IRCON International Ltd. (IRCON) AI Stock Analysis

• Market Cap: ₹108.44B
• Dividend Yield: 1.56%
• Average Volume (3M): 274.33K
• Price to Earnings (P/E): 41.5
• Beta (1Y): 2.09
• Revenue Growth: -13.85%
• EPS Growth: -34.81%
• Country: IN
• Employees: 867
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.07
• 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): 7
• Revenue Forecast (FY): ₹100.08B

• Rating: 63 Neutral
• Price Target: ₹123.00 ▼(-31.19% Downside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is driven primarily by generally solid financial performance, but it is capped by cash-flow instability and a bearish technical setup (price below key moving averages with negative MACD). A high P/E and only modest dividend yield further limit the overall rating.

Positive Factors

Stable government client base

A heavy reliance on Indian Railways and other public agencies gives multi-year revenue visibility from government capex cycles. As a government-owned EPC contractor, IRCON benefits from lower counterparty risk, repeat awards and strategic alignment with national infrastructure priorities.

Robust balance sheet and manageable leverage

A solid equity base and prudent leverage provide capacity to bid on large EPC projects and absorb execution timing differences. Manageable debt supports working-capital financing for milestone-driven project billing and helps maintain financial flexibility through construction cycles.

EPC expertise and diversified project mix

Deep EPC capabilities and a track record in rail, roads, urban transit and select overseas markets create competitive advantages in technical execution and bidding. Diversification across transport segments reduces reliance on any single project type and supports steady tender participation.

Negative Factors

Recent revenue and EPS contraction

Material declines in reported revenue and EPS signal either timing of awards/recognition or execution shortfalls. For an EPC firm, sustained top-line and EPS weakness erodes cash inflows from certificates and increases reliance on advances or external funding, stressing medium-term liquidity.

Declining EBITDA and volatile free cash flow

A falling EBITDA trend combined with swings into negative free cash flow reduces internal funding for new project mobilization and capex. Persistent cash volatility raises refinancing and working-capital risks, potentially increasing bid discipline and limiting growth unless cash conversion improves.

Rising liabilities and inconsistent operating cash flow

Fluctuating operating cash flow plus rising total liabilities can constrain liquidity and elevate counterparty exposure on large contracts. For EPC contractors, stretched liabilities and uneven cash collection increase the risk of delays, higher financing costs, and strain on project execution capacity over months.

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 makes money mainly by executing infrastructure projects awarded by government and public-sector clients, earning contract revenue for construction and project delivery. Its core revenue stream is engineering, procurement and construction (EPC)/turnkey contracting—IRCON bids for projects, performs design/engineering (where in scope), procures materials and services, constructs the asset, and recognizes revenue as contract milestones are achieved/works are certified under the terms of the contract. A significant portion of its work is for Indian Railways and associated public agencies; revenue is driven by the size and timing of these awards, project execution progress, and certified measurements/bills. In addition to EPC execution, IRCON also earns from project management/consultancy-type services where it is engaged to manage or supervise works for a fee. Where it executes projects through joint ventures/consortia or special purpose vehicles, earnings can include IRCON’s share of contract revenues/profits based on its participation and the contractual structure (the exact mix varies by project). Key factors influencing earnings include the government/public-sector infrastructure capex cycle, tender wins, execution capability (cost control, time overruns/claims), working-capital management (advances, receivables), and performance on overseas contracts where applicable. null

IRCON International Ltd. Financial Statement Overview

Summary

Solid overall fundamentals with steady revenue/profit history and a manageable leverage profile, but weakened by declining EBITDA trends and recent negative/free-cash-flow volatility that raises cash-conversion risk.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	97.88B	107.60B	125.14B	103.68B	73.80B	53.50B
Gross Profit	10.75B	12.11B	15.42B	10.42B	9.11B	8.02B
EBITDA	8.73B	8.40B	11.30B	7.02B	5.98B	5.12B
Net Income	6.01B	7.27B	9.30B	7.65B	5.92B	3.91B
Balance Sheet
Total Assets	202.19B	195.21B	174.45B	155.37B	144.46B	112.54B
Cash, Cash Equivalents and Short-Term Investments	81.04B	51.92B	55.04B	52.47B	55.22B	34.50B
Total Debt	51.38B	42.99B	25.70B	15.05B	13.99B	3.31B
Total Liabilities	137.28B	131.59B	115.39B	103.13B	97.80B	68.51B
Stockholders Equity	64.58B	63.26B	58.71B	52.11B	46.66B	44.03B
Cash Flow
Free Cash Flow	-4.13B	-21.58B	-6.01B	-2.68B	13.65B	5.14B
Operating Cash Flow	885.20M	-11.10B	2.48B	-1.68B	14.05B	5.18B
Investing Cash Flow	-9.66B	319.20M	-11.71B	14.68B	-12.27B	-7.77B
Financing Cash Flow	5.68B	11.56B	7.79B	-2.23B	6.71B	1.69B

IRCON International Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IRCON, the sentiment is Negative. The current price of 178.75 is above the 20-day moving average (MA) of 135.47, above the 50-day MA of 148.02, and above the 200-day MA of 168.08, indicating a bearish trend. The MACD of -7.83 indicates Positive momentum. The RSI at 26.66 is Positive, neither overbought nor oversold. The STOCH value of 2.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:IRCON.

IRCON International Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEC	66 Neutral	₹136.89B	38.53	―	0.74%	12.21%	56.50%
RITES	64 Neutral	₹88.50B	28.60	―	3.24%	-5.23%	3.21%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
IRCON	63 Neutral	₹108.44B	41.51	―	1.56%	-13.85%	-34.81%
BEML	62 Neutral	₹116.42B	-173.04	―	0.29%	-1.31%	3.61%
POWERMECH	61 Neutral	₹58.66B	19.27	―	0.05%	28.54%	19.19%

IRCON International Ltd. Corporate Events

Ircon Announces Retirement of Senior Executive Director Dunne Bujji Bhuvan Kumar

Ircon International Ltd. has announced that Executive Director/General, Shri Dunne Bujji Bhuvan Kumar, has retired from his role as a Senior Management Personnel effective end of day on 28 February 2026, upon reaching the age of superannuation. The cessation, reported in compliance with SEBI’s Listing Obligations and Disclosure Requirements, signals a scheduled leadership transition at the company, with prescribed regulatory disclosures made to both BSE and NSE, though no successor or operational changes were detailed in the filing.

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.