Ircon's 10.49% operating margin trails 119 Industrials peers
Interest of Rs 106.98 cr weighed on profit conversion, while the investor presentation highlighted the government's 100-terminal logistics plan.
Filed 12 Aug 2026, 17:23 IST · after market close · Ircon International Ltd (IRCON)
Key takeaways
- Consolidated Q1FY27 operating profit of Rs 205.14 cr left net profit at Rs 92.03 cr after Rs 106.98 cr of interest.
- Ircon's 10.49% operating margin was 3.54 percentage points below the 14.03% Industrials median across 119 reporting peers.
- Management's presentation cited the government's plan to develop 100 PM Gati Shakti Cargo Terminals for multimodal logistics.
Price around the results
Interest weighed on operating-to-net profit conversion
Ircon reported consolidated operating profit of Rs 205.14 cr, but interest of Rs 106.98 cr and depreciation of Rs 44.89 cr materially reduced the amount reaching pre-tax profit. Other income of Rs 73.54 cr supported profit before tax of Rs 126.81 cr, making the reported net profit of Rs 92.03 cr less reflective of operating earnings alone. The tax rate was 27.43%.
Operating margin sits below the Industrials peer median
Ircon's 10.49% operating margin was 3.54 percentage points below the 14.03% median for the 119 Industrials companies that had reported the same quarter. That places the company at rank 39 from the bottom, indicating that operating profitability was weaker than the sector comparison available for this reporting season.
Presentation points to a 100-terminal logistics opportunity
Management's presentation said the government plans to develop 100 PM Gati Shakti Cargo Terminals for multimodal logistics. The statement links Ircon's business context to a proposed expansion in logistics infrastructure, but does not quantify the company's expected contribution.
Results were filed after market close
Ircon filed the consolidated results at 17:23 IST on 12 Aug 2026, after the market closed. The stock's immediate reaction is therefore not covered in this release.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹1,956 cr |
| Other income | ₹74 cr |
| Expenses | ₹1,751 cr |
| Operating profit | ₹205 cr |
| Operating margin (%) | 10.49% |
| Interest | ₹107 cr |
| Depreciation | ₹45 cr |
| Profit before tax | ₹127 cr |
| Tax | ₹35 cr |
| Net profit | ₹92 cr |
| EPS (₹) | ₹0.99 |
Operating margin of 10.49% compares with a Industrials sector median of 14.03% across 119 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The government plans to develop 100 PM Gati Shakti Cargo Terminals for multimodal logistics.
What to watch
- Whether operating margin narrows the 3.54-percentage-point gap to the 14.03% Industrials median.
- Whether interest remains below operating profit of Rs 205.14 cr.
- Progress on the proposed 100 PM Gati Shakti Cargo Terminals.