Indian Railway Catering and Tourism Corporation (IRCTC) shares remained in focus as consolidated revenue from operations rose 18 per cent y-o-y to ₹1,369.52 crore in Q1FY27, while consolidated profit after tax was nearly flat at ₹330.16 crore.The stock declined nearly 2 per cent on Friday to a low of ₹495.30 from the previous close of ₹504.45.IRCTC posted standalone PAT of ₹329.86 crore in Q1FY27, compared with ₹303.45 crore in Q1FY26.PL Capital said IRCTC reported weak operational performance, with EBITDA margin at 28.2 per cent against its estimate of 33.4 per cent. The brokerage said the margin was impacted by a one-time employee cost hit of ₹2 crore arising from gratuity and post-retirement benefits, input cost inflation and a ₹1 crore maintenance charge dent within the ticketing division.Revenue grew 18.1 per cent y-o-y to ₹136.95 crore, compared with PL Capital’s estimate of ₹127.14 crore. The brokerage attributed the growth to strong traction in the catering division, driven by healthy growth in prepaid trains, license fees, e-catering and election special trains.PL Capital expects sales CAGR of 11 per cent over FY26-FY28E, led by capacity expansion at Rail Neer, with four plants to be added, and healthy growth in the catering division.The brokerage expects EBITDA margin of 30.9 per cent and 30.5 per cent for FY27E and FY28E, respectively, as the share of lower-yielding catering business rises.Given decent growth prospects, a debt-free balance sheet and healthy return ratios, the brokerage retained its buy rating with a target price of ₹706.More Like ThisPublished on August 14, 2026