KNR Constructions Wins ₹1,734 Crore NHAI Highway Project

KNR Constructions Limited has secured a significant highway development project from the National Highways Authority of India (NHAI) in Telangana. The company announced on March 27, 2026, that it received a Letter of Award for the project, which has a bid cost of ₹1,734 crore. This new contract strengthens the company's order book and reinforces its position in India's infrastructure sector.

Project Scope and Timeline

The project involves the four-laning of a crucial stretch on National Highway-167 (NH-167). Specifically, it covers the 80.01-kilometer section from Gudebellur to Mahabubnagar, which is part of the larger Hyderabad-Panaji corridor. The contract specifies a construction timeline of 730 days, or approximately two years. Following the completion of construction, KNR Constructions will be responsible for the operation and maintenance of the highway for a period of 15 years from the commercial operation date.

Execution under Hybrid Annuity Mode (HAM)

This project will be executed under the Hybrid Annuity Mode (HAM), a public-private partnership model favored for large-scale infrastructure projects. Under HAM, the NHAI pays 40% of the project cost as a construction support grant in installments during the construction period. The remaining 60% is arranged by the developer and is paid back by the government as fixed annuity payments over the 15-year concession period, along with interest. This model mitigates the financial risk for the developer as it does not depend on toll collection revenue.

A Boost to the Order Book

This ₹1,734 crore order is the latest in a series of project wins for KNR Constructions, significantly enhancing its revenue visibility. Earlier in the week, the company secured an ₹84 crore order from Hyderabad Growth Corridor Limited for widening a pipeline road in Telangana, with a nine-month execution period. These wins follow other major contracts, including a ₹2,163 crore order from the Tamil Nadu government in February 2026 and a ₹319.2 crore bridge project in Bengaluru awarded in November 2025, showcasing the company's consistent ability to secure new business.

Financial Context and Performance

The new order provides a positive outlook for the company, especially following a challenging third quarter. For the quarter ended December 2025, KNR Constructions reported a 58.6% year-on-year decline in consolidated net profit to ₹102.80 crore. Revenue from operations also fell by 12.4% to ₹743.20 crore during the same period. This major project win is therefore crucial for improving future earnings and reassuring investors about the company's growth trajectory.

Key Project Highlights

Proven Track Record in Project Execution

Hyderabad-based KNR Constructions has a long-standing reputation for its execution capabilities across various infrastructure segments, including highways, bridges, and irrigation projects. The company has successfully delivered projects under different models like Build-Operate-Transfer (BOT), Annuity, and HAM across several states. Notably, the company completed the Bijapur-Hungund toll road project nearly 11 months ahead of its 910-day schedule, earning a significant bonus for early completion and demonstrating its operational efficiency.

Market Impact and Forward Outlook

The addition of this large-scale NHAI project is expected to have a positive impact on KNR Constructions' market standing. It not only strengthens the company's order book to a robust level but also secures a long-term revenue stream through the 15-year annuity period. For the Indian infrastructure sector, this project signifies continued government spending on highway development, a key driver of economic activity. For investors, the order win signals a strong execution pipeline and potential for recovery after a weak financial quarter.

Conclusion

KNR Constructions' successful bid for the ₹1,734 crore NHAI highway project in Telangana marks a significant achievement for the company. It underscores its expertise in the road construction sector and its ability to win large contracts. The focus will now shift to the timely execution of this project, which is critical for bolstering its financial performance and delivering value to its stakeholders in the coming years.