What Caused IRB Infra's Shares to Drop Over 31% in a Year?
Click to start listening
Synopsis
IRB Infrastructure has experienced a steep decline in share prices over the past year, leading to significant concerns regarding its financial health. What factors are contributing to this downturn, and how might it impact investors moving forward? Read on to explore the situation.
Key Takeaways
- IRB Infra's share price has dropped over 31% in the past year.
- The company operates 26 highway projects across 12 states.
- Net profit saw a drastic decline of 96.43% for Q4 FY25.
- Total income decreased by 11.44% compared to last year.
- IRB Infra has an asset base of Rs 80,000 crore.
Mumbai, May 23 (NationPress) The highway construction firm IRB Infrastructure has witnessed a significant decline in its share price over the past year, plummeting by more than 31%.
On Friday, the stock was recorded at Rs 50.94 on the National Stock Exchange (NSE), reflecting a decrease of Rs 0.31, or 0.60%, during the day.
This marks a considerable drop from its 52-week high of Rs 78.15, indicating a fall of 34.81%.
The stock has been under pressure not only over the last year but also in 2025 so far.
Year-to-date (YTD), IRB Infra shares have declined by 14.44%, and in the last six months, they have dipped by 0.41%.
While shares increased by 4.81% in the past month, they fell 0.89% over the last five trading sessions. The 52-week low stands at Rs 40.96 on NSE.
Interestingly, on May 21, the company's shares surged over 4% during intra-day trading.
According to details on its website, IRB Infra operates 26 highway projects across 12 states, with an asset base of Rs 80,000 crore, managing 15,500 lane kilometers and 72 toll plazas.
However, sequentially, IRB Infra showed a staggering 96.43% drop in net profit for the March quarter (Q4 FY25), reporting Rs 214.7 crore, compared to Rs 6,026.1 crore in the December quarter (Q3 FY25).
Total expenses in the March quarter rose by 7.23%, primarily due to a 78.28% increase in material costs and a 26.14% rise in other expenses.
Despite these challenges, operational revenue experienced a 6.11% growth to reach Rs 2,149.2 crore in Q4, while total income rose by 6.10% to Rs 2,217.8 crore.
However, when compared to the same quarter last year, total income was still down by 11.44%.
Point of View
I must emphasize the importance of understanding market dynamics. The decline in IRB Infra's share price raises questions about the broader economic environment and the construction sector's resilience. Investors should remain informed and cautious.
NationPress
10/09/2025
Frequently Asked Questions
What is the current share price of IRB Infra?
As of the last trading session, the share price of IRB Infra closed at Rs 50.94.
How much have IRB Infra shares declined in the past year?
IRB Infra shares have declined by over 31% in the past year.
What factors contributed to the decline in net profit?
The decline in net profit was influenced by rising material costs and other expenses.
How does IRB Infra's performance compare year-over-year?
Compared to the same quarter last year, total income was down by 11.44%.
What is the asset base of IRB Infrastructure?
IRB Infrastructure has an asset base of Rs 80,000 crore.
