KNR Constructions has secured a significant coal mining contract worth Rs 3,361.11 crores from South Eastern Coalfields Limited. The Letter of Acceptance was awarded to the joint venture M/s KNR - SIML (JV), comprising KNR Constructions Ltd with a 51% stake and Sushee Infra & Mining Limited holding 49%. The project is located at Kasmunda Open Cast Project (OCP) in the State of Chhattisgarh and is set to be executed on an Item Rate basis for a duration of 2,920 days.

Scope of Work

The awarded contract encompasses a comprehensive range of mining activities categorized into specific jobs. The total overburden material quantity to be handled is 258.15 million cubic meters (Mcum), with a minimum quantity per day (QPD) of 88,410.

Job 1: Excavation and Haulage

The initial phase involves the hiring of Heavy Earth Moving Machinery (HEEM) such as excavators, tippers, dozers, and motor-graders.

• Job 1.(A): Focuses on soft soil excavation without drilling. This involves handling 11.97 Mcum of material above coal seams D, E&F, UK, LK, and LK(B).
• Job 1.(B): Targets hard strata requiring drilling. This segment covers 246.19 Mcum of overburden and inter-burden parting between different seams.

Job 2: Coal Extraction

The second job requires the deployment of surface miners with inbuilt water spraying arrangements for dust suppression. This involves the mechanical excavation of coal and coal measure strata at the Kusmunda Open Cast Project. The extraction target is 142.89 million tonnes (Te) of coal, with a minimum tonnage per day (TPD) of 48,934.

Job 3: Loading and Transportation

The final phase of the contract pertains to the logistics of the extracted coal.

• Job 3.(A): Involves the hiring of pay loaders for mechanical loading of coal into tippers at various coal faces.
• Job 3.(B): Covers the hiring of tippers for transporting coal from the faces to designated points such as TRS-1, TRS-2, surface stock-heaps, and railway sidings.

Regulatory Compliance

Pursuant to the KNRCL Code of Conduct for Prevention of Insider Trading, the company announced that the trading window for dealing in its securities will remain closed. This restriction applies to all Directors, Officers, and Designated employees and is effective from June 8, 2026, to June 9, 2026 (both days inclusive).

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.