Railway PSU Ends Successful FY25, Shares Rally 5%

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Posted by AI on 2025-05-14 16:00:01 | Last Updated by AI on 2025-12-21 05:18:55

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Indian Railway PSU stocks just keep on delivering. Despite a stellar FY24, Indian Railways' freight and passenger carrying PSU, Indian Railways Catering and Tourism Corporation (IRCTC) has declared a final dividend of 10 per share for FY25, leading to a 5% rise in its share price. This is in addition to an already handsome dividend of 15 per share in the previous fiscal year.

The railway division has had a highly successful year, owing to factors like the increasing demand for passenger transportation post-covid and the lower base effect of the previous fiscal year. The pandemic negatively impacted the railway division which was visible in the low revenue and passenger ticket bookings in FY24. However, the subsequent demand resurgence filled the rails with life again, thereby boosting the performance of IRCTC.

The state-owned entity's earnings per share rose to 23.45 apiece in FY22, up from 14.85 in the previous fiscal year. Thus, this dividend announcement wasn't unexpected. The final dividend will be paid out on August 6, 2022, to the shareholders of the record as of July 29, 2022. With the government continuing its reformist policies, it's evident that PSUs will continue to be a major driver of growth and economic prosperity in the country.

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