KNR Constructions has secured a Letter of Acceptance from Malkajgiri Municipal Corporation, Hyderabad, for the construction of a 6-lane bi-directional flyover. The contract, valued at ₹235.07 crore, was received on June 09, 2026, and strengthens the company's order book in the infrastructure sector.

Project Details

The project involves the construction of a flyover crossing the TKR College junction, Gayatri Nagar Junction, and Mandamallamma Junction in the state of Telangana. The work will be executed on an Engineering Procurement Construction (EPC) or Turnkey Basis.

The disclosure was made to the exchanges under Regulation 30 of the SEBI (LODR) Regulations, 2015. The contract value excludes GST.

KNR Constructions Limited has released the transcript of its earnings call for the fourth quarter of the financial year 2025-26, held on June 1, 2026. The company reported a consolidated net profit of ₹437 crore for FY26, with revenue for the year standing at ₹2,698 crore. The order book as of March 31, 2026, stands at ₹11,903 crore, including recently won HAM projects, providing visibility for the next three to three and a half years.

Financial Performance

The company delivered a strong financial performance for the year. On a consolidated basis, revenue for FY26 stood at ₹2,698 crore, while EBITDA was ₹711 crore, reflecting an EBITDA margin of 26.4%. For the fourth quarter, revenue was ₹696 crore with an EBITDA of ₹169 crore and a margin of 24.3%. The net profit for Q4 FY26 was ₹106 crore.

On a standalone basis, revenue for FY26 was ₹2,097 crore, with an EBITDA of ₹178 crore and a net profit of ₹116 crore. The working capital days improved to 78 days as of March 31, 2026, compared to 93 days in the previous year.

Order Book and New Orders

The total order book as of March 31, 2026, stands at ₹11,903 crore, including two recently awarded HAM projects worth a combined ₹3,897 crore. The order book composition includes 49% roads, 14% irrigation, 7% pipeline, and 30% mining projects. The company is targeting an order inflow of ₹8,000 crore to ₹10,000 crore in FY27.

During the quarter, the company received a letter of award for two HAM projects. The first, awarded by Tamil Nadu State Highway Authority, involves the development of a corridor from Thiruvanniyur to Uthandi with a project value of ₹2,163 crore. The second, awarded by NHAI, is for the laning of NH-167 from Gudebellur to Mahabubnagar in Telangana, valued at ₹1,734 crore. The company also received letters of acceptance for two EPC projects worth ₹133 crore from the Greater Hyderabad Municipal Corporation and Hyderabad Growth Corridor.

Operational Updates

The company has successfully monetized one of its subsidiary companies, KNR Palani Infra Private Limited, transferring its entire equity stake to Indus Infra Trust. The company received a consideration of ₹205.05 crore, and the SPV upstreamed ₹90 crore of cash surplus. Regarding the Kaleshwaram Package 4 irrigation project, the management indicated that outstanding dues of approximately ₹670 crore are pending, but they expect resolution within the next two months following discussions with the Finance Minister.

The consolidated debt as of March 31, 2026, stood at ₹2,438 crore, compared to ₹1,847 crore in the previous year. The net debt-to-equity ratio on a consolidated basis was 0.49x. The company is targeting a revenue of over ₹3,000 crore in FY28.