KNR Constructions Limited (KNRCON)
🎯 Key Takeaways
- KNR Constructions Limited is in a strategic expansion and consolidation phase, transitioning from a cyclical construction player to a diversified infrastructure platform with growing order book visibility and vertical integration. Management is actively scaling high-margin segments like HAM and mining while targeting significant revenue growth through FY27–FY28, supported by a robust pipeline and reaffirmed investment-grade credit profile.
- Revenue declined 56.4% QoQ to ₹848 in Q3FY25.
- ⚠️ Delayed recovery of INR1,400–1,450 crores in dues from Telangana poses a material cash flow risk.
📖 The Story
KNR Constructions Limited is in a strategic expansion and consolidation phase, transitioning from a cyclical construction player to a diversified infrastructure platform with growing order book visibility and vertical integration. Management is actively scaling high-margin segments like HAM and mining while targeting significant revenue growth through FY27–FY28, supported by a robust pipeline and reaffirmed investment-grade credit profile.
📰 What's Happening
In the latest filing on 2026-06-06, management highlighted a consolidated revenue of INR2,698 crores for FY26 with a 26.4% EBITDA margin and net profit of INR437 crores, driven by a substantial order book of INR11,903 crores including new HAM projects worth INR3,897 crores and EPC awards of INR133 crores. The company is targeting INR2,000+ crores in revenue for FY27 and INR18,000–19,000 crores by FY28, with mining expected to contribute INR300–400 crores annually and HAM projects adding INR1,000–1,200 crores. Additionally, CRISIL reaffirmed its AA/Stable long-term rating on 2026-08-04, underscoring stable credit quality. However, recovery of INR1,36,331.90 lakhs under the Kaleswaram Package 4 remains a key operational risk.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Q4FY23 | Q1FY24 | Q2FY24 | Q3FY24 | Q4FY24 | Q1FY25 | Q2FY25 | Q3FY25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1,245 | 981 | 1,038 | 996 | 1,414 | 985 | 1,945 | 848 |
| Operating Profit | 256 | 223 | 237 | 232 | 500 | 300 | 1,002 | 378 |
| OPM % | 19.8% | 22.0% | 22.3% | 22.7% | 26.5% | 28.3% | 44.7% | 30.1% |
| Net Profit | 142 | 133 | 143 | 136 | 341 | 166 | 580 | 248 |
| EPS | ₹5.24 | ₹4.88 | ₹5.24 | ₹4.96 | ₹12.56 | ₹6.14 | ₹15.70 | ₹8.84 |
The quarterly financials show a clear upward trend in revenue and profitability, with Q3FY25 revenue at INR848 crores and OPM at 30.1%, up from Q2FY25's 44.7% margin on higher revenue of INR1,945 crores — indicating improved operational efficiency despite lower top-line in the latest quarter. This suggests management's focus on margin accretion through project mix and scale. However, the sequential decline in revenue from Q2FY25 to Q3FY25 (down from INR1,945 to INR848 crores) reflects project timing and execution cycles rather than structural weakness. The company continues to strengthen working capital management, improving to 78 days, while maintaining a healthy net debt-to-equity of 0.49x.
🔮 Management Outlook & What's Next
Management has provided an ambitious revenue outlook, targeting INR2,000+ crores in FY27 and projecting INR18,000–19,000 crores by FY28, underpinned by expansion in HAM and mining segments. They anticipate mining to contribute INR300–400 crores annually and HAM projects to add INR1,000–1,200 crores in FY28. This forward guidance is tied to execution of new orders and resolution of pending dues, particularly the INR1,400–1,450 crores outstanding from Telangana. The company is also focused on capitalizing on its expanded order book and improving project recovery timelines.
Extracted from official company announcements. Not StockFin.ai's opinion.
⚖️ Peer Comparison — Construction
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| Larsen & Toubro Limited | 5.38 L Cr | 33.1 | — | — | — |
| Rail Vikas Nigam Limited | 59,006 | 45.4 | — | — | — |
| NBCC (India) Limited | 25,331 | 49.1 | — | — | — |
| IRB Infrastructure Developers Limited | 24,518 | 3.8 | — | — | — |
| Kalpataru Projects International Limited | 21,476 | 39.0 | — | — | — |
| Cemindia Projects Limited | 15,453 | 44.3 | — | — | — |
| KEC International Limited | 14,602 | 31.4 | — | — | — |
| Techno Electric & Engineering Company Limited | 13,909 | 36.5 | — | — | — |
| Engineers India Limited | 13,868 | 33.4 | — | — | — |
| Ircon International Limited | 13,416 | 17.6 | — | — | — |
⚠️ Risk Factors
1. Delayed recovery of INR1,400–1,450 crores in dues from Telangana poses a material cash flow risk. 2. Execution of large HAM and mining projects introduces operational and regulatory execution risks. 3. High volatility in quarterly revenue due to project cycle timing may lead to earnings unpredictability. 4. Despite margin improvements, EBITDA margin remains sensitive to labor, input costs, and project mix in a competitive infrastructure environment.
📋 Recent Filings
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🔴 Announcement 4 August 2026KNR Constructions Limited announced that CRISIL reaffirmed its long-term rating at AA/Stable and short-term rating at A1+/Stable for bank facilities, ...
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Financial Results 27 June 2026KNR Constructions Limited announced that its trading window will close from 1 July 2026 to 48 hours after the unaudited Q1 results declaration for Jun...
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Announcement 17 June 2026KNR Constructions announced the transfer of a 0.10% stake in KNR Ramagiri Infra Private Limited to Indus Infra Trust, resulting in the SPV no longer b...
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🟡 Board Meeting 15 June 2026KNR Constructions Limited announced its FY2026 financial results on May 29, 2026, reporting revenue of **₹209,671.53 crores**, net profit of **₹72,568...
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Announcement 12 June 2026KNR Constructions announced the sale of 99.90% of its subsidiary KNR Ramagiri Infra Private Limited to Indus Infra Trust for Rs. 227.45 crore, complet...
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Announcement 9 June 2026KNR Constructions announced it received a Letter of Acceptance from Malkajgiri Municipal Corporation for a 6-lane flyover project in Hyderabad valued ...
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🔴 Financial Results 6 June 2026KNR Constructions reported consolidated revenue of INR2,698 crores for FY26 with EBITDA of INR711 crores (26.4% margin) and net profit of INR437 crore...
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Announcement 1 June 2026KNR Constructions Limited announced that the audio recording of its earnings call held on June 1, 2026 is now available on its website at http://knrcl...
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Announcement 30 May 2026KNR Constructions announced the sale of its entire stake in KNR Palani Infra Private Limited to Indus Infra Trust for Rs. 205.05 crore, having investe...
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Announcement 29 May 2026KNR Constructions Limited announced its investor presentation on May 29, 2026, showcasing strong project wins including NHAI HAM projects in Telangana...
🧠 Analyst's Read
KNR Constructions is transitioning into a higher-growth infrastructure platform with strong order book visibility and improving margins, but near-term performance hinges on timely project execution and resolution of pending dues. Investors should monitor order-to-revenue conversion, margin sustainability in new segments, and progress on Telangana recoveries as key near-term catalysts.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-08-04.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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