IRCON Q1 Profit Drops 26% YoY to ₹164.5 Crore

7 Aug 2025 , 03:17 PM

IRCON International reported a muted start to FY26, with net profit slipping to ₹164.5 crore in the June quarter. This is a decline of over 26% compared to the same period last year. The drop in profit was largely driven by lower execution during the quarter. This pulled down revenue figures.

Revenue from operations stood at ₹1,786 crore. This is significantly lower than the ₹2,287 crore reported in Q1FY25. Total income also contracted to ₹1,892.4 crore from ₹2,385.3 crore a year earlier.

Operating profit came in at ₹200 crore. This marks a 20% year-on-year decline. However, the company held on to its margins. This remained steady at 11.2%. Despite the dip in quarterly performance, IRCON’s order book remains strong at ₹20,973 crore.

The largest chunk of the order book, around ₹15,724 crore, comes from railway projects. Highway orders make up ₹4,234 crore. The remaining ₹1,015 crore includes various other infrastructure assignments. Management remains optimistic, banking on the government’s infrastructure push through schemes like PM Gati Shakti, Bharatmala, and Sagarmala to drive fresh opportunities.

Upcoming urban transport and logistics projects, including the Smart Cities initiative and NaMo Bharat, are also expected to add momentum. The company believes that continued public and private investment in infrastructure will support its long-term growth plans, even though near-term execution challenges remain.

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