Ircon International Limited Earnings Summary — Q1 FY2027
IRCON Reports Q1 FY2027 Revenue Growth of 9.5% YoY to ₹1,956 Cr, but Net Profit Plunges 43.6% on Elevated Finance Costs and JV Losses
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 38.7% sequentially in Q1 FY2027.
- Revenue of ₹1,956 Cr is 9.5% higher year-on-year.
- Revenue has compounded at -25.4% annualised over the last 10 quarters.
- Net profit of ₹93 Cr is 43.6% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -35.3% annualised across the period.
- Operating margin stands at 9.8% in Q1 FY2027.
- Operating margin compressed by 138 bps year-on-year.
- Over the last two years operating margin has contracted by 114 bps.
- PBT margin is 6.5%.
- Expenses grew 11.2% against revenue growth of 9.5%.
- Operating profit of ₹192 Cr is 4.1% lower year-on-year.
- Operating leverage has been under pressure recently.
- 1 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 28/100 (Weak) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 1,956 | 3,189 | 2,119 | 1,977 | 1,786 | 3,412 | 2,613 | 2,448 | 2,287 | 3,787 |
| Expenses | Stable | 1,764 | 2,922 | 1,961 | 1,836 | 1,586 | 3,158 | 2,481 | 2,247 | 2,037 | 3,470 |
| Operating Profit | Accelerating | 192 | 267 | 158 | 141 | 200 | 254 | 132 | 201 | 251 | 317 |
| Operating Margin | Improving | 9.8% | 8.4% | 7.5% | 7.1% | 11.2% | 7.5% | 5.0% | 8.2% | 10.9% | 8.4% |
| Other Income | Stable | 87 | 122 | 112 | 156 | 124 | 103 | 86 | 142 | 107 | 107 |
| Interest | Improving | 107 | 97 | 93 | 85 | 75 | 62 | 56 | 53 | 48 | 41 |
| Depreciation | Improving | 45 | 44 | 42 | 40 | 37 | 32 | 31 | 28 | 27 | 27 |
| Profit Before Tax | Volatile | 127 | 248 | 135 | 172 | 212 | 263 | 132 | 262 | 282 | 356 |
| Tax | Softening | 35 | 56 | 35 | 36 | 47 | 51 | 46 | 56 | 58 | 109 |
| Net Profit | Volatile | 93 | 192 | 101 | 139 | 165 | 211 | 87 | 206 | 224 | 247 |
| Net Margin | Volatile | 4.7% | 6.0% | 4.8% | 7.0% | 9.2% | 6.2% | 3.3% | 8.4% | 9.8% | 6.5% |
Key Takeaways
- Consolidated revenue from operations grew 9.5% YoY to ₹1,955.83 Cr, supported by domestic infrastructure execution (₹1,913.84 Cr), though declining 38.7% sequentially from the seasonal Q4 peak.
- Consolidated PAT attributable to owners dropped 43.6% YoY to ₹92.74 Cr, impacted by higher project expenses, a 42.2% surge in finance costs to ₹106.98 Cr, and JV losses.
- Share of joint ventures swung into a net loss of ₹13.36 Cr in Q1 FY2027 compared to a profit of ₹17.90 Cr in Q1 FY2026.
- Toll collection rights for Ircon-Soma Tollway Pvt Ltd (ISTPL) ceased on May 14, 2026; assets are being transferred to NHAI, and management foresees no impairment with net worth share at ₹108.09 Cr.
- Voluntary liquidation of Indian Railway Stations Development Corporation (IRSDC) yielded an interim share capital payout of ₹50.96 Cr received in July 2026 against IRCON's investment of ₹52 Cr.
- Handover processes are underway for Phase-I and Phase-II of the MCRL Project and Bastar Railway JV assets/liabilities to the Ministry of Railways.
- The Board re-appointed M/s Bandyopadhyaya Bhaumik & Co., Cost Accountants, as Cost Auditor for FY 2026-27.
Management Guidance
Management highlighted ongoing asset handovers to the Ministry of Railways and NHAI, affirming no expected impairments across its key joint ventures (ISTPL, IRSDC, and MCRL). Focus remains on executing domestic railway corridors and streamlining capital allocated to legacy project entities.
Sentiment Shift
Deteriorating
While revenue posted modest single-digit YoY expansion, bottom-line profitability deteriorated significantly due to compounding finance expenses, rising project execution costs, and JV drag.
Outlook
Earnings are expected to remain under pressure near term from elevated borrowing costs incurred on HAM highway projects, while ongoing restructuring and liquidations of legacy JVs (IRSDC, ISTPL, Bastar Rail) should rationalize the balance sheet.
From the Annual Report (Key Quotes)
“Toll collection rights of Ircon - Soma Tollway Private Limited... ceased on 14th May, 2026 upon expiry of the extended concession period. Subsequently, the highway assets are in the process of handing over to NHAI.”
“During July 2026, the Liquidator made an interim payment of share capital on account of voluntary winding up, pursuant to which the Company received ₹50.96 crore [from IRSDC].”
“It has been decided to hand over Phase-I and Phase-II of MCRL Project to Ministry of Railways... the Company does not foresee any impairment in the value of investment at this stage.”
Official Quarterly Documents
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