IRCON Share Surges on Winning ₹127.8 Crore Order From North Western Railway

IRCON International Limited has received a Letter of Award from S&T (Construction), North Western Railway, Indian Railways. The contract involves the design, manufacture, supply, installation, testing, and commissioning of a microprocessor-based Electronic Interlocking (EI) system with inbuilt block instruments as per RDSO specifications. 

This will be implemented across 20 stations in the Ajmer Division. The scope also includes automatic block signalling and associated indoor and outdoor works related to signalling and telecom systems.

Contract Value and Duration

The total value of the awarded contract stands at ₹127.80 crore. The project is to be executed over a period of 24 months from the date of issuance of the Letter of Award, which was dated April 11, 2025. The contract is domestic in nature and falls under a standard works contract. There are no related party elements, and the awarding entity has no affiliation with IRCON’s promoter group, as per the fling.

Other Orders 

This award follows two major contracts IRCON secured recently:

• On March 28, IRCON, in joint venture with SSNR Projects, received an order worth ₹872.69 crore from Rail Vikas Nigam.
• Earlier, on March 17, a separate joint venture with Badri Rai & Company (BRC) won an EPC contract valued at ₹1,096.17 crore from the Directorate of Urban Affairs, Government of Meghalaya. IRCON’s share in this project is ₹285 crore.

Financial Update 

IRCON reported a 64.81% drop in consolidated net profit for the quarter ending December 2024, with figures falling to ₹86.10 crore. Revenue from operations during the same period declined by 10.81% to ₹2,612.86 crore. The company continues to undertake infrastructure work across multiple countries, including Bangladesh, Nepal, Malaysia, and South Africa, in addition to its domestic railway and transport projects.

As of 9:30 am on April 15, 2025, Ircon International share price was trading at ₹155.88, a 4.20% up and 8.12% over the past month, but down 32.81% in the last six months.

Conclusion

The ₹127.8 crore railway signalling project adds to IRCON’s existing order book. Execution updates are expected over the coming quarters.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.