IRCTC Steps Up Quality Checks, Questions Amul on Vande Bharat Food Issues

IRCTC is stepping up its focus on food quality, moving beyond just managing vendors to enforcing standards directly with manufacturers. This tougher stance, including penalties and questioning major suppliers like Amul, reflects a greater concern for its brand reputation and passenger experience on premium Vande Bharat trains, especially amid ongoing complaints.

Action Taken Over Passenger Complaints

The action was triggered by passenger complaints about substandard Amul curd served on the Patna-Tatanagar Vande Bharat Express. IRCTC imposed ₹60 lakh in fines, split between the onboard service provider and IRCTC itself, and is pursuing contract termination. IRCTC's stock traded around ₹515.40 on March 27, 2026, with a P/E ratio of about 29.57. The company's market capitalization was ₹41,908 crore as of March 26, 2026. Despite this regulatory action, analysts generally maintain a positive outlook, with a consensus 'Strong Buy' rating and price targets suggesting significant upside potential.

Holding Major Suppliers Accountable

Summoning Amul, a major dairy cooperative, is a rare move and signals IRCTC's intent to trace quality issues directly to their source, challenging the traditional practice where accountability often stopped at the immediate vendor. Amul, a prominent supplier, has faced public scrutiny over product quality before, including in January 2026 when it addressed viral claims about its Masti Dahi, and in August 2023 when it recalled curd in Kutch due to consumer complaints, though tests later found it fit for consumption. These past incidents suggest quality control challenges that IRCTC now aims to address proactively. By directly engaging Amul, IRCTC seeks to secure its supply chain, recognizing that the reputation of premium services like Vande Bharat depends on the quality of all ingredients.

Ongoing Quality Challenges and Consumer Trust

Despite IRCTC's efforts, the incident highlights persistent challenges within its large catering network. In fiscal year 2024-25, IRCTC received 6,645 food quality complaints, a slight decrease from 7,026 the previous year, but still indicating ongoing issues. During FY24-25, actions included fines in 1,341 cases and warnings in nearly 3,000 instances. These figures point to a consistent struggle to maintain standards across hundreds of trains, including premium services like Vande Bharat. While IRCTC has implemented measures like CCTV in kitchens and increased testing, the recurrence of complaints suggests these may not be enough. The main risk for IRCTC is the erosion of consumer trust; repeated quality problems can damage the premium image of Vande Bharat and IRCTC's overall brand value. Amul's involvement adds complexity, as any perceived failure by a major brand can have widespread reputational effects.

Analyst Optimism Amidst Operational Hurdles

Looking ahead, analysts remain largely optimistic about IRCTC's growth prospects, citing its market position and diversification. The current analyst sentiment is a 'Strong Buy' with price targets suggesting over 50% potential upside. This outlook is supported by IRCTC's expanding digital platforms, its role in railway modernization, and growing revenue from catering, tourism, and packaged water. However, incidents like this serve as a reminder of the operational hurdles that could affect future performance. IRCTC's ability to consistently ensure quality across its vast network, especially for premium services, will be crucial for its growth potential and investor confidence. The current action signals a more aggressive approach to quality, which could strengthen its reputation and reduce future risks if effective.