator 2: Thank you. We have next question from the line of Madhuchanda Dey from Moneycontrol Pro. Please go ahead.

Operator: Thank you. We have next question from the line of Madhuchanda Dey from Moneycontrol Pro. Please go ahead.

Speaker #5: Yes, the first one is just for clarification because I'm not sure if I heard this correctly. Your convenience fee for the quarter was ₹248 crore, and non-convenience fee was ₹113 crore.

Madhuchanda Dey: Yeah. The first one is just a repetition because I am not sure if I heard this correctly. Your convenience fee for the quarter was INR 248 crore and non-convenience fee was INR 113 crore. Is that correct?

Speaker #5: Is that correct?

Speaker #3: 113 crores non-convenience fee and 248 crores convenience fee.

Rahul Himalian: INR 113 crore non-convenience fee and INR 248 convenience fee.

Speaker #5: And was this lower non-convenience fee also a reason behind the lower margin in this quarter? Because you explained some, you know, some IT system revamp, etc.

Madhuchanda Dey: Was this lower non-convenience fee also a reason behind the lower margin in this quarter? You explained some IT systems exam, et cetera, as the reasons. But was this lower non-convenience fee also one of the factors, and is this likely to continue, or you expect this? One of the goals of the company had been to increase the non-convenience fee. If you could shed light on the same.

Speaker #5: as the the reasons but was this lower non-convenience fee also one of the factors and is this likely to continue or you expect this because one of the you know one of the goals of the company has been to increase the non-convenience fee if you could shed light on the thing.

Speaker #3: Yeah, so I will now speak only on the non-convenience fee part. As I said, we also try to align ourselves with the socioeconomic fabric of the country. So, in marketing, there was a, you can say, dip of around ₹3 crore—from ₹14.51 crore to ₹11.03 crore.

Rahul Himalian: Yeah. I would now speak only on the non-convenience fee part. As I said, that we also try to align ourselves with the socioeconomic fabric of the country. So in marketing, there was a, you can say, dip of around INR 3 crores, 14.51 to 11.03. Since you have seen that our website is getting transformed, the beta version was launched on 15 July. With new UX/UI interface, the beta version has been launched, which doesn't have any advertisements, no captcha, no pop-ups. The agent business, we have restricted them. Now they will try to push back and on. E-wallet loyalty program with four banks, I think HDFC Bank, RBL Bank, State Bank of India, and Bank of Baroda, has grown around INR 3 crores. IRCTC iPay has been hit a bit, but the IRCTC iPay will spring back. Like I said, the plans are huge in this.

Speaker #3: Since we have seen that our website is getting transformed the beta version was launched on 15 July with a with new UX UI interface the beta version has been launched and which doesn't have any advertisements no CAPTCHA you know no popups the agent business we have restricted them now they will try to push back and on e-wallet loyalty program with four kind of four banks I think HDFC RBL SBI and Bank of Baroda has grown around three crores iPay has been hit a bit but the iPay will spring back like I said that the plan is a huge in this and the payment gateway business so now the these are all the spin offs we are trying to take advantage by utilizing our e-ticketing expertise like we have done in Char Dham Heli Yatra then we have signed an agreement with UTLA Union Territory of Lakshadweep Administration with Andaman with Makoor so in areas where there is no element or component of railways we are using our e-ticketing expertise to provide them e-ticketing platforms so it is a known fact that the the the conventional spin off from the ticketing business like marketing ads agents are using but we will spring back and try to compensate this or even get them back to normal.

Rahul Himalian: The payment gateway business. Now, these are all the spin-offs. We are trying to take advantage by utilizing our e-ticketing expertise, like we have done in Char Dham Heli Yatra. Then we have signed an agreement with UT, Union Territory of Lakshadweep Administration, with Andaman, with Makruzz. So in areas where there is no element or component of railways, we are using our e-ticketing expertise to provide them e-ticketing platforms. It is a known fact that the conventional spin-offs from the ticketing business, like marketing and agents and everything, but we will spring back and try to compensate this or even get them back to normal.

Speaker #3: But there has also been an expense of around ₹10 crore on, you know, maintenance of the website and investment in that.

Madhuchanda Dey: Okay.

Rahul Himalian: There has been also an expense of around INR 10 crores on the maintenance of the website and investment in that, in this quarter.

Speaker #3: In this quarter.

Speaker #5: Okay, so I can say that it's a combination of investment and some one-off factors on the non-convenience fee side that has led to the lower margin of around 80 percent, right?

Madhuchanda Dey: Okay. I can say that it is a combination of investments and some one-off factors in the non-convenience fee side that has led to the lower EBITDA margin of around 80%, right?

Speaker #3: Correct. It is 180.33, from 84.12, honey.

Rahul Himalian: Correct. It has gone to 80.33.

Madhuchanda Dey: Yeah.

Rahul Himalian: From 84.12.

Speaker #5: Right. So my second question is on the margin in the railway business that has also fallen. So, is there any particular one-off or what is the reason, and what is the sustainable margin in that business?

Madhuchanda Dey: Right. My second question is on the margin in the railway business. That has also fallen. Any particular one-off, or what is the reason, and what is the sustainable margin in that business?

Speaker #3: See, basically, in railways, like I have already explained, you must have gone through the number of plants we have got in railways and the production capacity: 18.4 lakh, 17.77 lakh is the closing of one plant, and we have been supplying 15.4 lakh. But this year, the margin has gone—if you compare quarter on quarter—from 14 percent to 10 percent, which is basically due to around a 30 percent decrease in the resin component. The resin helps us in making preform, cap, shrink roll. Due to the increase of petroleum products because of the West Asia crisis, the material cost increased from 55 crore to 61 crore—there was a dip of six crore. So you have seen that the margin has gone from 15 to 11, but some profit like 106 to 109, plus some administrative cost. Combining everything, the profit decreased only by a delta of four crore. So, the basic reason was the West Asia crisis, which caused this increase in the expenses and reduction in the margins.

Rahul Himalian: Basically in Rail Neer, like I have already explained, you must have gone through the number of plants we have got in Rail Neer and the production capacity is 17.77 lakhs with closing of one plant, and we are supplying 15.4. This year the margin has gone, if you compare quarter on quarter from 14% to 10%, is basically due to around 30% decrease in the resin component. The resin helps us in making preform, cap, shrink roll. Due to the increase of petroleum product due to West Asia crisis, the material cost increased from INR 55 crores to INR 61 crores. There was a dip of INR 6 crores. So you have seen that the margin has gone from 15 to 11. But some profit like 106 to 109 plus some administrative costs, combining everything, the profit decreased only by delta of INR 4 crores.

Rahul Himalian: Basically, there was the West Asia crisis which caused this increase in the expenses and reduction in the margins. Thank you.

Speaker #3: Thank you. Thank you. We have the next question from the line of Krunal from Philip Capital India. Please go ahead.

Operator 2: Thank you. We have next question from the line of Kunal from PhillipCapital India. Please go ahead.

Operator: Thank you. We have next question from the line of Kunal from PhillipCapital India. Please go ahead.

Speaker #6: Hello. What portion of the contribution is to OTA partners? Hello. Am I audible?

[Analyst] (PhillipCapital India): Hello. What portion of the contribution is through OTA partners? Hello, am I audible?

Kunal Singh Kochar: Hello. What portion of the contribution is through OTA partners? Hello, am I audible?

Speaker #3: Yeah, good afternoon. See, normally in tourism we have got around, just listen, Rs 17.21 crore—around Rs 21 crore—from a total of Rs 168 crore, from various things including air ticketing, online hotel booking, online bus booking, plus events. So you can say around 12 to 13 percent. But this also includes various holiday, customized, educational packages. So purely if you see from online hotels and ticketing, it will be around five to seven percent.

Rahul Himalian: Yeah, good afternoon, sir. Normally in tourism we have got around INR 21 crores from a total of INR 168 crores from various things including air ticketing, online hotel booking, online bus booking, plus events. You can say around 12% to 13%, but this also includes various holiday customized educational packages. Purely if you see from online hotels and ticketing, it will be around 5% to 7%.

Speaker #6: Okay. Okay. And specifically, from about internet ticketing?

[Analyst] (PhillipCapital India): Okay. Specifically from internet ticketing.

Kunal Singh Kochar: Okay. Specifically from internet ticketing.

Speaker #3: In internet ticketing we have of the total revenue internet ticketing we have around 248 crores coming from 1370 248 1370. Internet ticketing if you include convenience and convenience non-convenience fee then 26 percent and purely internet ticketing excluding convenience fee is around 18 percent.

Rahul Himalian: In internet ticketing, of the total revenue, we have around INR 248 crores coming from INR 1,370 crores. INR 248 crores divided by INR 1,370 crores is 18%. Internet ticketing, if we include convenience and non-convenience is 26%, and purely internet ticketing excluding conveniences is around 18%.

Speaker #6: Okay. Thank you. Excellent.

[Analyst] (PhillipCapital India): Thank you. That's all.

Kunal Singh Kochar: Thank you. That's all.

Speaker #3: Thank you. Thank you. Thank you. We have the next question from the line of Karthik Gada from Multiple Wealth. Please go ahead.

Rahul Himalian: Thank you.

Operator 2: Thank you. We have next question from the line of Kartik Gada from Multiple Wealth. Please go ahead.

Operator: Thank you. We have next question from the line of Kartik Gada from Multiple Wealth. Please go ahead.

Speaker #7: Yeah, thank you for the opportunity. So, just back on the convenience of ₹113 crore odd, what is the expectation? What sort of run rate can we expect going ahead, say, for the next couple of years on a quarterly basis for the non-convenience fee part?

Kartik Gada: Yeah, thank you for the opportunity. So just back on the convenience of INR 113 crores odd. So what is the expectation? What sort of run rate can we expect going ahead, say, next couple of years on a quarterly basis for the non-convenience fee part? It used to be around INR 130, 140 odd crores.

Speaker #7: It used to be around 130–140 odd crores.

Speaker #3: Yeah. See like I said in the non-convenience fee we will there are certain things where we have to align with the social economic factory and when we have decided to improve the customer experience to make it seamless and all but at the same time we are also thinking we are since of a unified portal tourism and internet ticketing where the interface comes where the meter crossroads in a unified portal that is why that is where our customers will be either engaged diverted to use our various tourism services because tourism is going to going to grow leaps and bounds it has grown from 745 crores to 890 crores and next year may cross 1000 plus crores so for that unified portal which will focus on five main things that is a UX UI experience the scalability the technology the financials and the marketing because we have we need customer retention engagement and persuasiveness so in that our tourism will interface with the IT portion and that will be one segment which will be a part of non-fair revenue which will overcome all this slight dilution.

Rahul Himalian: Yeah. See, like I said, in the non-convenience fee, there are certain things where we have to align with the social commitment and when we have decided to improve the customer experience to make it seamless and all. At the same time, we are also thinking of a unified portal. Tourism and internet ticketing, where the interface comes with immediate crossroads in a unified portal. That is where our customers will be either engaged, diverted to use our various tourism services. Because tourism is going to grow leaps and bounds. It has grown from INR 745 crores to INR 890 crores, and next year it may cross INR 1,000 plus crores. For that unified portal, which will focus on five main things, there is a UX/UI experience, there is scalability, the technology, the financials, and the marketing. Because we need customer retention, engagement, and persuasiveness.

Rahul Himalian: So in that, our tourism will interface with the IT portion, and that will be one segment which will be a part of non-fare revenue, and which will overcome all this slight dilution in other parts.

Speaker #3: Another part.

Speaker #7: Yeah, I understand that you are trying to make up for the lost revenue through higher revenue in the tourism segment. What I want to understand is, would this say ₹110–115 crore be the usual run rate from here on for the non-convenience fee segment?

Kartik Gada: No, I understand that you are trying to make up for the lost revenue through higher revenue in tourism segment. What I want to understand is, would this, say, INR 110, INR 115 crores be the usual run rate from here on for the non-convenience fee segment?

Speaker #3: No, it will not be like that. Like I said, I paid also in the non-convenience fee, as the payments are limited when it is associated with that. We have got big growth plans. Then, the e-wallet loyalty, which is also increasing at the rate of more than 200 percent—they have big growth plans. And for agent business, we are tweaking and modifying our association with them. So, we will try to come back to ₹150 crores in this segment.

Rahul Himalian: No, it will not be like that. Like I said, that IRCTC iPay is also in the non-convenience fee as it is a IRCTC Payments Limited, when it associates with that. So that we have got big growth plans. Then the e-wallet loyalty, which is also increasing at the rate of more than 200%, we have big growth plans. And agent business, we are tweaking, modifying our association with them. So we will try to come back to INR 150 crores in this segment also.

Speaker #3: In this segment also.

Kartik Gada: The second question is again, it is a bookkeeping question. So what would be the share of UPI tickets?

Speaker #7: And the second question is—again, it's a bookkeeping question. So, what would be the share of UPI tickets?

Kartik Gada: The second question is again, it is a bookkeeping question. So what would be the share of UPI tickets?

Speaker #3: The share of UPI ticket right now is 51.22 percent, versus 48.72 percent in quarter one of June '25 ending.

Rahul Himalian: The share of UPI ticket right now is 51.22% versus 48.72% in Q1 of June 2025 ending.

Speaker #7: Okay. All right. That's it from my end. Thank you so much.

Kartik Gada: Okay, all right. That is it from my end. Thank you so much.

Speaker #3: Thank you. Thank you. We have the next question from the line of Mr. Naveen from, I thought, PMF. Please go ahead.

Rahul Himalian: Thank you.

Operator 2: Thank you. We have next question from the line of Mr. Naveen from iThought PMS. Please go ahead.

Operator: Thank you. We have next question from the line of Mr. Navin from iThought PMS. Please go ahead.

Speaker #8: Yes. Hi. Thanks a lot for taking my follow-up question. Am I audible? Hello.

[Company Representative] (ITUS Capital): Hi, sir. Thanks a lot for taking my follow-up question. Am I audible? Hello.

Navin Koushik M.: Hi, sir. Thanks a lot for taking my follow-up question. Am I audible? Hello.

Speaker #3: Yeah, you are audible. You are audible.

Rahul Himalian: You are audible.

Speaker #8: Yeah, thanks a lot. I just wanted some commentary on train additions. Could you maybe comment on your visibility for upcoming train additions, especially in more lucrative areas and particularly those catering to the higher convenience fee bracket trains?

[Company Representative] (ITUS Capital): Yeah. Thanks a lot, sir. Just wanted some commentary on train additions. Just comment maybe on your visibility for upcoming train additions, especially in more lucrative areas in catering and the higher convenience fee bracket trains, like the AC trains, and then how fast we can expect business ramp up in these trains. Any visibility that you would have or expectations that you would have would be great.

Navin Koushik M.: Yeah. Thanks a lot, sir. Just wanted some commentary on train additions. Just comment maybe on your visibility for upcoming train additions, especially in more lucrative areas in catering and the higher convenience fee bracket trains, like the AC trains, and then how fast we can expect business ramp up in these trains. Any visibility that you would have or expectations that you would have would be great.

Speaker #8: Like the AC trains and then like how fast we can expect business ramp up in these trains. Like any visibility that you would have or expectations that you would have would be great.

Speaker #3: See, as far as this introduction of new trains is concerned, it is a decision by the ministry. But whenever there is passenger growth, the trains—normally, there may be around 20 Vande Bharat sleeper trains introduced in this financial year or in the period of next one year—so the license fee of this can be calibrated to around Rs 6 crores per train, up to Rs 120 crores. So this is one factor where the number of trains will increase the license fee in catering; the revenue, the top line, will increase—number one. Number two, there is an important aspect: this passenger growth also. When the passenger growth of 8% also helps in increasing the catering charges. We have also got a press conference, media interaction, at 5:00 p.m.

Rahul Himalian: See, as far as the introduction of new trains, it is a decision by the Ministry of Railways. But whenever there is a passenger growth, the trains, normally there may be around 20 Vande Bharat Sleeper trains introduced in this financial year or the period of next one year. So the licensing of this can be calibrated to around INR 6 crores per train to INR 120 crores. So this is one factor where the number of trains will increase, the licensing, catering, the revenue, the top line will increase, number one. Number two, there is an important aspect of this passenger growth also. There is a passenger growth of 8% also helps in increasing the catering charges. We have also got a press conference, media interaction at 5:00 PM. So if the organizers can help us in winding up fast. Thank you.

Speaker #3: So, if the organizers can help us in winding up fast. Thank you.

Speaker #8: Yeah. Thanks a lot sir.

[Company Representative] (ITUS Capital): Yeah. Thanks for the answer.

Navin Koushik M.: Yeah. Thanks for the answer.

Speaker #3: Thank you. We have the last question from the line of Ratan Junejah from CoValue. Please go ahead.

Operator 2: Thank you. We have last question from the line of Ratan Juneja from Cowalu. Please go ahead.

Operator: Thank you. We have last question from the line of Rattan Juneja from Novo Nordisk. Please go ahead.

Speaker #7: Thank you. So, I have only one question on internet ticketing. I've been reviewing, and for the last eight quarters, the revenue has just not grown.

Ratan Juneja: Thank you. I have only one question on internet ticketing. I have been reviewing for the last eight quarters, the revenue has just not grown. While the number of trains have grown, UPI discounts have grown, passenger growth is there. In fact, if I book a ticket for four people, because of the PNR, the charges are too low. The convenience fee for the last seven years has not increased in spite of inflation being there. What are we thinking about this? How should we think?

Rattan Juneja: Thank you. I have only one question on internet ticketing. I have been reviewing for the last eight quarters, the revenue has just not grown. While the number of trains have grown, UPI discounts have grown, passenger growth is there. In fact, if I book a ticket for four people, because of the PNR, the charges are too low. The convenience fee for the last seven years has not increased in spite of inflation being there. What are we thinking about this? How should we think?

Speaker #7: While the number of trains has grown, UPI discounts have grown, and passenger growth is there. In fact, if I book a ticket for four people, because of the PNR, the charges are too low. The convenience fee for the last seven years has not increased, in spite of inflation being there.

Speaker #7: So, what are we thinking about this? How should we think?

Speaker #3: Good afternoon. See, like you said, an architect's dream is a civil designer's nightmare. Okay. So, we can aspire for a lot of things, but we have to gel with this. So, the convenience fee has always grown; in this quarter also, it has grown with the number of passengers—it grows. But UPI, like we said, we are charging against ₹15 and ₹20, ₹10 and ₹20. This is one aspect where we'll have to think and come about.

Rahul Himalian: Good afternoon. See, like you said that an architect's dream is a civil designer's nightmare. We can aspire a lot of things, but we have to gel with this. Our convenience fee has always grown. In this quarter also, it has grown. With the number of passenger, it grows. UPI, like we said, that we are charging against 15 and 20, 10 and 20. This is one aspect where we will have to think and come about. We have gone for UPI, CC, and CL, where there is a credit card and a credit line in which the convenience fee is not 10 and 20, it is 15 and 30. In this one way, we are trying to circumvent that aspect. UPI is something which has grown. It has grown, that is why it is digging into your profits.

Speaker #3: So we have gone for UPI CC and CL, where there is a credit card and a credit line in this. In these, the convenience fee is not 10 and 20, it is 15 and 30.

Speaker #3: So in this way, we are trying to circumvent that aspect. UPI is something which has grown. It has grown, and that is why it is digging into your profits.

Speaker #3: So this is one area we have to think about and the convenience fee has always grown at the rate of around five to seven percent and this year also it is around four point eight nine percent.

Rahul Himalian: This is one area we have to think about, and the convenience fee has always grown at a rate of around 5% to 7%. And this year also it is around 4.89%, quarter-on-quarter.

Speaker #3: Quarter on quarter.

Speaker #7: But sir that is.

Ratan Juneja: But, sir, that is-

Rattan Juneja: But, sir, that is-

Rahul Himalian: Yes, tell me.

Speaker #3: Tell me. Tell me.

Speaker #7: Sir, but that is hardly the inflation rate. The passenger growth has been higher. The inflation is there, but there is no rise in internet ticketing revenue.

Ratan Juneja: Sir, but that is hardly the inflation rate. The passenger growth has been higher. The inflation is there, but there is no rise in internet ticketing revenue.

Rattan Juneja: Sir, but that is hardly the inflation rate. The passenger growth has been higher. The inflation is there, but there is no rise in internet ticketing revenue.

Speaker #3: See, there is a margin of around 80 to 85 percent in internet ticketing and all. The convenience fee, sometimes it depends on the policy decision.

[Analyst]: See, there

[Analyst]: Margin, actually 80%.

Rahul Himalian: See, there is a margin of around 80% to 85% in internet ticketing and all. The convenience fee, sometime it depends on the policy decision. We cannot force our way in increasing the convenience fee, but we can put a point across various quarters and all, increase this. That is an area of concern for us and all, that to enhance the convenience fee-based revenue. We will look into it.

Speaker #3: We cannot force our way in increasing the convenience fee, but we can put our point across in various quarters and all increase this. So that is an area of concern for us and all that to enhance the convenience fee-based revenue.

Speaker #3: So, we will look into it.

Speaker #7: Thank you so much, sir. Thank you. Thank you.

Ratan Juneja: Thank you so much, sir.

Rattan Juneja: Thank you so much, sir.

Rahul Himalian: Thank you.

Operator 2: Thank you. That was the last question. I now hand conference over to IRCTC management for closing comments.

Operator: Thank you. That was the last question. I now hand conference over to IRCTC management for closing comments.

Speaker #3: Thank you. That was the last question. I now hand the conference over to IRCTC management for closing comments.

Speaker #7: Now, I would request to give a word of thanks to our Director of Catering Services.

Rahul Himalian: Now, I would request Manoj Kumar Sharma give a vote of thanks, our Director, Catering Services.

Rajneesh Narain: Thank you very much.

Rahul Himalian: Thank you.

Operator 2: Thank you. On behalf of Dolat Capital, that concludes this conference. Thank you for joining us. You may now disconnect lines. Thank you.

Operator: Thank you. On behalf of Dolat Capital, that concludes this conference. Thank you for joining us. You may now disconnect lines. Thank you.

Rahul Himalian: Thank you.

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Q1 2027 Indian Railway Catering & Tourism Corp Ltd Earnings Call

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