KNR Constructions (532942) Q1 25/26 earnings summary

Executive summary

• Q1 FY 2026 saw muted order inflow in the road sector, with NHAI awarding only 166 km but execution improved slightly year-over-year, with 1,092 km constructed.

• The company’s order book as of June 30, 2025, stands at INR 8,305 crores, with significant diversification into mining, irrigation, and pipeline projects.

• Strategic entry into mining with a new INR 4,800 crore coal block project, expanding beyond core infrastructure.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2025.

• Re-appointment of Managing Director and Executive Director for five-year terms, subject to AGM approval.

Financial highlights

• Standalone Q1 FY 2026 revenue: INR 483 crores; EBITDA: INR 66 crores (13.6% margin); Net profit: INR 51 crores.

• Consolidated Q1 FY 2026 revenue: INR 613 crores (down from INR 985 crores YoY); EBITDA: INR 183 crores (29.9% margin); PAT: INR 123 crores.

• Standalone EPS (basic/diluted): ₹1.82; consolidated EPS (basic/diluted): ₹4.39 for the quarter.

• Arbitration claim of ₹413.30 lakhs included in revenue and ₹679.25 lakhs interest in other income for the quarter.

• Segment revenue mix: 58% HAM road, 31% EPC road, 6% irrigation, 5% back-to-back projects.

Outlook and guidance

• FY 2026 revenue guidance revised to INR 2,000–2,500 crores due to project completion and slow new order inflow.

• EBITDA margin guidance at 13–13.5%, with potential 1–2% dilution as mining ramps up.

• Targeting INR 10,000–12,000 crores in new order inflow by FY 2026, excluding mining.

• Management remains confident of recovering dues from Kaleswaram projects despite stalled collections.

• Expecting revenue pickup in FY 2027 as new projects, especially mining and water, scale up.