IRCTC or RVNL: Comparing Financials, Dividends and Stock Returns

As Indian stock markets pick up pace, two major railway public sector undertakings (PSUs)—IRCTC and RVNL—are gearing up to declare their Q4 results and final dividends for FY25. While both companies work under the umbrella of Indian Railways, their operations, revenue models, and investor appeal are quite different. Let’s explore both stocks across various parameters.

Comparing Dividends

IRCTC, short for Indian Railway Catering and Tourism Corporation, is the go-to platform for train ticket bookings in India. The company enjoys a monopoly in online ticketing, catering, and tourism services related to Indian Railways. 

For the current financial year (FY25), IRCTC has already declared two interim dividends—₹3 and ₹4 per share—showing its steady approach towards rewarding shareholders. 

In comparison, Rail Vikas Nigam Limited (RVNL) follows a more growth-driven business strategy and has not matched IRCTC in terms of dividend payouts. In September 2024, RVNL announced a single interim dividend of ₹2.11 per share. In previous financial years, RVNL paid dividends twice—₹2.13 in FY23 and ₹1.83 in FY22. 

However, the dividend amounts have generally been modest, and its dividend yield currently stands at a low 0.49%, reflecting its focus on capital expansion and infrastructure development over high shareholder returns.

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Upcoming Q4 FY25 Earnings 

The upcoming week will be crucial for investors keeping an eye on both railway stocks. RVNL is set to release its Q4 results and final dividend announcement on May 21 through a scheduled board meeting.

A week later, IRCTC will hold its own board meeting on May 28, during which the company will announce its financial results and final dividend decision for FY25. These dates are particularly important as they could influence the short-term movement in share prices for both companies.

Comparing Share Price Performance

From a stock market perspective, IRCTC has struggled to maintain momentum. As of intraday trade, the stock is trading down 1.6% at ₹791.80. Over the past 5 trading days, it has posted a modest 3% gain, and it has grown by 2% in the past 1 month. However, when viewed over the last year, IRCTC’s stock has declined significantly by nearly 29%.  

RVNL, on the other hand, has demonstrated a more robust stock performance. Despite being down 3% in today’s session and trading at ₹418.20, the stock has delivered a remarkable 15% return in just the past five days. Over the course of the past 1 year, RVNL’s stock has climbed 22%, clearly outperforming IRCTC in terms of price appreciation.  

Conclusion

In summary, IRCTC is ideal for investors seeking steady dividends and exposure to a monopoly business model in the railway services segment. RVNL, in contrast, may attract investors looking for higher capital gains due to its stronger stock performance and infrastructure-driven growth. With both companies scheduled to announce their earnings and dividends soon, market watchers will be paying close attention to see which PSU railway stock ultimately delivers better returns in FY25.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.             

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.