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KNR Constructions in FY26: Lower execution, big new HAM wins, and a high-stakes receivables overhang

KNR Constructions Limited’s May 2026 investor presentation, along with its board meeting disclosures for FY26, sketches a year of sharply lower execution on the standalone P and L but continued activity in project wins and portfolio actions.

On a standalone basis, FY26 revenue fell to Rs 2,096.7 crore from Rs 3,358.7 crore in FY25, a decline of 38%. EBITDA dropped to Rs 178.2 crore from Rs 625.9 crore, with EBITDA margin compressing to 8.5% from 18.6%. Profit after tax fell to Rs 116.1 crore versus Rs 725.7 crore in FY25.

The consolidated numbers also reflect weaker topline, with FY26 revenue at Rs 2,698.0 crore compared to Rs 4,753.2 crore in FY25. Consolidated PAT for FY26 is Rs 436.9 crore.

One of the most consequential disclosures sits outside the headline results: collections on the Kaleswaram Package 4 irrigation project in Telangana have been stalled since March 2023. The company disclosed that trade receivables, retention amounts and unbilled amounts include Rs 1,363.3 crore related to this project as of 31 March 2026, even as it continues execution to comply with project terms. KNR stated confidence in recovering present and future dues, while also recording an expected credit loss provision of Rs 27.9 crore.

FY26 financial performance: Standalone weakness, consolidated complexity

The standalone quarterly trend underlines the slowdown. In Q4 FY26, revenue was Rs 535.3 crore versus Rs 851.2 crore in Q4 FY25. EBITDA fell to Rs 28.3 crore from Rs 117.5 crore, and EBITDA margin reduced to 5.3% from 13.8%. PAT for Q4 FY26 stood at Rs 19.2 crore compared to Rs 75.2 crore a year ago.

Consolidated Q4 FY26 revenue was Rs 695.6 crore versus Rs 975.2 crore in Q4 FY25. Consolidated EBITDA in Q4 FY26 was Rs 169.1 crore and PAT was Rs 106.1 crore.

The cash flow statement adds another layer. Consolidated net cash from operating activities in FY26 was negative at Rs -149.1 crore, while standalone operating cash flow was positive at Rs 42.7 crore. This divergence matters because KNR operates through a network of subsidiaries, SPVs and joint operations.

All values are in Rs crore, converted from Rs million figures in the presentation.

Order book: A mining-heavy mix and incremental HAM wins

KNR reported a standalone order book of Rs 8,672.5 crore as of 31 March 2026. The composition is notable: mining is the single largest segment at 41% of the base order book, with irrigation at 19%, pipelines at 10%, and roads split between HAM (16%) and other road projects (14%).

The presentation also lists two large HAM wins that are not yet included in the base order book. These are the four-lane elevated corridor along ECR in Tamil Nadu and the NH-167 four-laning in Telangana. The company shows these at Rs 16,800 million and Rs 15,500 million respectively excluding GST, totalling Rs 32,300 million. Adding these to the base order book takes the stated total to Rs 119,025 million, or Rs 11,902.5 crore.

Regionally, the base order book is split between South at 59% and East at 41%. In the expanded order book slide, the split shown is South 70% and East 30%.

New projects and SPV actions: Building the HAM pipeline and preparing to monetise

Two large HAM awards were highlighted as key FY26 events.

First, KNR received a Letter of Award for the NHAI HAM project in Telangana for construction of 4-laning of NH-167 from Gudebellur to Mahabubnagar on the Hyderabad-Panaji section. The company incorporated KNR Manyamkonda Infra Private Limited as a wholly owned subsidiary and signed the concession agreement. The bid cost is Rs 1,734 crore, with a 730-day construction period and an operation period of 15 years from COD.

Second, KNR received a Letter of Award from Tamil Nadu State Highways Authority for construction of a four-lane elevated corridor along East Coast Road from Thiruvanmiyur to Uthandi on HAM. KNR incorporated KNR Mahabalipuram Infra Private Limited as a wholly owned subsidiary and signed the concession agreement. The bid cost is Rs 2,163 crore, with a 1095-day construction period and an operation period of 5 years from COD.

Alongside project additions, KNR outlined an asset monetization plan. On 24 December 2025, the company executed share purchase agreements with Indus Infra Trust to sell its 100% shareholding including sub-debt in four SPVs: KNR Palani Infra, KNR Ramagiri Infra, KNR Guruvayur Infra, and KNR Ramanattukara Infra. The presentation states total equity to be invested of Rs 566.8 crore and total consideration to be received of Rs 1,543.2 crore, including a cash surplus component of Rs 144.5 crore. Completion is expected on or before 30 September 2026, subject to approvals and lender consents.

What investors should track next

FY26 leaves investors with a clear split in focus areas.

On one side is the execution and profitability reset visible in standalone results. Revenue and margins have fallen sharply, and standalone net working capital days are shown at 97 days as of March 2026. On the other side is an active pipeline of HAM wins and a monetization plan that, if completed within the stated timeline, could materially reshape capital recycling.

The biggest near-term monitoring point is receivables. KNR disclosed that Rs 1,363.3 crore of trade receivables, retention and unbilled amounts relate to the Kaleswaram Package 4 project, where collections have been stalled since March 2023. While management stated confidence in recovery, the auditors highlighted the matter in an emphasis paragraph, and the company booked an expected credit loss provision of Rs 27.9 crore.

KNR’s board also recommended a final dividend of Rs 0.25 per equity share for FY25-26, subject to shareholder approval.

The FY26 documents therefore suggest a company in transition: lower standalone execution, a larger mining component in the order book, meaningful new HAM awards, and an ongoing effort to monetise mature HAM assets, with working capital and collections remaining the key swing factor. */