Ircon International Limited commenced its business in 1976 as a railway construction company and diversified progressively since 1985 as an integrated engineering and construction PSU specialising in large and technologically complex infrastructure projects in various sectors such as railways, highways, etc.
In this article, we will take a closer look at Ircon’s order book—tracing how it has evolved over the past decade, from FY15 to FY25. During Thursday’s trading session, the shares of this Navratna public sector enterprise and a leading turnkey construction company under the Ministry of Railways jumped around 2 percent to Rs. 207.1 on BSE, with a market cap of Rs. 19,106.6 crores. The stock has delivered negative returns of around 25 percent in one year, but has gained by over 8 percent in one month.
Order Book Trend
Over the past decade, Ircon International has seen both expansion and contraction in its order book, shaped by changes in project mix, market dynamics, and strategic direction.
In FY15, Ircon’s order book stood at Rs. 13,293 crores, dominated by domestic orders worth Rs. 11,807 crores, with a smaller contribution from foreign projects worth Rs. 1,486 crores.
This trend continued steadily
By FY16, the total order book had jumped to Rs. 17,569 crore, with more than Rs. 14,900 crore from India (domestic order). FY17 saw further growth to Rs. 18,878 crore, still heavily weighted toward Indian projects (Rs. 16,460).
By FY18, the order book reached Rs. 22,407 crore, and in FY19, it surged to Rs. 28,224 crore, with Foreign orders contributing Rs. 1,516 crores and domestic orders the majority by contributing Rs. 26,708 crores.
From FY20 onward, the total order book crossed the 30,000 mark and reached ~Rs. 30,713 crore, with a huge Rs. 29,182 crore coming from railway projects. Highways accounted for a modest Rs. 1,531 crore, indicating a slow but growing interest in roads.
This upward momentum continued into
- FY21, with the order book at Rs. 34,689 crore.
- FY22, when Ircon hit its highest-ever order book size: Rs. 43,758 crore.
Interestingly, by FY22, Highways had grown to contribute Rs. 7,312 crore, nearly 17 percent of the total. Railways remained dominant, but the company had clearly started diversifying its project mix. Other segments also made a small but visible appearance with nearly Rs. 1,971 crore in orders.
After peaking in FY22, Ircon’s order book began to shrink
In FY23, Ircon’s order book declined to Rs. 35,195 crore. The Railways segment remained the mainstay, accounting for Rs. 26,243 crore (74.5 percent), while the Highways segment contributed Rs. 6,985 crore (19.9 percent). Other segments added Rs. 1,967 crore, making up the remaining 5.6 percent.
In FY24, the total order book dropped further to Rs. 27,208 crores. Railways continued to dominate the portfolio with Rs. 21,158 crore, making up 77.8 percent of the total. The Highways segment followed with a solid Rs. 5,964 crore contribution (21.9 percent), while other smaller projects added a minimal Rs. 86 crore, accounting for just 0.3 percent.
By FY25, Ircon’s order book had fallen to Rs. 20,347 crores, with the Highways segment contributing Rs. 4,541 crores (22 percent), Railways contributing the majority by Rs. 15,435 crores (76 percent), and the Other segments contributing Rs. 371 crores (2 percent).
While the total size came down, the composition of orders evolved. The Highways segment has steadily increased its share, reaching 22 percent by FY25, while Railways continued to dominate but now accounted for 76 percent, down from over 95 percent a few years ago. Meanwhile, contributions from Other segments remained modest, making up around 2 percent in FY25.
Between FY15 and FY22, Ircon International’s international contracts steadily contributed between ~Rs. 1,400 crore and Rs. 2,975 crore. However, starting FY23, there was a noticeable dip. By FY25, international orders had reduced to Rs. 2,206 crore, marking about a 26 percent decline from the FY22 high.
In 2022, the company’s management has explicitly stated they are deliberately avoiding aggressive bidding to maintain healthy margins, especially after entering new sectors like high-speed rail and solar.
In Q4 FY25, the company reported a subdued operational performance. This was primarily due to the completion of major cost-plus projects, a reduced order book, and one-off accounting entries related to provisions for losses on certain projects.
Financial Performance
Ircon International reported a decline in its revenue from operations, showing a year-on-year decrease of around 10 percent from Rs. 3,787 crores in Q4 FY24 to Rs. 3,412 crores in Q4 FY25.
Similarly, its net profit decreased during the same period from Rs. 247 crores to Rs. 212 crores, representing a fall of nearly 14 percent YoY. Between FY22 and FY25, the company’s revenue from operations grew at a 3-year CAGR of over 13 percent, while net profit surged at a CAGR of nearly 7 percent.
Written by Shivani Singh
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