NEW DELHI: State-owned engineering firm IRCON International has won a major contract in Meghalaya. The company, in a joint venture with Badri Rai and Company (BRC), secured an Engineering, Procurement, and Construction (EPC) contract worth ₹1,096.17 crore.
The Directorate of Urban Affairs, Government of Meghalaya, awarded the contract for constructing a new Secretariat Complex in New Shillong City. It is expected to be executed within three years.
IRCON holds a 26% stake in the joint venture, amounting to ₹285 crore, while BRC holds the remaining 74% share. The project is expected to be completed within 36 months.
In a regulatory filing, IRCON said, “…it is to inform that IRCON has been awarded an EPC contract floated by Directorate of Urban Affairs, Government of Meghalaya… in JV {Badri Rai and Company (BRC) (74%) -IRCON (26%) JV} LoA by Directorate of Urban Affairs, Government of Meghalaya.”
IRCON International recently reported a 65% drop in net profit to Rs 86 crore for the October-December quarter of FY25. This is a sharp fall from Rs 244 crore in the same period last year. The company’s revenue from operations also dropped by 10% to Rs 2,612.86 crore in Q3 FY25, compared to ₹2,929.54 crore in Q3 FY24.
The company’s EBITDA declined to ₹218.3 crore from ₹378.1 crore, with an EBITDA margin of 8.1%. IRCON’s total order book stood at ₹21,939 crore as of December 31, 2024.
Following the EPC contract announcement, IRCON shares climbed 9% in Tuesday’s trade. The stock rose 8.82% to hit ₹150.45 on the BSE, reducing its year-to-date losses to 33.08%.
Director Finance Ragini Advani recently shared her outlook for the company. “But overall, my margins will decline by about 1.5 per cent to 2 per cent from a short-to-mid-term perspective the moment more competitive jobs come in and I start booking revenue out of that,” she said.
Market expert Arun Kejriwal sees potential in IRCON International. “These two are good manufacturing companies which are part of the ecosystem which would benefit with the spending that the railway does,” he said, referring to IRCON and Rail Vikas Nigam Ltd (RVNL).
IRCON International is set to clock a revenue of ₹10,000-₹11,000 crore in FY25. The company’s growing order book and new projects like the Shillong EPC contract reflect its expanding role in India’s infrastructure development.
IRCON International is a railway construction company, which has diversified progressively to roads, buildings, electrical substation and distribution, airport construction, commercial complexes as well as metro rail works.