Synopsis:
Ircon International is in focus after bagging a Letter of Award (LOA) from the Meghalaya Infrastructure Development & Finance Corporation Limited for the construction of Eklavya Model Residential Schools at eight locations in Meghalaya.
The shares of this leading railway construction company are in focus after the company announced bagging a significant order from Meghalaya. In this article, we will dive more into the details.
With a market capitalization of Rs 16,360 crore, the shares of Ircon International Ltd made a day high of Rs 174.05 per share, up by 3.2 percent from its day low of Rs 168.65 per share. Over the past five years, the stock has delivered an impressive return of 261 percent.
About the order
IRCON International, through a stock exchange filing, announced that it has bagged a Letter of Award (LOA) from the Meghalaya Infrastructure Development & Finance Corporation Limited.
The scope of the project involves building Eklavya Model Residential Schools at eight different locations across Meghalaya on a Design, Engineering, Procurement and Construction (EPC) basis. The order is worth Rs 510.47 crore, and is set to be completed within 36 months.
As of June 2025, the company has a robust order book of Rs 20,973 crore, where 75 percent of its orders are sourced from its railways segment, followed by 20 percent with highways, and the rest 5 percent is derived from others.
Also Read: Bluechip stock to buy now for an upside of 17%; Recommended by Morgan Stanley
Financial Highlights
The company’s revenue for Q1 FY26 was Rs 1,786 crore, representing a 22 percent decrease from Rs 2,287 crore in the same quarter last year. Additionally, on a sequential basis, revenue declined by 48 percent from Rs 3,412 crore in Q4 FY25.
Regarding its profitability, the company reported a 27 percent net profit decline to Rs 164 crore in Q1 FY26, compared to Rs 224 crore in Q1 FY25. Additionally, on a QoQ basis, it declined by 23 percent from Rs 212 crore.
The stock delivered an ROE and ROCE of 11.93 percent and 12.10 percent respectively, and is currently trading at a P/E of 24.51x as compared to its industry average of 22.29x.
Ircon International Limited offers a variety of construction and infrastructure services, primarily in the rail sector. It constructs new railway tracks, renovates existing ones, and undertakes electrification, signaling, and telecommunication projects. It also builds roads, highways, bridges, airports, and other commercial and residential structures. Additionally, it provides turnkey project solutions, design, supply, and commissioning, and is engaged in renewable energy, electrification, leasing, and maintenance of locomotives
Inshorts
Ircon International’s shares jumped 3% after the company secured a hefty order worth Rs 510.47 crore from the Meghalaya Infrastructure Development & Finance Corporation. This project involves building Eklavya Model Residential Schools at eight different locations in Meghalaya, with a completion timeline of 36 months.
Written by Satyajeet Mukherjee
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
