Thank you. Thank you so much, Bhumika.

Good afternoon, everyone. I am Ragini Advani, Director Finance, IRCON.

I apologize, earlier CMD sir was scheduled to join this call, but a last-minute visit has taken place in one of our projects for some senior-level review by Ministry of Railways, and therefore he also was required to personally attend the project site. On behalf of my team, I extend a very warm welcome to all of you, and thank you for your presence today at the IRCON's earning call for Q2 and H1 FY26.

Although this quarter has been challenging for the company, we have been striving hard to sustain and improve our performance. Financial results as well as presentation have already been uploaded on the stock exchanges.

I'm sure that all of you've had the opportunity to review these documents. Let me briefly give you a snapshot of our financial performance for Q2 FY26.

The company has reported a total revenue of ₹2,112 crore, a PAT of ₹137 crore, and an core EBITDA of ₹162 crore in Q2 FY26. Earnings per share stands at ₹1.47 per equity share in Q2 FY26 on half-yearly basis, and this is on a face value of ₹2 per share.

Order book of the company stood at ₹23,865 crore as at 30th September '25. About 63% was from competition and balance from nomination, and about 91% of our order book is relating to domestic projects and the balance international.

IRCON has 11 subsidiaries and 7 joint venture companies, including a renewable power company. Now, without taking much time, I would like to open the floor for a Q&A session.

Thank you.

Good afternoon, ma'am. Thank you for taking my question.

I had two, three questions which I'd like to get answered. One was the other income has come down.

Any specific reason for this, ma'am?

You're talking on other income on consolidated basis?

Yes, yes, ma'am.

Other income has actually gone up.

My apologies. On the standalone I was talking about.

Even in standalone it has gone up.

Okay. Other income, yes.

Yes.

Okay. My my bad.

Ma'am, share from the profit sharing from the JVs, can you share some light on it, how will it be going forward?

In our joint venture companies, we have one of our highway projects, it's called Ircon Soma Tollway Limited. That has been giving us profits.

Going forward, the concession period is ending next year. This has been giving us good profits over the past few years and is expected to do so for the current financial year as well.

We have some coal joint venture companies in which CERL 1, which is one of the coal connectivity projects, that is only operational as of now. The balance are all under construction.

In CERL Phase 1, there have been losses, and we expect it to break even by the year or two years later. Right now, this project is undergoing losses, and the reason for that is that while our track is ready, mainly, but the mines which had to come up around that area, some of them have come up, some of them have not come up.

There is a spur line that we are going to be ready with by the end of this financial year, after which there should be traffic enhancement. For it to break even, it'll take another let's say about 18 months to about 20 months period.

That is about the coal JVs. We also have another joint venture company, which is ISRDC, Indian Railway Stations Development Corporation.

That is under closure. We are at the final leg now, where we are in the process of appointing liquidator for that company.

We shall be getting back our investment again, spread over a period of time, but maybe a significant amount should come back to us by about beginning of next year.

Okay. Thank you.

Thank you so much. My another question is we're doing quite well on the international front.

We will be maintaining the same margins or they are poised to go upwards from here?

On international front, while we definitely have better margins, also it's given us a benefit. As we are all aware about the rupee depreciation that's been happening, and therefore we've had good foreign exchange earnings in this year.

One of our projects, which is in Bangladesh, Khulna-Mongla, we've had roughly about 20 crore of realized foreign exchange earnings from there because of the exchange rate differences.

Got it, ma'am. What will be the split, ma'am, between domestic and international projects?

From a turnover perspective, is as much as 96% to 4% when it comes to turnover. From an order book perspective, we have international order book of about 10%.

Okay. Thank you.

Thank you, ma'am. That's it from my side.

Thank you. Thank you so much.

Thank you.

Yeah. Thank you for the opportunity.

My first question is on margin front. Any specific reason why the margin is dent in this quarter?

How one should look at the full year for FY26 and FY27?

Yes, margins have taken a dent. We have had a series of reasons.

One, of course, has been that as I mentioned that in CERL, we've been continuously having losses on a consolidated level, which has resulted in our reduction in income. Also, on a consolidated basis, we've had some adverse impact in our subsidiaries, which are also under construction, but that should get negated or kind of offset by next financial year, and that itself has also contributed to our lower margins.

Having said that, as I had mentioned in my earlier calls also, we were expecting 1/2% to 1% reduction in our margins in terms of our normal projects that we had, and which has been the case. The new projects that we've been winning are on lower margins, and some of my projects, in fact two of them, we've had some losses which we have booked.

Partly in March we had booked, and some more came up, which is what we've effected in this half-yearly result. All these are the reasons for slightly lower EBITDA margins as well as PBT and PAT.

Having said that, we continue to say that our PAT margins going forward will be in the range of 6%

to 7%. Got it.

Got it.

[Sectors perspective?] , yeah.

My second question is on order inflow side. How much we are targeting for the full year?

The last question on the revenue front, as 1H is on the lower side, how we are looking execution for second H and for full year next year, FY27?

Yeah. The first in terms of order book, we have got orders more than 4,000 crore in the first half of this financial year, and we expect something of a similar range going forward.

In terms of turnover, yes, our six months turnover has been slightly on the downside, but it's normally the latter half which picks up. We expect that on a console level, we should be having an operating revenue in the range of about 10,000 to 11,000 crore.

For going forward for the next year also, we maintain a similar level, which will be around 10,000 crores. Does that answer your question, Shreyans?

Hello?

Yeah. Ma'am.

Got it, got it. Thanks.

Thank you.

Ma'am. Thanks for the opportunity.

Am I audible?

Vishal. Thank you.

I can hear you.

Yeah. Fine, ma'am.

Ma'am, one thing which I am noticing is you mentioned order inflow is 4,000-odd crore first half, but I think looks like is there change in the scope of existing work? Because on a implied basis, the order book has seen good increase on a quarter-on-quarter basis.

That's right. There has been some increase in our existing jobs as well.

Okay. When you indicated second half we'll do a inflow, is that say to the extent the fresh inflow of 4,000 similarly that we are targeting or probably some bit of scope change or anything yes, we're expecting in the second half?

No, no. Fresh inflow itself we are targeting in that range.

Okay. Okay.

Got it, ma'am. In terms of our segmental performance, at international side, though it's a smaller piece, but EBIT-level margins are more than 100%.

I think you briefly touched there is a forex gain. Is that the same thing which is coming in the segmental leading to better margins?

That's right.

That's right. In international projects, anyway we tend to have higher margins than domestic.

Over and above that, we've had foreign exchange gains, the significant one being in our Khulna-Mongla, Bangladesh project, which has contributed to this significant increase in EBITDA margins of foreign projects.

Okay. Sorry, I think you did mention on the number.

What is this one-off number of forex, ma'am?

The overall number I think is about 30 crore, and out of which significant amount, about 20 crore, is Khulna-Mongla.

Okay. Then, if we take that number off from our reported margins, then it looks like for a domestic project which you are executing, the margins are very dropping.

Dropping. Is it

dropping,

yeah. So

As I mentioned that on a normal course, we have been taking jobs now at much stiffer margins, and because of which, going forward, there would be a drop of about 1% in my normal execution of projects, which is what you would have seen that our project cost has gone up. Over and above that, we've also had certain losses that we had to book on two of our projects.

That should be hopefully one-off items.

Okay. Okay.

At a yearly basis, probably the margin compression will be to the extent of maybe 1 percentage points.

Yes, yes.

Okay. Can you give some color in terms of inflow?

I think though the order win which was there in last year, should be a '25, from that side, I think first half numbers are very good. Any changes that we are seeing as the competition has gone down, or are there new segments that we are adding up, which is leading to this inflow?

Any color that can be provided will be helpful, ma'am.

Yes, while we continue to focus on railways and EPC projects and roads, which has also been our main forte even now, as we mentioned earlier also, we have moved into Kavach as one of the segments, and in that, we have been taking certain jobs. Also, we have tried diversifying into certain other areas while picking up the jobs.

We've recently taken one particular project in a hydropower project. These are things which we are trying to diversify, to understand nuances of that industry and see if we can get more projects there, because the market per se has been very tough for us.

There's been a lot of competition. Many of the jobs are being quoted below estimates, which means that even if you were to win a job, the margins get very stiff.

Initially, till about a year before, we were trying to continue getting margins intact, and therefore basically we were trying to make sure that we do not compromise on the margins. Recently we've had this change in our attitude wherein we have Just a second.

[Hindi PA announcement] Sorry, there's been some Sorry. Are you there, Vishal?

Yes, ma'am. Yes, ma'am.

I'm so sorry. There was actually an announcement which was happening in our company, so that's why I had to put you on mute.

I was saying that we've had some change in our course wherein now we are also going with aggressive margins and trying to get orders. That's why you would see that our first half in this year, we've managed to get orders more than what we had got last year.

It does mean that there's been some impact on our margins, because that's how the industry is being right now.

Okay. Okay.

Okay. In terms of the margins and competition which you mentioned, last year again, I think in your earnings call commentary, you have mentioned competition is there.

Is there any concern at even the regulators or maybe the agencies who are calling these bids, though they are awarding the projects or there could be a chance these projects may not see light of the day? Any thought that you're seeing even in terms of roads or maybe any sector or probably no ministry or maybe any agencies they are not

Yeah. At least in roads, we've been hearing and seeing it in our newspapers as well.

There has been a lot of focus on the quality, and there have been repeated messages from NHAI as well as from the MoRTH Ministry saying that quality matters, and they're going to go stiffer in terms of the contractors who are not performing or whose quality is not up to the mark, and they are actually working on that side and taking some actions, except that we'll get to know that over a period of time. I'm sure something similar would also be taken up in railways, but it may take some time.

We are also waiting for that to happen.

Okay. Okay.

Got it, ma'am. Got it.

I think that's all from my side, and thank you for the detailed explanation.

Thank you. Thank you.

Thanks. Thank you.

Thank you. Thank you, Ms.

Bhumika, for moderating the call. I would like to thank all our stakeholders, shareholders, business partners, analysts, investor friends who have shown continued support and faith on us.

We would also be happy to connect with you on one-to-one basis as and when required, and for any further queries that you may have. Thank you all, please, for your participation.