KNR Constructions Limited has achieved a major milestone in its Tamil Nadu infrastructure project with its wholly-owned subsidiary signing the concession agreement on February 26, 2026. The subsidiary, KNR Mahabalipuram Infra Private Limited (KMIPL), entered into the agreement with Tamil Nadu State Highways Authority (TANSHA) for the Four Lane Elevated Corridor project along East Coast Road.

Project Agreement and Execution Details

KNR Mahabalipuram Infra Private Limited has successfully signed the concession agreement for the construction of Four Lane Elevated Corridor along East Coast Road (ECR). The project will be executed under the Hybrid Annuity Mode (HAM) framework in Tamil Nadu state.

Subsidiary Structure and Incorporation

KNR Mahabalipuram Infra Private Limited was incorporated as a special purpose vehicle specifically for this project implementation. The subsidiary received its Certificate of Incorporation on February 24, 2026, following its incorporation on February 19, 2026.

Project Timeline and Regulatory Compliance

The project has progressed through several key milestones, beginning with the initial award intimation on February 17, 2026, followed by subsidiary incorporation on February 19, 2026, and culminating in the concession agreement signing on February 26, 2026. The company has maintained compliance with SEBI LODR Regulations, specifically Regulation 30, throughout the process.

Stakeholder Information

The project execution involves key stakeholders including Mr. K Jalandhar Reddy (Executive Director), Mrs. K Yashoda (Non-Executive Director and Promoter), and Mr. V Venu Gopal Reddy (Senior Management Personnel and Non-Executive Director). The concession agreement was signed under the oversight of Company Secretary and Compliance Officer Haritha Varanasi, ensuring all regulatory requirements are met as per SEBI guidelines.

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.