Ircon International Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 2,271.66 Cr (+14.92% YoY) and PAT growth of -25.81% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 04, 2026 |
|---|---|
| Revenue (Q2) | Rs. 2,271.66 Cr (+14.92% YoY) |
| PAT (Q2) | Rs. 102.87 Cr (-25.81% YoY) |
| EBITDA margin | 13.51% (-55 bps YoY) |
| EPS (Q2) | Rs. 1.09 (-25.85% YoY) |
Q2 FY27 delivered revenue growth of 14.92% YoY and core EBITDA margin expansion (consolidated 10.01% vs 8.18%), beating both core-margin guidance bands, but PAT to owners fell 25.81% as JV losses, 35% higher finance costs, and a 37.13% effective tax rate hit below the operating line. H1 operating cash flow was negative (CFO/PAT −0.18×) and the PAT-margin guidance band of 6.1-6.3% requires an H2 recovery to 7.54-7.91% that looks difficult. The operating engine is executing well; the earnings drag is structural PPP debt and JV losses.
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "demand backdrop… supports revenue tracking management's 'maintain FY26 levels' stance" | +14.92% YoY consolidated; H1 +12.34% | Played out |
| Margins — bitumen/cost push | "gross input-cost headwind… largely pass-through-buffered" | Core margins expanded YoY and QoQ (10.01% consol; 4.86% standalone) | Contradicted |
| Forex tailwind | "a less depreciating path than the base quarter" | Other income −32.0% YoY consolidated, −44.5% standalone | Played out |
| Subsidiary/JV drag + finance costs | "print to hinge on whether the subsidiary drag and finance costs stabilise" | JV share −Rs.11.20 Cr (vs +Rs.20.39 Cr); finance costs +35.0% — did not stabilise | Played out |
| PAT margin vs 6.1–6.3% band | Q1 at ~4.7% vs band feared to persist | Q2 4.25% on total income — still below band | Played out |
| AFCON provision treatment | "ask whether any provision was booked in Q2" | Nil exceptional; no provision step-change; exposure contingent | Not observable as P&L item |
| Order-inflow conversion | 107 bids/Rs.48,000 Cr pipeline; order-book decline watch | Not addressed in the filing — remains open for the call | Not observable |
| What management said | What happened | Verdict |
|---|---|---|
| Consolidated revenue at FY26 levels (~Rs.9,502 Cr FY26 base) | H1 FY27 Rs.4,227.49 Cr, +12.34% YoY; Q2 +14.92% YoY | On Track |
| Standalone core EBITDA margin 4.0–4.5% | Q2 FY27 4.86% (Q1 FY27 5.31%) — above band | On Track |
| Consolidated core EBITDA margin ~9% | Q2 FY27 10.01% (Q1 FY27 9.80%) — above band | On Track |
| Consolidated PAT margin 6.1–6.3% | Q2 FY27 4.25% on total income (company definition; 4.42% on operating revenue); Q1 FY27 4.50% — tracking below band | Missed |
| SPV/PPP investment Rs.700–800 Cr total (Rs.400–500 Cr PPP + Rs.50–60 Cr routine capex), FY26-27 | H1 FY27 consol capex Rs.59.51 Cr; investment in subsidiary/JV companies Rs.2.71 Cr — H1 pace light | Too Early |
| "FY27, we plan to kind of maintain the numbers that we have in FY26 on revenue… order book almost 2X of revenue" (Q4 FY26 call, May 25, 2026) | H1 FY27 revenue +12.34% YoY; running ahead of the FY26 H1 base | Confirmed |
| "Rs.5,700 Cr of debt is project-specific PPP financing, not standalone debt" (Q4 FY26 call) | Standalone borrowings Rs.41.00 Cr vs consolidated Rs.5,834.71 Cr | Confirmed |
| ~1% drop in normal execution margins expected (open-ended, Q2 FY26 call, Nov 2025) | Core margins expanded: standalone 4.86% vs 3.41%; consolidated 10.01% vs 8.18%; domestic segment margin +92 bps | Contradicted this quarter |
| Forex gains flattered EBITDA via other income (Q2 FY26 call) | Other income fell 32.0% YoY consolidated / 44.5% standalone against the forex-inflated base — the tailwind faded | Confirmed |
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.