Synopsis:
Ircon International Limited received a Rs. 360.28 crore LOA from Petronet LNG for civil, structural, and underground works at Dahej, Gujarat, with an 18-month completion timeline.
This Navratna Railway Stock, engaged in railway construction, highway development, and infrastructure services globally, specializes in electrification, signaling, and turnkey project execution across challenging terrains, jumped 2 percent after receiving a LoA worth Rs. 360.28 crore from Petronet LNG Limited.
With a market capitalization of Rs. 15,814.77 crores, the share of Ircon International Limited has reached an intraday high of Rs. 171.90 per equity share, rising nearly 1.69 percent from its previous day’s close price of Rs. 169.05. Since then, the stock has retreated and is currently trading at Rs. 168.15 per equity share.
What is the news?
Ircon International Limited has received a Letter of Award (LOA) from Petronet LNG Limited for executing the civil, structural, and underground works, including piling, PART-A for the PDH-PP Plant with Ethane and Propane Storage and Handling Facilities at Dahej, Gujarat.
The total value of the project is Rs. 360.28 crore, and the completion period is 18 months. This significant domestic order further strengthens Ircon’s presence in the industrial and infrastructure construction sector, reflecting its proven expertise in delivering large-scale, technically complex projects across India.
Order Book
As of June 30, 2025, Ircon International Limited reported a robust order book totaling Rs. 20,973 crore. The majority of this comprises railway projects, which account for 75 percent (Rs. 15,724 crore) of the total value. Highways contribute 20 percent (Rs. 4,234 crore), while the remaining 5 percent (Rs. 1,015 crore) comes from other segments.
In terms of geographical distribution, 90 percent of Ircon International Limited’s orders, valued at Rs. 18,793 crore, are from domestic projects, while the remaining 10 percent, amounting to Rs. 2,180 crore, come from international ventures.
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Company Overview
Ircon International Limited was established in 1976 and is also known as Indian Railway Construction International Limited (IRCON). It is a government-owned engineering and construction enterprise operating under the Ministry of Railways, Government of India.
The company specializes in transport infrastructure projects, particularly railway construction, electrification, signaling, and telecommunications, along with highways and electrical substation engineering.
Ircon International Limited has successfully completed 405 domestic and 130 international projects, demonstrating its strong execution capabilities across diverse infrastructure sectors.
The company has laid 5,564 track kilometers (TKM) of railway lines, completed 9,654 route kilometers (RKM) of railway electrification, constructed 6,807 kilometers of roads and highways, developed 157 kilometers of tunnels, built 1.56 million square meters of buildings, and executed 159 bridges.
Recent quarter results
Coming into financial highlights, Ircon International Limited’s revenue has decreased from Rs. 2,287 crore in Q1 FY25 to Rs. 1,786 crore in Q1 FY26, which is a drop of 21.90 percent. The net profit has decreased by 27 percent from Rs. 224 crore in Q1 FY25 to Rs. 164 crore in Q1 FY26.
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 11.6 percent and 11.3 percent, respectively. Ircon International Limited has an earnings per share (EPS) of Rs. 7.10, and its debt-to-equity ratio is 0.68x.
Written By – Nikhil Naik
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