IRCON International share price jumps 9% as JV secures ₹1,096 crore EPC contract

Shares of IRCON International, a Navratna public sector enterprise and a prominent turnkey construction company under the Ministry of Railways, surged 9% in early morning trading today, March 18, reaching ₹150.40 per share. This rise followed the company securing a significant Engineering, Procurement, and Construction (EPC) order.

In an exchange filing on Monday, the company informed investors that it had received an EPC contract in a joint venture (JV) worth ₹1,096 crore from the government of Meghalaya for the construction of a new secretariat complex, including campus infrastructure, on an EPC basis in new Shillong city, Meghalaya.

"IRCON has been awarded an EPC contract floated by the Directorate of Urban Affairs, Government of Meghalaya, Raitong Building, Secretariat Hills, Shillong, Meghalaya, India, in a JV with Badri Rai and Company (BRC) (74%) - IRCON (26%) JV, through a Letter of Award (LoA) by the Directorate of Urban Affairs, Government of Meghalaya," the company said in its Monday filing.

Stock price history

The company's shares have witnessed significant selling pressure over the last eight months, losing 47% of their value following a one-way spike between July 2022 and July 2024, during which the stock gained 875%. The slowdown in railway capex, weak financial performance and profit booking has put the stock under severe stress.

For the December ending quarter (Q3FY25), the company reported Revenue from operations of ₹2,612.9 crore, compared to ₹2,929.5 crore in Q3FY24. EBITDA stood at ₹218.3 crore, down from ₹378.1 crore in the same period last year, with an EBITDA margin of 8.1%. Profit After Tax (PAT) for the quarter was ₹86.1 crore, significantly lower than ₹244.7 crore in Q3FY24.

As of December 31, 2024, the company's total order book stood at ₹21,939 crore, with railways contributing ₹17,075 crore, highways accounting for ₹4,775 crore, and other projects making up ₹89 crore, as per the company's earnings' filing.

The company's core expertise lies in railway and highway construction, having successfully executed projects in these sectors. It has a strong presence across multiple Indian states and has expanded its operations internationally to Malaysia, Nepal, Bangladesh, South Africa, Algeria, Myanmar, and Sri Lanka. Over the years, the state-owned company has completed more than 128 projects in 25 countries and 401 projects across various Indian states.

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