This article first appeared on GuruFocus .
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Q3 FY26 Stand-alone Revenue:INR585 crores
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Q3 FY26 Stand-alone EBITDA:INR30 crores
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Q3 FY26 Stand-alone EBITDA Margin:5.2%
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Q3 FY26 Stand-alone Net Profit:INR18 crores
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Nine Months FY26 Stand-alone Revenue:INR1,561 crores
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Nine Months FY26 Stand-alone EBITDA:INR150 crores
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Nine Months FY26 Stand-alone EBITDA Margin:9.6%
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Nine Months FY26 Stand-alone Net Profit:INR98 crores
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Q3 FY26 Consolidated Revenue:INR743 crores
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Q3 FY26 Consolidated EBITDA:INR160 crores
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Q3 FY26 Consolidated EBITDA Margin:22.4%
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Q3 FY26 Consolidated Net Profit:INR104 crores
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Nine Months FY26 Consolidated Revenue:INR2,002 crores
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Nine Months FY26 Consolidated EBITDA:INR542 crores
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Nine Months FY26 Consolidated EBITDA Margin:27.1%
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Nine Months FY26 Consolidated Net Profit:INR332 crores
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Order Book as of December 31, 2025:INR8,849 crores
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Consolidated Debt as of March 31, 2025:INR2,443 crores
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Net Debt to Equity Ratio as of March 31, 2025:0.5 times
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Release Date: February 06, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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KNR Constructions Ltd ( BOM:532942 ) has a strong order book of INR8,849 crores, which includes a diverse mix of projects such as road, irrigation, pipeline, and mining.
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The company has secured a share purchase agreement with Indus Infra Trust for the sale of its 100% shareholding in several special purpose vehicles, expected to generate proceeds of INR1,543 crores.
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The company received a completion certificate for the Avinashi Road project in Tamil Nadu and a letter of acceptance for a new iconic bridge project in Hyderabad, valued at INR319 crores.
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CRISIL reaffirmed the company's long-term bank rating facilities as CRISIL AA with a Stable outlook, indicating strong financial health.
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The company is targeting an order inflow of approximately INR10,000 crores to INR12,000 crores by September 2027, indicating a robust pipeline of future projects.
Negative Points
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The highway sector experienced a slowdown due to reduced project awarding by the Ministry, impacting construction and execution activities.
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The company's EBITDA margin for Q3 FY26 stood at 5.2%, significantly lower than industry standards, due to increased subcontract expenses and project completion costs.
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The consolidated debt increased to INR2,443 crores as of March 2025, compared to INR1,847 crores in the previous year, raising concerns about leverage.
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Execution challenges persist, with some projects facing delays due to land acquisition issues and legal disputes, affecting revenue realization.
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The company anticipates lower EBITDA margins in FY27 due to competitive intensity and project execution challenges, with expectations of improvement only by FY28.
Q & A Highlights
Q: Can you elaborate on the revenue and order inflow expectations for the remainder of the fiscal year and FY27? A: K Venkatram Rao, General Manager - Finance and Accounts, explained that the current order backlog is limited, with some projects delayed due to clearance issues. The company expects to execute around INR2,000 crores this fiscal year and is targeting new orders from NHAI and other sectors to boost future revenues.
Q: What is the status of the bids placed and the expected order inflow by March? A: K Venkatram Rao stated that KNR Constructions has placed bids worth INR7,000 to INR8,000 crores and is targeting additional bids before March. The company aims to secure INR10,000 to INR12,000 crores in orders by September 2027, focusing on NHAI, irrigation, and state government projects.
Q: What are the expectations for EBITDA margins in the coming years? A: K Venkatram Rao mentioned that due to competitive intensity and project completion stages, EBITDA margins are expected to be around 9-10% in FY27. However, they anticipate a return to sustainable margins of around 20% by FY28 as new projects commence.
Q: What is the status of NHAI projects and the company's bidding strategy? A: K Venkatram Rao noted that NHAI has several projects lined up, and KNR Constructions is targeting these aggressively. The company may need to adjust its margin expectations slightly to remain competitive in the bidding process.
Q: What is the current debt situation, and how will recent deals affect it? A: K Jalandhar Reddy, Executive Director, stated that the consolidated debt as of December is INR2,400 crores, with INR2,100 crores related to SPVs being monetized. Post-monetization, the debt is expected to reduce significantly, with a target of around INR500 crores by March.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
