Ircon Intl. Q1 FY27 Results (NSE: IRCON)
Signal: Margin pressure
The read
The key inflection is a widening standalone-to-consolidated divergence: standalone PAT grew 8.6% YoY to ₹163.52 crore, but consolidated PAT fell 43.9% to ₹92.03 crore as joint ventures moved to a ₹13.36 crore loss, finance costs rose 42.2% to ₹106.98 crore and EBITDA margin contracted 346bps to 9.46%; this reverses the prior Q3FY26 and Q4FY26 margin expansion trend.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,955.83 Cr | +9.5% | -38.7% |
| EBIT | ₹140.17 Cr | -27.6% | |
| Net profit | ₹92.03 Cr | -43.9% | |
| EPS | ₹0.99 | -43.4% | |
| EBIT margin | 9.46% |
P&L walk
Consolidated revenue from operations rose 9.5% YoY to ₹1955.83 crore, but operating profit before joint-venture results fell 27.6% to ₹140.17 crore as project expenses remained the dominant cost and depreciation and finance costs increased; the ₹13.36 crore joint-venture loss then reduced PBT and PAT.
Segments
Domestic operations drove the group with ₹1913.84 crore of customer revenue and ₹205.33 crore of segment result, while the consolidated result was dragged by a ₹13.36 crore joint-venture loss; standalone PAT of ₹163.52 crore was ₹71.49 crore above consolidated PAT of ₹92.03 crore.
Key positives
- Standalone revenue increased 8.2% YoY to ₹1800.27 crore and standalone PAT increased 8.6% to ₹163.52 crore, indicating the parent execution business remained resilient.
- Employee benefits expense rose only 2.4% YoY to ₹66.81 crore against 8.2% standalone revenue growth, supporting stable standalone EBITDA margin of 12.14%.
- International customer revenue grew 47.1% YoY to ₹41.99 crore, although it remains small relative to domestic revenue of ₹1913.84 crore.
- Consolidated segment assets increased 12.2% YoY to ₹21184.75 crore and depreciation rose 20.9% YoY to ₹44.89 crore, a clean asset-base/depreciation cross-check.
Key concerns
- Consolidated PAT fell 43.9% YoY to ₹92.03 crore despite 9.5% revenue growth to ₹1955.83 crore, showing weak earnings conversion at group level.
- Consolidated EBITDA margin compressed 346bps YoY to 9.46%, while derived EBITDA fell from ₹230.78 crore to ₹185.06 crore.
- Joint-venture contribution reversed from a ₹19.00 crore profit in Q1FY26 to a ₹13.36 crore loss in Q1FY27, creating a ₹32.36 crore YoY swing.
- Finance costs increased 42.2% YoY to ₹106.98 crore on a consolidated basis, materially worsening the gap between operating profit and PAT.
- Domestic customer revenue fell 36.3% sequentially from ₹3008.34 crore to ₹1913.84 crore, leaving quarterly execution lumpy.
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