KNR Constructions (532942) Q4 24/25 earnings summary

Executive summary

• Q4 and FY25 saw a recovery in road infrastructure, improved project awarding and execution, and appointed dates for two new HAM projects in Karnataka in April 2025.

• Major progress in HAM projects, with most nearing completion, including early completion and bonus for Chittoor–Thatchur Highway project.

• The company is diversifying into mining, water, and state-level projects, and expanding into metro rail and railway projects.

• Audited standalone and consolidated financial statements for FY25 were approved with an unmodified audit opinion.

• Transferred shareholdings in subsidiaries, generating cash inflows.

Financial highlights

• Standalone Q4 FY25 revenue: INR 851 crores; EBITDA: INR 118 crores (13.8% margin); Net profit: INR 25 crores.

• Standalone FY25 revenue: INR 3,359 crores; EBITDA: INR 625 crores (18.6% margin); Net profit: INR 726 crores, up 47% YoY.

• Consolidated FY25 revenue: INR 4,753 crores, up 7% YoY; EBITDA: INR 1,625 crores (34.2% margin), up 65% YoY; Net profit: INR 1,002 crores, up 33% YoY.

• Standalone revenue from operations for FY25 was Rs. 409,097.84 lakhs, up from Rs. 381,030.50 lakhs in FY24; standalone net profit after tax for FY25 was Rs. 49,383.12 lakhs.

• Consolidated net profit after tax and share of profit of associates for FY25 was Rs. 75,229.69 lakhs.

Outlook and guidance

• FY26 revenue expected between INR 2,500–3,000 crores from existing order book, with potential upside if new orders are secured.

• Targeting INR 8,000–10,000 crores in new order inflow by end of 2026, with a strong bid pipeline across NHAI, state highways, and mining.

• EBITDA margin guidance for FY26 is 13–14%, with potential improvement from higher-margin irrigation and mining projects.

• Management remains confident of recovering dues from stalled irrigation projects in Telangana, despite no collections since March 2024.

• Focus on timely project execution, strategic joint ventures, and expanding into metro rail and railway projects.