The Indian government has elevated the Indian Railway Catering and Tourism Corporation (IRCTC) and the Indian Railway Finance Corporation (IRFC) to Navratna status, marking a significant milestone for these central public sector enterprises (CPSEs).

This upgrade brings the total number of Navratna companies in India to 26. IRCTC, which was previously a Miniratna-I company, now becomes the 25th Navratna, while IRFC becomes the 26th. The Navratna status grants these companies greater financial and operational autonomy, allowing them to invest up to ₹1,000 crore or 15% of their net worth without requiring central government approval.

IRCTC reported strong financials for the fiscal year 2023-24, with an annual turnover of ₹4,270.18 crore, a profit after tax (PAT) of ₹1,111.26 crore, and a net worth of ₹3,229.97 crore.

IRFC, on the other hand, achieved an annual turnover of ₹26,644 crore, a PAT of ₹6,412 crore, and a net worth of ₹49,178 crore during the same period.

The Navratna status is expected to enhance their decision-making capabilities, support major capital expenditure plans, drive growth, and expand their market reach.

Despite this positive development, IRCTC's stock price hit a 52-week low following the announcement, possibly due to broader market trends or profit booking by investors.

The upgrade is part of the government's efforts to make public sector enterprises more competitive and efficient. It will also enable IRCTC and IRFC to establish joint ventures, access new markets, and leverage local expertise more effectively.

Agencies