Strong order book and government support boost investor confidence despite a drop in quarterly revenue.
New Delhi, June 5 – Shares of IRCON International Ltd have been on a stellar run, gaining an impressive 38% in the last month, driven by major project wins and investor optimism in India’s infrastructure growth story.
On Wednesday, June 4, the railway PSU stock touched a fresh high of ₹220, climbing over 10% in just two days. As of market close, the shares were trading at ₹220.45, showcasing strong momentum on Dalal Street.
Big Boost: ₹1,068 Crore Rail Project
The key trigger behind the rally was the massive ₹1,068 crore order secured from the East Central Railway. IRCON will construct a new broad gauge rail bridge connecting Bikramshila and Katareah stations. The project includes the development of both a double-line substructure and a single-line superstructure.
This is part of the government’s push to modernize and expand rail infrastructure across the country, especially in the eastern regions.
IRCON’s Strong Order Pipeline
IRCON, a Navratna PSU under the Ministry of Railways, has a solid project pipeline. In May 2025 alone, the company bagged new contracts worth over ₹898 crore in various sectors like railways, power, and industrial development. Notable among these is a ₹187 crore rural industrial park project in Kerala.
The company’s order book strength continues to instill confidence among investors, even as quarterly performance showed a dip.
Financial Snapshot: Mixed Signals
Despite the market enthusiasm, IRCON’s latest financial results show some softness:
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Q4 FY25 Revenue dropped by 9.9% year-on-year to ₹3,412 crore.
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Net profit also declined by 15.9% YoY to ₹2,190 million.
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However, FY24 full-year results remained strong with a 21.5% increase in net profit at ₹9,295 million and an 18.9% rise in revenue to ₹12,330 crore.
This shows that while the last quarter saw a slowdown, the company’s overall annual growth remains healthy.
Stock Metrics and Market Position
As per BSE data:
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Market Capitalization: ₹20,677 crore
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Price-to-Earnings (P/E) Ratio: ~30.0
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Price-to-Book (P/B) Ratio: 3.28
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Volume Traded on June 4: Over 54 lakh shares
IRCON is currently part of the BSE Capital Goods Index, which also includes names like Thermax and SKF India. While IRCON surged by almost 14% on Wednesday, other players like Honeywell Automation and Bharat Forge recorded minor losses.
Why Investors Are Bullish on IRCON
Several factors are driving this renewed investor interest:
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Government Focus on Infrastructure: Increased allocation in the railway sector and public sector push.
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Strong Order Wins: Continued flow of large-scale projects.
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Global Experience: Established in 1976, IRCON has experience in international transport infrastructure projects.
