How has been the historical performance of IRCTC Share?

How has been the historical performance of IRCTC Share?

Indian Railway Catering and Tourism Corporation (IRCTC) has shown strong historical performance since its IPO in October 2019. The stock delivered exceptional long-term returns, with a 322.54% gain by 2025 from listing, reflecting substantial multi-year growth despite some short-term volatility recently. Over the last five years, IRCTC's shares have surged approximately 155% to 195%, while the compound annual growth rate (CAGR) over five years stands around 23% as of 2025.​

Financially, IRCTC has exhibited consistent growth in revenue and profitability. Its net sales rose from ₹3,541.47 crores in March 2023 to ₹4,674.77 crores by March 2025, which is a robust growth rate of about 14.5% annually. Operating profit and profit after tax (PAT) also increased steadily during this period, with PAT growing from ₹1,005.88 crores to ₹1,314.90 crores. Earnings per share improved from ₹12.57 to ₹16.44, signaling enhanced shareholder value. The company maintains a strong balance sheet with negligible debt, highlighting financial stability.​

The stock price exhibited some volatility in the short term, with a notable decline of roughly 16% over the past year and a drop of around 15.43% year-to-date in 2025. However, this pullback followed a strong gain of 32.22% in 2023 and is partly attributed to a high price-to-earnings growth (PEG) ratio suggesting valuation concerns amid earnings growth. Despite this, analysts generally hold a cautiously optimistic stance on IRCTC, viewing it as a hold or accumulate stock given its unique position in railway catering, digital ticketing, and tourism services.​

Other key financial metrics show IRCTC's strong profitability, with return on equity (ROE) near 35% and a debt-free status. Dividends have been paid consistently with a payout ratio of around 47-73%. The company benefits from growth drivers such as expanding digital services and government investments in rail infrastructure, although economic risks and margin pressures should be monitored as potential challenges.​

Overall, IRCTC's historical performance highlights a stock with significant long-term appreciation potential, supported by solid fundamentals, operational growth, and a strong market position. Short-term fluctuations have presented buying opportunities for patient investors given the company's underlying financial health and strategic growth prospects.