IRB Infrastructure Developers shares slump 5% on Q3 results; dividend, 1:1 bonus share issue declared

The stock was trading 4.25% lower at ₹42.16 per unit as of 10:18 am.

IRB Infrastructure Developers Q3 results

The construction engineering company posted a 96.5% year-on-year (YoY) decline in its consolidated net profit at ₹210.71 crore during the quarter under review, compared to ₹6,026.11 crore in the December quarter of the 2024-25 fiscal year (Q3FY25).

The company’s bottom line fell due to the implementation of the new labour code, as it recorded a one-time impact of ₹42.7 crore, and added that the “new labour code resulted in a material increase in provision for employee benefits on account of recognition of past service costs.”

Its profit after tax (PAT) before exceptional items thus surged 14% YoY to ₹253 crore for the December quarter of FY26, as against ₹222 crore in the year-ago period, it said in a regulatory filing on Friday.

IRB Infrastructure’s total revenue from operations slumped 7.6% YoY to ₹1,871.17 crore for the reporting period, in comparison to ₹2,025.44 crore in the third quarter of FY25.

Segment-wise, the Mumbai-based firm’s revenue from BOT/TOT projects stood at ₹706.55 crore in Q3FY26, marking a 9.09% YoY increase from ₹647.69 crore in the same period last year.

The InvITs & related assets segment clocked ₹381.29 crore in revenue during the quarter, reflecting a 55.71% YoY growth from ₹244.87 crore in Q3FY25.

Its revenue from the construction vertical, however, fell 30.87% YoY to ₹780.64 crore in the quarter ended December 31, 2025, compared to ₹1,129.19 crore in the year-ago period.

The unallocated corporate division contributed ₹2.69 crore to revenue for the reporting quarter, from ₹3.69 crore, down by 27% YoY.

At an operational level, its EBITDA (earnings before interest, tax, depreciation and amortisation), also known as operating profit, stood at ₹1,063 crore in the October-December quarter of the current fiscal year.

It advanced 1.33% YoY from ₹1,049 crore in EBITDA that the company had clocked in Q3FY25.

Board approves 1:1 bonus issue

The board of IRB Infrastructure also approved a bonus issue in the ratio of 1:1, which means shareholders will receive one fully paid-up bonus equity share of ₹1 each for every (one) existing equity share of ₹1 held by them as on the record date.

“The record date for determining eligible shareholders entitled for issuance of Bonus Shares will be intimated separately,” the company stated.

Board declares third interim dividend

Furthermore, IRB Infrastructure’s board of directors also declared its third interim dividend of 7%, i.e., ₹0.07 per equity share with a face value of ₹1 each for FY26.

It also fixed February 19 as the record date for the same. The firm added that “the 3rd Interim dividend shall be paid to the eligible shareholders on or before March 14, 2026.”

What the management said

Commenting on the results, Virendra D. Mhaiskar, Chairman and Managing Director of IRB Infrastructure, said: “During the quarter, we successfully monetized three BOT assets by transferring from Private InvIT to Public InvIT, thereby unlocking equity of ₹4,900 crore. We also completed the transfer of the VM7 HAM asset to the Public InvIT, unlocking ₹513crore of equity and reducing debt by over ₹700 crore.”

He further stated that in line with its capital recycling strategy, the company will deploy the unlocked capital to fund the equity requirement of the newly acquired two TOT assets aggregating to ₹14,000 crore.

“Rewarding our shareholders, the management is pleased to announce a 1:1 bonus issue; thus, enabling our esteemed shareholders to participate in the Company’s growth story,” Mhaiskar added.

Ahead of the earnings announcement, shares of the company closed 0.99% lower at ₹44.02 per unit on the National Stock Exchange (NSE) on Friday.

IRB Infrastructure Developers has a total market capitalisation of ₹25,442.31 crore, as of February 16, 2026, according to data on the NSE.