IRCTC and IRFC Earn ‘Navratna’ Status; IRFC Jumps Over 4%

The Government of India (GoI)  has granted Navratna status to Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC). With this, IRCTC becomes the 25th and IRFC the 26th company to receive the status among Central Public Sector Enterprises (CPSEs). 

The upgrade was confirmed by the Department of Public Enterprises in a social media post.

Navratna Status 

Navratna status provides financial and operational autonomy to public sector enterprises. Companies with this designation can invest up to ₹1,000 crore or 15% of their net worth, in a single project without requiring prior government approval. They also gain the ability to form joint ventures, establish subsidiaries, and enter major partnerships independently.

CPSE Classification

The government classifies CPSEs into three categories: Maharatna, Navratna, and Miniratna. Navratna companies have big financial powers but fall below Maharatna CPSEs in terms of investment limits and autonomy. 

Other companies with Navratna status include Bharat Electronics Ltd (BEL) and Hindustan Aeronautics Ltd (HAL).

Financial Performance

For FY 2023-24, IRCTC, under the Ministry of Railways, reported:

• Annual turnover: ₹4,270.18 crore
• Profit after tax (PAT): ₹1,111.26 crore
• Net worth: ₹3,229.97 crore

For the same period, IRFC, which finances railway projects, recorded:

• Annual turnover: ₹26,644 crore
• Profit after tax (PAT): ₹6,412 crore
• Net worth: ₹49,178 crore

Market Reaction 

Following the announcement, as of March 4, 2025, at 11:16 AM, Indian Railway Catering and Tourism Corporation Ltd (IRCTC) traded at ₹675.50, down 0.16% for the day and 27.99% over the past year, while Indian Railway Finance Corporation Ltd (IRFC) was at ₹115.02 as of 11:17 AM, gaining 3.50% intraday but declining 20.98% over the past year.

IRCTC also declared a second interim dividend of ₹3 per share for FY 2024-25, with February 20, 2025, set as the record date for eligible shareholders.

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