This construction engineering share tanks 5% on weak Q1 results; details

Ircon International share price: Ircon International shares were under pressure on Thursday, August 7, 2025, with the scrip slipping 4.51 per cent to an intraday low of ₹164.05 per share.

 

Around 10:50 AM, Ircon International share price was trading 3.03 per cent lower at ₹166.60 per share. In comparison, BSE Sensex was trading 0.60 per cent lower at 80,058.76 levels.  READ STOCK MARKET LIVE UPDATES TODAY

Why did Ircon International share price fall today?

 

Ircon International shares came under pressure today after the company reported a weak set of financial results for the June quarter, both on a year-on-year (Y-o-Y) and sequential  (Q-o-Q) basis. 

 

The company’s consolidated revenue from operations for Q1FY26 fell to ₹1,786.3 crore, down sharply from ₹2,287.1 crore in the same quarter last year and ₹3,412.1 crore in the previous quarter. Total income also declined to ₹1,892.4 crore from ₹2,385.3 crore Y-o-Y and ₹3,515.3 crore Q-o-Q.

 

Profitability took a hit as well, with Ebitda coming in at ₹323.9 crore, lower than ₹357.4 crore a year ago and ₹357.5 crore in the March quarter. Profit after tax dropped to ₹164.1 crore from ₹224 crore Y-o-Y and ₹211.8 crore Q-o-Q. The Ebitda margin remained steady at 17.1%, but the fall in absolute numbers suggests pressure on volumes and execution pace.

 

Despite a robust order book of ₹20,973 crore – led by railway projects worth ₹15,724 crore and highway projects at ₹4,234 crore – the market likely reacted to the near-term softness in earnings and execution.

 

That said, the long-term outlook for the infrastructure sector remains promising. With strong policy support, including initiatives like PM Gati Shakti, Bharatmala, Sagarmala, and the Smart Cities Mission, India’s transport and logistics ecosystem is set for major transformation, Ircon International said in a statement.

 

Urbanisation and public sector investments are expected to sustain demand for rail, road, and metro projects. Ircon, being a key government-linked infrastructure player, is well-positioned to benefit from this momentum in the medium to long term, even as the near-term earnings wobble, it added.  ALSO READ | Tariff on Russian Oil: RIL, HPCL, BPCL, IOC can dip up to 18%, say charts

About Ircon International

 

Ircon International Limited, a Navratna Public Sector Enterprise under the Ministry of Railways, is a premier turnkey construction company renowned for its quality, commitment, and consistent performance. With core expertise in railways and highways, Ircon has built a strong reputation for executing complex infrastructure projects across India and abroad.

 

The company’s capabilities span a wide range of segments including railway construction, ballastless tracks, electrification, tunneling, signaling and telecommunication, as well as leasing of locomotives. It is also active in the construction of roads, highways, airports (runways and hangars), metro systems, and commercial, industrial, and residential buildings.

 

Ircon has a major global presence, having completed over 130 projects in 25 countries, including Malaysia, Nepal, Bangladesh, South Africa, Algeria, Myanmar, and Sri Lanka. 

 

Domestically, it has successfully delivered more than 400 projects across various Indian states, reinforcing its position as a key player in infrastructure development.