KNR Constructions (532942) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 saw subdued project awarding in the road sector, but government CapEx for roads and railways remains strong, supporting a healthy project pipeline.

• The company is diversifying into railways, urban mobility, mining, irrigation, logistics, and energy storage, aiming for a balanced order book and disciplined project selection.

• Order book stood at Rs. 86,674 million as of June 30, 2026, with significant new project wins in mining and infrastructure.

• Recent asset monetization through transfer of SPVs to Indus Infra Trust generated substantial cash inflows.

• Board approved unaudited Q1 FY27 results, material related party transactions, and set dividend record date for September 15, 2026.

Financial highlights

• Q1 FY27 standalone revenue: INR 436.7 crores (Rs. 4,367 million); EBITDA: INR 65 crores (Rs. 655 million, 15% margin); Net profit: INR 282.3 crores (Rs. 2,823 million, includes exceptional gain).

• Q1 FY27 consolidated revenue: INR 587.9 crores (Rs. 5,879 million); EBITDA: INR 96.4 crores (Rs. 964 million, 16.4% margin); Net profit: INR 80.7 crores (Rs. 807 million).

• Exceptional gain of Rs. 28,533.06 lakhs (standalone) and Rs. 11,317.07 lakhs (consolidated) from sale of two subsidiaries.

• One-off items contributed INR 46 crores to EBITDA; excluding this, EBITDA margin was 5.5%.

• Net worth reached Rs. 40,548 million as of FY26; zero debt position maintained.

Outlook and guidance

• FY27 revenue guidance: INR 2,200–2,300 crores with 8–9% EBITDA margin; FY28 revenue target: over INR 3,000 crores with 11–12% EBITDA margin.

• Order inflow target for FY27: INR 8,000–10,000 crores, focusing on NHAI, irrigation, and state infrastructure projects.

• Strategic expansion into mining and metro rail segments, with mining revenue expected at INR 150 crores in FY27 and INR 400 crores in FY28 from Kusmunda.

• Management remains confident of recovering significant receivables from the Kaleswaram Package 4 project.

• Order book pipeline strengthened by recent project wins not yet included in reported order book.