Prabhudas Lilladher has issued a hold rating on IRCON International with a target price of ₹136 per share in its research report dated August 13, 2026. According to the brokerage's assessment, the sustained inflow conversion from the improved railway sanctioning environment remains the key re-rating trigger for the infrastructure company.
IRCON reported standalone revenue of ₹1,955 crore (+8% YoY) and PAT of ₹105 crore (+9% YoY) in Q1FY27, marking the first growth quarter after FY26's 17% revenue decline. However, the recovery showed thin margins with core EBITDA down 7% YoY to ₹955 million, margin at 5.3% vs 6.2% YoY. The PAT growth was largely aided by other income of ₹1.26 billion (+18% YoY) and a 9% lower tax outgo. The company also declared a dividend of ₹1.20 per share on February 17, 2026, and the reported EPS stands at ₹5.57.
The company's order book stood at ₹234 billion as of June 30, 2026, representing approximately 2.7x TTM standalone revenue compared to ₹250 billion at FY26-end. This implies that inflows lagged execution during the quarter. The order mix composition includes ~77% railways, 91% domestic orders, and 55% competitively bid projects, as reported by Prabhudas Lilladher.
Management has guided for FY27E revenue to remain broadly stable at FY26 levels (~₹85-90 billion) while maintaining standalone EBITDA margins of 4-4.5% and PAT margins of 6-6.3%. According to Prabhudas Lilladher, the brokerage retains its FY27E estimate, implying revenue growth of 2% for the remaining 3 quarters of FY27E. The target price of ₹136 is based on a SOTP (Sum of the Parts) valuation methodology.
