IRCON International (IRCON IN) – Q1FY27 Result Update – Standalone recovers; Order momentum – key trigger – HOLD
Published on 13 Aug 2026
IRCON reported standalone revenue of INR 18.0bn (+8% YoY) and PAT of INR 1.64bn (+9% YoY) in Q1FY27, the first growth quarter after FY26's 17% revenue decline - though the recovery is thin, with core EBITDA down 7% YoY to INR 955mn, margin at 5.3% vs 6.2% YoY, and PAT growth largely aided by other income of INR 1.26bn (+18% YoY) and a 9% lower tax outgo. Order book stood at INR 234bn as on 30.06.2026 (~2.7x TTM standalone revenue) vs INR 250bn at FY26-end, implying inflows lagged execution during the quarter; mix at ~77% railways, 91% domestic orders, 55% competitively bid. Management has earlier guided for FY27E revenue to remain broadly stable at FY26 levels (~INR85-90bn), while maintaining standalone EBITDA margins of 4-4.5% and PAT margins of 6-6.3%. We retain FY27E estimate, implying revenue growth of 2% for remaining 3 quarters of FY27E. Maintain SOTP-based target price at INR136/share and HOLD rating. Sustained inflow conversion off the improved railway sanctioning environment remains the key re-rating trigger.
