IRCON International (IRCON IN) – Q3FY26 Result Update – Order inflow recovery amid execution weakness – HOLD
Published on 15 Feb 2026
IRCON has seen a meaningful rebound in order inflows in 9MFY26, securing Rs 89 bn of new orders, resulting in stabilization of the order book after a decline during FY23–25. As of Q3FY26, the order book stands at Rs 238 bn (2.4x TTM revenue), with ~75% exposure to the railway segment. However, execution continues to lag, with Q3FY26/9MFY26 revenue declining ~20%/~21% YoY and margins remaining under pressure amid intense competitive bidding. Going forward, the company aims to consolidate its core railway and road EPC franchise while selectively expanding into segments such as Kavach, hydropower and renewables. The ~11% YoY rise in FY27E railway capex, particularly toward core infrastructure works, offers structural support. Nonetheless, we believe a visible recovery in execution for IRCON, likely 2–3 quarters away, is critical before turning constructive. Stock trades at 18x FY28E EPS for EPS growth of 12% over FY26-28E. We value IRCON on an SOTP basis with a target price of Rs 153/share and a HOLD rating.
