IRCON International (IRCON IN) – Q4FY26 Result Update – Recovery hinges on execution & order momentum – HOLD
Published on 25 May 2026
IRCON reported Q4FY26 / FY26 standalone PAT of -12% / - 16% YoY. FY26 remained a challenging year due to execution bottlenecks and project clearance delays; however, the company witnessed a recovery in order inflows after a muted FY23–25 period, taking the order book to INR250bn as on FY26 (~2.9x TTM revenue) vs INR 203 bn as on FY25, with ~78% exposure to the railway segment. Management 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%. Factoring in the softer execution outlook, we reduce FY27E/FY28E EPS estimates by 1%/4% and revise our SOTP-based target price to INR136/share (from INR143), while maintaining a HOLD rating. The key catalyst for re-rating remains sustained order inflows, with IRCON to benefit from the improving railway award environment as FY26 sanctioned railway projects increased to ~INR1.5tn in FY26 (up 110% YoY).
