News

IRCON faces ₹109-crore VAT demand after Patna HC dismisses plea in Ganga bridge caseThe VAT assessments for the years 2010-11 to 2016-17 resulted in a demand of ₹108.75 crore. Shares of Ircon International Limited ended at ₹145.10, down by ₹1.70, or 1.16%, on the BSE today, February 26.By Jomy Jos Pullokaran  February 26, 2026, 6:27:41 PM IST (Published)2 Min ReadState-owned engineering and construction firm IRCON International Ltd on Thursday (February 26) disclosed that it has received a judgment dated February 25, 2026, from the Patna High Court in connection with VAT assessments pertaining to the Ganga bridge project executed by the company.

The VAT assessments for the years 2010-11 to 2016-17 resulted in a demand of ₹108.75 crore, which has been reflected as a contingent liability in the company’s books.

IRCON had challenged the assessment orders by filing a writ petition before the Patna High Court and had secured a stay on recovery proceedings. Hearings in the matter concluded in early December 2025, and the order was reserved. The high court, through its judgment dated February 25, 2026, dismissed the petition and upheld the demand raised by the assessing authority.

Also Read: IRCON-Finolex joint venture bags ₹168 crore power transmission contract from MSETCL

Out of the total demand of ₹108.75 crore, IRCON has already deposited ₹27.39 crore. The net outstanding amount stands at ₹81.36 crore, excluding up-to-date interest, to be calculated by the VAT department. The company said it is reviewing the detailed order and will pursue further action, including filing an appeal before a higher court.

The company clarified that the matter does not involve any litigation against key management personnel, promoter or ultimate person in control. There is no settlement in the proceedings and no delay in disclosure.

Q3 results

IRCON International Ltd reported a net profit of ₹99.9 crore for the third quarter, up 15.97% from ₹86.1 crore in the year-ago period. Revenue for the quarter declined 18.9% year-on-year to ₹2,119 crore versus ₹2,612.8 crore in Q3FY25.

Also Read: IRCON International shares drop up to 3% PSU sees revenue drop for sixth straight quarter

EBITDA increased 29.6% to ₹157.8 crore, up from ₹131.9 crore in the same quarter last year. The company’s EBITDA margin widened over 200 bps to 7.5% for the quarter, compared with 5.1% in the year-ago period.

Profit before tax stood at ₹134.7 crore, compared with ₹131.8 crore in Q3FY25. The earnings per share (EPS) for the quarter (not annualised) stood at ₹1.07 per equity share of face value ₹2.

Shares of Ircon International Limited ended at ₹145.10, down by ₹1.70, or 1.16%, on the BSE today, February 26.

Also Read: Coal India signs pact with IRCON International for rail infrastructure developmentContinue Reading(Edited by : Shoma Bhattacharjee)TagsIRCONshare market today