KNR Constructions Limited has announced the incorporation of a wholly-owned subsidiary, KNR Mahabalipuram Infra Private Limited (KMIPL), as a special purpose vehicle on February 19, 2026. The company received the Certificate of Incorporation on February 24, 2026, and promptly informed the stock exchanges in compliance with Regulation 30 of SEBI LODR Regulations.

Subsidiary Details and Capital Structure

KNR Mahabalipuram Infra Private Limited has been incorporated with specific financial parameters and operational objectives:

Business Objectives and Project Scope

The newly formed subsidiary will operate in the construction and engineering sector, focusing on a specific infrastructure project. KMIPL will undertake the construction of a Four Lane Elevated Corridor along East Coast Road (ECR) from design Chainage Km. 11+480 to Km. 11/800 (West Avenue Road) and up to Km. 24+780 (East Coast Road) Thiruvanmiyur to Uthandi in SH-49 on Hybrid Annuity Mode (HAM).

Related Party Transaction Details

The incorporation constitutes a related party transaction as KMIPL is a wholly-owned subsidiary. Key stakeholders involved in the transaction include:

• Mr. K Jalandhar Reddy: Executive Director
• Mrs. K Yashoda: Non-Executive Director and Promoter
• Mr. V Venu Gopal Reddy: Senior Management Personnel and Non-Executive Director

The company confirmed that no other promoter, promoter group, or group company has any interest in this transaction beyond the shareholding held by KNR Constructions Limited.

Financial and Operational Impact

Compliance and Documentation

The incorporation follows the company's announcement dated February 17, 2026, and complies with SEBI Circular No. SEBI/HO/CFD/CFD-PoD1/P/CIR/2023/123 dated July 13, 2023, and SEBI Circular No. SEBI/HO/CFD/CFD-PoD-2/CIR/P/2024/185 dated December 31, 2024. The notification was signed by Haritha Varanasi, Company Secretary & Compliance Officer, and submitted to both BSE Limited and National Stock Exchange of India Limited on February 24, 2026.

KNR Constructions Limited has informed stock exchanges about receiving a consequential income tax order from the Deputy Commissioner of Income Tax, Central Circle-2(2), Hyderabad. The order, dated February 10, 2026, and received on February 18, 2026, pertains to assessment year 2019-20 and follows the implementation of a Commissioner of Income Tax (Appeals) directive.

Income Tax Order Details

The company disclosed comprehensive details of the income tax proceedings under Regulation 30 of SEBI (LODR) Regulations, 2015:

Background of Tax Proceedings

The current order stems from earlier tax assessment proceedings where the Assessing Officer had initially made additions towards 80-IA deduction and exceptional items. The original demand raised by the Assessing Officer was significantly higher at Rs 100,43,93,437 for assessment year 2019-20.

KNR Constructions had filed an appeal before CIT(A)-12, Hyderabad, challenging these additions. The appeal was allowed in favor of the company, resulting in a substantial reduction in the tax demand.

Current Status and Impact

Following the CIT(A) order, the Assessing Officer has now issued a consequential order implementing the appellate authority's decision. This has resulted in the revised demand of Rs 8,89,16,625, representing a significant decrease from the original assessment.

The company has explicitly stated that this order will have no impact on its financial, operational, and other activities. KNR Constructions has committed to inform stock exchanges of any material developments in this matter as per Regulation 30(7) of the SEBI Listing Regulations.

Regulatory Compliance

The disclosure was made through proper channels to both BSE Limited (Scrip Code: 532942) and National Stock Exchange of India Limited (Scrip Code: KNRCON). The intimation was signed by Company Secretary Haritha Varanasi and filed in compliance with regulatory requirements for material event disclosures.