IRCON September-quarter profit falls 26% despite 15% revenue rise

Ircon International Limited reported consolidated net profit of Rs 100.34 crore for the quarter ended September 30, 2026, down 26% year on year, while revenue from operations rose 15% to Rs 2,271.66 crore. Higher finance costs, lower other income, a lower international segment result and a higher tax charge accompanied the increase in operating revenue.

Why did IRCON's September-quarter profit fall despite higher revenue?

IRCON's reported profit fell because pre-tax profit did not rise with operating revenue and the total tax charge increased. Revenue from operations rose to Rs 2,271.66 crore from Rs 1,976.75 crore a year earlier, while profit before tax declined to Rs 159.59 crore from Rs 172.45 crore and net profit fell to Rs 100.34 crore from Rs 136.51 crore.

The quarter showed an improvement from the June 2026 quarter but a decline from the corresponding prior-year quarter. Operating revenue increased from Rs 1,955.83 crore in the June 2026 quarter to Rs 2,271.66 crore in the September quarter, while net profit rose from Rs 92.03 crore to Rs 100.34 crore. The September profit nevertheless remained below Rs 136.51 crore in the quarter ended September 30, 2025.

Which costs and income lines changed in IRCON's quarter?

IRCON reported finance costs of Rs 114.16 crore in the September 2026 quarter, compared with Rs 84.48 crore a year earlier. Project expenses increased to Rs 1,667.67 crore from Rs 1,539.93 crore, while depreciation, amortisation and impairment rose to Rs 45.73 crore from Rs 40.01 crore as revenue from operations increased by Rs 294.91 crore.

Other income declined to Rs 92.08 crore from Rs 135.43 crore, reducing income outside operations. Employee benefits expense rose to Rs 66.42 crore from Rs 63.90 crore, materials and stores consumed increased to Rs 280.99 crore from Rs 213.72 crore, and other expenses were nearly unchanged at Rs 18.00 crore against Rs 18.02 crore.

The total tax charge was Rs 59.25 crore for the September quarter, compared with Rs 35.94 crore a year earlier. Current tax declined to Rs 45.40 crore from Rs 49.86 crore, but tax relating to earlier years rose to Rs 12.74 crore from Rs 0.42 crore and deferred tax became an expense of Rs 1.11 crore, compared with a Rs 14.34 crore credit in the prior-year quarter.

How did IRCON's domestic and international businesses perform?

IRCON's domestic business provided most of the revenue increase, with consolidated domestic revenue from customers rising to Rs 2,215.54 crore from Rs 1,939.43 crore. International revenue from customers also rose, reaching Rs 56.12 crore from Rs 37.32 crore, but it represented a smaller portion of consolidated operating revenue of Rs 2,271.66 crore.

Domestic segment profit before tax and interest increased to Rs 247.36 crore from Rs 198.93 crore. International segment profit before tax and interest declined to Rs 26.39 crore from Rs 58.00 crore, even though international customer revenue increased by Rs 18.80 crore year on year.

Interest charged at the consolidated level was Rs 114.16 crore, up from Rs 84.48 crore in the September 2025 quarter. IRCON also recorded a Rs 11.20 crore share of loss from a joint venture, compared with a Rs 20.39 crore share of profit a year earlier, after which consolidated profit before tax stood at Rs 159.59 crore.

What do IRCON's first-half results show?

IRCON reported consolidated net profit of Rs 192.37 crore for the six months ended September 30, 2026, compared with Rs 300.61 crore in the corresponding six months of 2025. Revenue from operations increased to Rs 4,227.49 crore from Rs 3,763.03 crore, showing that the first-half revenue increase did not result in higher reported profit.

First-half profit before tax declined to Rs 286.40 crore from Rs 383.98 crore. Finance costs rose to Rs 219.70 crore from Rs 159.61 crore, depreciation, amortisation and impairment increased to Rs 90.62 crore from Rs 77.16 crore, and the tax charge was Rs 94.03 crore compared with Rs 83.37 crore a year earlier.

Domestic revenue from customers for the first half reached Rs 4,129.38 crore, against Rs 3,696.95 crore in the prior-year period. International revenue rose to Rs 98.11 crore from Rs 66.08 crore, while domestic segment profit before tax and interest was Rs 452.69 crore against Rs 456.13 crore and the international segment result declined to Rs 53.41 crore from Rs 87.46 crore.

What disclosed matters could affect IRCON after September?

IRCON disclosed that Indian Railway Stations Development Corporation, in which it has invested Rs 52 crore, is undergoing voluntary liquidation after the Ministry of Railways decided in principle in October 2021 to close it. As of September 30, 2026, the joint venture's net worth was Rs 251.62 crore and IRCON's 2% share was Rs 5.42 crore; management said it did not perceive impairment in the investment.

The filing also said toll collection rights of Ircon Soma Tollway Private Limited ceased on May 14, 2026 after the extended concession period expired. IRCON has a 50% holding and an investment of Rs 13.87 crore in the joint venture, whose highway assets are being handed over to the National Highways Authority of India; management said it did not foresee impairment in IRCON's Rs 105.60 crore share of the venture's net worth as of September 30, 2026.

IRCON further disclosed that legal formalities, pricing and related modalities remain in process for the closure of Bastar Railway Private Limited and for handing over the MCRL project to the Ministry of Railways. The MCRL handover covers Phase I, the 14-kilometre Angul-Balram section already operational, and Phase II, the 52-kilometre Balram-Putyadia-Tentuloi section under construction; management said it did not foresee impairment in the investment at this stage.

Conclusion

The September and first-half figures show that IRCON generated higher operating revenue while pre-tax and post-tax earnings declined. Domestic customer revenue increased by Rs 276.11 crore in the September quarter, but international segment profit before tax and interest fell by Rs 31.61 crore, while finance costs increased by Rs 29.68 crore and other income declined by Rs 43.35 crore.

The next disclosed matters to watch are the legal formalities, pricing and related modalities for Bastar Railway and the MCRL project handover. IRCON also said the handover of Ircon Soma Tollway assets to the National Highways Authority of India and the voluntary liquidation of Indian Railway Stations Development Corporation remain in process.