KNR Constructions Says GHMC Revokes ₹157.55 Crore LoA

KNR Constructions Limited said the Greater Hyderabad Municipal Corporation revoked the Letter of Acceptance for its ₹157.55 crore Banjara Hills EPC project on 27 October 2026. The revocation concerns an award announced in August for flyovers and an underpass in Hyderabad, removing that identified municipal project from KNR Constructions' disclosed order flow.

Why did GHMC revoke KNR Constructions' LoA?

Greater Hyderabad Municipal Corporation revoked the Letter of Acceptance issued to KNR Constructions for the Banjara Hills junction-improvement project. The company disclosed the revocation under Regulation 30 of the Securities and Exchange Board of India Listing Obligations and Disclosure Requirements Regulations, 2015, on 27 October 2026.

The available disclosure does not state the reason for the revocation, any financial liability, or whether the company plans to challenge the decision. It also does not disclose whether any work had begun before the LoA was revoked. These details therefore remain unconfirmed.

The LoA had been issued by GHMC on 29 August 2026. At that time, KNR Constructions said the project had a value of ₹157.546 crore, excluding goods and services tax, and was to be executed on an engineering, procurement and construction basis.

What work was included in the Banjara Hills project?

The revoked LoA covered proposed road infrastructure works at NFCL Junction and TV9 Junction in Banjara Hills, Hyderabad. The stated scope included a two-lane unidirectional flyover at NFCL Junction, along with a two-lane underpass and a three-lane unidirectional flyover at TV9 Junction.

KNR Constructions had disclosed a 24-month construction schedule for the project. The award was one of several municipal and highway-related orders reported by the Hyderabad-based contractor during 2026, including work in Telangana's urban infrastructure market.

The announcement had described the assignment as an EPC project, where the contractor is responsible for engineering, procurement and construction within the agreed scope. However, the source does not provide a detailed payment schedule, mobilisation terms, or the expected timing of revenue recognition.

How does the revocation compare with KNR Constructions' other orders?

The revoked GHMC order was smaller than KNR Constructions' disclosed National Highways Authority of India project for NH-167 in Telangana. The company received a Letter of Award for the ₹1,734 crore project to four-lane an 80.01-kilometre stretch from Gudebellur to Mahabubnagar.

That NHAI project is being executed under the Hybrid Annuity Mode, with a stated construction period of 730 days followed by 15 years of operation and maintenance. HAM projects have a different contractual structure from municipal EPC assignments and involve long-term operating obligations after construction.

KNR Constructions also disclosed a ₹235.07 crore EPC award from Malkajgiri Municipal Corporation for a six-lane bidirectional flyover across TKR College Junction, Gayatri Nagar Junction and Mandamallamma Junction. That project too was given a 24-month completion period.

Separately, a joint venture involving KNR Constructions and Sushee Infra & Mining received a Letter of Acceptance from South Eastern Coalfields for coal mining and overburden-removal work at Kusmunda OCP in Chhattisgarh. The disclosed project cost was ₹3,361 crore on an item-rate basis, with an eight-year project period.

What does this mean for KNR Constructions' order book?

The revocation removes a ₹157.55 crore award from KNR Constructions' reported project pipeline, but the supplied information does not quantify the resulting change in its current order book. As of 31 March 2026, the company had reported a consolidated order book of ₹11,903 crore, including recently secured HAM projects.

The company had said that this order book offered revenue visibility for the next three to three-and-a-half years. Since the GHMC project was awarded after that reporting date, it should not be assumed that the ₹157.55 crore value was included in the 31 March order-book figure.

For investors, the immediate disclosed fact is the cancellation of the LoA rather than a stated effect on revenue or profit. No change in guidance, revised order-book figure, or estimate of financial impact has been provided in the information available.

KNR Constructions also made a separate Regulation 30 disclosure on 3 November 2026 concerning an investment in a wholly owned subsidiary. The supplied announcement only states that an enclosure was submitted, without giving the subsidiary's name, investment amount, purpose, or timing.

How has KNR Constructions built its infrastructure business?

KNR Constructions is a Hyderabad-based infrastructure project development company incorporated in 1995. Its stated operating areas include EPC services for roads and highways, irrigation, and urban water infrastructure management.

The company has continued to receive a mix of highway, flyover, municipal and mining-related assignments. Its 2026 disclosures include the NH-167 HAM project, the Malkajgiri flyover order, the Banjara Hills LoA that has now been revoked, and the Kusmunda joint-venture assignment.

This mix matters because project size, execution period and contract structure vary considerably. A municipal EPC flyover order has a defined construction schedule, while a HAM road project extends into operations and maintenance after the building phase. The available disclosures do not provide a comparable margin or cash-flow estimate for these projects.

Conclusion

GHMC's revocation of the ₹157.55 crore Banjara Hills LoA reverses an August 2026 municipal EPC award for KNR Constructions. The project had covered planned flyovers and an underpass at two Hyderabad junctions, but the disclosed material does not explain the authority's decision or quantify any financial effect on the company.

Investors can watch for any further clarification from KNR Constructions or GHMC on the revocation, including the reason, project status and possible financial implications. They can also track execution of the ₹1,734 crore NH-167 HAM project and the company’s later disclosure on investment in its wholly owned subsidiary, for which terms were not provided.