IRCON International faces a court ruling after the Patna High Court upheld a VAT demand of ₹108.75 crore tied to its Ganga Bridge project, as per a recent filing. The ruling, dated February 25, 2026, relates to tax assessments linked to the Ganga Bridge project for the period between 2010-11 and 2016-17.
The company had earlier challenged the assessment through a writ petition and obtained a stay on recovery proceedings. Hearings concluded in December 2025, after which the court reserved its order before dismissing the petition.
The filing suggests that the total tax demand stands at ₹108.75 crore, of which ₹27.39 crore has already been deposited by the company. The remaining ₹81.36 crore is yet to be paid, excluding applicable interest that will be determined by the VAT department.
The amount had been recorded as a contingent liability in IRCON’s books.
According to the disclosure submitted under Regulation 30 of SEBI’s Listing Regulations, the judgment is a development in an ongoing litigation matter related to the project.
The company stated that the dispute does not involve its key management personnel, promoter, or ultimate controlling authority. There has been no settlement in the case.
IRCON said it is reviewing the detailed order following the court’s decision. The company may pursue further legal remedies, including filing an appeal before a higher forum.
For the third quarter, IRCON reported a net profit of ₹99.9 crore, compared with ₹86.1 crore in the same period last year. Revenue declined to ₹2,119 crore from ₹2,612.8 crore.
EBITDA rose to ₹157.8 crore from ₹131.9 crore, while operating margin widened to 7.5% from 5.1%. Profit before tax stood at ₹134.7 crore, and earnings per share were ₹1.07.
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As of February 27, 2026, 9:38 am, Ircon International share price was trading at ₹144.20, a 0.63% decrease from the previous closing price.
Following the High Court’s ruling, the tax demand remains in place, with part of the amount already paid and the balance under review pending further legal steps.
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Published on: Feb 27, 2026, 11:51 AM IST
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