IRCTC shares fall: Shares of Indian Railway Catering and Tourism Corporation (IRCTC) witnessed a sharp selloff in the last hour of trade amid reports that the company may halt food catering services on trains.
The news sent IRCTC stock down by 2.87 per cent intraday to a low of ₹532.8 per share on the BSE. The stock closed 2.55 per cent lower at ₹534.15, compared to the BSE Sensex’s decline of 1.72 per cent.
IRCTC halts catering services
The railway catering company is also, reportedly, looking to refund money to passengers who had pre-booked meals with their tickets.
IRCTC’s move comes as the ongoing war in West Asia has disrupted supply chains of energy imports. Iran has closed the Strait of Hormuz – a key transit route in the gulf region. India sources roughly 55 per cent of its LPG consumption and 30 per cent of its LNG consumption via the route.
Besides, India’s major LPG sources in West Asia have stopped petroleum gas production amid drone attacks by Iran.
As per S&P Global Ratings, India has 25-30 days of LPG reserves.
Notably, IRCTC has made no disclosure to the stock exchanges regarding the news. Business Standard, too, could not independently verify the reports.
‘Look for alternatives’
According to reports, IRCTC has urged food plazas, refreshment rooms, and Jan Ahaar outlets to shift to alternative cooking methods amid patchy LPG supply.
IRCTC Financials
As of December 2025, IRCTC earned revenue worth ₹661.43 crore, compared to ₹554.81 crore in Q3FY25, via catering services. This accounted for 45.48 per cent of its total revenue from operations.
Catering segment reported a profit before tax of ₹68.49 crore in the December 2025 quarter, up from ₹67.48 crore.
The management said E-catering business (taking orders via Zomato and/or Swiggy) grew 25 per cent in Q3FY26 while traditional catering also expanded.
“Basic meals and premium add-ons serve different consumer needs, supporting a win-win structure rather than internal competition,” it said.
Overall, IRCTC reported an 18 per cent increase in consolidated revenue from operation to ₹14,494.7 crore in Q3FY26 from ₹12,246.5 crore last year.
Its net profit stood at ₹394.33 crore in Q3FY26, higher by 15 per cent over ₹341.08 crore in Q3FY25.
According to analysts at IDBI Capital, IRCTC delivered a strong Q3FY26 performance with revenue growing 18 per cent year-on-year and PAT rising 15.5 per cent, supported by balanced growth across ticketing, catering, Rail Neer, and tourism.
“Growth in Catering business was driven by addition of new trains, especially Vande Bharat, and 260 more train sets planned over time create medium-term visibility. Regulatory changes, margin moderation in catering mix, and dependence on Indian Railways policies, however, remain key risks,” it said.
Overall, with strong monopoly position, healthy margins, cash generation and visible growth pipeline, IRCTC stock looks a ‘BUY’ for long-term investors, though near-term volatility may continue, the brokerage said as it upgraded its rating by valuing the stock at 34.7x FY27E EPS.
IDBI Capital revised its share price target to ₹715.
