KNR Constructions FY26 net profit falls 84% to ₹1,160.62 crore
KNR Constructions reported an 84% decline in consolidated net profit to ₹4,368.63 crore for FY26, with revenue dropping to ₹2,69,801.31 crore. The board recommended a final dividend of ₹0.25 per share and appointed auditors for the upcoming fiscal year.
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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.
| Metric | Year Ended March 31, 2026 (₹ in Lakhs) | Year Ended March 31, 2025 (₹ in Lakhs) |
|---|---|---|
| Consolidated Revenue from Operations | 2,69,801.31 | 4,75,316.64 |
| Consolidated Net Profit | 43,686.26 | 1,00,187.41 |
| Standalone Revenue from Operations | 2,09,671.53 | 3,35,864.93 |
| Standalone Net Profit | 11,606.22 | 72,568.08 |
| Basic EPS (Consolidated) | 15.54 | 35.62 |
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.
Historical Stock Returns for KNR Constructions
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.27% | -2.67% | -0.47% | -17.50% | -41.94% | -46.99% |
What is the specific timeline management has set for the recovery of the stalled ₹1,36,331.90 crore dues from the Kaleswaram project?
How will the company manage liquidity and working capital requirements if the collections from the Telangana project remain stalled beyond the current fiscal year?
Will the significant provisions made for the Kaleswaram project impact KNR Constructions' ability to bid on or secure new infrastructure contracts in the near term?
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