IRCON International Faces ₹158.89 Crore Arbitration Claim from Conarch Associates

State-owned engineering and construction firm IRCON International Ltd announced on Friday (March 21) that it is facing an arbitration claim of ₹158.89 crore filed by Conarch Associates.

The dispute pertains to the supply and stacking of 50mm Pakur variety machine crushed track ballast for the Jaynagar-Bardibas railway project in Nepal, specifically covering the section from Km 34+800 to Km 52+336.

In a regulatory filing, IRCON International confirmed that Conarch Associates had initiated the claim before the Arbitral Tribunal as of March 20, 2025.

Details of the Claims

The claims made by Conarch Associates include:

• Compensation for loss of profit and goodwill
• Release of retention money
• Lien on performance bank guarantee
• GST penalties
• Pending bill payments

IRCON International stated that the financial impact of the claim would depend on the final adjudication of the case.

IRCON Secures ₹1,096.17 Crore EPC Contract in Meghalaya

Despite the arbitration proceedings, IRCON International continues to expand its project portfolio.

Last week, 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 from the Directorate of Urban Affairs, Government of Meghalaya.

The contract win highlights IRCON’s continued growth in infrastructure development, even as it navigates legal challenges related to its international railway projects.

Stock Performance 

On March 24, 2025, IRCON International share price traded 2.78% higher at ₹164.40 at 9:18 AM (IST). IRCON International’s share price reached a 52-week high of ₹351.65, and a 52-week low of ₹160.25. As per BSE, the total traded volume for the stock stood at 0.69 lakh shares with a turnover of ₹1.13 crores.

At the current price, IRCON International shares are trading at a price-to-earnings (P/E) ratio of 19.23x, based on its trailing 12-month earnings per share (EPS) of ₹8.56, and a price-to-book (P/B) ratio of 2.57, according to exchange data.

Conclusion

Despite the ongoing arbitration claim, IRCON International remains focused on its expansion, securing major infrastructure contracts like the ₹1,096.17 crore EPC project in Meghalaya.

The company’s ability to navigate legal challenges while continuing growth highlights its resilience and commitment to delivering large-scale engineering and construction projects efficiently.

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