KNR Constructions reported a sharp decline in financial performance for the year ended March 31, 2026, with consolidated net profit falling 84% to ₹4,368.63 crore from ₹1,00,187.41 crore in the previous year. The company's board recommended a final dividend of ₹0.25 per equity share of face value ₹2 each, subject to approval by shareholders at the ensuing Annual General Meeting. Revenue from operations for the year decreased to ₹2,69,801.31 crore from ₹4,75,316.64 crore in FY25.

The board, in its meeting held on May 29, 2026, approved the audited standalone and consolidated financial statements. The statutory auditors issued an unmodified opinion on the results. However, the auditors included an emphasis of matter paragraph regarding dues aggregating to ₹1,36,331.90 crore relating to the Kaleswaram Package 4 Irrigation Project in Telangana. Collections for this project have been stalled since March 2023, though management remains confident of recovery based on contractual terms and internal assessments. The company has made a provision of ₹2,792.26 crore for expected credit loss on this project.

For the quarter ended March 31, 2026, the company reported a consolidated net profit of ₹1,060.98 crore, a significant increase from ₹75.97 crore in the same quarter of the previous year. Revenue for the quarter stood at ₹69,559.04 crore. The standalone net profit for the quarter was ₹192.28 crore. The company recognized claims of ₹16,297.36 crore from clients on settlement during the quarter, while also revising cost estimates and providing ₹13,552.14 crore accordingly.

Financial Performance

The company's total expenses for the year increased to ₹2,25,784.87 crore from ₹3,64,990.47 crore in the prior year. Finance costs rose to ₹21,172.92 crore from ₹20,789.58 crore. The basic earnings per share (EPS) for the year dropped to ₹15.54 from ₹35.62 in the previous year. On a standalone basis, net profit for the year was ₹1,160.62 crore, down from ₹7,256.81 crore in FY25.

Board Decisions

Alongside the financial results, the board approved the re-appointment of M/s KP Rao & Co. Chartered Accountants as internal auditors for FY 2026-27. M/s Suneel & Associates, Cost Accountants, were appointed as cost auditors for the same period, subject to ratification by shareholders. The company confirmed it does not meet the criteria to be classified as a large corporate for the financial year 2026-27 as per SEBI regulations.

[KNR Constructions Limited](knr constructions) has completed the sale of a 99.90% stake in its subsidiary, KNR Ramagiri Infra Private Limited, to Indus Infra Trust for a consideration of ₹227.45 crore. The transaction, executed via Share Purchase Agreements on December 24, 2025, concluded on June 11, 2026. The company had invested ₹82.75 crore in the subsidiary through equity and subordinated debt.

The transfer involved 480,262 equity shares, representing 99.90% of the share capital. A remaining 0.10% stake, comprising 488 equity shares, could not be transferred due to technical issues, though the economic interest in these shares has been acquired by the purchaser. Indus Infra Trust is a publicly listed infrastructure investment trust registered with SEBI and is not part of the promoter group.

Financial Impact of the Sale

The subsidiary contributed significantly to the company's consolidated financials in the previous financial year. KNR Ramagiri Infra reported a turnover of ₹169.90 crore, accounting for 6.30% of the consolidated turnover. The net worth of the subsidiary stood at ₹161.13 crore, representing 3.24% of the consolidated net worth as on March 31, 2026.

Transaction Details

The sale was not classified as a related party transaction and was conducted at arm's length. The consideration received of ₹227.45 crore marks a significant realization compared to the initial investment of ₹82.75 crore. The transaction was intimated to the stock exchanges under Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.