$IRCON IRCON International – Strong Railway Infrastructure Play with Robust Order Book

$IRCON IRCON International is a leading railway-focused infrastructure PSU and a key beneficiary of India’s ongoing railway modernization, Dedicated Freight Corridor expansion, metro projects, and government infrastructure spending. The company enjoys strong execution capabilities, long-standing relationships with Indian Railways, and a diversified presence across railways, highways, bridges, and international infrastructure projects. Key Financial Highlights • FY26 Revenue stood at ₹9,071 crore. • FY26 PAT was ₹592 crore despite a challenging execution environment. • EBITDA Margin improved to 13.5%, reflecting better project mix and operational efficiency. • Strong order book of ₹24,984 crore provides multi-year revenue visibility. • Railways account for nearly 78% of the order book, aligning with India's railway capex push. Investment Rationale • Strong beneficiary of rising railway and infrastructure capex. • Order book nearly 2.7x annual revenue provides earnings visibility. • Navratna PSU with established execution track record. • Healthy margins and consistent dividend-paying history. • Well-positioned to benefit from PM Gati Shakti, railway electrification, and metro expansion projects. Despite near-term pressure on revenues and profits, IRCON’s large order backlog, railway sector dominance, and strong government infrastructure pipeline position it well for long-term growth and value creation.