KNR Constructions Limited reported a 56% decline in consolidated net profit to ₹4,368.6 crore for the year ended March 31, 2026, compared to ₹10,018.6 crore in the previous year. Revenue from operations fell to ₹26,980.1 crore from ₹47,531.7 crore in FY25. The Board of Directors approved the audited financial statements and recommended a final dividend of ₹0.25 per equity share of face value ₹2 each, subject to shareholder approval at the ensuing Annual General Meeting.

FY26 Financial Performance

The company recorded a consolidated net profit of ₹4,368.6 crore for FY26, a decrease from ₹10,018.6 crore in the previous year. Revenue from operations for the year stood at ₹26,980.1 crore, compared to ₹47,531.7 crore in FY25. For the quarter ended March 31, 2026, the consolidated net profit was ₹1,061.1 crore, with revenue at ₹6,955.9 crore.

The standalone net profit for FY26 was ₹1,160.6 crore, significantly lower than the ₹7,256.8 crore recorded in the previous year. Standalone revenue for the year was ₹20,967.2 crore, down from ₹33,586.5 crore in FY25.

New Projects and Order Book

The company secured new Hybrid Annuity Mode (HAM) projects including the construction of a four-lane elevated corridor along East Coast Road in Tamil Nadu worth ₹1,680 crore and the 4 laning of NH-167 in Telangana worth ₹1,550 crore. It also received Letters of Acceptance for EPC projects from Hyderabad Growth Corridor Ltd and Hyderabad Municipal Corporation worth ₹84 crore and ₹50 crore respectively.

The total order book as of March 31, 2026, stood at ₹1,19,025 million. The order book includes a significant contribution from the mining sector at ₹35,524 million, alongside roads and irrigation projects.

Dividend and Appointments

The Board recommended a final dividend of ₹0.25 per equity share of face value ₹2 each for the financial year ended March 31, 2026, subject to shareholder approval at the ensuing Annual General Meeting. Additionally, the Board approved the re-appointment of M/s KP Rao & Co. as Internal Auditors and the appointment of M/s Suneel & Associates as Cost Auditors for FY 2026-27.

Operational Highlights and Provisions

The financial results include the recognition of claims amounting to ₹1,629.7 crore from clients on settlement, alongside a provision of ₹1,355.2 crore for revised project costs. Trade receivables include ₹13,633.2 crore relating to the Kaleswaram Package 4 Irrigation Project, for which collections have been stalled since March 2023. The company has made a provision of ₹279.2 crore for Expected Credit Loss regarding this project, while management remains confident of recovery based on contractual terms and internal assessments.

The statutory auditors, M/s K P Rao & Co., issued an unmodified opinion on the standalone and consolidated financial statements.

KNR Constructions Limited has completed the disposal of its entire equity share capital in KNR Palani Infra Private Limited (KPIPL) to Indus Infra Trust for a consideration of ₹205.05 crore. The transaction, which concluded on May 29, 2026, allows the infrastructure firm to unlock significant value from the subsidiary, which had previously accounted for 3.22% of the company's consolidated turnover and 4.89% of its consolidated net worth as of March 31, 2026.

The company had initially invested ₹64.40 crore in KPIPL through equity and subordinated debt. Pursuant to the sale, KNR Constructions received the total consideration of ₹205.05 crore from the purchaser. Additionally, the subsidiary upstreamed ₹90.00 crore of cash surplus to the company as part of the transaction structure.

Transaction Details

The Share Purchase Agreements for the sale were executed on December 24, 2025. Indus Infra Trust, the buyer, is a publicly listed infrastructure investment trust registered with the Securities and Exchange Board of India (SEBI) under the SEBI (Infrastructure Investment Trusts) Regulations, 2014. The trust is established to acquire, manage, and invest in a portfolio of infrastructure assets across various sectors.

The filing confirms that Indus Infra Trust does not belong to the promoter, promoter group, or group companies of KNR Constructions. Furthermore, the transaction does not fall within related party transactions, and the provisions for slump sale disclosures were not applicable to this deal.

Financial Impact of Subsidiary

Prior to the disposal, KPIPL contributed specific financial metrics to the consolidated statements of KNR Constructions. The following table details the subsidiary's contribution for the financial year ending March 31, 2026:

The intimation regarding the completion of the sale was submitted to the stock exchanges on May 30, 2026, under Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.