Ircon International Limited (IRCON) is a Navratna Central Public Sector Enterprise under the Ministry of Railways, Government of India. Incorporated in 1976, IRCON has evolved from a railway construction specialist into a diversified infrastructure player executing complex projects in railways, highways, bridges, airports, and metro systems across India and 35+ countries. As of January 2026, IRCON is trading at a P/E of 20.73x with a healthy ROE of 12.28% and ROCE of 16.24%—but faces near-term headwinds with -14.70% sales growth and -14.52% profit decline due to project execution delays and revenue recognition cycles. Crucially, it is debt-free with ₹4,124 Cr in cash, offering strong balance sheet resilience. This article provides a realistic outlook on the IRCON share price target 2026–2030.
Ircon International: Company Overview
- Incorporated: 1976
- Chairman & Managing Director: Shri Sudhir Singh
- NSE Symbol: IRCON
- Core Segments:
- Railway Infrastructure (65%)
- Highways & Bridges (20%)
- Metro, Airports & Overseas Projects (15%)
- Market Position: Among India’s top 3 railway EPC contractors; key player in PM GatiShakti and Bharatmala projects
IRCON benefits from sovereign backing, zero debt, and a robust order book exceeding ₹40,000 Cr—but suffers from lumpy revenue recognition and working capital volatility.
IRCON: Key Financial Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹153.00 |
| Market Capitalization | ₹14,389.89 Cr |
| No. of Shares Outstanding | 94.05 Cr |
| P/E Ratio (TTM) | 20.73 |
| P/B Ratio | 2.23 |
| EPS (TTM) | ₹7.38 |
| Book Value (TTM) | ₹68.67 |
| ROE | 12.28% |
| ROCE | 16.24% |
| Dividend Yield | 1.73% |
| Face Value | ₹2 |
| Cash | ₹4,123.91 Cr |
| Debt | ₹0 Cr |
| Promoter Holding | 65.17% |
| Sales Growth (YoY) | –14.70% |
| Profit Growth (YoY) | –14.52% |
Note: The YoY decline reflects timing of project milestones—not loss of business. Order inflows remain strong.
IRCON Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹166 – ₹184 |
| 2027 | ₹180 – ₹202 |
| 2028 | ₹194 – ₹222 |
| 2029 | ₹208 – ₹244 |
| 2030 | ₹222 – ₹270 |
Important: These targets assume no major project delays, stable government capex, and gradual margin recovery. Upside is limited by low operating leverage; downside is cushioned by cash and dividends.
IRCON Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹166 | ₹184 |
IRCON reported a 14.5% YoY profit decline in FY25 due to lower revenue recognition from overseas projects and domestic execution bottlenecks. However, with zero debt, ₹4,124 Cr cash, and 12.28% ROE, the stock is fairly valued at 20.7x P/E. The 2026 target assumes normalization of project billing and stable margins (~8–9% OPM).
IRCON Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹180 | ₹202 |
If IRCON sustains 10–12% earnings growth and benefits from railway modernization (e.g., Vande Bharat corridors, Dedicated Freight Corridors), EPS could reach ₹8.00–₹8.50 by FY27. Assuming a P/E of 21–22x, the 2027 target range is justified.
IRCON Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹194 | ₹222 |
By 2028, benefits from international contracts (Africa, Middle East) and metro rail expansions should reflect in margins. A P/E of 22–23x on projected EPS of ₹8.50–₹9.00 supports the ₹194–₹222 band.
IRCON Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹208 | ₹244 |
Long-term tailwinds include India’s $1.3 trillion infrastructure push and IRCON’s eligibility for global World Bank-funded projects. If competition doesn’t erode pricing, EPS could reach ₹9.20–₹9.80 by FY29. At a P/E of 22–24x, the 2029 target is ₹208–₹244.
IRCON Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹222 | ₹270 |
Over a five-year horizon, IRCON remains a moderate-growth, policy-driven PSU. A terminal P/E of 23–25x on FY30 EPS (~₹9.50–₹10.20) justifies the ₹222–₹270 range.
IRCON: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Promoters (GOI) | 65.17% |
| Public & Retail | 28.28% |
| Foreign Institutional Investors (FII) | 4.54% |
| Domestic Institutional Investors (DII) | 2.00% |
High government ownership ensures policy alignment but limits float liquidity.
IRCON: Strengths vs Risks
Strengths:
- Zero debt and high cash balance (₹4,124 Cr)
- Strong order book (>₹40,000 Cr) with long-term visibility
- Consistent dividend payer (1.73% yield + 34% payout)
- Navratna status ensures priority in government tenders
Risks:
- Negative sales/profit growth due to the lumpy project cycle
- Low operating margins (~7–8%) limit upside
- Vulnerable to political delays and land acquisition issues
- High debtor days (45+) strain working capital
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | Moderate |
| Ideal Time Horizon | 5+ years |
| Volatility | Lower than private EPC peers |
| Dividend/Income Potential | Moderate (1.73% yield) |
| Best For | Conservative investors seeking PSU exposure with dividend safety |
Final Verdict
Ircon International is a strategically important but operationally cyclical PSU. While near-term growth is muted, its debt-free status, cash reserves, and dividend track record make it a reliable holding for conservative portfolios.
Our IRCON share price target 2026–2030 (₹166 to ₹270) reflects cautious optimism—rooted in policy support but tempered by execution risk. Upside is modest; downside is limited by asset value and dividends.
Disclaimer: Price targets are estimates based on publicly available data and sector analysis. They are not investment advice. Consult a SEBI-registered advisor before making decisions.
Sources
- Screener.in – IRCON Consolidated Page (FY2025 + TTM)
- Finology Ticker – IRCON Financials & Analysis
- Ministry of Railways – Annual Report 2025
- IRCON Investor Presentation (Q3 FY26, Jan 2026)
