Ircon Intl. Q2 FY27 Results (NSE: IRCON)
Signal: Revenue declined
The read
The key inflection is the standalone-versus-consolidated split: standalone revenue rose 12.9% YoY to ₹2,090.24 crore, but consolidated revenue fell 7.4% to ₹1,955.83 crore and consolidated PAT fell 32.9% to ₹92.03 crore. Margin recovered sequentially to approximately 10.4% from 7.0%, but remains below the prior-year level, while international operations and group-level adjustments continue to dilute the parent’s execution.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,955.83 Cr | -7.4% | -1.1% |
| EBIT | ₹127.99 Cr | -26.3% | |
| Net profit | ₹92.03 Cr | -32.9% | |
| EPS | ₹0.99 | -32.7% | |
| EBIT margin | 10.4% |
P&L walk
Consolidated revenue from operations fell 7.4% YoY to ₹1,955.83 crore, while EBITDA margin was approximately 10.4%; lower raw-material intensity did not prevent PAT from falling 32.9% to ₹92.03 crore because domestic segment profit declined sequentially and the international segment weakened YoY.
Segments
Domestic remained the main earnings engine with ₹205.33 crore of segment result, but fell 16.6% sequentially; International result declined 54.5% YoY to ₹26.39 crore, and the consolidated PAT of ₹92.03 crore was ₹29.89 crore below standalone PAT of ₹121.92 crore.
Key positives
- Standalone revenue increased 12.9% YoY to ₹2,090.24 crore, showing stronger parent-level execution than the consolidated revenue decline of 7.4%.
- Consolidated EBITDA margin recovered sequentially by approximately 340bps to 10.4% from approximately 7.0%, despite revenue declining 1.1% QoQ.
- Materials and stores consumed fell to ₹61.55 crore from ₹213.72 crore YoY, reducing raw-material intensity from approximately 10.1% to 3.1% of consolidated revenue.
- Domestic segment remained profitable at ₹205.33 crore, up 3.4% YoY, and represented the bulk of consolidated segment result.
Key concerns
- Consolidated PAT fell 32.9% YoY to ₹92.03 crore despite standalone PAT of ₹121.92 crore, highlighting material drag from subsidiaries, joint ventures or consolidation adjustments.
- International segment result declined 54.5% YoY to ₹26.39 crore, while international revenue fell 24.6% YoY to ₹56.12 crore.
- Gross margin compressed approximately 225bps YoY to 14.8% as project expenses rose to ₹1,604.15 crore, indicating that lower materials intensity did not translate into equivalent group margin protection.
- Domestic segment result declined 16.6% sequentially to ₹205.33 crore, despite domestic revenue declining only 1.3% QoQ.
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