Rs 22,000 Order Book: This Railway Company Bags Rs 253.56 Crore KAVACH Contract Ahead of Q4 Results on May 21
Over the past month, Ircon has delivered a return of approximately 16.16 per cent.
Ircon International Limited, a Navratna PSU under the Ministry of Railways, has announced the receipt of a major Letter of Acceptance (LOA) worth Rs 253.56 crore from the South Western Railway. The contract pertains to the supply, installation, testing, and commissioning of the KAVACH Automatic Train Protection System and associated works over 778 RKM across the Bengaluru and Mysuru Divisions. The project has a timeline of 18 months and falls under domestic works contracts.
The announcement came just days after Ircon received another LOA from North Western Railway on May 15, 2025, for implementing a Remote Diagnostic and Predictive Maintenance System. That project, valued at Rs 51.61 crore, covers key sections of the Jaipur, Ajmer, Bikaner, and Jodhpur Divisions. With both contracts combined, Ircon has secured railway infrastructure orders worth over Rs 305 crore in May 2025 alone.
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Despite these significant developments, the share price of Ircon International Limited was trading lower at Rs 187.41 as of 12:26 PM IST on May 21, 2025, marking a decline of 0.53 per cent and slipping below its 200-Day Exponential Moving Average (200-DEMA). The stock saw an intraday high of Rs 193.95 and a low of Rs 185.43. Over the past month, Ircon has delivered a return of approximately 16.16 per cent. However, the one-year return remains negative at 32.10 per cent, reflecting some volatility typical of Small-Cap stocks in the infrastructure space.
Investors are closely watching Ircon’s financial performance, with the company set to announce its Q4FY25 and FY25 results later on May 21, 2025. In the quarter ended December 2024, the company posted a consolidated net profit of Rs 86.10 crore on a total income of Rs 2,612.86 crore. For FY24, Ircon reported a total revenue of Rs 12,513.65 crore and a net profit of Rs 929.51 crore.
Founded in 1976, Ircon started as a railway construction company and has since expanded into various infrastructure segments, including highways and electrification. As a government-backed entity with a consistent project pipeline, Ircon is often discussed among investors looking for value in Mid-Cap and infrastructure-focused public sector undertakings.
Disclaimer: The article is for informational purposes only and not investment advice.