Government engineering company IRCON International has received a new composite work order worth ₹224.49 crore from Northeast Frontier Railway. The project is to be completed in 18 months. Despite this, the company's shares closed down 2% at ₹169.70 on September 26, while net profit for the April–June 2025 quarter fell by 26.5% to ₹164.5 crore.
IRCON Share: IRCON International has received a composite work order worth ₹224.49 crore from Northeast Frontier Railway, which includes civil, electrical, mechanical, and signal & telecom infrastructure. The project involves constructing the New Jalpaiguri Coaching Complex, a GE loco shed in Siliguri, and freight maintenance facilities in the Katihar Division, all to be completed in 18 months. Despite this, the company's share closed down 2% at ₹169.70 on September 26.
Project Details
Under this new project by IRCON International, the maintenance infrastructure for Vande Bharat Express at the New Jalpaiguri Coaching Complex will be upgraded. Additionally, a GE locomotive shed will be constructed in Siliguri for 250 GE engines. The setup of next-generation freight maintenance facilities in the Katihar Division is also included. This project is a significant opportunity to showcase the company's capability and technical expertise.
IRCON Shares Decline, Investor Concern Rises
Although IRCON International has received a new order, its shares closed down nearly 2 percent at ₹169.70 in the stock market today, September 26. Over the past year, the company's shares have weakened by approximately 24 percent. Furthermore, the share has seen an 8 percent decline within just one week. According to experts, investors' concerns persist regarding the company's recent financial performance and the weak figures from the previous quarter.
Financial Performance
In the April–June 2025 quarter, IRCON International's net profit on a year-on-year basis fell by 26.5 percent to ₹164.5 crore. Additionally, consolidated revenue decreased by approximately 22 percent to ₹1,786 crore, compared to ₹2,287 crore a year earlier. This decline was primarily due to the slow pace of project completion and delays in some international projects.
The government's stake in the company was 65.17 percent by the end of June 2025. Currently, IRCON International has a market capitalization of ₹15,900 crore.
Investor Concerns and Market Volatility
Despite receiving new orders, the decline in the stock market indicates investor caution. Experts believe that investors in government-owned public sector companies always monitor financial performance and project timelines. IRCON International's recent quarterly figures suggest a slow pace in the company's operations, leading investors to put pressure on the share price.
Company's Capability
IRCON International has completed large infrastructure projects over the past several years. The company possesses a b technical team and expertise in civil, electrical, mechanical, and signal & telecom sectors. The new project will further strengthen the company's technical and operational capabilities.
Experts believe that this new project is likely to generate substantial revenue for the company over the next 18 months. This could improve the company's financial position in the future.
