IRCON Faces Claims Worth Rs 39 Crore Amid Project Dispute With Apex Buildsys

Contractor Apex Buildsys Ltd. filed a claim worth Rs 38.71 crore against IRCON International Ltd. over disputes related to their Raebareli project. The core of the dispute revolves around liquidated damages deductions, PVC, and overhead charges, according to an exchange filing on Monday.

The work involves the construction of multiple specialised facilities, including a wheel shop, bogie shop, paint shop, garnet blasting shop, machine shop, transport shop, and a shell store for the rail coach factory in Raebareli, it added.

The project entails architectural and structural design, along with the fabrication, supply, and erection of pre-engineered steel buildings at Lalganj, Raebareli.

IDBI Capital said that the company's profit after tax for the financial year 2025's first quarter came in-line with its estimates. Operating performance was weak as revenue declined by 17% and and adjusted Ebitda margin at 6.8% was flat quarter-on-quarter, according to IDBI Capital.

IRCON guides revenue growth to be flat on year-on-year basis in fiscal 2025 and Ebitda margin to be maintained at the same level, the brokerage said. Its order win has been lukewarm and order book has seen weakness at Rs 26,000 crore in the first quarter of the current fiscal versus Rs 32,500 crore year-on-year, it said.

Shares of IRCON International closed 4.96% lower at Rs 206.58 apiece on the NSE, compared to a 0.87% decline in the benchmark NSE Nifty 50. It fell as much as 6.38% to Rs 203.5 apiece, the lowest level since March 15, 2024.

The stock has risen 20.53% on a year-to-date basis. Total traded volume in the day stood at 1.49 times its 30-day average. The relative strength index was at 23.39, indicating that the stock may have been oversold.

Out of four analysts tracking the company, one maintains a 'buy' rating, two recommend a 'hold,' and one suggests a'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 17%.