The Indian Railway Catering and Tourism Corporation (IRCTC) is preparing for a major digital expansion, aiming to diversify revenue beyond its core ticketing business. The state-run company has secured in-principle approval from the Reserve Bank of India (RBI) for a payment aggregator licence, marking its foray into the fintech space.
The licence, expected to be operational within 12–18 months, will allow IRCTC to process third-party digital payments, creating new monetisation avenues outside railway ticketing.
Strengthening Fintech Play
Chairman and Managing Director Sajay Kumar Jain told investors that the payment aggregator licence will enable IRCTC to tap into broader digital transactions. The company is also focusing on advertising-led revenues and a unified online travel agency (OTA) platform, both currently in the tendering process.
- AI-driven advertisements are being developed to promote cross-selling of products and services.
- The planned OTA platform will integrate all IRCTC booking services under one portal, strengthening customer convenience and boosting conversion rates.
- IRCTC is also enhancing its UPI-linked credit card ticketing system, which currently accounts for 12% of bookings and is growing at 18% annually.
Online Ticketing Remains Core Strength
IRCTC maintains its dominance in online railway ticketing, accounting for 88% of reserved bookings in Q1 FY26. The segment generated ₹360 crore in revenue, growing 9% year-on-year, with a robust 84% EBITDA margin.
Financial Performance Snapshot
- Consolidated Net Profit: ₹330 crore, up 7% YoY
- Revenue from Operations: ₹1,160 crore, up 4% YoY
- Catering Division: ₹547 crore, down 2%
- Rail Neer Division: ₹106 crore, flat
- Tourism Business: ₹148 crore, up 21% YoY, led by Bharat Gaurav trains, Maharajas’ Express, and Bharat–Bhutan Yatra
Summary
IRCTC is positioning itself for a digital transformation, with plans to monetise fintech services, AI-powered advertising, and a unified OTA platform. While online ticketing continues to deliver strong margins, tourism is emerging as a growth driver. Despite temporary headwinds in catering and Rail Neer, IRCTC’s focus on fintech innovation and cross-selling strategies signals a shift toward diversified, tech-driven growth beyond its core railway services.
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