IRCON International Q2 Profit Takes 26.5% Hit To ₹100.3 Crore Despite 14.9% Revenue Growth, Railway-Led Order Book Stands Strong At ₹21,296 Crore

Mumbai: State-owned engineering and construction company IRCON International reported a 26.5 per cent year-on-year decline in consolidated net profit to Rs 100.3 crore for the second quarter ended September 30, 2026, compared with Rs 136.5 crore in the corresponding period last year. The decline in profitability came despite double-digit revenue growth, highlighting pressure on earnings during the July–September quarter.

Revenue Growth

IRCON International's consolidated revenue from operations increased 14.9 per cent to Rs 2,271.7 crore during Q2 FY27, against Rs 1,976.8 crore in the year-ago quarter. Total consolidated income rose 11.9 per cent to Rs 2,363.7 crore from Rs 2,112.2 crore, reflecting higher business activity across the company's infrastructure operations.

Profitability Pressure

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 7.6 per cent to Rs 319.5 crore, compared with Rs 297 crore in Q2 FY26. However, the EBITDA margin contracted to 13.5 per cent from 14.1 per cent, indicating that operating profitability did not keep pace with revenue growth. Profit before tax stood at Rs 159.6 crore during the quarter.

Order Book

IRCON International reported an outstanding order book of Rs 21,296 crore as of September 30, 2026, providing visibility into its existing project commitments. Railway projects accounted for the largest portion, with orders valued at Rs 16,271 crore. Highway projects contributed Rs 3,538 crore, while other infrastructure sectors accounted for the remaining Rs 1,487 crore.

Railway Dominance

The company's order book remained heavily concentrated in railway infrastructure, underscoring its exposure to railway construction and development projects. Highway contracts and other infrastructure assignments provided additional business diversification.

Despite stronger quarterly revenue and EBITDA, the decline in net profit and narrowing operating margin remained key features of IRCON International's Q2 FY27 financial performance. The company's sizeable order book represents contracted work, although future revenue recognition will depend on project execution.

Disclaimer: This report is based on company exchange filings and is for informational purposes only. Investors should evaluate risks before making investment decisions.