Synopsis:
IRCON secured three infrastructure contracts worth ₹1,699.26 crore on 18 July 2025, covering metro and rail projects in Mumbai and Madhya Pradesh from RVNL, Mumbai Metro, and another entity.
This small-cap Railway stock, engaged in constructing railways, highways, metro systems, tunnels, bridges, electrification, and turnkey infrastructure projects, serving India and international markets, jumped 4 percent after securing three orders worth Rs. 1,699 crore from RVNL, Mumbai Metro, and another entity.
With a market capitalization of Rs. 17,963.85 crores, the share of Ircon International Limited has reached an intraday high of Rs. 195 per equity share, rising nearly 4.31 percent from its previous day’s close price of Rs. 186.95. Since then, the stock has retreated and is currently trading at Rs. 191 per equity share.
Order Details
On 18 July 2025, Ircon International Limited secured three orders worth a total of approximately Rs. 1,699.26 crore. First order, Ircon International Limited received a Letter of Acceptance from MMRDA for works related to Mumbai Metro Line-5, Package-2. The project involves the design, supply, installation, and commissioning of a 220 kV substation, overhead catenary, power systems, lifts, escalators, SCADA, and E&M works.
The contract value is Rs. 471.30 crore and €2.84 million (approx. Rs. 28.49 crore). It includes 108 weeks of construction, 2 years of defect liability, and 5 years of comprehensive maintenance.
On the same day, the company also received a second Letter of Acceptance from MMRDA for works related to Mumbai Metro Line-6, Package-2. The project includes design, supply, installation, testing, and commissioning of power supply, traction, electrical and mechanical works, lifts, and escalators.
The order also includes 5 years of maintenance after a 2-year defect liability period. The contract is valued at Rs. 642.44 crore and €2.79 million (approx. Rs. 27.99 crore), to be completed within 104 weeks.
Additionally, Ircon International Limited, in a joint venture with JPWIPL (IRCON-70 percent, JPWIPL-30 percent), has received a third Letter of Award from Rail Vikas Nigam Limited (RVNL) for a project in Madhya Pradesh.
The work includes the construction of roadbeds, bridges, buildings, track installation, and electrical works between Pipaliya Nankar and Budni stations. The contract value is Rs. 755.78 crore, with IRCON’s share being Rs. 529.04 crore. The project will be completed in 36 months.
Order Book: As of 31st March 2025, the company’s order book is valued at around Rs. 20,347 crores. Of this, 76 percent comes from railways, while 22 percent is through highways and the remaining 2 percent from other sectors. The majority of the orders, about 89 percent, are domestic, with the remaining 11 percent from international projects.
Ircon International Limited (IRCON) was established in 1976 and is a leading Indian government-owned company under the Ministry of Railways, specializing in large-scale infrastructure construction. The company is engaged in railways, highways, metros, and EHV substations and operates in India and globally.
Coming into financial highlights, Ircon International Limited’s revenue has decreased from Rs. 3,787 crore in Q4 FY24 to Rs. 3,412 crore in Q4 FY25, which is a drop of 9.90 percent. The net profit has also decreased by 14.17 percent from Rs. 247 crore in Q4 FY24 to Rs. 212 crore in Q4 FY25. Ircon International Limited’s revenue and net profit have grown at a CAGR of 14.82 percent and 8.46 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 12.1 percent and 11.9 percent, respectively. Ircon International Limited has an earnings per share (EPS) of Rs. 7.73, and its debt-to-equity ratio is 0.68x.
Written By – Nikhil Naik
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