IRCON International (IRCON), a Navratna PSU under the Ministry of Railways, has bagged an INR 872.69 crore order for a railway infrastructure contract in Madhya Pradesh. For a company whose stock has fallen 29% in the last year, this order could be a turning point—or at least a breather.
IRCON’s Order Details
The project, awarded by Rail Vikas Nigam Limited (RVNL) to the IRCON-SSNR joint venture (JV). This project involves the construction of two tunnels—Tunnel T1 from Km 33+160 to Km 34+400 (in simple words: 1.24 KM long) and Tunnel T2 from Km 57+400 to Km 66+040 (in simple words: 8.64 KM long)—and ballast-less track installation and formation works. This is part of an electrified broad-gauge railway line of 198 km between Mangliyagaon (Indore) and Budni stations, passing through Ratlam and Bhopal divisions of Western and West Central Railways. The contract has a 40-month execution period and a six-month defect liability period. IRCON’s expertise in large railway infrastructure projects is well-established.
Deal’s Financials: Total contract value (inclusive of GST) is INR 872.69 crore, IRCON’s share is 70% (INR 610.88 crore), and SSNR Projects Private Limited’s share is 30% (INR 261.81 crore). IRCON’s order book as of December 2024 was INR 21,939 crore (78% from railways). This adds to IRCON’s dominance in the sector it was born to serve.
On 17 March 2025, the company also secured an INR 1,096 Cr order from the Government of Meghalaya for the construction of the Secretariat building in the New Shillong City.
IRCON Post-IPO Performance
IRCON launched its IPO on 17 September 2018 with an issue size of INR 470.49 crore. The issue got an overwhelming response from the investors and was subscribed 9.7X. However, listing performance was not streamlined with the subscription figures, and the stock landed in negative territory with a loss of 12.57%
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- the 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 Performance
IRCON’s recent financials are a bit of a mixed bag. Revenue from operations slipped 11% year-on-year in Q3 FY25 to INR 2,613 crore, while net profit took a 65% hit, dropping to INR 86 crore. That’s a pretty significant bruise. Yet, despite that, the company had a stellar run between FY21 and FY24, with revenue and net profit growing at compound annual growth rates of 32% and 33%, respectively.
The company’s order book, though, is a silver lining. At INR 21,939 crore, it offers revenue visibility for years to come. Railways account for INR 17,075 crore of that, with highways adding INR 4,775 crore and other segments chipping in INR 89 crore. The Madhya Pradesh project fits neatly into that narrative.
IRCON was founded in 1976 and is known as a railway construction specialist. By the time the company diversified its revenue stream and evolved into a diversified EPC company, and taking on complex projects from railways, highways and beyond.
Looking Ahead
The challenge for IRCON now is execution. With 46 months to deliver—40 for construction and six for defect liability—the company will have to navigate rising input costs, labor shortages and the logistical complexities of tunnel-building in a region known for its rugged terrain. Success there could bolster its reputation and stock alike.
The market’s reaction so far has been a cautious cheer—a 2.5% intraday pop that faded towards the end of the day. But with that order book and a legacy of delivering for India’s railways, IRCON has the tools to stage a comeback. Whether it does, only time—and the next quarterly results—will tell.
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