KNR Constructions Limited (KNRCON) share price

₹125.66 on NSE as of 2026-09-11. +1.60% on the day. market cap ₹3,534 Cr. P/E 9.0. 52-week range ₹109.62 to ₹209.71. Construction.

What the company does

Incorporated in 1995, KNRCL is a Hyderabad-based construction contractor and developer primarily engaged in road construction. It has minor presence in the irrigation and urban infrastructure segments. In 1HFY19, the company’s revenue was INR9.7 billion, EBITDA was INR1.9 billion and EBITDA margin was 19.8%.

Filed by India Ratings, page 3.

KNR Constructions (FY26): From Order Drought to Asset Monetisation

At a glance

FY26: revenues collapsed 43% to ₹2,698 Cr, net profit halved to ₹437 Cr, EPS fell 57% to ₹15.54. Margin compressed from 34% to 26%.

The company is selling HAM stakes (₹1,543 Cr proceeds) and pivoting into mining and data centers. Working capital spiked to 345 days. Stock at 0.68x book, P/E 7.58, ROCE 10.4%.

Execution track record intact; margins and order visibility collapsed.

Introduction

KNR Constructions was built in 1995 as a Hyderabad-based EPC player in highways, irrigation, and urban infrastructure. By FY25, it had executed 81 projects across 11 states with a reputation for early completions.

The turn came when NHAI awards slowed dramatically in FY26 (3,100 km awarded vs. 7,500 km target). Without new order inflow, overheads became a burden. Debtor days climbed to 109. Working capital swung sharply negative. Management opted to monetise HAM assets (selling four SPVs to Indus Infra Trust) and recapitalise to fund mining and new bids.

Business model

KNR bids for EPC contracts in highways (flyovers, bridges), irrigation, and now mining and data centers. It owns 1,218 tippers, 373 excavators, and mixing plants. Eight HAM projects across Telangana and Karnataka (452 lane km) generate annuity cash once operational.

The EPC business is brutal: intense competition, 10% EBITDA margins (vs. historical 26%), working capital intensity, and chronic state payment delays. Telangana irrigation alone owes ₹1,400 Cr.

New pivots (mining, data centers) are unproven. Mining capex ₹350 Cr is gated by forest and Gram Sabha clearances. Data centers are greenfield with partners; "Indian data in India" policy post-2027 is the thesis, but land and power access are real gatekeepers.

Model in transition: core EPC business fighting for margin, asset monetisation unlocking liquidity, two unproven pivots beginning. Execution risk elevated.

Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for KNR Constructions Limited.

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