KNR Constructions received an order from the Commissioner of Income Tax – Appeals, Hyderabad-12, deleting a penalty of ₹18,22,08,922 for Assessment Year 2007-08. The order was received on September 17, 2026.

The appellate authority allowed the appeals filed by the company, resulting in the deletion of the penalty order. This regulatory resolution removes a longstanding financial liability associated with the assessment year.

Regulatory Details

The company disclosed the development under Regulation 30 of the SEBI (LODR) Regulations, 2015. The order specifically addresses the penalty imposed for the financial year ending March 2008.

Financial Impact

The company stated that there is no quantifiable impact on its financial, operational, or other activities. The deletion of the penalty improves the balance sheet by removing a contingent liability, though the amount is not material to current operations given the vintage of the assessment year.

KNR Constructions has completed the sale of its wholly owned subsidiary, KNR Guruvayur Infra Private Limited (KGIPL), to Indus Infra Trust for a consideration of ₹485.86 crore. The transaction, finalized on September 17, 2026, realizes a value surplus of ₹292.54 crore over the company’s initial investment of ₹193.32 crore.

The divestment follows a share purchase agreement executed in December 2025. The substantial premium over the initial capital outlay enhances the parent company’s cash position upon completion of the deal.

Transaction Details

The sale involves the transfer of all equity share capital in KGIPL to Indus Infra Trust, a publicly listed infrastructure investment trust registered with SEBI. The buyer is not part of the promoter group or related entities of KNR Constructions, ensuring the transaction was conducted at arm’s length.

What the Numbers Show

The financial significance of KGIPL to KNR Constructions’ consolidated operations is evident from its contribution to the group’s top line and net worth. As of March 31, 2026, KGIPL accounted for ₹237.21 crore in turnover, representing 8.79% of the consolidated turnover. Furthermore, the SPV held a net worth of ₹394.38 crore, constituting 7.93% of the group’s total net worth.

This concentration suggests that while the SPV was a material contributor to revenue, its net worth was significantly higher than its turnover contribution, indicating a capital-intensive nature typical of infrastructure assets. The disposal allows KNR Constructions to unlock this trapped capital and potentially redeploy it towards higher-return projects or debt reduction, although specific use-of-proceeds details were not disclosed in the filing.

Regulatory Compliance

The company disclosed the transaction under Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The intimation was issued on September 18, 2026, confirming that the sale did not fall under related-party transactions or slump sale provisions.