IRCTC Stock Split History: Enhancing Liquidity & Retail Participation

The Indian Railway Catering and Tourism Corporation Ltd (IRCTC), a Mini Ratna under the Ministry of Railways, has long been synonymous with online railway ticketing and catering services in India. Incorporated in 1999, the company has played a central role in transforming railway passenger services in the country.

Among its notable corporate actions, the stock split in October 2021 was a strategic step aimed at enhancing stock liquidity and making shares more accessible to a broader base of retail investors.

Table of Contents:

1. IRCTC Stock Split: Key Facts
2. Why Did IRCTC Split Its Shares?
3. Post-Split Business Performance
4. Financial Highlights (FY25)
5. Shareholding Pattern
6. New Initiatives & Expansion
7. Conclusion
8. FAQs

IRCTC Stock Split: Key Facts

• Announcement Date: 12 August 2021
• Purpose: Subdivision of one equity share of face value ₹10 each into five equity shares of ₹2 each
• Ex-Split Date: 28 October 2021

This 1:5 split reduced the face value, increasing the number of shares in circulation while maintaining the overall market capitalization of the company.

Wrap up: IRCTC executed a 1:5 stock split in October 2021, reducing its face value from ₹10 to ₹2. This move increased share count without affecting the company’s total market value.

Why Did IRCTC Split Its Shares?

The decision to split shares is often driven by strategic and market-related considerations. In IRCTC’s case:

• Improved Liquidity: After the stock split, IRCTC’s share price dropped proportionally, making it more accessible to small investors. This typically leads to higher trading volumes, as more people can afford to buy and sell the stock, improving overall liquidity on the exchange.
• Retail Participation: As of March 2025, IRCTC had over 19.09 lakh shareholders—evidence of its strong appeal among retail investors. The split likely encouraged further participation by lowering the entry barrier for new investors, especially in the small-ticket segment.
• Positive Market Sentiment: The market largely welcomed the stock split, interpreting it as a sign of the management’s confidence in the company’s long-term performance. It reinforced the perception that IRCTC remains a stable, growth-focused business with high retail visibility.

Wrap up: IRCTC’s stock split aimed to boost liquidity and attract more retail investors by lowering the share price. It also signalled market confidence in the company’s growth outlook.

There’s an insightful video by Share Market by Groww exploring IRCTC’s evolving role in rail tourism, catering, and ticketing—definitely worth a watch before evaluating its post-split investment appeal.

Post-Split Business Performance

Since the stock split, IRCTC has demonstrated robust growth across its four major business segments:

1. Catering Services (47% of FY24 Revenue)

• IRCTC catered 1,265 trains, including all 51 Vande Bharat Express trains.
• The segment recorded 32% YoY growth in FY24, fueled by mobile, e-catering (in partnership with Swiggy & Zomato), and static units.

2. Internet Ticketing (30% of FY24 Revenue)

• Accounted for 82.68% of all reserved tickets on Indian Railways.
• IRCTC booked 4,529 lakh tickets in FY24, with an 8% increase from FY22.
• Daily average ticket sales reached 12.38 lakh, showcasing the platform’s capacity and demand.

3. Tourism (16% of FY24 Revenue)

• Specialized in pilgrimage and themed tours like Ram Katha Yatra, Saurashtra Tamil Sangam, etc.
• Operated 337 Aastha trains, serving 5.48 lakh passengers.
• Charter trains and Tejas Express added scale, with total passenger growth of 134% in FY24.

4. Rail Neer (7% of FY24 Revenue)

• Supplied packaged drinking water at 410+ railway stations.
• Operates 19 bottling plants with an installed capacity of 17.68 lakh liters/day.
• The new plant at Vijayawada (Oct 2024) adds a capacity of 72,000 bottles/day.

Wrap up: Since the stock split, IRCTC has posted strong growth across all key segments. Catering led the way with 32% YoY growth, while internet ticketing handled over 4,500 lakh bookings in FY24. Tourism and Rail Neer also scaled up operations, reflecting IRCTC’s expanding footprint and growing demand.

Want to understand how IRCTC’s integrated operations drive high margins and consistent profitability? This detailed breakdown of the IRCTC business model explains its monopolistic structure and financial stability.

Financial Highlights (FY25)

The company has a market cap of ₹62,684 crore and reported revenue of ₹4,675 crore in FY25, up from ₹4,270 crore last year. Net profit stood at ₹1,315 crore, translating to an EPS of ₹16.43. With a strong ROE of 37.2% and a 73% dividend payout, it's highly shareholder-friendly. Its near-zero debt (D/E of 0.02) adds to its financial strength.

Wrap up: IRCTC reported a solid FY25 with revenue rising 9.74% to ₹4,675 Cr and net profit up 18.36% to ₹1,315 Cr. EBITDA margin held steady at 36.92%. EPS jumped 18.19% to ₹16.44, while net worth and book value per share rose over 20%, reflecting consistent profitability and balance sheet strength.

Check the latest IRCTC share price, updated charts, and valuation ratios to evaluate its stock performance.

Shareholding Pattern

As of March 2025, promoters hold a 62.4% stake in the company, indicating strong control. Foreign Institutional Investors (FIIs) own 7.37%, while Domestic Institutional Investors (DIIs) hold 13.89%, showing solid institutional interest. The public holds the remaining 16.35%, reflecting a balanced but promoter-dominated shareholding structure.

Wrap up: Promoter stake in IRCTC has declined from 67.4% in 2022 to 62.4% in 2025, but institutional confidence remains high. FIIs now hold 7.37% and DIIs 13.89%, reflecting rising interest from large investors in the company’s long-term potential.

New Initiatives & Expansion

• One India – One Ticket: Partnership with DMRC and NCRTC for unified QR code-based ticketing (July–August 2024).
• Non-Railway Catering: Entered government institutions like Calcutta High Court and UP Secretariat.
• Infrastructure Growth: Food plazas at 146 stations and new Rail Neer capacity at Ambernath & Danapur.

Wrap up: IRCTC is expanding beyond core rail services with unified QR-based ticketing under the 'One India – One Ticket' initiative. It's also moving into non-railway catering, serving institutions like the Calcutta High Court. On the infrastructure front, it’s scaling up food plazas and boosting Rail Neer production at new plants in Ambernath and Danapur.

Conclusion

The 2021 stock split by IRCTC was more than a cosmetic move—it signaled the company's confidence in sustained growth and investor participation. Post-split, the company has strengthened its operational scale, diversified its revenue streams, and delivered consistently high returns on equity.

As it transitions into a Scheduled ‘A’ Public Sector Undertaking (as of July 2024), IRCTC stands as a prime example of a successful government enterprise modernizing through innovation and strategic financial planning.

Wrap up: IRCTC’s stock split laid the groundwork for broader investor access and stronger retail participation. Since then, the company has delivered consistent growth, expanded its services, and maintained solid financial health—cementing its position as a key player in India’s travel and tourism ecosystem.

Also read how IRCTC’s strategic positioning, dividend payouts, and operational resilience shaped its valuation journey in the IRCTC share price history.

FAQs 

1. What was the date of IRCTC’s stock split?
   IRCTC’s stock split took place on 28 October 2021, with a record date of 29 October 2021. The face value of each share was reduced from ₹10 to ₹2 in a 1:5 split ratio.
2. Why did IRCTC split its shares in 2021?
   The stock split was aimed at improving share liquidity, increasing retail investor participation, and making the stock more affordable to small investors without affecting the company’s market capitalization.
3. What is the current face value of IRCTC shares after the split?
   After the 2021 stock split, the face value of IRCTC shares is ₹2 per share, down from the previous face value of ₹10.
4. How did IRCTC perform financially after the stock split?
   Post-split, IRCTC’s net profit reached ₹1,315 Cr in FY25, with strong performance across its four core segments. The company also maintained a high return on equity of 37.2% and a low debt-to-equity ratio of 0.02.
5. What impact did the stock split have on IRCTC’s stock price and investor base?
   The stock split made IRCTC shares more accessible to retail investors, contributing to increased trading volume and a rise in shareholder count to over 19.9 lakh by March 2025.
6. Has IRCTC announced any new initiatives post-stock split?
   Yes, IRCTC has expanded its services with the ‘One India – One Ticket’ initiative, new food plazas, and increased Rail Neer production capacity. It also entered the non-railway catering segment with outlets in government institutions.
7. Is IRCTC a government-owned company?
   Yes, IRCTC is a Mini Ratna (Category-I) Central Public Sector Enterprise under the Ministry of Railways, Government of India. As of July 2024, it is classified as a Scheduled ‘A’ PSU.
8. What are IRCTC’s key business segments?
   IRCTC operates in four main areas: Catering, Internet Ticketing, Tourism, and Rail Neer (packaged drinking water), each contributing significantly to its annual revenue.