IRCON's Q2 FY26 profit hit by margin squeeze despite strong order book

IRCON International Limited reported revenue of Rs. 2,112 crore and a profit after tax (PAT) of Rs. 137 crore for Q2 FY26. Core EBITDA stood at Rs. 162 crore, with earnings per share at Rs. 1.47 per equity share for the half-year period. The company's order book was Rs. 23,865 crore as of September 30, 2025, with 63% from competition and 91% allocated to domestic projects.

The company acknowledged a dent in margins, attributing it to continuous losses in the CERL joint venture and adverse impacts in some subsidiaries. While new projects are on lower margins, IRCON expects PAT margins to remain in the 6% to 7% range. The first half of FY26 saw order inflows exceeding Rs. 4,000 crore, with similar inflows targeted for the second half.

For the full financial year 2026, IRCON anticipates an operating revenue between Rs. 10,000 crore and Rs. 11,000 crore, maintaining a similar level for FY27. International projects exhibited higher margins, partly due to foreign exchange gains, including approximately Rs. 20 crore from the Khulna-Mongla-Bangladesh project.