Archive · 22 Sep 2026
Choice Says IRCTC Warrants Premium as Businesses Expand
Choice is a brokerage that believes IRCTC deserves a higher valuation than some other railway businesses.
IRCTC sells train tickets online and has reached a high level of digital use.
However, Choice says online ticketing may not grow as quickly in the near term.
The company is therefore developing other businesses, such as catering, tourism and packaged drinking water.
More passengers are choosing air-conditioned trains, including Vande Bharat trains.
This may allow IRCTC to earn more from convenience fees.
IRCTC also plans one travel platform for trains, flights, hotels, buses and tourism.
Choice expects profits to face some pressure before improving as newer businesses become larger and catering operations improve.
Choice said Indian Railway Catering and Tourism Corporation warrants a premium because it is expanding beyond online ticketing into a broader mobility platform.
E-ticketing reached 89% of reserved bookings in FY26, although Choice expects near-term saturation in Internet Ticketing.
A 51% AC passenger mix and growing Vande Bharat adoption could support higher convenience-fee realisation.
A proposed unified platform would combine rail, air, hotel, bus and tourism services to increase customer engagement and retention.
Bharat Gaurav contributes 40% of Tourism revenue, while Rail Neer production is planned to rise from 15.5 lakh to 20 lakh bottles daily.
- Who
- Choice and the Indian Railway Catering and Tourism Corporation (IRCTC).
- What
- Choice said IRCTC warrants a premium as it expands beyond online railway ticketing into mobility, catering, tourism and Rail Neer.
- When
- The assessment refers to FY26 and projections through FY27E; no publication date is provided.
- Where
- The businesses described operate across India’s railway and domestic travel network.
- Why
- Choice cited IRCTC’s exclusive online railway-ticketing position, large user base, rising AC passenger mix, Vande Bharat adoption and expansion into other travel-related businesses.
- Brokerage view
- Choice said IRCTC warrants a premium.
- E-ticketing penetration
- 89% of reserved bookings in FY26.
- AC passenger mix
- 51%.
- FY27E EBITDA margin
- Expected to decline to 29% before recovering as new initiatives scale and catering economics improve.
- Tourism revenue contributor
- Bharat Gaurav accounts for 40% of Tourism segment revenue.
- Rail Neer production
- Current daily actual supply is around 15.5 lakh bottles, with a long-term goal of 20 lakh bottles per day.