KNR Constructions Reports Q4 FY26 Results; Operational Momentum Driven by Major New Awards and Strong Order Book Position

KNR Constructions Reports Q4 FY26 Results; Operational Momentum Driven by Major New Awards and Strong Order Book Position​

KNR Constructions Ltd has reported its financial performance for Q4 and FY 2026. The company showcased a strong consolidated result while maintaining significant operational activity across various infrastructure segments, including road, mining, and irrigation projects.

Financial Performance Highlights (FY26)​

The company reported solid revenue growth throughout the fiscal year. Consolidated revenue stood at INR2,698 crores for FY 2026, achieving an EBITDA of INR711 crores and an EBITDA margin of 26.4%. Net profit for the consolidated entity in FY26 was recorded at INR437 crores.

Standalone results also showed strength, with revenue reaching INR2,097 crores for FY 2026. The standalone entity reported an EBITDA of INR178 crores and a margin of 8.5%, alongside a net profit of INR116 crores.

Consolidated Q4 performance saw revenue hit INR696 crores, with consolidated EBITDA reaching INR169 crores against a margin of 24.3%. Net profit for the quarter stood at INR106 crores.

Key balance sheet metrics as of March 31, 2026, reflect improved operational efficiency. Working capital days decreased to 78 days from 93 days in March 2025. The consolidated debt stood at INR2,438 crores compared to INR1,847 crores in March 2025, while the net debt to equity ratio was reported at 0.49x against 0.41x from the previous year.

Operational Milestones and Order Book Status​

KNR Constructions continued to advance its committed projects while securing several high-value contracts across different sectors.

The company's total order book stands at INR11,903 crores when factoring in recently won HAM projects, compared to INR8,672 crores before including them. The order portfolio is diversified, with 49% allocated to roads projects, 30% to mining projects, 14% for irrigation, and 7% for pipeline projects. Client-wise, the third party accounts for 61% of the order book, while 39% belongs to captive HAM projects. Of the third-party orders, 59% comes from state governments, 1% from the central government, and the remaining 1% is from other private players.

Key Project Updates:

• HAM Projects: The physical progress as of March 31, 2026, remains high for several HAM projects, including Ramanattukara to Valanchery (99.4%) and Chittor to Thatchur (97.4%).
• New Awards: During the quarter, KNR Constructions received Letters of Award (LoA) for two major HAM projects totaling INR3,897 crores. These include a project by Tamil Nadu State Highway Authority (TANSHA) in Thanevania to Uthandi on State Highway 49 (bid cost: INR2,163 crores), and an NHAI project for the laning of NH-167 from Gudebellur to Mahabubnagar in Telangana (valued at INR1,734 crores).
• New EPC Projects: A subsidiary, KNR Manyamkonda Infra Private Limited, received LoA for two EPC projects totaling INR133 crores. These include a flyover construction project for Greater Hyderabad Municipal Corporation (GHMC) valued at approximately INR50 crores and a pipeline road widening project in Telangana valued around INR83 crores.
• Asset Monetization: The company completed a monetization transaction, transferring its equity share in KNR Palani Infra Private Limited to Indus Infra Trust. This transaction resulted in the company receiving INR205.05 crores from the purchaser and the SPV upstreaming INR90 crores of cash surplus.

Industry Landscape and Market Trends​

The broader road infrastructure sector was described as maintaining a measured pace during FY 2026 on the project awarding front. NHAI awarded approximately 3,100 kilometres of projects in FY’26, which is about 22% lower year-on-year from the initial target of 7,500 kilometres, attributed to extended appraisal and land acquisition challenges. However, execution remained healthy, with NHAI constructing around 5,300 kilometres that year, surpassing its internal target of 5,000 kilometres.

The industry outlook remains constructive due to sustained government commitment toward infrastructure, including investments in expressways, economic corridors, logistic infrastructure, and multimodal connectivity. New opportunities are emerging across sectors such as mining development, irrigation, ropeways, urban mobility, and rail connectivity.

On the cost management front, the Ministry of Road Transport and Highway reduced the price adjustment cycle from 3 months to 1 month, a change welcomed by the industry for improved cash flow visibility regarding construction material and equipment costs.

Future Outlook and Inflow Targets​

For FY27, KNR Constructions is targeting an order inflow in the range of INR8,000 crores to INR10,000 crores, comprising NHAI projects, irrigation works, mining projects, and state government infrastructure.

In response to investor inquiries regarding project timelines and margins:

• The company estimated that the Mahabubnagar-Gudebellur project is aimed at an EBITDA execution level of 11% to 12%.
• For the highly specialized mining order pipeline (valued at INR3,500 crores), the primary hurdle remains securing F1 clearance for a specific Banhardih mine land area.
• Regarding international opportunities and diversification, KNR is examining solar projects and data center development in Hyderabad, aiming to utilize accumulated land banks that were initially designated for quarries.

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KNRCON Stock Price Movement​

On Friday, KNR Constructions Limited shares edged higher to close at ₹130.32 after gaining 0.52% on the day. The stock experienced movement throughout the session, trading within a range set by a low of ₹128.5 and hitting an intraday high of ₹131.89.