Ircon’s profit falls 25.44% QoQ as tax rate rises and other income drops
Revenue grew 16.11% sequentially, but faster expense growth, lower other income and a higher tax rate reduced profit.
Filed 04 Nov 2026, 16:19 IST · after market close · Ircon International Ltd (IRCON)
Key takeaways
- Standalone revenue grew +16.11% QoQ, but expenses grew +16.66%, trimming operating margin by 0.45 percentage points.
- Standalone net profit declined -25.44% QoQ as the tax rate rose 13.03 percentage points and other income fell -22.74%.
- Ircon’s 4.86% operating margin was 6.22 percentage points below the 11.08% Industrials peer median across 113 reported companies.
Price around the results
Revenue grew, but profit declined sequentially
Ircon’s standalone revenue rose +16.11% QoQ, while operating profit increased only +6.29%. Net profit declined -25.44% as profit before tax fell -11.02%, despite lower interest expense. The key offset was other income, which fell -22.74%.
Faster cost growth narrowed the operating margin
Expenses grew +16.66%, faster than revenue at +16.11%, so operating margin narrowed by 0.45 percentage points to 4.86%. Other income accounted for 53.87% of profit before tax, making reported earnings materially reliant on non-operating income. The tax rate also rose 13.03 percentage points to 32.68%, while interest expense fell -25.23%.
Ircon ranked near the bottom of reported Industrials margins
Ircon’s 4.86% operating margin was 6.22 percentage points below the 11.08% median among 113 Industrials companies that had reported the quarter. The company ranked ninth from the bottom on this measure. Sequentially, margin also moved down from 5.31% in Q1FY27, marking a quarter-on-quarter deterioration.
Results were filed after market close
Ircon filed the standalone results after market close on 4 Nov 2026. A post-results stock response was therefore not yet established.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹2,090 cr | ₹1,800 cr | +16.11% |
| Other income | ₹98 cr | ₹126 cr | -22.74% |
| Expenses | ₹1,989 cr | ₹1,705 cr | +16.66% |
| Operating profit | ₹102 cr | ₹96 cr | +6.29% |
| Operating margin (%) | 4.86% | 5.31% | — |
| Interest | ₹2 cr | ₹3 cr | -25.23% |
| Depreciation | ₹16 cr | ₹15 cr | +3.59% |
| Profit before tax | ₹181 cr | ₹204 cr | -11.02% |
| Tax | ₹59 cr | ₹40 cr | +47.95% |
| Net profit | ₹122 cr | ₹164 cr | -25.44% |
| EPS (₹) | ₹1.30 | ₹1.74 | -25.29% |
Operating margin of 4.86% compares with a Industrials sector median of 11.08% across 113 peers that have reported Q2FY27.
What to watch
- Whether expenses grow slower than revenue after rising +16.66% QoQ versus revenue growth of +16.11%.
- Whether operating margin recovers from 4.86% after the 0.45-percentage-point sequential decline.
- Whether other income remains a smaller contributor than its 53.87% share of profit before tax.