Ircon Share Price Tumbles After Second-Quarter Earnings Slip

Shares of Ircon International Ltd. plunged over 7% on Friday after the company reported a decline in its net profit in the second quarter of the financial year 2025.

The public sector undertaking posted a 17.9% decline in its net profit to Rs 206 crore, as compared to Rs 251 crore for the same period last year.

The turnkey construction company recorded a revenue of Rs 2,448 crore, indicating a 19.3% fall for the three months ended Sept. 30, 2024, as against Rs 3,033 crore for the same quarter of the previous financial year.

Its earnings before interest, tax, depreciation and amortization was down 23.4% at Rs 201 crore for the July-September quarter, as compared to Rs 262 crore. Its margins contracted to 8.2% from 8.6% for the year-ago period.

On Thursday, Contractor Apex Buildsys Ltd. filed a claim worth Rs 38.71 crore against Ircon International over disputes related to their Raebareli project. 

Ircon's stock fell as much as 5.96% during the day to Rs 202.45 apiece on the NSE. It was trading 5.06% lower at Rs 204.4 apiece, compared to a 0.07% decline in the benchmark Nifty 50 as of 10:12 a.m.

It has risen 32% during the last 12 months and has advanced by 19% on a year-to-date basis. The total traded volume so far in the day stood at 3.3 times its 30-day average. The relative strength index was at 41.

One out of the four analysts tracking the company has a 'buy' rating on the stock, two suggest a 'hold' and one has a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 18.8%.