According to Prabhudas Lilladher's latest research report dated May 27, 2026, the brokerage has maintained a buy rating on IRCTC with a revised target price of Rs 712, down from the earlier target of Rs 712 (40x FY28E EPS). The recommendation reflects the company's decent growth prospects, debt-free balance sheet, and healthy return ratios, despite some margin recovery concerns.
As reported by Prabhudas Lilladher, IRCTC IN reported weak operational performance with EBITDA margin of 27.3% (PLe 33.1%), impacted by CSR charge of INR 310 million and ECL provisioning of INR 160 million. However, the catering division continues to show strong traction with top-line growth of 26.7%, while the Rail Neer division's EBIT margin improved to 16.1%, marking a multi-quarter high. The company's capacity expansion at Rail Neer with 4 plants to be added is expected to drive future growth.
According to the latest report, Prabhudas Lilladher expects sales and PAT CAGR of 8% and 9% respectively over FY26-FY28E, driven by capacity expansion at Rail Neer, improved growth visibility in non-convenience fee income, and healthy uptick in the catering division. The brokerage has cut EPS estimates by ~4% for FY27E/FY28E as they fine-tune margin assumptions for internet ticketing and catering divisions. IRCTC trades at 28x/26x our FY27E/FY28E estimates.
As per Prabhudas Lilladher's latest assessment, the target multiple has been revised downwards to 35x FY28E EPS from the earlier 40x, as signs of margin recovery appear bleak amid changing revenue composition. Despite this adjustment, the brokerage maintains its buy rating based on the company's decent growth prospects, debt-free balance sheet, and healthy return ratios. The revised target price of Rs 712 reflects the company's strong fundamentals and growth visibility in key business segments.
