State-owned engineering and construction firm IRCON International Ltd</span> on Tuesday (March 17), said it has received a stay on value added tax (VAT) demands totalling approximately ₹78.64 crore from the Supreme Court of India. The stay pertains to fiscal years 2010-11 to 2016-17, excluding 2011-12, related to the Ganga Bridge project.
The development follows a common judgment by the Patna High Court dated February 25, 2026, which upheld VAT demands for FY 2013-14, 2014-15, and 2016-17. Following the high court order, state tax authorities had issued demand notices requiring IRCON to pay tax and interest for the relevant years.
Aggrieved by the Patna High Court judgment, IRCON filed special leave petitions before the Supreme Court of India. On March 16, 2026, the Supreme Court issued notices to the VAT Department and directed that the operation of the Patna High Court judgment remain stayed pending disposal of the petitions.
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The stay covers all six years under dispute, temporarily halting the demand for payment. IRCON confirmed that the update is not related to any litigation against its key management personnel, promoter, or ultimate controlling entities. The company had earlier communicated updates on this matter through letters dated August 14, 2023 and February 26, 2026.
Third quarter results
IRCON International 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.
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.
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For the nine months ending December 31, 2025, total income was ₹6,210.8 crore, down from ₹7,615.8 crore in 9MFY25, while revenue from operations stood at ₹5,882 crore compared with ₹7,347.5 crore. EBITDA for 9MFY26 was ₹890.2 crore, with a margin of 14.3%, down from ₹918.6 crore in the year-ago period.
Profit before tax for 9MFY26 was ₹518.7 crore, compared with ₹676 crore, and net profit was ₹400.5 crore versus ₹516.1 crore. EPS for 9MFY26 stood at ₹4.29 per share (not annualised).
Shares of IRCON International Ltd ended at ₹126.50, up by ₹0.60, or 0.48%, on the BSE today, March 17.
(Edited by : Shoma Bhattacharjee)
First Published: Mar 17, 2026 8:20 PM IST
