Ircon International shares jump over 2% after winning Rs 1,068 crore EPC contract from railways

Ircon International shares rallied 2.5% to an intraday high of Rs 195.60 on the BSE on Monday after the company secured an engineering, procurement, and construction (EPC) contract worth Rs 1,068.3 crore from East Central Railway.

East Central Railway, Indian Railway has awarded the work to Ircon International for EPC for construction of new BG Rail Bridge (2x32.086m Open Web Steel Girder + 33x122.0 m Open Web Steel Girder) with sub-structure of double line track and superstructure of single line track across river Ganga between Bikramshila and Katareah stations on new railway line project.

On May 30, both the National Stock Exchange (NSE) and BSE imposed fines of Rs 14,04,200 each (including GST) on Ircon for non-compliance related to board and committee composition for the quarter ended 31 March 2025.

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Multiple orders bagged in May

Earlier in May, Ircon received several new contracts:

Kerala State IT Infrastructure (KSITIL) awarded a Rs 187 crore order for constructing a rural industrial park in Thiruvananthapuram. The project is to be completed within 30 months.

North Eastern Electric Power Corporation granted a Rs 458.14 crore contract for civil works on the Tato-I Hydro Electric Project in Arunachal Pradesh.

South Western Railway awarded a Rs 253.6 crore contract for implementing KAVACH, an indigenous train collision avoidance system, across 778 route kilometres in the Bengaluru and Mysuru divisions. The project is expected to be completed in 18 months.

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Q4 earnings report

Ircon reported a 3.8% year-on-year decline in net profit to Rs 246.8 crore for the quarter ended 31 March 2024, compared to Rs 256.5 crore in the same period last year. Revenue from operations slipped 1% to Rs 3,742.7 crore from Rs 3,780.7 crore.

EBITDA fell 56.3% year-on-year to Rs 286.3 crore, down from Rs 656.2 crore in Q4FY24.

IRCON International share price target

According to Trendlyne, the average target price for IRCON International is Rs 158, indicating a downside of 17% from current levels. The stock holds a ‘Sell’ rating based on recommendations from 3 analysts.

IRCON International share price performance

IRCON shares have risen 35% in the past three months but are down 30% over the past 12 months. The company’s market capitalisation currently stands at Rs 17,945 crore.

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