IRCON International (IRCON IN) – Q2FY27 Result Update – Execution picks up; Order inflow still the missing link – HOLD
Published on 05 Nov 2026
IRCON reported standalone revenue of INR 20.9bn (+13% YoY) in Q2FY27, its second straight growth quarter, led by faster execution on the Sivok-Rangpo rail project and the bullet train track (T2) package. EBITDA rose 61% YoY to INR 1.0bn, with margin at 4.9% vs 3.4% YoY. However, PAT fell 34% YoY to INR 1.22bn (41% below our estimate), dragged by a 45% fall in other income to INR 976mn and a one-off tax of INR 127mn on the completed Sri Lanka project (tax rate 32.7% vs 18.4% YoY). Order book stood at INR 213bn as on 1HFY27 (~2.4x TTM standalone revenue) vs INR 234bn in Q1FY27 and INR 250bn at FY26-end, implying inflows lagged execution during the quarter (implied H1 inflow of only ~INR 2bn); mix at ~76% railways, 91% domestic orders, 55% competitively bid. Management now guides FY27E standalone revenue at INR 90-95bn (vs “broadly stable” earlier) and targets order inflows of INR 90-100bn; only ~INR 10bn has been secured so far. We retain HOLD rating with revised TP of INR 114 (earlier INR 136) as we lower EPS for FY28E/29E by 5%/7% factoring lower execution and value EPC at lower multiple of 20x 1HFY29. Stock has corrected but we still await better price to be buyers in IRCON.
