Ircon International's Q2 Profit Tumbles 33% - What Investors NEED to Know Now!

Industrial Goods/Services

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Updated on 12 Nov 2025, 02:40 pm

Ircon International Ltd, a state-run construction firm, announced its financial results for the second quarter of the fiscal year 2025-2026, revealing a significant downturn. Net profit for the quarter ending September 30, 2025, fell by 33.7% to ₹136.5 crore, compared to ₹205.9 crore in the same period last year. Revenue experienced a substantial decline of 19.2% year-on-year, dropping to ₹1,976 crore from ₹2,447.5 crore. The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also saw a decrease of 29.6%, amounting to ₹141.7 crore, down from ₹201 crore. Consequently, the EBITDA margin narrowed to 7.2% from 8.2% in the prior year's quarter.

For the half-year period ending September 30, 2025, Ircon International's performance mirrored the quarterly trend. Total income stood at ₹4,004.6 crore, down from ₹4,923.9 crore in H1 FY25. Profit after tax declined to ₹300.6 crore from ₹430.0 crore year-on-year. Despite the current financial dip, Ircon International maintained a robust order book of ₹23,865 crore as of September 30, 2025, with substantial portions allocated to railways, highways, and other projects.

Impact This news can impact Ircon International's stock price as investors react to the reduced profitability and revenue. It might lead to a cautious sentiment among investors regarding the company's short-term earnings potential. However, the large order book provides some visibility for future revenue, which could mitigate some negative impact. Rating: 6/10

Difficult Terms and Meanings: * Net Profit: The profit remaining after all expenses, taxes, and interest have been deducted from total revenue. * Revenue: The total amount of income generated by the sale of goods or services related to the company's primary operations. * EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. A measure of a company's operating performance. * EBITDA Margin: EBITDA divided by revenue, expressed as a percentage. It shows how efficiently a company is generating profit from its operations. * Profit Before Tax: Profit a company earns before deducting income taxes. * Earnings Per Share (EPS): The portion of a company's profit allocated to each outstanding share of common stock. * Order Book: The total value of contracts that a company has secured but not yet completed.