IRCTC Q3 Results: Profit Jumps 22% to ₹325 Crore, Declares ₹3.50/Share Dividend

NEW DELHI, FEBRUARY 12, 2026: IRCTC Limited, the Navratna public sector enterprise under the Ministry of Railways, reported a robust 22% year-on-year rise in standalone net profit for the December 2025 quarter, driven by strong performance across its ticketing, catering, and tourism segments. The company also declared a second interim dividend of ₹3.50 per share for FY26 while announcing a decisive Supreme Court victory that eliminates a decade-old contingent liability.

Financial Highlights (Standalone, Q3 FY26):

• Net Profit: ₹325.01 crore (vs. ₹266.32 crore in Q3 FY25) — Growth: 22.1%

• Total Income: ₹1,131.79 crore (vs. ₹1,014.24 crore in Q3 FY25)

• Operating Revenue: ₹1,092.59 crore

• Earnings Per Share (EPS): ₹4.06 (vs. ₹3.33 in Q3 FY25)

Nine-Month Performance (Apr-Dec 2025):

• Net Profit: ₹975.52 crore (vs. ₹854.33 crore in 9M FY25)

• Total Income: ₹3,245.28 crore

Shareholder Reward: Second Interim Dividend Declared

The Board of Directors declared a second interim dividend of 175% (₹3.50 per equity share of ₹2 face value) for FY 2025-26.

• Record Date: Friday, February 20, 2026

• Payment: To be dispatched to eligible shareholders post record date

The company had earlier paid a first interim dividend of ₹2.50 per share in November 2025.

Segment Performance (Nine Months Ended Dec 2025):

Internet Ticketing remained the primary profit driver, contributing over 86% of segment profits.

Landmark Legal Victory: Supreme Court Rules in Favour of IRCTC

In a major development, the Supreme Court of India on November 7, 2025, set aside the Delhi High Court's Division Bench order and finally adjudicated the decade-old arbitration dispute in favour of IRCTC.

Case Background:

• Catering licensees had claimed ₹7,471.65 lakhs plus 6% interest for "welcome drink" and "second regular meal" rate differentials (2015-2020)

• Arbitral award was initially passed in April 2022

• Delhi High Court had partially upheld claims; Division Bench restored full award in February 2025

• IRCTC had deposited ₹8,471.65 lakhs as bank guarantee pursuant to court orders

Outcome:

• Entire bank guarantee released to IRCTC

• No financial liability remains on the company

• Matter "finally adjudicated" with no further operational or financial impact

"The Supreme Court's decisive ruling removes a significant contingent liability and reaffirms IRCTC's position," a company statement noted.

Key Contingencies & Auditor Emphasis:

1. License Fee Enhancement (Sub-Judice):
IRCTC has not recognized enhanced license fee from catering licensees pursuant to Railway Board's CC60/2019 circular, as multiple legal challenges remain pending before various High Courts. The matter pertains to periods from November 2019 to December 2025.

2. GST Profiteering Notice:
The National Anti-Profiteering Authority (NAA) had issued a notice alleging ₹5,041.44 lakhs profiteering for Rail Neer (July 2017-May 2020). The matter is now pending before the GST Appellate Tribunal (GSTAT). IRCTC maintains that Rail Neer MRP remains government-controlled and unchanged since 2012 despite cost escalations.

3. Input Tax Credit Dispute with Rail Neer DCOs:
Four PPP Rail Neer plant operators are disputing ITC recovery claims of ₹327.34 lakhs (9M FY26). IRCTC has initiated action to obtain GSTR data for strict contractual recovery.

4. New Labour Codes:
The company is assessing the impact of new Labour Codes notified effective November 21, 2025. Financial impact, if any, will be recognized post complete assessment and rule notifications.

Exceptional Items (9M FY26):

• ₹580.49 lakhs — Reduction in fixed/variable/custody charges for two Tejas Express trains (Ministry of Railways letter)

• ₹1,090.09 lakhs — Excess provisions written back from previous years

Total exceptional income: ₹1,670.58 lakhs

Consolidated Performance:

IRCTC's consolidated net profit for Q3 FY26 stood at ₹317.68 crore, reflecting the performance of its subsidiary, IRCTC Payments Ltd.

• Consolidated Total Income (Q3): ₹1,145.99 crore

• Consolidated Net Profit (9M): ₹955.98 crore

The subsidiary's financials were management-certified and not reviewed by the statutory auditor.

Management Commentary:

The Board meeting, chaired by CMD Sanjay Kumar Jain, commenced at 2:30 PM and concluded at 5:10 PM. The Audit Committee had reviewed the results prior to Board approval.

"IRCTC continues to demonstrate operational resilience and financial discipline. The Supreme Court verdict vindicates our consistent stand, and our dividend payout reflects confidence in the company's cash flows and growth trajectory," the company stated in its filing.

Outlook:

With the arbitration overhang decisively settled and core businesses—particularly internet ticketing—maintaining strong momentum, IRCTC remains well-positioned for sustained profitability. Key monitorables remain the resolution of GST profiteering proceedings and the catering license fee litigation, which continue to feature as auditor emphasis matters.

Scrip Performance:
IRCTC shares (Scrip Code: 542830 | Symbol: IRCTC) closed at ₹841.65 on the NSE, up 1.2% post-results.

About IRCTC Limited:
Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) is a Navratna Central Public Sector Enterprise under the Ministry of Railways. It is the sole authorized entity for online railway ticketing, catering services on trains and stations, packaged drinking water (Rail Neer), and tourism operations in India. The company operates with a pan-India presence and serves millions of passengers annually.