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IRCON International Ltd.
(IRCON)
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Rating:51Neutral
Price Target:
₹127.00
▲(0.71% Upside)
Action:Reiterated
Date:05/25/26
The score is driven primarily by mixed financial performance: profitability is intact, but recent revenue decline, margin compression, rising leverage, and consistently negative operating/free cash flow weigh heavily. Technical indicators also point to weak momentum with oversold signals but no clear reversal. Valuation is comparatively reasonable (P/E ~18.2, ~1.56% yield), offering some support but not enough to offset the fundamental and trend risks.
Positive Factors
Government-owned client base and contract visibility
State ownership and long-standing work for Indian Railways and other government agencies provide durable demand visibility and lower counterparty credit risk versus pure private-sector peers. This supports steady project pipelines, predictable tender access and recurring contract opportunities over multi-year infrastructure cycles.
Negative Factors
Recent revenue contraction trend
A multi-year top-line reversal erodes scale economics and raises risk that fixed overheads and bid competitiveness will pressure margins. Sustained revenue declines reduce backlog replenishment rates and can impair booking leverage, making multi-quarter recovery dependent on new public-sector awards or execution acceleration.
Read all positive and negative factors
Positive Factors
Negative Factors
Government-owned client base and contract visibility
State ownership and long-standing work for Indian Railways and other government agencies provide durable demand visibility and lower counterparty credit risk versus pure private-sector peers. This supports steady project pipelines, predictable tender access and recurring contract opportunities over multi-year infrastructure cycles.
Read all positive factors
IRCON International Ltd. (IRCON) vs. iShares MSCI India ETF (INDA)
Market Cap
₹123.40B
Dividend Yield1.69%
Average Volume (3M)274.33K
Price to Earnings (P/E)20.5
Beta (1Y)2.07
Revenue Growth-15.69%
EPS Growth-18.10%
CountryIN
Employees867
SectorGeneral
Sector StrengthN/A
IndustryEngineering & Construction
Share Statistics
EPS (TTM)6.33
Shares Outstanding940,515,750
10 Day Avg. Volume157,468
30 Day Avg. Volume274,334
Financial Highlights & Ratios
PEG Ratio-1.01
Price to Book (P/B)1.63
Price to Sales (P/S)1.20
P/FCF Ratio-9.88
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)7.6
Revenue Forecast (FY)₹87.44B
IRCON International Ltd. Business Overview & Revenue Model
Company Description
Ircon International Limited, originally known as Indian Railway Construction Company Limited, is a global construction and engineering firm established in 1976 and headquartered in New Delhi, India. Operating across India and internationally, ofte...
How the Company Makes Money
IRCON primarily makes money by executing infrastructure construction and project delivery contracts, with revenue recognized against work performed on awarded projects. Its key revenue streams are: (1) EPC/turnkey construction contracts, where IRC...
IRCON International Ltd. Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
58
Neutral
Cash Flow
38
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 90.71B | 107.60B | 125.14B | 103.68B | 73.80B |
| Gross Profit | 6.80B | 12.11B | 15.42B | 10.42B | 9.11B |
| EBITDA | 12.79B | 8.40B | 11.30B | 7.02B | 5.98B |
| Net Income | 5.95B | 7.27B | 9.30B | 7.65B | 5.92B |
Balance Sheet | |||||
| Total Assets | 213.07B | 195.21B | 174.45B | 155.37B | 144.46B |
| Cash, Cash Equivalents and Short-Term Investments | 51.76B | 51.92B | 55.04B | 52.47B | 55.22B |
| Total Debt | 57.26B | 42.99B | 25.70B | 15.05B | 13.99B |
| Total Liabilities | 146.36B | 131.59B | 115.39B | 103.13B | 97.80B |
| Stockholders Equity | 66.39B | 63.26B | 58.71B | 52.11B | 46.66B |
Cash Flow | |||||
| Free Cash Flow | -10.98B | -21.58B | -6.01B | -2.68B | 13.65B |
| Operating Cash Flow | -5.65B | -11.10B | 2.48B | -1.68B | 14.05B |
| Investing Cash Flow | -7.31B | 319.20M | -11.71B | 14.68B | -12.27B |
| Financing Cash Flow | 11.14B | 11.56B | 7.79B | -2.23B | 6.71B |
IRCON International Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ₹112.68B | 26.86 | ― | 3.67% | ― | 8.09% | |
68 Neutral | ₹207.72B | 36.15 | ― | 0.24% | 10.02% | 46.78% | |
62 Neutral | ₹5.56T | 31.30 | ― | 1.00% | 9.78% | 13.15% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | ₹123.40B | 20.54 | ― | 1.74% | -15.69% | -18.10% | |
50 Neutral | ₹100.48B | 67.40 | ― | 0.70% | -11.87% | -73.37% | |
48 Neutral | ₹487.89B | 54.92 | ― | 1.21% | 2.46% | -31.74% |
* General Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.