SYNOPSIS: This Navratna PSU faces an adverse Patna High Court ruling upholding Rs. 108.75 crore VAT demand related to the Ganga Bridge Project, with the company considering further legal recourse.
Shares of a Navratna public sector enterprise and a leading turnkey construction company in the public sector (under the Ministry of Railways) are trading in red on Friday, after facing Rs. 108 crore VAT demand after the Patna HC ruling in the Ganga bridge case.
With a market cap of Rs. 13,491.7 crores, shares of Ircon International Limited were trading in the red at Rs. 143.45 on BSE, down by over 1 percent, compared to its previous closing price of Rs. 145.1. The stock has delivered negative returns of around 4 percent in the last one year, and has fallen by about 8 percent in one month.
What’s the News
As per the latest disclosures with the stock exchanges, Ircon International Limited has received an adverse ruling from the Hon’ble High Court of Patna concerning VAT assessments linked to the Ganga Bridge Project executed by the company. The matter relates to assessment years spanning 2010-11 to 2016-17.
The VAT proceedings for the said period had resulted in a tax demand of Rs. 108.75 crore, which the company had already disclosed as a contingent liability in its financial statements. Ircon had earlier challenged the assessment orders by filing a writ petition before the Patna High Court and had obtained a stay on recovery during the pendency of the case.
After hearings concluded in early December 2025, the matter was reserved for orders. Subsequently, through its judgment dated 25th February 2026, the High Court dismissed Ircon’s petition, thereby upholding the tax demand raised by the authorities.
Of the total demand amount, Ircon has already deposited Rs. 27.39 crore. The remaining outstanding stands at Rs. 81.36 crore, excluding applicable interest, which is yet to be computed by the VAT department. The company is currently examining the detailed judgment and has indicated that it will evaluate further legal options, including the possibility of filing an appeal before a higher judicial forum.
Financials, Order Book & More
Ircon International Limited is a public sector construction company, with a focus on infrastructure projects and specialisation in the execution of Railway projects on a turnkey basis and otherwise. Additionally, it is engaged in roads, buildings, electrical substation and distribution, airport construction, commercial complexes, and metro rail works.
The company has widespread operations in several states in India and other countries, including Malaysia, Nepal, Bangladesh, Algeria, Myanmar and Sri Lanka. Ircon has completed more than 130 projects in 25 countries and 405 projects in various states in India.
For Q3 FY26, the company posted a consolidated revenue from operations of Rs. 2,119 crores, reflecting a sequential growth of more than 7 percent QoQ compared to Rs. 1,977 crores in Q2 FY26. However, on a year-on-year basis, revenue decreased by around 19 percent from Rs. 2,613 crores recorded in Q3 FY25.
Meanwhile, the net profit stood at Rs. 100 crore, indicating a decline of about 27 percent QoQ from Rs. 136.5 crores in Q2 FY26, while on a year-on-year basis, the profit moved up by over 16 percent from Rs. 86 crores reported in Q3 FY25.
As of 31st December 2025, its total order book stood at Rs. 23,801 crore. The Railways segment accounted for the dominant share at around 75 percent (Rs. 17,781 crore), followed by Highways contributing 18 percent (Rs. 4,297 crore), while Others made up the remaining 7 percent (Rs. 1,723 crore).
Geographically, the order book remains largely domestic, with 91 percent (Rs. 21,638 crore) from India and 9 percent (Rs. 2,163 crore) from international projects. In terms of mode of award, about 61 percent (Rs. 14,576 crore) of the order book was secured through competitive bidding, while 39 percent (Rs. 9,225 crore) came via nomination basis.
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