Ircon International shares in focus after Q1 PAT declines 27% YoY

Shares of Ircon International are likely to remain in focus on Thursday after the company reported a 26.7% year-on-year (YoY) decline in profit after tax (PAT) for the first quarter of FY26.

The Navratna public sector construction firm posted a PAT of Rs 164.1 crore in Q1FY26, compared to Rs 224.0 crore in the same quarter last year.

The company’s total income also declined, coming in at Rs 1,892.4 crore in Q1FY26 versus Rs 2,385.3 crore in Q1FY25. Similarly, revenue from operations fell to Rs 1,786.3 crore, down from Rs 2,287.1 crore a year ago.

Other key financial metrics reflected a downward trend as well. EBITDA dropped to Rs 323.9 crore from Rs 357.4 crore in Q1FY25, while the EBITDA margin stood at 17.1%. Profit before tax declined to Rs 211.5 crore, compared to Rs 281.8 crore in the corresponding quarter last year.

On a quarter-on-quarter (QoQ) basis, PAT fell from Rs 211.8 crore in Q4FY25, while revenue slipped from Rs 3,412.1 crore in the previous quarter.

Earnings per share (EPS) for Q1FY26 stood at Rs 1.75 per equity share (not annualised), with a face value of Rs 2 per share.

Despite the earnings decline, Ircon maintained a healthy order book position.

As of June 30, 2025, the company’s total consolidated order book stood at Rs 20,973 crore, comprising:

- Rs 15,724 crore from Railways

- Rs 4,234 crore from Highways

- Rs 1,015 crore from other segments

Outlook

Ircon highlighted a positive industry outlook, supported by large-scale government initiatives such as PM Gati Shakti, Bharatmala, Sagarmala, the Smart Cities Mission, and metro rail expansion. The company noted that India’s infrastructure sector is undergoing a significant transformation, underpinned by rising public investment and rapid urbanization.

Backed by this strong policy support, Ircon stated that it is strategically positioned to capitalise on emerging growth opportunities across roadways, railways, and urban infrastructure.

On Wednesday, shares of Ircon International closed 1.9% lower at Rs 171.80 on the BSE.

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