KNR Constructions (532942) Q3 25/26 earnings summary

Executive summary

• Revenue for Q3 FY26 was INR 585 crore standalone and INR 743 crore consolidated; net profit was INR 18 crore standalone and INR 104 crore consolidated for the quarter.

• Received Letter of Acceptance for a Rs. 3,192 Mn bridge project in Hyderabad, with a 24-month timeline.

• Completed a major elevated highway project in Coimbatore, Tamil Nadu, with completion certificate received.

• Executed share purchase agreements to divest four SPVs, expecting Rs. 15,432 Mn in proceeds against Rs. 5,668 Mn investment.

• CRISIL reaffirmed/upgraded long-term and short-term ratings with stable outlook, removed from rating watch.

Financial highlights

• Standalone Q3 FY26 revenue was INR 585 crore (down 21% YoY); consolidated Q3 FY26 revenue was INR 743 crore (down 12% YoY).

• Standalone Q3 FY26 EBITDA was INR 30 crore (margin 5.2%, down 80% YoY); consolidated EBITDA was INR 160 crore (margin 22.4%, down from 30.1% YoY).

• Standalone Q3 FY26 PAT was INR 18 crore (down 90% YoY); consolidated Q3 FY26 PAT was INR 104 crore (down 59% YoY).

• Nine months FY26 consolidated revenue was INR 2,002 crore, EBITDA INR 542 crore (margin 27.1%), net profit INR 332 crore.

• Order inflow YTD FY26 is around INR 4,300 crore, including mining and EPC projects.

Outlook and guidance

• Order book as of December 31, 2025, stands at INR 8,849 crore, diversified across roads, irrigation, pipelines, and mining.

• FY27 revenue expected at INR 2,000 crore based on current order book; upside possible with new order wins.

• Targeting INR 10,000–12,000 crore in new order inflows by September 2027, focusing on NHAI, irrigation, and state projects.

• EBITDA margin for FY27 expected at 9–10%, with potential improvement to 13–14% in FY28 as new projects ramp up.

• Asset monetization of four SPVs expected to complete by September 2026, enhancing liquidity.