This article first appeared on GuruFocus .
-
Revenue (Standalone):INR 436.7 crores for Q1 FY27.
-
EBITDA (Standalone):INR 65 crores, with an EBITDA margin of 15%.
-
Net Profit (Standalone):INR 282.3 crores for the quarter.
-
Revenue (Consolidated):INR 587.9 crores for Q1 FY27.
-
EBITDA (Consolidated):INR 96.4 crores, with an EBITDA margin of 16.4%.
-
Net Profit (Consolidated):INR 80.7 crores for the quarter.
-
Order Book:INR 8,667 crores as of June 30, 2026, excluding recently won HAM and mining projects; INR 15,234 crores including these projects.
-
Order Book Breakdown:38% road sector, 11% irrigation, 6% pipeline, and 45% mining.
-
Consolidated Debt:INR 1,975 crores as of June 30, 2026, down from INR 2,438 crores as of March 31, 2026.
-
Net Debt to Equity (Consolidated):0.9 as of June 30, 2026, compared to 0.49 as of March 26.
-
Working Capital Debt:133 days as of June 30, 2026, versus 78 days as of March 26.
-
Warning! GuruFocus has detected 8 Warning Signs with BOM:532942.
-
Is BOM:532942 fairly valued? Test your thesis with our free DCF calculator.
Release Date: August 14, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
KNR Constructions Ltd ( BOM:532942 ) received a Letter of Acceptance for a coal mining project at Kusmunda, Chhattisgarh, valued at INR 3,361 crores, expanding its order book diversification.
-
The company's total order book, including new HAM and mining projects, stands at INR 15,234 crores, providing strong revenue visibility for the next 3-3.5 years.
-
CRISIL reaffirmed the company's long-term bank facility rating at CRISIL AA/Stable and short-term rating at CRISIL A1+, reflecting a strong credit profile.
-
The company completed the sale of its stakes in KNR Ramagiri Infra and KNR Palani Infra, generating total proceeds of INR 522 crores, which strengthens its balance sheet.
-
Management expects revenue to grow to INR 2,200-2,300 crores in FY27 and exceed INR 3,000 crores in FY28, driven by new project starts and full operational capacity.
-
The company is actively diversifying into railways, metro, and battery energy storage, with a strong pipeline of opportunities in the southern region.
Negative Points
-
The road sector is experiencing subdued awarding activity, with NHAI awarding only 107 kilometers of projects in Q1 FY27, indicating a slow start to the year.
-
Working capital days increased significantly to 133 days as of June 30, 2026, compared to 78 days as of March 31, 2026, indicating higher capital blockage.
-
The company faces a substantial receivable of INR 1,300 crores from the Telangana irrigation project, with recovery dependent on government installment payments.
-
The Banhardih mining project in Chhattisgarh is delayed by 8-10 months due to pending forest clearances, pushing its start to FY28.
-
EBITDA margin for Q1 FY27 was boosted by a one-off gain of INR 46 crores from asset sales; excluding this, the margin was only 5.5%, below the guided 8-9% for the full year.
-
The company plans significant capital expenditure of INR 350-450 crores in FY27 for mining equipment, which will increase depreciation and pressure near-term profitability.
Q & A Highlights
Q: What is the revenue and EBITDA guidance for FY27 and FY28? A: K. Ram Rao, General Manager - Finance and Accounts, stated that FY27 revenue is targeted at INR 2,200-2,300 crores, a 10-15% increase over the previous year, with an EBITDA margin of around 8-9%. FY28 is expected to be a stronger year, with revenue targeted above INR 3,000 crores and EBITDA margins improving to 11-12% as new projects reach full operational capacity.
Q: What is the status of the Telangana irrigation project receivables, and what is the expected recovery timeline? A: Kamidi Reddy, CFO and Executive Director, reported positive discussions with the finance and irrigation ministries. The government has proposed paying the outstanding INR 650 crores in 5-6 installments of INR 80-90 crores per month, driven by the urgent need for water in Hyderabad. Management expects INR 400-500 crores to be recovered in FY27 and is actively pushing for the first installment.
Q: What is the expected capital expenditure (CapEx) for the new mining projects, and how will it impact the financials? A: Kamidi Reddy, CFO, detailed that the Kusmunda coal mining project will require INR 500-600 crores in equipment, with INR 400-450 crores expected to be spent in FY27. The Banhardih project will need an additional INR 350-400 crores, with INR 200 crores potentially spent this year if land acquisition is completed. The company is using buyback arrangements for dumpers to manage capital costs and expects a PAT margin of 6% plus from these projects.
Q: What is the current order book position, and what is the order inflow target for FY27? A: K. Ram Rao, GM Finance, stated the total order book stands at INR 15,234 crores, including the two new HAM projects and the mining project. The mix is 38% road, 11% irrigation, 6% pipeline, and 45% mining. The company is targeting order inflows of INR 8,000-10,000 crores for FY27, focusing on NHAI, irrigation, and state government projects.
Q: What is the status of the two new HAM projects and the older mining project? A: K. Ram Rao, GM Finance, confirmed that the appointed date (AD) for the two new HAM projects (Chennai ECR and Telangana Mahabubnagar) is expected in Q3 FY27. The older Banhardih mining project is delayed due to forest clearance issues and is now expected to start in FY28, while the new Kusmunda mining project is expected to begin operations in September 2026.
Q: What is the revenue split and margin profile for the different business segments? A: K. Ram Rao, GM Finance, provided the Q1 revenue split: 70% from HAM, 25% from EPC, and 3% from irrigation. The water pipeline project has an order book of INR 830 crores, with INR 300-400 crores expected to be executed in FY27. The irrigation order book is reduced to INR 800 crores, with only INR 200 crores expected this year.
Q: What was the impact of the one-off gain on Q1 EBITDA, and what is the underlying margin? A: K. Ram Rao, GM Finance, explained that the Q1 EBITDA margin of 15% included a one-off gain of INR 46 crores from the sale of two HAM SPVs (KNR Ramagiri and KNR Palani) to Indus Infra Trust. Excluding this, the underlying EBITDA margin was around 5.5%. The company expects margins to improve to 11-12% in Q3 and Q4 as new projects commence.
Q: What is the company's strategy for diversification into new sectors like railways, metros, and battery storage? A: Kamidi Reddy, CFO, stated that the company is actively evaluating railway and metro projects as part of its medium-term diversification strategy, particularly in the southern region. The company has formed a JV with NCC for elevated metro projects. Regarding battery energy storage, the company has been cautious after unsuccessful bids and is carefully assessing the risks before pursuing new opportunities.
Q: What is the current debt position and the company's plans for capital returns? A: K. Ram Rao, GM Finance, reported that consolidated debt stood at INR 1,975 crores as of June 30, 2026, down from INR 2,438 crores in March 2026. The net debt-to-equity ratio is 0.9. Kamidi Reddy, CFO, confirmed that a buyback is being considered, with a final decision expected from the board, while keeping reserves for future equity commitments and CapEx requirements.
Q: What is the status of the Mysuru-Kushalnagar HAM projects, and when is the expected completion? A: Kamidi Reddy, CFO, explained that land acquisition issues have been resolved, with 100% of the land now available. The company is planning to achieve COD for the available 30-40% land by December 2026 and expects to complete the entire project by April or May 2027. Execution has been accelerated to avoid further delays and interest costs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
