KNR Constructions (532942) Q4 25/26 earnings summary

Executive summary

• FY 2026 saw a measured pace in road infrastructure project awards, with NHAI awarding 3,100 km, down 22% year-over-year, but construction activity remained robust, surpassing internal targets.

• Major new project wins in Telangana and Tamil Nadu, including large HAM and EPC contracts, expanded the order book, with several projects nearing completion and new awards in both HAM and EPC segments.

• Ongoing asset monetization includes agreements to divest four SPVs to Indus Infra Trust, expected to complete by September 2026, and monetization of KNR Palani Infra Private Limited yielding INR 205.05 crore.

• Audited standalone and consolidated financial statements for the year ended March 31, 2026, were approved, with an unmodified audit opinion from statutory auditors.

• Order book as of March 31, 2026, stands at INR 11,903 crore including recent HAM wins, diversified across roads, irrigation, pipelines, and mining.

Financial highlights

• FY 2026 standalone revenue: INR 2,097 crore; EBITDA: INR 178 crore (margin 8.5%); Net profit: INR 116 crore.

• FY 2026 consolidated revenue: INR 2,698 crore; EBITDA: INR 711 crore (margin 26.4%); Net profit: INR 473 crore.

• Standalone revenue for FY26 was Rs 20,967 million, down 38% year-over-year; PAT fell 84% to Rs 1,161 million.

• Consolidated revenue for FY26 was Rs 26,980 million, down 43% year-over-year; consolidated PAT dropped 56% to Rs 4,368.6 million.

• Standalone EBITDA margin declined to 8.5% in FY26 from 18.6% in FY25.

Outlook and guidance

• FY 2027 order inflow targeted at INR 8,000–10,000 crore, with a mix of NHAI, irrigation, mining, and state projects.

• Revenue guidance for FY 2027 is around INR 2,000–2,300 crore, with FY 2028 targeted at INR 3,000+ crore.

• Order book stands at Rs 86,725 million as of March 31, 2026, with additional Rs 32,300 million in recently won projects not yet included.

• Focus remains on timely project execution, strategic JV formation, and expanding into new business verticals such as metro and railway projects.