The Navaratna IPO company has bagged an EPC contract worth INR 1,096 crore from the Directorate of Urban Affairs, Govt. of Meghalaya. The project involves the construction of a new Secretariat Complex along with campus infrastructure in New Shillong City. The contract was awarded on 17 March 2025. The stock in the talk is IRCON International, a PSU under the Ministry of Railways. The order will be executed in a joint venture (JV) between IRCON International and Badri Rai and Company (BRC) where BRC will have a 74% stake and IRCON 26% stake which will be approximately INR 285 crore for IRCON.
According to IRCON’s regulatory filing, the project will be completed in 36 months. The new Secretariat Complex will enhance Meghalaya’s administrative infrastructure. The new complex will house various government departments under one roof, improve coordination among state offices and provide facilities for public administration.
IRCON’s Stock Performance
The announcement of this big order had a direct and material impact on IRCON’s stock. On 18th March 2025, IRCON’s stock surged over 9% to an intraday high of INR 150.45. The stock is undergoing a tough period and it had fallen 47% in the last 8 months due to weak financials and slowing down of railway capital expenditure, this order has kind of rekindled the confidence of investors. Market analysts feel that this order can be a turning point and IRCON’s diversified project portfolio will act as a cushion against sector-specific slowdown.
IRCON International launched its IPO on 17 September 2018, the issue was oversubscribed to 9.7X and listed with a loss of 12.57%. We can’t judge an IPO by its listing performance. IRCON made its all-time high of INR 336.80 per share on 12 July 2024, reflecting a 610% return on the investment from its adjusted allotment price of INR 47.5 per share. According to our database, there were two stock splits in IRCON shares-first was on 03 April 2020 at 5:1 and the second was on 20 May 2021 at 2:1, so the adjusted allotment price stands at INR 47.5 per share.
Financial Summary
For the quarter ended December 2024 (Q3FY25), IRCON International reported a 64.8% YoY decline in net profit to INR 86 crore from INR 244.7 crore in Q3FY24. Revenue from operations was down 10.8% to INR 2,612.9 crore from INR 2,929.5 crore in Q3FY24. EBITDA was INR 218.3 crore compared to INR 378.1 crore in Q3FY24 with EBITDA margin contraction to 8.1% from 12.9%. The decline was due to increased input costs, project delays and provision for legacy projects.
Despite recent tough financials, IRCON International still has a healthy order book. As of 31st December 2024, the company’s total order book stood at INR 21,939 crore with railway projects of INR 17,075 crore, highways projects of INR 4,775 crore and other projects of INR 89 crore. The company is also bidding for international projects and expanding its consultancy services division.
About IRCON International
IRCON International founded in 1976, is a Turnkey Construction company that undertakes projects in Railways, Highways, Metro Systems and EHV Sub-station. Over the years, it has completed 128 projects in 25 countries and 401 projects in various Indian states. Its international presence is in Malaysia, Nepal, Bangladesh, South Africa, Algeria, Myanmar and Sri Lanka. The company has earned a reputation for quality execution, timely delivery and technological innovation in project management.
Conclusion
The INR 1,096 crore EPC contract from the Government of Meghalaya is a big addition to IRCON International’s bag. It shows IRCON’s continued strength and reliability in executing large infrastructure projects. Though there have been financial pressures in recent quarter results, this project win is a positive sign and is expected to strengthen the company’s position in the infrastructure and construction sector in India. Going forward this project will further strengthen IRCON’s status as the preferred contractor for complex public infrastructure projects and boost investor sentiment in the long-term.