IRCON International Ltd. (IRCON) AI Stock Analysis

• Market Cap: ₹154.15B
• Dividend Yield: 1.56%
• Average Volume (3M): 274.33K
• Price to Earnings (P/E): 25.4
• Beta (1Y): 2.17
• Revenue Growth: -13.85%
• EPS Growth: -34.81%
• Country: IN
• Employees: 867
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.47
• Shares Outstanding: 940,515,750
• 10 Day Avg. Volume: 157,468
• 30 Day Avg. Volume: 274,334
• PEG Ratio: -0.95
• Price to Book (P/B): 2.37
• Price to Sales (P/S): 1.39
• P/FCF Ratio: -6.95
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹164.00 ▼(-8.25% Downside)

IRCON International Ltd. has a solid financial base with consistent revenue growth, but faces challenges in cash flow stability and operational efficiency. Technical indicators suggest a neutral market sentiment, while the valuation is moderate. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Robust balance sheet and manageable leverage

A solid equity base and prudent leverage give IRCON durable financial flexibility to bid and execute large, capital-intensive EPC contracts. This stability helps absorb project timing mismatches, supports counterparty confidence, and reduces refinancing risk over the medium term.

Established government EPC franchise

A longstanding focus on Indian Railways and public-sector EPC work yields repeat business, institutional client relationships, and steady demand tied to government capex. This franchise supports predictable contract pipelines and competitive edge in rail and transport projects over months to years.

Solid gross margins and net profitability

Sustained gross margins and positive net profit indicate enduring pricing power on core contracts and ability to convert revenue into retained earnings. This margin base underpins reinvestment capacity and resilience to cyclical cost pressures if operational efficiency is maintained.

Negative Factors

Negative free cash flow and cash volatility

Recent negative free cash flow and volatile operating cash flow constrain IRCON’s ability to self-fund working capital and capex, increasing reliance on external funding. Over 2–6 months this can limit bid capacity, slow project starts, and raise liquidity and execution risk on large contracts.

Declining EBITDA indicates operational pressure

A falling EBITDA margin signals deteriorating operational efficiency or higher project costs. Persisting margin erosion can weaken competitive bidding flexibility, compress returns on new contracts, and force tougher cost-control measures that may take months to materially improve.

Recent revenue and EPS contraction

Double-digit revenue decline and sharp EPS contraction point to weaker project inflows or execution shortfalls. Sustained top- and bottom-line declines reduce internal cash generation, limit reinvestment, and can impair competitive position and backlog conversion over the medium term.

IRCON International Ltd. Business Overview & Revenue Model

Company Description

Ircon International Limited, together with its subsidiaries, provides construction services in India and internationally. The company's services include construction of new railway lines; rehabilitation/conversion of existing lines, station buildings and facilities, and bridges; regirdering of railway bridges, tunnels, and signaling and telecommunication networks; and railway electrification works. It is also involved in the wet leasing of locomotives; and setting up of production units for manufacture rolling stock, maintenance depots/workshops, concrete sleepers, and track components on turn-key basis. In addition, the company engages in the construction of roads and highways; bridges and flyovers; and commercial, institutional, industrial, and residential complexes, as well as airport hangers, station buildings and facilities, hospitals, business centers, workshops/warehouses, etc. Further, it provides electrification services; turnkey solutions for signaling and communication projects; and supplies plant and machinery for workshops, high speed lightweight passenger cars, and diesel electric locomotives, as well as leases and maintains diesel locomotives. The company was formerly known as Indian Railway Construction Company Limited. Ircon International Limited was incorporated in 1976 and is headquartered in New Delhi, India.

How the Company Makes Money

IRCON generates revenue through a diverse array of projects in infrastructure development, which are typically funded by government contracts and international tenders. The company earns money by undertaking construction contracts, providing consultancy services, and engaging in project management for public and private sector clients. Key revenue streams include fixed-price contracts, cost-plus contracts, and joint ventures with other firms for large projects. Additionally, IRCON has formed strategic partnerships with various governmental and private entities to enhance its bidding capabilities and project execution, contributing to its overall earnings.

IRCON International Ltd. Financial Statement Overview

Summary

IRCON International Ltd. shows a strong financial foundation with steady revenue and profit growth. However, challenges in cash flow stability and a decline in EBITDA indicate potential operational issues that need addressing.

Income Statement

The income statement shows a strong performance with consistent revenue growth over the years. The most recent revenue figure is slightly below the previous year, but still demonstrates a healthy overall growth trajectory. Gross profit margins are solid, and the company maintains a positive net profit margin. However, a decline in EBITDA indicates potential operational challenges.

Balance Sheet

The balance sheet is robust with a solid equity base, reflected in a stable equity ratio. Debt-to-equity ratio is manageable, suggesting prudent leverage. However, the increasing total liabilities over the years could signal potential future financial constraints if not managed carefully.

Cash Flow

The cash flow statement indicates some concerns with negative free cash flow in recent periods, which could affect future investments. Operating cash flow has fluctuated significantly, raising questions about cash generation consistency. However, past positive free cash flows indicate potential for recovery.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	102.59B	107.60B	125.14B	103.68B	73.80B	53.50B
Gross Profit	11.50B	12.11B	15.42B	10.42B	9.11B	8.02B
EBITDA	7.76B	8.40B	11.30B	7.02B	5.98B	5.12B
Net Income	6.68B	7.27B	9.30B	7.65B	5.92B	3.91B
Balance Sheet
Total Assets	0.00	195.21B	174.45B	155.37B	144.46B	112.54B
Cash, Cash Equivalents and Short-Term Investments	51.92B	51.92B	55.04B	52.47B	55.22B	34.50B
Total Debt	0.00	42.99B	25.70B	15.05B	13.99B	3.31B
Total Liabilities	-63.62B	131.59B	115.39B	103.13B	97.80B	68.51B
Stockholders Equity	63.62B	63.26B	58.71B	52.11B	46.66B	44.03B
Cash Flow
Free Cash Flow	0.00	-21.58B	-6.01B	-2.68B	13.65B	5.14B
Operating Cash Flow	0.00	-11.10B	2.48B	-1.68B	14.05B	5.18B
Investing Cash Flow	0.00	319.20M	-11.71B	14.68B	-12.27B	-7.77B
Financing Cash Flow	0.00	11.56B	7.79B	-2.23B	6.71B	1.69B

IRCON International Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 178.75
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IRCON, the sentiment is Positive. The current price of 178.75 is above the 20-day moving average (MA) of 163.13, above the 50-day MA of 161.84, and above the 200-day MA of 173.93, indicating a neutral trend. The MACD of -1.58 indicates Negative momentum. The RSI at 52.21 is Neutral, neither overbought nor oversold. The STOCH value of 78.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:IRCON.

IRCON International Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRCON	65 Neutral	₹154.15B	25.37	―	1.56%	-13.85%	-34.81%
RITES	64 Neutral	₹109.77B	26.32	―	3.24%	-5.23%	3.21%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BEML	63 Neutral	₹149.50B	50.10	―	0.29%	-1.31%	3.61%
POWERMECH	61 Neutral	₹65.63B	19.81	―	0.05%	28.54%	19.19%
KEC	60 Neutral	₹177.58B	25.20	―	0.74%	12.21%	56.50%

IRCON International Ltd. Corporate Events

IRCON Appoints Statutory Auditors for Overseas Branches for FY 2025-26

IRCON International Ltd. has announced that, with the approval of the Comptroller and Auditor General of India, it has appointed and reappointed statutory auditors for its foreign branches in Bangladesh, Sri Lanka, Algeria and Myanmar for the financial year 2025-26. The move designates K M Alam & Co. as auditor in Bangladesh, Jayasinghe & Co. in Sri Lanka, Kerbal Athmane in Algeria, and MyAsia Consulting Co. Ltd. in Myanmar, with terms aligned to C&AG policy and local laws; by reinforcing external oversight in key overseas markets, the company aims to maintain robust governance and compliance across its international operations, which is relevant for investors monitoring its risk controls and transparency in foreign projects.

Ircon’s Director (Projects) Anand Kumar Singh Superannuates, Exits Board

Ircon International Ltd. has announced that Director (Projects) and Executive Director Shri Anand Kumar Singh has superannuated and ceased to be a member of the company’s board with effect from 31 December 2025, in line with a prior Railway Board order and regulatory disclosure requirements. The leadership change removes a key projects-focused director from Ircon’s top management, and stakeholders will be watching how the company manages succession in this strategic role, given its heavy involvement in large infrastructure projects and regulatory oversight under SEBI’s listing obligations framework.

Ircon Says No Price-Sensitive Developments Behind Surge in Trading Volume

Ircon International Ltd. has responded to a query from the National Stock Exchange of India following a significant increase in trading volumes in its shares, stating that there is currently no undisclosed event, information, or announcement related to its operations that could explain or materially affect the recent price or volume movement. The company emphasized its ongoing commitment to promptly inform stock exchanges of any developments that could impact its share price or trading activity, suggesting that the recent surge in volumes is not driven by company-specific disclosures, which may reassure investors about the absence of hidden price-sensitive information while leaving market participants to attribute the movement to broader trading dynamics.