KNR Constructions (532942) Q3 25/26 earnings summary

Executive summary

• Q3 and nine months FY 2026 saw muted execution due to a slowdown in project awards, especially in highways, but sector fundamentals remain strong with improving outlook and robust policy support.

• 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, removing rating watch and reflecting a stable outlook.

Financial highlights

• Standalone Q3 FY26 revenue: INR 585 crore (Rs. 5,851 Mn); EBITDA: INR 30 crore (Rs. 306 Mn, margin 5.2%); Net profit: INR 18 crore (Rs. 176 Mn).

• Standalone nine months FY26 revenue: INR 1,561 crore (Rs. 15,614 Mn); EBITDA: INR 150 crore (Rs. 1,498 Mn, margin 9.6%); Net profit: INR 98 crore (Rs. 968 Mn).

• Consolidated Q3 FY26 revenue: INR 743 crore (Rs. 7,432 Mn); EBITDA: INR 160 crore (margin 22.4%); Net profit: INR 104 crore (Rs. 1,027 Mn).

• Consolidated nine months FY26 revenue: INR 2,002 crore (Rs. 20,024 Mn); EBITDA: INR 542 crore (margin 27.1%); Net profit: INR 332 crore (Rs. 3,308 Mn).

• 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 (Rs. 88,488 Mn), diversified across roads, irrigation, pipelines, and mining.

• FY 2026 revenue expected to close at INR 2,000 crore, with a similar base case for FY 2027 unless new orders are secured.

• Targeting order inflow of INR 10,000–12,000 crore by September 2027, with a focus on NHAI, irrigation, and state projects.

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

• EBITDA margin for FY 2027 expected at 9–10%, with potential recovery to 13–14% only from FY 2028 as new projects ramp up.