KNR Constructions borrowings fall by Rs 1,257.84 crore

KNR Constructions Limited reduced consolidated borrowings by Rs 1,257.84 crore in the six months ended September 30, 2026, to Rs 1,179.76 crore from Rs 2,437.60 crore at March 31, 2026, while net cash from operating activities was Rs 1,292.76 crore against Rs 421.83 crore used a year earlier.

How much did KNR Constructions' borrowings fall?

KNR Constructions' consolidated borrowings fell by Rs 1,257.84 crore between March 31, 2026, and September 30, 2026, as non-current borrowings declined by Rs 1,205.38 crore and current borrowings decreased by Rs 52.46 crore. Non-current borrowings were Rs 1,064.40 crore at September 30, compared with Rs 2,269.78 crore at the March year-end.

Current borrowings stood at Rs 115.36 crore at September 30, 2026, compared with Rs 167.82 crore at March 31, 2026. The balance-sheet movement brought total liabilities down to Rs 1,964.45 crore from Rs 3,149.77 crore over the six months, while equity attributable to the company's shareholders increased to Rs 5,148.34 crore from Rs 4,971.99 crore.

Total assets decreased to Rs 7,112.42 crore at September 30, 2026, from Rs 8,121.55 crore at March 31, 2026. Within assets, non-current trade receivables fell to Rs 1,911.73 crore from Rs 3,199.54 crore, whereas current trade receivables were Rs 813.61 crore, broadly unchanged from Rs 808.36 crore.

Why did KNR Constructions' operating cash flow change?

KNR Constructions reported net cash generated from operating activities of Rs 1,292.76 crore for the half year ended September 30, 2026, compared with net cash used of Rs 421.83 crore in the corresponding half year ended September 30, 2025. The cash-flow statement recorded a Rs 1,271.99 crore favourable working-capital movement in the latest period, against a Rs 364.16 crore adverse movement a year earlier.

Cash generated from operations before income-tax payments was Rs 1,336.27 crore in the latest half year, compared with cash used in operations of Rs 371.18 crore in the previous-year period. Income taxes paid were Rs 43.50 crore, lower than Rs 50.65 crore a year earlier, resulting in the reported Rs 1,292.76 crore operating cash inflow.

Profit before working-capital changes was Rs 130.94 crore for the half year ended September 30, 2026, compared with Rs 136.93 crore in the same period of 2025. The comparison indicates that the year-on-year change in operating cash flow reflected the working-capital line rather than an increase in this pre-working-capital cash measure.

How did KNR Constructions use cash in the half year?

KNR Constructions reported a Rs 1,354.66 crore net outflow from financing activities in the half year ended September 30, 2026, compared with a Rs 370.45 crore net inflow in the corresponding 2025 period. The latest financing cash flow included Rs 1,319.48 crore of repayment of borrowings and Rs 96.44 crore of finance costs paid, partly offset by Rs 61.27 crore of proceeds from borrowings.

Investing activities used Rs 35.93 crore in the latest half year, compared with an inflow of Rs 29.53 crore a year earlier. The latest period included Rs 224.71 crore of purchases of property, plant, equipment and investments, Rs 128.93 crore of proceeds from sale or purchase of investments, and Rs 47.08 crore of interest received.

Cash and cash equivalents fell by Rs 97.83 crore during the half year, ending at Rs 88.60 crore on September 30, 2026, compared with Rs 186.43 crore at March 31, 2026. The closing balance included Rs 88.42 crore in bank balances and cheques on hand, while cash in hand was Rs 17.73 lakh.

What transactions and receivables should KNR Constructions investors track?

KNR Constructions transferred the entire equity share capital of KNR Palani Infra Private Limited and KNR Ramagiri Infra Private Limited to Indus Infra Trust during the quarter ended June 30, 2026 and the half year ended September 30, 2026. The consideration was Rs 432.48 crore and the transfer produced an exceptional profit of Rs 113.17 crore after adjustment for net assets on the transfer date.

KNR Constructions also transferred its entire equity share capital in KNR Guruvayur Infra Private Limited to Indus Infra Trust in the quarter and half year ended September 30, 2026. That transaction had consideration of Rs 485.86 crore and resulted in an exceptional profit of Rs 55.48 crore after adjustment for net assets.

The company recognised a Rs 96.10 crore modification loss in other expenses relating to changed estimates of financial assets receivable in the two subsidiaries transferred in the June quarter. KNR Constructions said the loss resulted from Indian Accounting Standards adjustments and did not have a cash-flow impact.

A separate balance-sheet matter is Rs 1,380.95 crore of trade receivables, retention amounts and unbilled amounts related to the Kaleswaram Package 4 Irrigation Project in Telangana at September 30, 2026. The amount was Rs 7.85 crore higher than the Rs 1,373.09 crore reported at June 30, 2026, and the company said collections had been stalled since March 2023.

Management said it remained confident of recovering present and future Kaleswaram Package 4 dues based on contractual terms, internal assessments and discussions with the authority. The auditor included an emphasis-of-matter paragraph on the Rs 1,380.95 crore balance, while stating that its review conclusion was not modified in respect of that matter.

Conclusion

KNR Constructions' September 2026 half-year statements show a Rs 1,257.84 crore reduction in consolidated borrowings alongside a shift to Rs 1,292.76 crore of operating cash generation from a Rs 421.83 crore operating cash outflow a year earlier. Financing activities used Rs 1,354.66 crore, and cash and cash equivalents closed the period at Rs 88.60 crore.

The next results will show whether the September 30 borrowing balance of Rs 1,179.76 crore changes after the Rs 1,319.48 crore of borrowings repaid in the first half. They will also provide a further update on the Rs 1,380.95 crore Kaleswaram Package 4 balance, where collections had been stalled since March 2023 and management has stated confidence in recovery.