KNR Constructions discussed its Q3 and 9-Month FY ’26 results, noting a challenging infrastructure environment with muted project awards, though the outlook is improving. Key project progress was highlighted, alongside the announcement of a share purchase agreement with Indus Infra Trust. Standalone revenue for 9 months reached INR 1,561 crores, with consolidated revenue at INR 2,002 crores for the same period.
Q3 & 9M FY ’26 Performance Overview
KNR Constructions reported its financial results for the third quarter and the first nine months of FY ’26. Management acknowledged a recent slowdown in the infrastructure sector, particularly in highway project awarding by the Ministry. However, the outlook is constructive, reinforced by a Union Budget capital expenditure increase of 9% to INR 12.2 lakh crores for FY ’26-27.
Standalone Financial Highlights (9M FY ’26)
- Revenue: INR 1,561 crores.
- EBITDA: INR 150 crores (Margin: 9.6%).
- Net Profit: INR 98 crores.
Consolidated Financial Highlights (Q3 FY ’26)
- Revenue: INR 743 crores.
- EBITDA: INR 167 crores (Margin: 22.4%).
- Net Profit: INR 104 crores.
Key Business Updates and Project Progress
The company provided progress updates on several Hybrid Annuity Model (HAM) projects as of December 31, 2025:
- Ramanattukara to Valanchery: 99.4%
- Valanchery to Kappirikkad: 98.3%
- Chittor to Thatchur: 97.4%
- Magadi to Somwarpet: 90.1%
The company has already invested INR 727 crores out of the revised INR 962 crores equity infusion required for all HAM projects.
Asset Monetization and Divestment
On December 24, 2025, the company executed a Share Purchase Agreement with Indus Infra Trust for selling 100% shareholding in four Special Purpose Vehicles (SPVs). The total expected proceeds are INR 1,543 crores.
Order Book Position
As of December 31, 2025, the total order book stood at INR 8,849 crores, comprising 29% Roads, 19% Irrigation, 12% Pipeline, and 40% Mining projects. The company aims for an order inflow of approximately INR 10,000-INR 12,000 crores by September 2027.
Balance Sheet and Debt Position
The consolidated debt as of December 31, 2025, was INR 2,443 crores (up from INR 1,847 crores at March 2025). Following the monetization deal, the consolidated debt is projected to reduce significantly to around INR 500 crores by March 2026.
Q&A Highlights
During the Q&A, management confirmed that the recent EBITDA margin compression was partially due to a subcontractor expense increase of INR 216 crores related to pipeline projects, where margins are naturally lower (3%-4%). Regarding outlook, FY ’28 is anticipated to be a very bright year once new project execution ramps up, though FY ’27 execution might see slightly lower margins near 9%-10%.
Source: BSE
