Infrastructure development has emerged as one of the key pillars of Indias long-term economic growth strategy, driving higher productivity, improving connectivity, enhancing logistics efficiency and creating large- scale employment opportunities. The Governments vision of building world-class infrastructure is aimed at transforming the country into a developed nation while strengthening urban centres, industrial corridors, multimodal transport networks and digital infrastructure.
The Government has implemented several measures to attract investments in infrastructure sector. Liberalisation of the Foreign Direct Investment (FDI) regime, adoption of public-private partnership (PPP) models across key sectors, and the Second Asset Monetisation Plan (2025-30), which envisages recycling approximately 10 lakh crore of capital into new infrastructure projects, are expected to significantly enhance private sector participation.
Indias infrastructure growth story continues to inspire strong confidence among policymakers, investors and industry participants. According to CRISILs Infrastructure Yearbook 2023, the country is expected to invest nearly 143 lakh crore in infrastructure through FY2030, more than double the investment made during the previous seven-year period. Such unprecedented investment, supported by a stable policy framework, increasing private participation and sustained government commitment, is expected to strengthen Indias infrastructure ecosystem, improve ease of doing business, generate significant employment opportunities and provide a strong foundation for sustained economic growth over the coming decades.
GLOBAL ECONOMIC OVERVIEW
The global economy faces an increasingly challenging environment amid heightened geopolitical tensions, particularly following the outbreak of conflict in the Middle East in early 2026. The conflict has added to existing uncertainties arising from trade barriers and geopolitical fragmentation, disrupting commodity markets, fuelling inflationary pressures and tightening global financial conditions. While technology-led investments, supportive fiscal and monetary policies and accommodative financial conditions had previously cushioned the global economy, the evolving geopolitical landscape poses fresh risks to global growth, especially for commodity-importing and developing economies that remain vulnerable to higher energy prices, food inflation and currency volatility.
According to the International Monetary Funds (IMF) World Economic Outlook Update (July 2026), global economic growth is projected at 3.0% for 2026 and 3.4% for 2027, reflecting the impact of evolving global developments.
INDIAN ECONOMY
India continues to remain one of the fastest-growing major economies, supported by strong domestic demand, sustained public investment and resilient macroeconomic fundamentals. As per the National Statistical Office (NSO), real GDP is estimated to have grown by 7.7% in
FY 2025-26, while nominal GDP expanded by 8.9%. The Reserve Bank of India (RBI), in its June 2026 Monetary Policy, has projected real GDP growth of 6.6% for FY 2026-27. While global supply chain disruptions, commodity price volatility and geopolitical uncertainties pose downside risks, CPI inflation is projected at 5.1%.
Despite a marginal decline during the period, Indias foreign exchange reserves remained at a comfortable USD 691.11 billion as on March 31, 2026, compared with USD 700.09 billion as on September 30, 2025, reflecting the countrys strong external position and enhancing resilience against global uncertainties.
The Government continues to accord high priority to infrastructure-led growth. The Union Budget 2026-27 increased the capital outlay for infrastructure to 12.2 lakh crore from 11.21 lakh crore in the previous year. To encourage greater private participation, the proposed Infrastructure Risk Guarantee Fund will provide partial credit guarantees to lenders during the construction phase of infrastructure projects. In addition, liberalised FDI norms, public-private partnership (PPP) initiatives and continued policy support are expected to enhance domestic and foreign investment in the infrastructure sector.
Indias infrastructure and logistics sectors continue to present significant long-term opportunities, supported by initiatives such as PM Gati Shakti, the National Logistics Policy, Unified Logistics Interface Platform (ULIP) and logistics parks.
Sustained government investment, increasing private sector participation and continued policy reforms are expected to further strengthen Indias infrastructure ecosystem and support long-term economic growth.
INDUSTRY OVERVIEW
Indias infrastructure sector continues to be one of the principal drivers of economic growth, supported by sustained public investment, increasing private sector participation and a stable policy environment. Over the past decade, the Government has placed infrastructure and construction at the centre of its development agenda through higher capital expenditure and institutional reforms. Innovative financing mechanisms such as Infrastructure Investment Trusts (InvITs), Real Estate Investment Trusts (REITs), the National Investment and Infrastructure Fund (NIIF) and the National Bank for Financing Infrastructure and Development (NaBFID) have broadened the financing ecosystem, while continued focus on Tier-II and Tier-III cities, multimodal connectivity and urban infrastructure is creating longterm opportunities across the infrastructure value chain.
The long-term outlook for Indias infrastructure sector remains favourable, supported by continued Government support, rising urbanisation, increasing private investment and growing demand for modern transport infrastructure. According to the World Bank, nearly 600 million people are expected to reside in urban areas by 2036, creating substantial demand for rail, roads, urban transit and logistics infrastructure.
Railway Sector
Indian Railways continues to play a pivotal role in Indias economic development by providing efficient, affordable and sustainable transportation for both passengers and freight. The sector is undergoing a structural transformation driven by record capital investments, network expansion, digitalisation, enhanced safety standards and a strong emphasis on multimodal connectivity. Government initiatives under PM Gati Shakti, the National Logistics Policy and the National Infrastructure Pipeline are strengthening rails integration with ports, roads, waterways and logistics hubs, positioning Indian Railways as a key enabler of economic growth and supply chain efficiency.
Reflecting the Governments sustained emphasis on rail infrastructure development, the Union Budget 2026-27 earmarked a record CAPEX of 2.78 lakh crore for Indian Railways, to accelerate infrastructure creation, enhance operational efficiency and strengthen passenger and freight connectivity. The Budget also announced the development of seven high-speed rail corridors connecting major economic centres, while continued investments in Dedicated Freight Corridors (DFCs), capacity augmentation, station redevelopment, signalling systems and multimodal terminals are expected to significantly improve network capacity, operational efficiency and regional connectivity. The Governments emphasis on Public-Private Partnerships (PPPs) and 100% FDI under the automatic route in railway infrastructure is expected to further encourage private investment and technological advancement in the sector.
Indian Railways achieved an all-time high freight loading of 1.67 billion tonnes during FY26, marking the fourth consecutive year of record freight performance, while passenger traffic increased to 741 crore. Supported by PM Gati Shakti, Dedicated Freight Corridors, multimodal cargo terminals and the Unified Logistics Interface Platform (ULIP), rail logistics is becoming faster and more efficient. Indias logistics market, is projected to creating significant opportunities for railway infrastructure, freight corridors and integrated logistics development. Modernisation of Indian Railways continues to be driven by technology, safety and sustainability.
Railway electrification has reached 99.6% of the broad- gauge network by March 2026, substantially reducing dependence on fossil fuels, lowering carbon emissions and improving operational efficiency. Indian Railways is also progressing towards its objective of becoming a Net Zero Carbon Emitter by 2030 through renewable energy adoption, energy-efficient operations, solar and wind power integration, hydrogen fuel-cell trains and battery- powered locomotives.
The indigenous KAVACH automatic train protection system is being progressively deployed across the network to prevent collisions, Signal Passing at Danger (SPAD) incidents and over-speeding. KAVACH, integrated with advanced signalling and train control technologies, are expected to significantly enhance operational safety, particularly on high-density and high-speed routes. Alongside track renewal, modern signalling systems and digital monitoring technologies, these initiatives are improving the reliability, efficiency and resilience of railway operations.
Urban rail transit is also witnessing rapid expansion to address increasing urbanisation and mobility requirements. India currently operates the fifth-largest metro rail network globally, with 810 km operational across 20 cities, while nearly 980 km of metro and Regional Rapid Transit System (RRTS) corridors are under construction in 27 cities. Continued investments in metro rail projects, are expected to improve urban mobility, reduce congestion and create significant opportunities across metro rail infrastructure, systems and allied construction activities.
The long-term outlook for the railway sector remains highly positive, supported by sustained Government investment, increasing freight demand, expanding urban transit systems, greater private participation and continued policy reforms. With growing emphasis on integrated transport infrastructure, green mobility, digitalisation and multimodal logistics, Indian Railways is well positioned to improve its modal share in freight and passenger transportation while creating substantial opportunities for infrastructure development.
Road Sector
India has worlds largest road networks, spanning over 6.61 million kilometres, with National Highways serving as the countrys primary arterial network for the movement of freight and passengers. The sector plays a critical role in promoting economic growth, enhancing regional connectivity, facilitating trade and improving market access. Over the past decade, the Government has significantly accelerated highway development through sustained investments, policy reforms and technology- driven project execution, positioning the roads sector as a key pillar of Indias infrastructure-led development strategy.
The Government continues to prioritise road infrastructure through higher public investment and integrated infrastructure planning. In Union Budget 2026-27, the CAPEX allocation for the Ministry of Road Transport and Highways (MoRTH) has been increased to 2.94 lakh crore, representing an increase of around 8% over the revised estimate for FY 2025-26. The PM Gati Shakti National Master Plan is driving multimodal infrastructure development through integrated planning across transport modes, while enhanced access to geospatial data is expected to improve project planning, execution efficiency and logistics connectivity.
Indias highway network continues to witness rapid expansion through flagship programmes such as Bharatmala Pariyojana and Pradhan Mantri Gram Sadak Yojana (PMGSY-IV). The National Highways network expanded to 1,46,342 km in FY25, with 10,660 km constructed during the year. Under Bharatmala Pariyojana Phase-I, more than 22,200 km of highways have already been completed, while the remaining stretches are targeted for completion during FY 2026-27. In addition, the Government has announced an ambitious programme to develop 17,000 km of access-controlled expressways by 2033, significantly improving logistics efficiency and economic connectivity across the country.
The Government is also focusing on strengthening the countrys logistics ecosystem through the development of 35 Multi-Modal Logistics Parks (MMLPs) under Bharatmala Pariyojana, supported by an estimated investment of about 46,000 crore. These logistics hubs, together with initiatives such as the National Logistics Policy, Unified Logistics Interface Platform (ULIP) and PM Gati Shakti, are expected to improve cargo handling, reduce logistics costs and enhance supply chain efficiency. Such initiatives are expected to facilitate seamless integration between roads, railways, ports and waterways, supporting Indias growing manufacturing and export sectors.
Recognising the strategic importance of balanced regional development, the Government continues to invest in road connectivity across the North-Eastern region and other geographically challenging areas. Improved highway infrastructure is enhancing connectivity to remote regions, facilitating socio-economic development, strengthening border infrastructure and promoting trade and tourism. The continued emphasis on sustainable infrastructure development, higher public investment, increasing private participation and integrated transport planning is expected to create significant opportunities across the roads and highways sector.
COMPANY OVERVIEW
Ircon International Limited (IRCON), an integrated engineering and construction company having expertise in major infrastructure sectors including railways, highways, bridges, flyovers, tunnels, metro, railway electrification, EHV sub-stations, electrical and mechanical works, commercial and residential buildings, railway production units, amongst others. It offers Engineering Procurement and Construction (EPC) services on a lumpsum turnkey, EPC and item- rate basis for various infrastructure projects. To boost coal evacuation from states like Odisha, Jharkhand & Chhattisgarh, IRCON is executing coal connectivity projects in joint venture with other CPSEs under the Ministry of Coal. In addition to this, IRCON executes road projects on Build, Operate and Transfer (BOT) mode and Hybrid Annuity Mode (HAM) by leveraging the financial strength of the Company to build long term wealth.
IRCON, a prominent public sector construction company in the Country, has established itself as a leader in Transportation Infrastructure, particularly in the execution of Railway Projects. The Company is renowned for its high-quality solutions, unwavering commitment, and consistent performance.
Over the past 50 years, IRCON has successfully completed numerous significant construction projects, both domestically and internationally. IRCONs achievements are spread in the following manner-
(1) IRCON is executing various infrastructure projects under Project Management Consultancy (PMC), Engineering, Procurement, and Construction (EPC) and Public Private Partnership (PPP) model;
(2) IRCON is also expanding its presence both domestically and internationally;
(3) IRCON is diversifying its portfolio across various infrastructure segments such as Railways, Highways, Renewables, etc.
The Company has consistently paid dividends to the government, highlighting its financial stability and success and is amongst the few construction companies in the public sector to have earned substantial foreign exchange for the country.
Over the years, IRCON has expanded its business footprints in different geographies such as Algeria, Afghanistan, Bangladesh, Bhutan, Brazil, Indonesia, Iran, Iraq, Liberia, Malaysia, Mozambique, Myanmar, Nepal, Nigeria, Saudi Arabia, South Africa, Sri Lanka, Turkey, UK and Zambia. So far, the Company has completed over 131 projects in 25 countries across the globe, and more than 408 projects in India. In the domestic market, it specializes in working in difficult terrains and disturbed regions. Furthermore, it is an active participant in prestigious nation-building projects.
BUSINESS UNITS / DIVISIONS
Major business units / divisions of IRCON are as follows:
1. Civil Engineering Department
IRCON has established itself as a prominent construction organization in the country, with the Civil Engineering Department serving as the backbone of the Company and generating a significant portion of its revenue. It plays a pivotal role and provides leadership in the successful execution of large-scale composite projects. The departments insight and leadership are essential for the smooth implementation of the numerous projects awarded to IRCON. This department is led by a highly experienced senior management team, consisting of professionals from renowned Engineering and Business Schools. They are supported by a large group of motivated and skilled Civil Engineers who have graduated from prestigious institutes like IITs and NITs. As on March 31, 2026, there are 541 Civil Engineers in the department, accounting for approx. 50.56% of the total staff strength.
IRCON is committed to incorporate the latest technology in project execution to ensure timely and cost-effective delivery. With its highly qualified and experienced workforce, the Company has significantly enhanced its competitiveness in the construction industry. It has an impressive track record of growth and expansion in various construction domains, including Railways, Highways, Bridges, Flyovers, Airports, Commercial & Industrial Buildings, Tunnels, Water treatment Plants, Residential Quarters, Multifunctional Complex (MFC) and more. IRCONs Civil Engineers are adept at working in remote areas, both in India and abroad, utilizing advanced Project Management Tools such as Primavera, TILOS, and MS Project. They are also trained in the latest surveying techniques, including GPS Surveying, Aerial LIDAR Surveying with Drones, and Total Station Surveying.
The department has developed expertise in tunnelling in the Himalayas, utilizing advanced technologies such as NATM. It takes great pride in having more than 200 trained tunnel Engineers and successfully completing over 100 km of tunnel mining in the challenging geology of the Himalayas. Another significant tunnel, the 12.75 km long tunnel on USBRL Project, is completed, which is the longest transportation tunnel in the country.
The department has successfully completed numerous mega projects, demonstrating its competency in:
?€? Samawa High Speed Railway Line Project in Iraq;
?€? Construction of 2nd Bhairab Railway Bridge with approach Rail lines in Bangladesh;
?€? Construction of Double track project between Seremban & Gemas in Malaysia;
?€? Upgradation of Railway Lines in the Northern Province of Sri Lanka;
?€? Completion of the Qazigund - Baramulla New BG Railway Line in J&K, and the completion of the 11.2 km Pir Panjal Tunnel, the longest transportation tunnel in India, in J&K;
?€? Longest Rail cum Road Bridge (at the time of commissioning, in India) at Patna;
?€? IRCON is the only public sector undertaking (PSU) to connect the rail network in the J&K States valley region;
?€? IRCON has also commissioned a new line works from Khulna-Mongla (65 Km) route and track length (91 Km) on 31st March, 2024 and also done preventive maintenance of 92 Track Km in this section for one year from April24 to March25 under DLP without any accident or unusuals. It was first of its kind commissioned by any Indian Company in Bangladesh out of LOC fund by GoI;
?€? Track linking of 186 km route double line for DFCCIL under CTP- 12 projects have also been completed during year 2023-24;
?€? Project commissioned for traffic operations 38.262 Km New BG line in Udhampur - Srinagar-Banihal Section during year 2023-24.
Also, Achievements during the FY 2025-26 are as follows:
?€? IRCON has commissioned the Katni upgrade separator - 15.85 Route Km 29th August 2025 & now the section is operating the trains removing the bottleneck at Katni specially for freight trains;
?€? Kusmunda bypass line of 11 TKM commissioned for opening of freight traffic in September 2025 enabling more efficient evacuation coal;
?€? In another prestigious tunnelling project to connect Sikkim by Railway from Sivok of West Bengal, so far 12 tunnels have been made through out of 14 Tunnels by NATM in a very challenging geology;
?€? IRCON successfully completed Shalimar yard remodelling of South Eastern Railway (SER) which involved laying of 68 turnouts, 15 derailing switches, dismantling of 24 turnouts of 1in 8.5/ 1in 12, 1 derailing switch, 2 sets of Diamond turnouts and 1 set of scissor turnout, electronics interlocking system of 246 routes. After yard remodelling, it will have five passenger platforms with provision of handling 24 LHB coach train and 31 lines for different purposes with simultaneous receipt / dispatch between Shalimar and Santragachi section of SER;
?€? Kathautia-Duari Section for 14.4 km (out of 49 km) and Kathautia Yard of Coal Rail Connectivity Project, Jharkhand commissioned.
It takes great pride in having more than 200 trained tunnel Engineers and successfully completing over 100 km of tunnel mining in the challenging geology of the Himalayas. With its extensive pool of experienced Civil Engineers and its accomplishments in tunnelling through the challenging geology of the lower Himalayas (such as the USBRL in J&K State and Sivok Rangpo in West Bengal & Sikkim), IRCON has emerged as a pioneer in the field of Tunnelling.
2. Design and Development Cell
IRCONs Design and Development Cell (D.D. Cell) is dedicated to develop in-house civil designs & review designs submitted by consultants as per relevant codal provisions, value engineering/Optimisation of design, estimation of quantities for bidding of various big- ticket national & international infra projects and other civil engineering solutions to most of IRCONs projects. Sophisticated design softwares such as Bentley Open Rail/Open Roads, Civil 3D (for Track/Road Alignment Design), STAAD Pro & MiDas (For Structural design and Bridge Design), IITPAVE & KGPBACK (Road Pavement & Overlay Design), SLIDE, MIDAS GTS NX, RS2 etc. (For GT Analysis & Tunnel Design solutions) are being used for developing designs and corresponding drawings with the help of efficient CAD Engineers.
The in-house design team has extensive experience in Track Alignment Design, Bridge Design, RCC/Steel Structures Design, Buildings Design, Highway Pavement Design, Geo Technical Solutions and Hydrological Studies etc.
Design & Development Cell has been significantly strengthened in this year, with a clear focus on separate Vertical for Tunnel Design/Underground Structures.
The in-house design team has specialized group consisting of experienced Civil Engineers, graduated from top ranking Engineering Colleges of India such as IITs, NITs and other reputed colleges.
Through D.D.Cell, IRCON is member in the following code/standard committees and shares the knowledge and contributes in developing/modifying codes:
?€? IS Codal Committee CED54: concrete reinforcement sectional committee: Standardization in the field of reinforcement for concrete including pre-stressing steel.
Standardization of Bridge Girders: Designing Long Span Steel based road bridges, convened by Ministry of Steel, Government of India. IRCON Design Team has been extensively involved in finalizing designs of various domestic projects as well as international projects viz. CERL-2 Urga-Dharamjaigarh Section, ROBs/Ramps at Shalimar & Santragachi project, Sivok-Rangpo Rail line project, Safdarjung Station building Project, Mokama Viaduct Project, MCRL Project, Shivpur-Kathautia Rail line project (JCRL), Agartala- Akhaura (India Portion) Viaduct Project, CEWRL Gevra- Pendra Section, DFCCIL CTP-12,Maho-Omanthai railway line project in Sri Lanka, Gurgaon-Rewari Highway Project, DFCCIL CTP-12, CERL Dharamjaigarh-Kharsia section including spur line and feeder line etc. Some of the noteworthy projects done earlier wherein D.D Cell has been involved in providing design solutions are: 2-tier Road cum Railway Bridge across River Ganges in Bihar at Digha Ghat, Bikaner-Phaloudi Road Project, Buildings of RAPDRP, Jammu; Railway link in Northern province of Sri Lanka, Railway Bridges of Jaynagar - Bardibas Railway Project (India and Nepal), Seremban- Gemas Electrified double track Railway Project (SGEDT) in Malaysia, Beira Rail Project in Mozambique including Dona Ana Bridge across the mighty River Zambezi etc.
The team is involved in quantity estimation for bidding for projects viz. Important bridge across river Ganga between Bikramshila-Katareah section, Kottavalasa- Koraput Tunnel project & Aizwal bypass tunnel project- which have been secured by the company through bidding lately.
The team has been also involved (quantity estimation) in bidding of various other major rail / road projects viz Doubling of Bhojo-Selenghat link, Bundi Airport Project, Indian Railway EPC Projects, 4-Laning of NH in districts of Darjeeling & Jalpaiguri, Sudhmahadev - Dranga Tunnel of approx. length 4.5 Km and its approach roads on Chenani - Sudhmahadev - Goha road portion, Vailoo Tunnel of approx. length 10.00 Km under Sinthan Pass and its approach roads on Goha - Khellani - Khanabal road portion, HRIDC C-4,C-5, C6& C23 Project, High-Speed Rail Project C4, C5, C6 & C7 Packages, Gurgaon-Rewari Highway Project, DFCCIL CTP 1, 2, 3, 3A, 11, 12 Packages, Vadodara-Kim Expressway Pkg-II, Devangiri-Haveri in Karanataka, Shivpuri-Guna Highway Project, Etihad Rail in UAE, various projects in Bangladesh, Maldives, Iran, Ethiopia, Oman etc. of late a new vertical for Tunnel Design has been established for further enhancing capacity-building.
3. Electrical Department
As leading turnkey project execution Company in Railways Sector, Electrical department wing provided end-to-end solution for Electrical projects. The Electrical Department provides expertise in 25 kV Railway Electrification Works, HT Grid & Traction Sub- station of voltage classes up to 400 kV, Extra High Tension Transmission lines, Extra High Voltage (EHV) cabling works, Renewable Energy sector / Industrial Electrification of mega industrial plants / Loco Sheds, Power supply distribution network for Cities / Metro Railways (AC & DC Systems) / Airports, Tunnel Power Supply, Ventilation and Electrification including Power Supply sub-stations for Metro Railways.
IRCON undertook its first major Railway Electrification Project of the Delhi - Ring - Railway in 1980 and offered environment-friendly electric traction services to passengers during the Asian Games organized in 1982. Thereafter, in its journey of 4 decades, the company has executed more than 11,567 TKM of Railway Electrification works in India & abroad and established itself as the leader in the market.
IRCON is executing a 500 MW Grid Connected Solar Power Plant Project under the Central Public Sector Undertaking (CPSU) Scheme of MNRE through latest technology Solar Modules, state-of-the-art tracker technology & waterless Robotic Cleaning System which are being implemented for the first time in the country in such large-scale solar project to enhance the efficiency of the solar plant. During the FY 2025-2026, a total capacity of 250 MW Solar Power (i.e. in 3 phases of 75+75+100 MW) was successfully commissioned and synchronized the Southern Grid for sale of power to South Western Railway. With this the cumulative commissioned Solar Power capacity stands at 400 MW out of the 500 MW targeted capacity. The balance capacity is targeted to be connected shortly. Upon full commissioning of 500 MW, approximately 1,076 million units shall be supplied annually which will help Railways in achieving net zero carbon emission targets.
IRCON has also executed many H.T. sub-station works up to 400 kV in India and abroad. Majority of sub-station works in all three phases of DMRC are executed by IRCON. IRCON has also acquired capability to execute Gas Insulated Sub-station (GIS) and Transmission Line projects up to 220 kV.
IRCON has extensive experience for execution of Tunnel Ventilation, Safety & Electro Mechanical works. The Electro Mechanical works of 65 km Railway Tunnels (T-43, T-44, T-49, T-50/51,T-52,T-53,T-54,T-55 & T-80) including 13 km longest Rail Tunnel, stretch from Banihal to Sawlakote under USBRL Project, has also been completed. This network provides all weather Rail connectivity to Kashmir Valley. Complete turnkey E&M work comprises of design, planning, project management, testing, commissioning, operation, and maintenance facility for Electrical Works (complete HT and LT works), Tunnel Ventilation System (TVS), Fire Fighting Systems, Operational Management and Control System (SCADA). This prestigious project was inaugurated by the Honble Prime Minister in June 2025 and moreover the Defect Liability Period for IRCON has also been completed in Feb-2026.
IRCON also has the experience of executing railway electrification work at high altitude (1650 m above msl), which was implemented for the first time in Indian Railways between Baramulla to Banihal (J&K) - 200 TKM including tunnel T-80 with Flexible Overhead Catenary System (FOCS). IRCON has also executed about ~39 RKM / 41 TKM of Rigid Overhead Catenary System (ROCS) works in Banihal to Dharam (J&K) section, which has also been implemented for the first time in Indian Railways. The Electrical train operations in the aforesaid Dharam - Banihal - Srinagar Section were also inaugurated by the Honble Prime Minister in June 2025.
Further, the execution works of ~38.6 km of Electro Mechanical (E&M) works in Railway tunnels T-1 to T-14 of Sivok-Rangpo Rail Project connecting Sikkim state to India are also under full swing. The Rigid Overhead Catenary System (ROCS) works in Railway tunnels T-1 to T-14 connecting Sikkim state to India are also under execution stage.
IRCON has executed Traction & Power Supply works of Indias first Semi-High Speed Regional Rapid Transit System in Delhi-Meerut Section (82 km) for National Capital Region Transport Corporation (NCRTC). The work involves Extra High Voltage 220 kV Power Cabling, 05 Nos. Receiving Sub- Stations (RSS), 09 Nos. of Auxiliary Sub-Stations (ASS) & Overhead Equipment (OHE) with a design speed of 180 kmph. The section from Sarai Kale Khan to Modipuram including Duhai Depot, has already been commissioned. The Inauguration of Stage-1 (Sahibabad to Duhai), Stage-2 (Duhai to Meerut South) & Stage-3A (Sahibabad to New Ashok Nagar) was done by Honble Prime Minister in the previous year. Further the Honble Prime Minister inaugurated the full 82-km Delhi-Ghaziabad-Meerut Namo Bharat (RRTS) corridor on 22 nd February, 2026.
For the prestigious Mission 100% Railway Electrification of the Ministry of Railways (Government of India), IRCON is executing more than 2700 RKM of Railway Electrification works & 29 Traction sub-station works in various Railway Electrification projects, out of which more than 2693 RKM and 22 Nos. Traction Sub-Stations (TSS) have already been commissioned along with ~200 kms. of 132 kV Transmission Lines. Further, IRCON has also back-charged 04 Nos. Traction Sub-Stations (TSS).
Recently, Mumbai Metropolitan Region Development Authority (MMRDA) has awarded two contracts to IRCON, which includes traction & power supply system, SCADA and E&M works for line-5 (~13 km long) and Line - 6 (~15.6 km long), for which the design, procurement and execution works are under full swing. Moreover, the design & installation works of 220 KV D/C Line from 400/220 kV Koradi -II to Mankapur s/s (O/H + U/G Line) under Nagpur Zone which was awarded by the Maharashtra State Electricity Transmission Company Ltd. (MSETCL) are also under execution stage.
4. Mechanical Engineering Department
The Mechanical Engineering Department comprises a proficient mix of seasoned experts and young, dynamic professionals. With expertise in the design, installation, and commissioning of new rolling stock production units, workshops, and diesel sheds, the department is also adept at re-engineering existing facilities. Its primary objective is to enhance output and efficiency through optimal resource utilization, aligning deliverables with the needs of both domestic and international clients. The team is equally skilled in the operation and maintenance of rolling assets.
We consistently deliver projects on schedule, even under accelerated timelines, using advanced project management tools such as MS Project, Six Sigma, and Primavera, while effectively mobilizing global physical resources.
One of our recent achievements is securing the prestigious MAHSR-T2 High Speed Rail project from NHSRCL, a Government of India initiative, implemented with technical guidance from Japanese Shinkansen experts. The Japanese consultants mandated the use of Japan-origin machinery or equipment based on Japanese engineering for track construction. Under the Make-in- India initiative, IRCONs Mechanical team developed these critical machines domestically by guiding Indian manufacturers on intricate technical and functional design requirements. As a result, we not only matched Japanese design standards but also significantly reduced costs by manufacturing locally. Some of the machines developed include Track Slab Car, Rail Feeder-cum- Drawer Cars, Track Motor Cars, Construction Motor Car, Trolleys/Wagons, and Flash Butt Welding Machines-all built to meet stringent Japanese specifications.
The department has successfully established state- of-the-art Stainless Steel Coach Manufacturing Units at Raebareli in record time, exceeding targets. It also upgraded diesel sheds to accommodate both diesel and electric locomotives.
The Raebareli production facility stands as an engineering marvel. It is a fully integrated plant capable of transforming raw materials, like rolled steel sheets, into finished coaches. Key features include a Coach/ Shell Fabrication Line, robotic welding-enabled Bogie Shop, Finishing Shop, Wheel Shop, cutting-edge Paint Shop, and high- tech systems such as Automated Material Storage and Retrieval, a Power Substation, and a 3 MW Solar Park. The campus is self-sustaining, with a residential colony for employees and management, a 100-bed hospital, a cricket stadium, athletic track, FIH- certified hockey stadium, and an 18-hole golf course.
The department also excels in the export, leasing, and maintenance of locomotives, freight wagons, passenger coaches, and track machines. It brings end- to-end expertise across all aspects of rolling stock asset management-from infrastructure development and asset upkeep to business process re-engineering. These capabilities have been proven in successful executions across India and internationally for various governments, multilateral agencies, and organizations.
Additional notable projects include:
?€? Procurement of Plant and Machineries to various technical centres of Ministry of Micro Small and Medium Enterprises (MSME)
?€? Detachment-free rake examination facility at Bondamunda Exchange Yard (SER)
?€? Wheel Shop setup at Rail Coach Factory, Kapurthala
?€? Diesel Loco Shed augmentation at Visakhapatnam
?€? Supply of 10 YDM4 (Meter Gauge) locomotives to Royal Railways, Cambodia
?€? Supply of 6 2300HP AC/DC (Broad Gauge)
locomotives with Co-Co bogies to Sri Lankan Railways ?€? Leasing and maintenance of diesel locomotives for KTMB, Malaysia, achieving over 85% asset availability over two decades-a testament to IRCONs excellence in rolling stock maintenance
5. Signal & Telecom Department
Since its inception in 1976, IRCON has been providing turnkey Signal & Telecom (S&T) solutions for Railways in India and abroad; IRCON has been executing Signaling & Telecom (S&T) projects in various countries as per their local codes, manuals and standards, with in-house design, construction and project management capabilities, on agreed timelines.
IRCON has been executing number of state of the art S&T projects viz., Electronic Interlocking (EI), Automatic Block Signalling, Automatic Train Protection (ATP), Centralized Traffic Control (CTC) systems, Station Kavach (TCAS), Telecom Towers for TCAS, Remote Diagnostics & Predictive Maintenance System (RDPMS) for Signalling Gear, Integrated Passenger Information Systems, Integrated Tunnel Communication System etc.
In the year 2025-26, IRCON carried out erection of 350 Towers in Central Railway for Kavach roll-out and facilitated successful Kavach 4.0 trials in the block sections; IRCON successfully commissioned 72 Tunnel km of Integrated Tunnel Communication System, out of which 18 km are in J&K and 54 km in Manipur for the new line projects. IRCON commissioned New EI/Alterations in EI at 15 Stations of Indian Railways, which included the works at major yards of Shalimar in SER, Jhalwara (SECR) - Katangikhurd (WCR) chord-line works, enhancing operational efficiency in the concerned Zonal Railways.
New Business Development Vertical of S&T bagged total orders of S&T works worth 900 Crore approx., which include New Technology Verticals in S&T viz. Station Kavach Works, Telecom Towers for Kavach, EI with Auto Signaling, Predictive Maintenance of Sigg Gear, Integrated Tunnel Communication. A pilot project of S&T Maintenance Support through trained and outsourced manpower, under supervision of experienced S&T Managers of IRCON has been taken up in Lumding Division of NFR.
Thus, IRCON S&T continues its stride in the forefront of Modern Technology in S&T Works and a fulfilling role in support of Indian Railways.
6. Business Development Department
IRCONs Business Development Department plays a crucial role in navigating a competitive landscape, especially with the shift away from nomination-based awards. Competing through tenders alongside private infrastructure firms require sharp bidding strategies and deep industry insights.
In the year 2025-26, the Business Development Department of IRCON has secured following 15 (fifteen) projects:
?€? Design, manufacture, SITC of Microprocessor based EI system c/w doubling of AHO-CNA Jn. section of Ajmer division on NWR- ?127.80 Crore
?€? Construction of Dedicated Rural Industrial Park in Thiruvananthapuram District- ?187.08 Crore
?€? Package-I: Construction of civil works on item rate for Tato-I Hydro Electric project, Arunachal Pradesh, comprising of headworks & allied works, head race channel, head race pipe, intake, headrace tunnel, surge shaft, pressure shaft, valve house, power house & allied works and infrastructure works- ?388.25 Crore
?€? Survey, design, supply, installation, testing and commissioning of KAVACH equipment and other associated works over 778 RKM of Bengaluru and Mysuru Divisions of South Western Railway- ?214.88 Crore
?€? Provision of Remote Diagnostic & Predictive Maintenance System in RE-MD of JP, MD-PNU of AII, RE-BTI of BKN and MTD-LUNI of JU Division over North Western Railway- ?51.61 Crore
?€? Construction of New BG Rail Bridge (1x32.086m Open Web Steel Girder + 33x122.0 m Open Web Steel Girder + 1x32.086m Open Web Steel Girder) with Substructure of Double line Track and Superstructure of Single line track across River Ganga between Bikramshila and Katareah Stations on New Railway Line Project of East Central Railway- ?1068.35 Crore
?€? Package- 1C: Construction of roadbed, minor bridges, buildings, installation of track (excluding supply of rails, sleeper & thick web switches), and other civil engineering and general electrical works in connection with new bg railway line between Pipaliya Nankar (excl.) - Budni (incl.) stations (chainages 129.000 - 198.000 km) in Indore-Budni section of Bhopal division West Central Railway in Madhya Pradesh state, India- ?448.35 Crore
?€? Design, Supply, Installation, Integration, Testing And Commissioning of 220 kV receiving Substation Including 220 kV, 33kV & 25kV Cabling Work, Complete 25kV Overhead Catenary System along with switching station, 33kV Auxiliary Power Distribution System Including 33/0.415 kV Auxiliary Sub-Station (ASS) And Complete SCADA System, Electrical and Mechanical works, Lift & Escalator Works for part of Main Line, Stations & Kasheli Depot of Mumbai Metro Rail Line 5 Project of MMRDA Including 5 Years of Comprehensive Maintenance after 2 Years of Defect Liability and Maintenance Period - ?421.59 Crore
?€? Design, Manufacture, Supply, Installation, Integration, Testing and Commissioning of Power Supply and Traction, E & M, Lifts & Escalators including 5 Years of Comprehensive Maintenance after 2 Years of Defect Liability Maintenance Period of Line 6 [Swami Samarth Nagar to Vikhroli (EEH)] of Mumbai Metro Rail Project of MMRDA- ?566.22 Crore
?€? Construction of Eklavya model Residential school at eight different locations in the state of Meghalaya on Design, Engineering, Procurement and Construction (EPC) basis (Package-II)- ?432.60 Crore
?€? Composite Work (Civil, Electrical, Mechanical and Signal & Telecom) involving construction (A) At- NJP Upgradation/Development of maintenance infrastructure for energy efficient Vande Bharat Express at Coaching Complex/NJP. (B) At SGUJ- Infrastructure construction of GE Loco shed for homing of 250 Nos GE locos (WDG4G/WDG6G). (C) New jalpaiguri At-NJP Next Generation Freight Maintenance Facilities in Katihar division Over Northeast Frontier railway- ?190.25 Crore
?€? Civil, structural & UG Works including piling-Part A for PDH-PP Plant with Ethane and Propane Storage and handling facilities at Dahej, Gujarat (Bidding Document No. JP/B862-000-CI-T-8003/1019)- ?360.28 Crore
?€? Construction of 220 KV D/C Line from 400/220 KV Koradi -II to Mankapur s/s. (O/H + U/G) Line) under Nagpur Zone Maharashtra- ?85.88 Crore
?€? Strengthening of S&T maintenance activities by assisting in maintenance and execution of non- safety critical activities by deployment of technical teams along with supply of required materials for S&T deptt of Lumding Division for 02 years- ?25.58 Crore
?€? Restoration of Railway Line in Northern Srilanka- ?44.21 Crore
Diversification is key to staying competitive and ensuring long-term sustainability. The Department is also engaged in the process of formation of strategic MOUs and alliances enabling the Company to tap into new markets and industries with strong growth potential.
The department is actively exploring infrastructure opportunities in international markets. The company is pursuing potential projects in countries such as Algeria, Uganda and other African nations. In the South Asian region, Ircon is seeking opportunities in neighbouring countries including Sri Lanka, Bangladesh, and Nepal. The company is also evaluating prospects in Southeast Asian markets, where growing investments in connectivity and infrastructure development align with Ircons expertise.
7. Estate Management Department
Over the years, from diversification into entire spectrum of infrastructure the Companys nature of business has also changed from a construction company to a project development and operation company including, real
Key Financial Ratios estate and commercial operations among other activities.
With the objective of growth in the Real Estate Business in medium and long terms viz., development of the plots, construction of buildings, leasing and / or sell out of the immovable properties, IRCON has set up the Estate Management Department.
Among real estate projects, IRCON has constructed many commercial buildings, institutional buildings, railway stations and townships etc. in India such as multi-storied commercial complexes for CIDCO in Navi Mumbai, 500 bedded Hospital in Bhopal, Museum in Bhopal, Veterinary Science Animal Husbandry college campus in Aizwal, three major residential townships at Jhansi, Bhopal and Allahabad for Ministry of Defense, projects connected to Pusa University, Banaras Hindu University, CIFE, Mumbai, Vashi Railway Station, Multi-Functional Complexes (MFCs), Rail Coach Factory at Kapurthala, Modern Coach Factory at Raebareli etc. IRCON has developed its own corporate office which is a modern and smart office featuring all elements of Green Building.
FINANCIAL PERFORMANCE (STANDALONE)
During FY 2025-26, total income of the Company stood at ?8,978,58 Crore as compared to ?10,677.45 Crore in the previous financial year. Operating Turnover stood at ?8,478.86 Crore (?10,193.14 Crore in FY 2024-25) including ?296.24 Crore from international projects.
The Profit Before Tax (PBT) and Profit After Tax (PAT) stood at ?797.85 Crore (?917.81 Crore in FY 2024-25) and ?618.45 Crore (?737.59 Crore in FY 2024-25) respectively reflecting the impact of reduced turnover and provisioning in ongoing projects.
The details of interim dividend declared & paid as well as the proposed final dividend for FY 2025-26 for consideration and declaration by the shareholders, over and above the interim dividend at the forthcoming AGM are disclosed in the Directors Report under Financial Highlights. Further, the details of significant changes (that is, change of 25% or more as compared to FY 2024-25 in the key financial ratios) along with detailed explanations, forms part of the Financial Statement. The details of significant changes (that is change of 25% or more as compared to FY 2024-25 in the key financial ratios) along with detailed explanations thereto is placed below :
| S. N. | Name of Ratio | Formula | Unit | FY 2025-26 | FY 2024-25 | % Change | Reason for change more than 25% |
| 1. | Debtors Turnover Ratio | Net Credit Sales/ Average Trade Receivable | In times | 5.11 | 7.85 | -34.90% | The rise in the trade receivables compared to the previous year is primarily due to the transition in the order book from nomination- based projects to competitive bidding, along with changes in client payment terms. |
| S. N. | Name of Ratio | Formula | Unit | FY 2025-26 | FY 2024-25 | % Change | Reason for change more than 25% |
| 2. | Inventory turnover Ratio | Cost of Goods Sold/ Average Inventory | In times | 152.58 | 141.12 | 8.12% | |
| 3. | Current Ratio | Current Assets / Current Liabilities | In Times | 1.61 | 1.59 | 1.26% | - |
| 4. | Debt- Equity Ratio | Debt / Total Shareholders Equity | Percentage | 0.01601 | 0.00054 | 2864.81% | Change was primarily on account of working capital demand loan availed during the year |
| 5. | Operating Profit Margin | (PBIT-Other Income) / Turnover | Percentage | 3.59% | 4.33% | -17.09% | |
| 6. | Net Profit Margin | Net Profit / Total Income | Percentage | 6.89% | 6.91% | -0.29% | - |
| 7. | Return on Net Worth | Net Profit / Average Net Worth | Percentage | 9.61 | 12.28 | -21.74% | |
| 8. | Interest Coverage Ratio | Profit before Tax and Interest (on Loan)/ Interest on Loan | In times | 1079.18 | Interest expenses incurred on the working capital loan availed during the current financial year. |
During FY 2025-26, the Company has complied with the guidelines prescribed by the Accounting Standards while preparing the financial statements (standalone and consolidated), and no deviation has been made in the reporting of the financial information.
OPERATIONAL PERFORMANCE SECTORAL PERFORMANCE
During FY 2025-26, around 82.5% of the revenue earned by IRCON is contributed by the Railway sector. The main focus business area for IRCON is Railways, however, the Company is also concentrating on Highways business, which generates approximately 14.22% of the revenue and remaining from other areas such as electrical and building works.
SECTOR WISE PERFORMANCE:
(? in Crore )
| FY2026 | FY2025 | FY2024 | ||||
| Sectors | Operating Income | % | Operating Income | % | Operating Income | % |
| Railways | 6,994.74 | 82.50 | 8,252.97 | 80.97 | 10,018.45 | 83.83 |
| Highways | 1,205.35 | 14.22 | 1,871.31 | 18.36 | 1,888.57 | 15.80 |
| Others | 278.77 | 3.28 | 68.86 | 0.67 | 43.37 | 0.37 |
| Total | 8,478.86 | 100.00 | 10,193.14 | 100.00 | 11,950.39 | 100.00 |
SEGMENT WISE PERFORMANCE:
(? in Crore )
| FY2026 | FY2025 | FY2024 | ||||
| Sectors | Total Operating | % | Total Operating | % | Total Operating | % |
| Income | Income | Income | ||||
| Foreign | 296.24 | 3.49 | 339.10 | 3.33 | 574.82 | 4.81 |
| Domestic | 8,182.62 | 96.51 | 9,854.04 | 96.67 | 11,375.58 | 95.19 |
| Total | 8,478.86 | 100.00 | 10,193.14 | 100.00 | 11,950.40 | 100.00 |
ORDER BOOK POSITION
Ministry of Railways had earlier changed its policy of awarding work on nomination basis to railway PSUs, the Railway works were being awarded through bidding process among railway PSUs. Later, in October 2021, the Ministry of Railways has revoked this policy of competition amongst the PSUs and open tendering has been introduced for awarding Railway works.
IRCONs order book, as on March 31, 2026, stood at ?24,984.47 Crore with ?19,459.35 Crore value of work in Railways sector and ?3,918.97 Crore value of work in Highway sector.
Out of the total order book, ?13,458.87 Crore value of work has been secured through competitive bidding and ?11,525.60 Crore value of work secured through nomination basis. The Company is trying to enhance its order book position and maintain its margins.
SWOT ANALYSIS STRENGTHS:
Strengths
?€? Extensive Industry Experience: Over 50 years of experience in successfully executing large and complex infrastructure projects across India and overseas, with proven expertise in delivering projects in challenging terrains such as the Jammu & Kashmir, Northeast India, and other difficult geographies.
?€? Strong Technical & Execution Capabilities: Possesses proven end-to-end project execution capabilities from Concept to Commissioning (C2C), supported by strong engineering expertise in delivering complex infrastructure projects, including railways, tunnelling, electrification, bridges, highways, station redevelopment, metro systems, and other EPC works.
?€? Experienced Leadership & Skilled Workforce:
Backed by a highly skilled technical workforce and an experienced leadership team that combines the domain expertise of Indian Railways with seasoned infrastructure professionals, enabling efficient project execution and delivery.
?€? Diversified Business Portfolio: Maintains a well- diversified business portfolio across railways, highways, buildings, metro rail, renewable energy, and other infrastructure sectors, with operations in both domestic and international markets, reducing dependence on any single segment and enhancing business resilience.
?€? Established Domestic & International Presence:
Executed 408 domestic projects and 131 international projects across the 25 countries. Strong execution footprint across 23 Indian states and presence in international markets, including Algeria, Sri Lanka, Myanmar, Nepal, and Bangladesh, demonstrating the capability to deliver projects in diverse regulatory and operating environments.
?€? Healthy Financial Position: Despite the challenging business environment, the company has maintained steady financial performance, reflected in consistent turnover and profitability. This is supported by a debt-free standalone balance sheet, strong liquidity, and a cash and bank balance. The company also has a consistent track record of rewarding shareholders through regular dividend payouts.
?€? Asset-Light Operating Model: Adopts an asset-light business model by leveraging strategic outsourcing and subcontracting, enabling efficient capital utilization, operational flexibility, and improved return on capital.
Weaknesses
?€? Operational constraints of being a PSU: Being a PSU, IRCON is required to comply with statutory regulations, public procurement norms, and administrative procedures that are more rigorous than those applicable to private sector companies. While these ensure transparency and accountability, they may limit operational flexibility and slow decisionmaking. The Company continuously streamlines internal processes, strengthens project governance, and leverages digital systems to improve operational efficiency while ensuring full regulatory compliance.
?€? Thin Operating Margins: The EPC business
is characterized by intense competition and competitive bidding, particularly in government infrastructure projects, resulting in relatively low operating margins. Limited pricing flexibility and exposure to cost escalations further constrain profitability and leave a narrow cushion against execution risks. The Company focuses on selective bidding, cost optimization, efficient project
execution, and effective contract management to sustain.
?€? Working Capital Intensive Business: The
infrastructure EPC business requires significant working capital due to long project execution cycles and milestone-based payment structures. Delays in work certification, client approvals, milestone payments, and receivable collections can adversely impact cash conversion, operating cash flows, and overall capital efficiency. The Company strengthens working capital management through close monitoring of receivables, timely billing, proactive stakeholder engagement, and efficient cash flow planning.
?€? Exposure to International Geopolitical Risks:
The Companys overseas operations expose it to geopolitical developments, changes in government policies, regulatory frameworks, currency fluctuations, and diplomatic relations in the countries where it operates, which may affect project execution and financial performance. The Company mitigates these risks through prudent project selection, continuous monitoring of geopolitical developments, contractual safeguards, and effective foreign exchange risk management. Opportunities
?€? Government-Led Infrastructure Growth: Continued Government emphasis on infrastructure development through initiatives such as the National Infrastructure Pipeline (NIP), PM Gati Shakti National Master Plan, Bharatmala Pariyojana, and railway modernisation is expected to generate significant opportunities across transportation, logistics, and urban infrastructure.
?€? Expansion in Emerging Infrastructure Segments:
Leveraging its core EPC expertise, IRCON is well positioned to expand into high-growth sectors such as renewable energy, metro rail, KAVACH (Automatic Train Protection System), water infrastructure, transmission, and other infrastructure projects.
?€? Growing Renewable Energy Opportunities: The
Governments strong focus on clean energy, including its target of achieving 500 GW of non-fossil fuel installed capacity by 2030, presents significant opportunities for IRCON to strengthen its presence in the renewable energy sector through its subsidiary and related infrastructure projects.
?€? Growth in Urban Infrastructure: Rapid urbanisation and increasing investments in metro rail, smart cities, multimodal transport systems, and urban mobility infrastructure across Tier-I and Tier-II cities are expected to create substantial business opportunities.
?€? Increasing Public-Private Partnership (PPP) Opportunities: The growing adoption of the PPP model for large infrastructure projects provides opportunities to collaborate with private sector partners through strategic joint ventures, enabling participation in larger and more complex projects while leveraging IRCONs execution capabilities and institutional credibility.
Threats
?€? Intensifying Competition: An increase in competition due to the presence of regional small players has led to intense price competition in the industry, potentially putting pressure on the companys turnover and margins.
?€? Changes in Government Policies and Spending:
A change in government or a shift in economic priorities could lead to a slowdown in work order and profitability. Earlier, the company was also securing the orders on nomination basis from the Ministry of Railways. However, government had changed its policy and now IRCON must compete with other PSUs as well as private companies to secure the orders. The company has been securing projects through competitive bidding for last many years.
?€? Regulatory and Environmental Delays: Infrastructure projects are highly susceptible to delays from land acquisition issues, environmental clearances, and local political opposition. These external factors are often beyond the companys control and can derail project timelines and budgets. However, IRCONs nearly five decades of execution experience, strong stakeholder management capabilities, and Government backing enable it to effectively navigate these challenges.
?€? Volatility in Raw Material Prices: Sharp fluctuations in the prices of key commodities like steel, cement, and fuel can significantly impact project costs, especially for fixed-price contracts, thereby squeezing margins. However, the company proactively addresses this issue by including price escalation clauses in contract agreements to mitigate the impact of price fluctuations.
?€? Geopolitical & Currency Exposure: Overseas
operations carry exposure to political instability, cross-border regulatory shifts and foreign exchange fluctuations. The Company mitigates these risks through prudent project selection, continuous monitoring of geopolitical developments, contractual safeguards, effective foreign exchange risk management, and close engagement with clients, funding agencies, and local authorities.
?€? Contractual Risks: Claims, arbitration, project
delays and client disputes may impact earnings and cash flows. Project timelines are frequently susceptible to site clearance delays, slow conversion of order inflows into revenue, and land acquisition bottlenecks. The Company follows robust project planning, regular monitoring, proactive stakeholder engagement, and effective contract administration to minimise execution delays. A dedicated claims management mechanism, periodic project reviews, and close coordination with clients and statutory authorities help expedite issue resolution, mitigate disputes.
FUTURE OUTLOOK
IRCON has a long-standing reputation as one of the industry leaders in transportation infrastructure with proven expertise in railway projects. As we move ahead, we plan to build on our strategy of diversifying across industry segments through new engines of growth. We endeavour to enhance our portfolio with projects in the domestic & international markets to achieve healthy order book and profit margins. Although, we continue to focus on the railway sector, through portfolio diversification we aim to hedge against risks in specific areas or projects and guard the Company against market variations resulting from business concentration in particular industry sectors and limited geographical regions.
We are confident that the company shall play a pivotal role in various infrastructure initiatives declared by the Government of India. We believe that we are well positioned to execute projects under these modes due to our strong technological capabilities and sound financial position. While, the Company has reduced order book position due to higher competition, however, with sound experience, expertise and solid credentials, we expect to see steady growth in our business, in the long run.
RISK MANAGEMENT
IRCON acknowledges that operating in the construction sector exposes the Company to inherent uncertainties and risks. The volatility of this sector introduces various external and internal risks that can impact both the financial and non-financial outcomes. Recognizing the importance of an integrated approach to risk management, IRCON has established a comprehensive Enterprise Risk Management (ERM) framework.
IRCON has had a Risk Management System in place since 2007, with the Risk Management Policy (RMP) initially formulated in 2013. Over time, the RMP has been amended to align with the changing business environment and regulatory requirements. The latest revision of the RMP was approved by the Board in December 2021, with the aim of fostering a higher level of risk awareness across the organization, encouraging broader participation, and cultivating a sustainable risk- aware culture.
In accordance with the ERM framework and SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, IRCON has established a Board Level Risk Management Committee (RMC). This committee reports to the Board providing insights into risk elements and mitigation plans, among other responsibilities.
The RMCs primary functions include identifying key riskbearing activities, assessing the gaps in risk potential compared to best business practices, identifying deficiencies in current business processes that may leave potential threats uncovered, establishing risk assessment control systems, reviewing risk assessment reports compiled by the Rapid Action Group (RAG), providing directions for improvements, and ensuring IRCONs preparedness for potential risks. The RMC is also responsible for formulating and reviewing the RMP, including the framework for identifying internal and external risks specific to the company, developing measures for risk mitigation and internal control systems, and monitoring implementation.
To ensure effective implementation of the Risk Management Policy, IRCON has established a Rapid Action Group at the Executive Director and Chief General Manager levels, along with business groups and internal audit teams. The Risk Management Policy, Risk Management Processes, and MIS report formats, including reports on Risk Management, have been developed in accordance with the ERM framework. Reports from the Rapid Action Group are submitted to the RMC for review. In line with the updated Risk Management Policy, the identification of critical risks, monitoring, review, mitigation plans, and corrective actions are now carried out through an Online Web- Based Risk Management IT Tool, which is reviewed by the RMC via the RAG for the Organizational Risk Repository.
In the Indian context, IRCON faces significant challenges in project execution, such as the non-availability of encumbrance-free land and delays in obtaining approvals for drawings and estimates. These factors pose risks of time and cost overruns, which are often uncompensated by the client. Additionally, the Company faces uncertainties in predicting project revenues, as they can vary due to various factors.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
A well-designed and consistently enforced system of operational and financial control is integral to safeguarding the Companys resources, ensuring the accuracy and integrity of financial reporting, and upholding compliance with pertinent laws and regulations. Additionally, such a system serves to mitigate the likelihood of substantial errors and irregularities, while facilitating their prompt identification upon occurrence. IRCON has instituted an internal control mechanism along with an Internal Audit Function tailored to its scale and operational scope, with the objective of augmenting operational efficacy and ensuring adherence to relevant statutory provisions, standards, and directives. Furthermore, the Company has established policies and guidelines optimizing the allocation of authority to streamline business processes.
In pursuit of enhancing the internal control system, the following actions have been executed:
Internal Financial Control (IFC)
The Company upholds sufficient Internal Control over Financial Reporting (ICFR) in compliance with the stipulations outlined in the Companies Act, 2013, which are meticulously enforced. These controls are structured to facilitate accurate maintenance of accounting records, orderly execution of business operations in accordance with company policies, safeguarding of assets, prevention and detection of fraud and errors, and ensuring the reliability of financial and operational information.
The internal financial control framework, encompassing ICFR, undergoes periodic evaluations to ensure its alignment with evolving business requisites. Any requisite modifications are instituted to augment its efficacy. The management ensures transparent disclosure of all pertinent financial information, furnishing a comprehensive insight into the Companys financial standing and operations.
Internal Audit
The Company engages experienced professional firms to conduct its Internal Audit, with the frequency of audits determined by the turnover and completion status of each project.
The Company has established and ratified its Internal Audit Framework, delineating the breadth of audit coverage. This framework covers various aspects, including financial accounting, financial reporting, tender and allied matters, project execution, procurement, sub-contracting, statutory compliance, and more. Both the management and the Audit Committee periodically review the internal control and audit systems, with corrective measures taken as necessary to ensure continuous improvement.
Furthermore, IRCON has an organizational chart in place, along with a system for delegation of power that undergoes regular updates to ensure alignment with current organizational structures. Additionally, the Company has instituted a structured Fraud Prevention, Detection, and Control Policy (FPDC Policy) and a Whistleblower Policy, endorsed by the Board of Directors. These policies establish channels for confidential e-complaints, fostering a culture of integrity within the organization.
QUALITY, SAFETY, HEALTH AND ENVIRONMENT STANDARDS
IRCON is an ISO certified Company for Quality, Environment and Occupational Health & Safety Management Systems. The Company has implemented a Quality Management System in accordance with ISO 9001:2015. It has also implemented an Environmental Management System in accordance with ISO 14001:2015 and Occupational Health and Safety Management System in accordance with IS0 45001:2018.
QUALITY
IRCON is a pioneer Public Sector Organization in adopting the Quality Management System Certification in the domestic as well as International Markets. Quality Management System (QMS) has been successfully sustained and continually improved since 1996 when the Company as a whole was first certified for ISO 9002:1994 by TUV SUD Private Limited. IRCON has continued the certification and sustained the system as per the latest version of Quality Management Standards, i.e. ISO 9001:2015 (by periodical re-certification audit after the expiry of every three years). Latest re-certification audit was conducted TUV SUD South Asia Private Limited in the month of February, 2026 and the validity of the certificate is up to March, 2029.
Department continued the initiative of sharing technical knowledge by adopting digital platform (i.e. Google Meet, Microsoft Teams etc.) on various topics as per the scope and many more technical as well as technological solutions prevailing in the core competence of the organization i.e. railways, highways, tunneling & other infrastructure projects.
In addition to this, new initiative for attracting the participation from each & every employee within the organization, conducted the quality circle meeting with project professionals for ensuring better product delivery as well as quality. RACI matrix has been defined & implemented at our project sites for maintaining the Quality of Works. Standardization of Project Procedure Manual (PPM) along with the material testing plan and formats have been made available on the internal website of the Company for knowledge sharing and helping the projects to prepare the required documents at project levels. Despite of the complex & diversified nature of projects, IRCON initiative for the standardization of quality procedures are the way forward towards attaining the complete integration within the organizational framework.
The Company nominates Quality Officers for major Indian projects to monitor QMS at their respective projects, and the same is also incorporated in General Conditions of Contract (GCC) of the Company for implementation of
Quality Management Standards by the Contractor while carrying out the work.
Project Quality Council meetings are being conducted to review the implementation of Quality Management System (QMS). The Quality objectives are being measured and reviewed both at the Corporate Office and at the Project levels. Internal Quality Audit, as well as Quality Assurance Audit, were conducted in coordination with the project and Corporate Office. Reports of these audits provide not only details of non- conformities encountered during the audit but also the salient features of the project, including progress, positive points if any and areas requiring improvements.
IRCON actively participates in the national events through competitions. IRCON received a prestigious "Quality Innovation Award, 2025" by The Institute of Engineers (India) for implementing Quality Management Systems. IRCON has also received a prestigious "Engineering Excellence in Himalayan Tunnelling, 2025" by The Tunnel Tech India.
OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEM
The Company established an Occupational Health & Safety Management System and was certified for ISO 45001:2004 in October, 2011. The latest surveillance audit for ISO 45001:2018 was conducted by TUV SUD South Asia Private Limited in the month of November, 2025, and the validity of the certificate is upto December, 2027.
The Company nominates SHE Officers for major Indian projects to monitor SHE compliance of the statutory laws at their respective projects, and the same is also incorporated in General Conditions of Contract (GCC) of the Company for implementation of SHE Management Standards by the Contractor while carrying out the work. In addition to this, document like Safety and Environmental checklists are also provided at IRCON intranet.
IRCON organises preventive health checkup and awareness camps for the employees at Corporate Office and Project Offices. During the period, IRCON organised health checkup camps at Corporate Office on general health checkup, hepatitis B&C, dengue and other vector borne diseases, awareness and checkup on breast cancer, awareness on stroke prevention etc.
IRCON actively participates in the national events through competitions. IRCON received a prestigious "Safety Innovation Award, 2025" by The Institute of Engineers (India) for implementing Safety Management Systems.
ENVIRONMENTAL MANAGEMENT SYSTEM (EMS)
The Company established an Environment Management System (EMS) and was certified for ISO 14001:2004 in October 2011. The latest re-certification audit for ISO 14001:2015 was conducted by TUV SUD South Asia Private Limited in the month of January, 2026, and the validity of certificate is upto February, 2029.
The Company nominates Environment Officers for major Indian projects to monitor EMS and compliance of the environmental laws at their respective projects and the same is also incorporated in General Conditions of Contract (GCC) of the Company for implementation of Environmental Management Standards by the contractor while carrying out the work. Environmental checklists have been developed and maintained by all projects. Further, environmentally friendly equipment such as solar panels have been installed and are being installed at various offices/projects. Waste water is recycled at Corporate Office through Sewage Treatment Plant (STP), and the same is used for horticulture work. STPs are also being constructed at IRCONs buildings at Noida and Gurugram.
To conserve electricity and water, LED lights, sensor lights and sensor taps are being used in Corporate Offices. Moreover, various environment-friendly steps are taken up across offices/projects of the Company, such as use of fly ash brick instead of clay brick, rainwater harvesting arrangements, sensor-controlled Chromium Plate (CP) fittings, and use of the latest version of facade glass (glass in the building) to make the building sustainable. At construction sites, regular monitoring of water usage and wastewater, ambient air quality and noise quality are being carried out.
Being the environment friendly organization, IRCON actively participates in the national & international events (i.e. world environment day) through competitions & display of banners in order to inculcate the awareness towards the protection of environment among its stakeholders.
IRCON actively participates in the national events through competitions. IRCON received a prestigious "Best Construction Project USBRL, 2025" by The Infrastructure Skill Development Academy (ISDA) for dedication and commitment to sustainability in industry.
HUMAN RESOURCES
IRCON recognizes that its employees are fundamental to its success and are instrumental in upholding the organizations values and culture. The Company is committed to achieving its organizational goals by investing in the development of its human resources, ensuring that they possess the necessary skills and competencies to effectively contribute to the Companys business objectives. IRCONs efforts in human resources development are in line with industry standards, ensuring that its workforce remains equipped with the required knowledge and expertise. The Company places great importance on fostering a positive workplace environment and consistently works towards maintaining it. IRCON strives to create a motivating and satisfying atmosphere where employees are encouraged to make valuable contributions to the companys growth and success.
The Company takes pride in its highly motivated and competent human resource and its contribution. The total employee strength of our company stood at 1070 as on March 31, 2026 which included 793 regular employees, 25 employees on deputation, 194 on contractual, 54 consultants / advisors and 04 on fixed tenure basis. The attrition rate during FY 2025-26 stood 15.08% in comparison to 9.17% during last year.
Employee Productivity
The total income of the Company for FY 2025-26 is ?8978.58 Crore and overall income per employee for FY 2025-26 stood at ?8.39 Crore.
Recruitment
To maintain its competitive edge, the Company is committed to attracting and onboarding top talent at all levels. This is achieved through various means, including recruiting fresh graduate engineers, professionals, and management trainees. The Company also brings in experienced personnel from the open market, through deputation or absorption from other government departments and railways, as well as by hiring retired staff and utilizing third-party payroll services. The Company follows best recruitment practices to ensure equal opportunities and a harmonious working environment for the advancement of employees from diverse backgrounds, including SC, ST, OBC, minorities, and women. These policies reflect the inclusive and forwardthinking mindset of the management, with a strong emphasis on being an "Equal Opportunity Employer". The Company continuously reviews and refines its recruitment strategies to align them with its broader goals and objectives.
During FY 2025-2026, 37 employees were recruited on a full-time basis while 38 were recruited on contractual basis, as a policy of inclusive employment, 14 of those inducted on full-time basis belong to the SC/ST/OBC/ EWS category and 27 of those inducted on contractual basis (excluding service contract) belong to SC/ST/ OBC/EWS category. The Company has also implemented EWS reservation with 6 EWS category employees being inducted.
Deputation
To meet its continuous need for trained and experienced manpower, especially in view of project requirements, experienced and trained manpower is inducted from Indian Railways and other Government departments on deputation on a fixed tenure basis. During the year, 10 personnel were inducted on deputation, bringing the total manpower on deputation to 25.
Training and Development
IRCON is moving towards a competency-based framework with the aim of building competency pool of the employees at all levels. In order to impart adequate training to employees and thereby enhance the performance of the organization, training needs are assessed effectively in alignment with the respective competency frameworks.
Considering the Training and Development as a high focus area, employees are being trained in various domains such as Contract Management, Quality Management System, Track Works, Bridges & Structures, Safety Health & Environment Rules & Regulation along with implementation, Time Management etc. During the year, 1760 man-days of training was imparted, which covered around 617 employees, which included Training Programme on GST Training, National Level Special- Vendor Development Program, especially for SC & ST & Women Entrepreneur, Related Party Transaction, New Labor Codes, Direct Tax and Indirect Tax Reservation Policy and Recession Policy in Recruitment Process and Preparation & Maintenance of Reservation Roster, Management Development Programme, Training on POSH Act, Executive Development Program on Construction Law and Dispute Resolution, Health Awareness Talk, virtual Training Programmes and many other behavioural, technical, non-technical internal and external training, seminars, workshops were imparted. Strengthening our human capital is, therefore, core to our operations. IRCON runs multiple initiatives to help employees grow in their careers. Progressive policies such as a mentoring and skill development programmes for junior employees, and special leadership development programs for senior employees, have gone toward making the workplace more employee-friendly.
Career Progression
The Companys promotion policy is well-established and proven effective over time. It ensures that deserving employees have ample opportunities for career advancement and facilitates succession planning. Promotions are based on merit, suitability, performance, and professional accomplishments that align with the organizations business requirements. In the Departmental Promotion Committee (DPC) of 2025, a total of 97 promotions have been granted in the executive category so far while 12 promotions were awarded in the non- executive category.
Performance Management System
The Company has implemented an IT-enabled Performance Management System that is linked with a Performance Related Pay (PRP) system. This PRP system effectively captures various aspects of employee performance, including company performance, team performance, and individual contributions towards achieving the Companys annual objectives. The emphasis on team performance promotes a collaborative and cohesive work environment, where employees are motivated to work together synergistically to achieve team objectives. This approach facilitates the attainment of the Companys long-term goals, such as maintaining minimum wages and other benefits.
Use of Information Technology Tools
The IT Department has taken a leap forward to keeping records in digitized format and implementing e-office for day-to-day operations. HR functions such as Employee Records, Leave Records, Performance Management System (PMS), Annual Property Returns, Employee Engagement, etc. have been put in an e-format, thereby reducing paper use, bringing transparency and efficiency, and improving quality. The policies and programmes are communicated to employees through the Employee SelfService portal and various social media modes.
Motivation, Awards and Recognition
To recognize the exceptional performance, periodic awards and recognition are given to employees. The meritorious employee delivering the exceptional performance in a financial year is awarded with CMD Award. In addition, various individual and group awards are given to employees for their exceptional performance during the year.
Employee Welfare
During the employment, employees are provided with generous perks, allowances, and facilities, encompassing both monetary and non-monetary benefits. These include transportation assistance, housing options, leased accommodation, subsidized food, and medical facilities. The Companys main objective is to enhance the quality of life for its employees, and as such, it has implemented various schemes to improve their overall welfare.
In addition to statutory benefits such as Maternity, Paternity & Adoption Leave, First Aid Facility, and payment of scholarship cash awards for education and higher education of employees wards, the Company offers several Employee Assistance Programs. These programs encompass training, advances, a house lease policy to provide better living conditions, and support for employees suffering from prolonged illnesses or terminal diseases. Periodic gifts, such as superannuation gifts, marriage gifts, birthday gifts etc., are granted to foster a sense of belongingness among employees and create a positive work environment.
The Company provides liberal superannuation benefits, including Provident Fund, Gratuity, Pension, and PostRetirement Medical Scheme, which serve as retention tools and offer social security to employees.
Women Development
The Company has implemented best practices to ensure equal opportunities and a harmonious working environment for the growth and advancement of women employees. Various programs on gender issues, prevention of sexual harassment, and conducive working conditions are conducted to address these concerns. Women employees are provided with opportunities to participate in meetings, project work, and committees, promoting equal opportunity without gender bias. The management has always been at the forefront of adopting practices that create an environment where women feel empowered, confident, and able to make decisions. To ensure a safe and secure working atmosphere for women employees, a committee for the Prevention of Sexual Harassment at the Workplace (POSH) has been established. This committee aims to provide a supportive framework and address any instances of sexual harassment.
Grievance Redressal
To promptly address and resolve employee grievance fairly and equitably, a grievance redressal system is present in the Company wherein employee can submit their grievance to appropriate authority for redressal. In addition, online grievances can be made to the Ministry of Railways through the Centralized Public Grievance Redress & Monitoring System (CPGRAMS) portal.
Whistle Blower Policy
IRCON has a separate and well-structured Vigilance Department, which deals with frauds or suspected malpractices involving employees, contractors, suppliers, consultants, service providers or those doing business with the Company.
Besides, a Whistle Blower and Fraud Prevention and Detection Policies have been approved by the Board of Directors to monitor unethical activities and are available on the website of the Company.
CONTRIBUTION TO GOVT. OF INDIA INITIATIVES
IRCON has actively aligned its operations with flagship Government of India initiatives:
?€? Skill India: Upskilling workforce through training programs.
?€? Swachh Bharat Mission: Promoting cleanliness at project sites and offices.
?€? Start-up India: Encouraging innovation in project execution.
?€? Make in India: Prioritizing domestic sourcing and manufacturing.
?€? Digital India: Implementing digital project monitoring tools.
?€? Solar Ecosystem: Promoting renewable energy in infrastructure projects.
PROMOTING MSMEs
Being a CPSE, the Companys procurement policy and practices are guided by the ongoing Government policies and practices including the CVC Guidelines. These are based on transparent procurement mechanism which enables procurement from local and small manufacturers/ suppliers/ service providers etc. IRCON is procuring goods and services in line with the Public Procurement Policy for Micro and Small Enterprises (MSEs) Amendment Order, 2022 from MSEs. Accordingly, purchase preference is given to those micro & small enterprises quoting their price within the price band of L1+15% as prescribed in the Public Procurement Policy for Micro and Small Enterprises (MSEs) Amendment Order, 2022. The Company has also adopted fair, equitable and transparent tendering procedures to encourage Indian bidders and suppliers. Furthermore, Vendor Development Program for MSEs is also organized by the Company to bring more awareness among MSEs and increase their participation.
During the FY 2025-26, the Company has procured items valuing ?32.14 Crore from MSE vendors against total procurement valuing ?83.79 Crore (excluding the procurement of items which are beyond the scope of MSEs) towards goods & services, thereby achieving 38.36% procurement from MSEs.
The Company has conducted four Vendor Development Programs during FY 2025-26. Details are as under-
1. "National Level - Special Vendor Development
Program" for Micro and Small Enterprises especially owned by SC/ST and Women entrepreneurs
organized in IRCON Corporate Office on 24.06.2025.
2. National Level - Special Vendor Development
Program" for Micro and Small Enterprises especially owned by SC/ST and Women entrepreneurs
organized by IRCON International Limited in association with NSSHO, Agra through online mode on 10.09.2025
3. One day National Level Special Vendor Development Programme (VDP) organised at IRCON CO, Saket on 19.12.2025
4. Two-Day Vendor Development Programme (VDP) cum Industrial Exhibition scheduled for March 11th and 12th, 2026, at Maharaja Surajmal Institute of Technology.
The Company has been extensively following the guidelines of Government on procurement through Government e-Market place (GeM) and provisions are also made in tenders to promote "Make in India" directives of the Government of India by giving preference to the Class-I Local suppliers & calling of tenders upto ?200 Crore through National Competitive Bidding in line with the Public Procurement (Preference to Make in India), Order 2017.
CAUTIONARY STATEMENT
Statements made in the Management Discussion and Analysis Report describing the Companys objective, projections, estimates, expectations may be forwardlooking statements within the meaning of applicable laws and regulations, based on beliefs of the management of the Company. Such statements reflect the Companys current views with respect to the future events and are subject to risks and uncertainties. Many factors could cause the actual result to be materially different from those projected in this report, including among others, changes in the general economic and business conditions affecting the segment in which the Company operates, changes in business strategy, changes in interest rates, inflation, deflation, foreign exchange rates, competition in the industry, changes in Governmental Regulations, tax laws and other Statutes & other incidental factors. The Company does not undertake any obligation to update any forward-looking statements publicly, whether as a result of new information, future events or otherwise.
For and on behalf of the Board of Directors
Sd/-
(Saleem Ahmad)
Chairman & Managing Director & CEO (DIN: 10119432)
Date: August 25, 2026 Place: New Delhi
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