IRCTC gets RBI's approval to operate as online payment aggregator
What's the story
The Reserve Bank of India (RBI) has granted in-principle approval to IRCTC Payments, a subsidiary of Indian Railway Catering and Tourism Corporation (IRCTC), to act as an online payment aggregator. The approval was communicated through an exchange filing today. The move is expected to boost IRCTC's operations and expand its service offerings in the digital payment space.
Business expansion
IRCTC Payments incorporated in February 2024
IRCTC Payments was incorporated in February 2024 as a wholly owned subsidiary of IRCTC. The parent company had applied for in-principle approval from RBI in December 2024. After some clarifications were sought and provided, the approval was granted. This strategic move is aimed at diversifying IRCTC's business into the payment gateway and aggregator space, which could streamline its e-ticketing services further.
Service offering
i-Pay generated ₹114.54 crore revenue in FY24
IRCTC's payment aggregator, i-Pay, supports payments through various modes like internet banking, debit/credit cards, wallets, UPI and Autopay. In FY24, i-Pay generated a revenue of ₹114.54 crore with a growth rate of 19.33% over the previous year. The subsidiary also issues pre-paid instruments such as cash and gift cards and manages coupons and loyalty cards while operating as a Bharat bill payment unit.
Revenue growth
Record revenue for IRCTC in Q4 FY25
In Q4 FY25, IRCTC's internet ticketing revenue rose to ₹372.5 crore, an impressive on-year growth of 8.78%. The company also achieved a record revenue milestone of ₹1,269 crore. Brokerage firm Investec recently predicted a 66% upside in the stock and recommended a 'Buy' call with a target price of ₹1,200 per share.