Ircon International Bags ₹ 127.8 Crore Signalling and Telecom Contract from Indian Railways

Ircon International Ltd., a top engineering and construction firm, has announced the acquisition of a major works contract worth ₹ 127,80,36,115.49 from S&T (Construction), North Western Railway, a subsidiary of Indian Railways. The announcement, made on 11th April 2025, is in terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Project Scope: Microprocessor‑Based Electronic Interlocking at 20 Stations

The Ircon International project involves the design, fabrication, supply, installation, testing, and commissioning of a microprocessor-based EI (Electronic Interlocking) system with an integrated Block Instrument. The cutting-edge signalling technology is to be adopted in accordance with Research Designs & Standards Organisation (RDSO) standards at 20 stations of Ajmer Division of the North Western Railway.

In addition, the contract scope involves Automatic Block Signalling and related indoor and outdoor works pertaining to Signalling & Telecom systems and equipment. This broad mandate implies a major upgrade and modernisation of the signalling system in the mentioned railway division.

Awarding Authority & Contract Type: S&T (Construction), North Western Railway

The awarding authority for this works contract is S&T (Construction), North Western Railway, which is a local organization within the Indian Railways system. The type of order is defined as a domestic works contract.

Execution Timeline: 24‑Month Completion Window

In line with the disclosure, completion of the project will be made within a 24-month duration starting from the Letter of Award issue date. It gives clear details of execution and delivery duration for the agreed work.

Arm’s‑Length Transaction: No Related‑Party Involvement

The company has categorically indicated that the promoter, promoter group, or group companies have no stake in S&T (Construction), North Western Railway. Moreover, the contract is not under related party transactions and is being executed at arm's length.

Strategic Impact: Portfolio Boost, Order‑Book Visibility & Safety Enhancements

This contract victory further enhances Ircon International's portfolio of railway infrastructure projects. Although the announcement is not very detailed on the financial impact beyond the contract value, winning such a large order from a major client such as Indian Railways would generally indicate an improvement in the company's order book and possibly revenue visibility for the duration of the contract. The emphasis on contemporary signalling systems, including the microprocessor-based EI system and automatic block signalling, is in line with the continuous attempts to improve safety and efficiency in the Indian railway network.

The revelation by Ircon International presents factual information about the acquisition of a major contract, enabling stakeholders to record this occurrence in the context of the business operations of the company and its dealings with Indian Railways.

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here