IRCON International Limited has received reaffirmation of its credit rating from Infomerics Valuation and Rating Limited for bank facilities worth ₹9550 crore. The Navratna company disclosed this development under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Credit Rating Details

Infomerics Valuation and Rating Limited conducted a regular rating exercise for enhanced limits and reaffirmed the credit ratings for the company's bank facilities. The rating agency maintained its assessment across different facility categories with no changes to the overall rating outlook.

Facility Structure and Changes

The rating covers a total facility amount of ₹9550 crore, with specific adjustments made to different components. The long-term bank facilities saw a significant increase from ₹0.02 crore to ₹1000.03 crore. Conversely, the combined long-term and short-term bank facilities decreased from ₹8999.98 crore to ₹8,549.97 crore.

Within the facility structure, the limit for Bank Guarantee/Letter of Credit increased from ₹7,799.90 crore to ₹8,549.90 crore. Meanwhile, the proposed fund-based and non-fund based facilities decreased from ₹1,200.08 crore to ₹0.07 crore.

Rating Significance

The IVR AAA rating represents the highest credit quality with Triple A outlook, indicating strong capacity for timely payment of financial commitments. The stable outlook suggests that the rating is unlikely to change in the near term. For short-term facilities, the IVR A1+ rating indicates the highest degree of safety regarding timely payment of short-term debt obligations.

Regulatory Compliance

IRCON International accepted the ratings rationale from Infomerics Valuation and Rating Limited via email on March 24th, 2026 at 1742 hours. The disclosure was made by Company Secretary and Compliance Officer Pratibha Aggarwal in compliance with SEBI listing regulations, ensuring transparency for stakeholders and market participants.

IRCON International has received significant relief from the Supreme Court of India in a major tax dispute case. The apex court, through its order dated 16th March, 2026, has temporarily stayed a substantial VAT demand while reviewing the Patna High Court's decision related to the company's Ganga Bridge project.

Supreme Court Order Details

The Supreme Court has issued a notice to the VAT department and directed that pending disposal of the Special Leave Petitions filed by IRCON International, the operation of the common judgment dated 25th February, 2026 of the Patna High Court shall remain stayed. This stay covers the VAT demand for all six years in dispute, spanning from FY 2010-11 to FY 2016-17 (excluding FY 2011-12).

Background of the Case

The dispute originated from a common judgment dated 25th February, 2026 passed by the Patna High Court, which upheld the VAT demands raised on the company. Following this judgment, demand notices were issued by the State Tax authorities for three specific cases - CWJNC No. 11625 of 2019, CWJNC No. 3600 of 2020, and CWJNC No. 1716 of 2023, related to FY 2013-14, 2014-15, and 2016-17 respectively.

Regulatory Compliance

IRCON International has made this disclosure under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company filed the disclosure on 17th March, 2026, in continuation to its previous letters dated 14th August, 2023 and 26th February, 2026, ensuring full transparency with stakeholders regarding this significant legal development.

Financial Impact

This Supreme Court relief represents a positive development for IRCON International, as it temporarily removes the immediate financial burden of the ₹78.64 crore VAT demand. The stay order allows the company to continue its operations without the immediate pressure of settling this substantial tax liability while the legal proceedings continue at the highest judicial level.