KNR Constructions Ltd

Financial Performance

• Standalone Q1 FY27 revenue ₹436.7 crores; EBITDA ₹65 crores; margin 15%; net profit ₹282.3 crores.
• Consolidated Q1 FY27 revenue ₹587.9 crores; EBITDA ₹96.4 crores; margin 16.4%; net profit ₹80.7 crores.
• Working capital days 133; March 2026 was 78; consolidated debt ₹1,975 crores; net debt-to-equity 0.9.
• Stand-alone debt nil; stand-alone cash ₹310 crores; consolidated cash ₹435 crores.
• Total order book as of 30 Jun 2026: standalone ₹8,667 crores; including HAM/mining ₹15,234 crores.
• Irrigation unbilled receivables ₹825 crores; water pipeline revenue in Q1 ₹7 crores; back-to-back; no unbilled portion.
• L1 current around ₹1,500 crores; mining LOA; SPV exits: Ramagiri ₹227 crores; Palani ₹295 crores received.

Operating / Segment Update

• HAM project progress (as of 30 Jun 2026): Ramanattukara–Valanchery 100%; Valanchery–Kappirikkad 100%; Magadi–Somwarpet 91.35%.
• Marripudi–Somvarappadu 86.03%; Mysore–Kushalnagara Package 4 ~20%; Package 5 ~18.28%.
• Equity infusion for HAM: INR125 cr in FY27 and INR85 cr in FY28; total INR210 cr.
• New mining Kusmunda project: LOA from SECL; total value ₹3,361 crores; eight-year execution.
• Indus Infra Trust: KNR Ramagiri Infra and KNR Palani Infra SPVs transferred; cash/claims receipts ₹227 cr and ₹295 cr.
• Railway/urban-mobility opportunities expanding; focus on diversified order mix; energy storage emerging.

Balance Sheet and Cash Flow

• Receivables from Telangana Package 4 ₹1,300 crores; irrigation total receivables ₹1,450 crores.
• Irrigation revenue unbilled ₹825 crores; total irrigation unbilled in order book ₹? (not separately stated).
• Consolidated debt ₹1,975 crores; stand-alone debt ₹0; stand-alone cash ₹310 crores; consolidated cash ₹435 crores.
• Crisil ratings reaffirmed: long-term AA stable; short-term A1+.

Projects and Capex

• FY27 total capex guidance around ₹350–₹400 crores; mining capex to be higher.
• Kusmunda capex ~₹400–₹450 crores in FY27; Banhardih capex ~₹200 crores in FY27.
• Risdi village vacating required; full mobilization expected; land availability impacting ramp-up.
• Kusmunda and Jharkhand start timelines: appointed date likely Sep; first-quarter capex ₹14 crores (Q1).

Outlook and Guidance

• FY27 revenue target around ₹2,200–₹2,300 crores; EBITDA guidance 8–9%.
• FY28 revenue target above ₹3,000 crores; EBITDA 11–12%.
• Order inflow target for FY27: ₹8,000–₹10,000 crores; mix across NHAI, irrigation, and state projects.
• Two HAM ADs expected in Q3 FY27; mining projects to start in FY28; railway/urban-mobility diversification.

Q&A Highlights

• L1 value around ₹1,500 crores; Mysore Package land-clearing progress enabling COD by December for 30–40% land.
• Somvarappadu unexecuted order book about ₹100 crores; irrigation unbilled ₹825 crores; total unbilled ₹1,220 crores.
• Water pipeline revenue in FY27 targeted ₹300–₹400 crores; balance in FY28.
• Q3 FY27: HAM ADs expected; mining project start timing tied to forest clearances.
• FY27 EBITDA guidance excludes one-off items; Q1 margins inflated by internal cash surplus (₹90 crores).

Transaction details

• Target Company: KNR Construction Limited.
• Disclosing Party: HDFC Mutual Fund schemes (non-promoter).
• Transaction Type: Acquisition of voting rights shares.
• Pre-Transaction Holding: 15,318,169 shares (5.45%).
• Transaction Details: 5,916,764 shares acquired, 2.10%, via Open Market.
• Post-Transaction Holding: 9,401,405 shares (3.34%).
• Date of Transaction: August 14, 2026.
• Equity share capital before/after: Rs 56,24,69,200 comprising 28,12,34,600 shares.
• Total diluted share/voting capital: Not disclosed.

Record date and dividend details

• Final dividend of Rs 0.25 per equity share (face value Rs 2), subject to shareholder approval.
• Record date fixed as Tuesday, 15 September 2026 for entitlement.
• Dividend payment within 30 days from shareholder approval, subject to TDS.
• Board meeting on 13 Aug 2026 fixed the record date.

Business Overview

• EPC leader in roads, highways, irrigation, and urban water infra.
• 30+ years of project execution with ~9,127 lane km of roads.
• Pan-India footprint across 12 states with BOT/HAM and annuity projects.
• Strategic focus on Elevated Metro Rail and Railway projects.
• Transformation includes BOT portfolio growth and SPV divestments.

Key Operational Highlights

• CRISIL reaffirmed AA long-term and A1+ short-term ratings with stable outlook.
• SECL LOA for coal mining project; Rs 3,361 crore; eight-year period.
• Malkajgiri flyover LOA; Rs 235 crore; 24 months.
• Transferred two SPVs to Indus Infra Trust; total consideration Rs 522 crore.
• Order book: Rs 86,674 million as on 30 June 2026.
• Kusmunda coal mining JV win: Rs 33,167m.
• ECR four-lane flyover, Tamil Nadu: Rs 16,799m.
• NH-167 Hyderabad–Telangana HAM: Rs 15,700m.

Financial Performance

• Standalone revenue Rs 4,366.9m; EBITDA Rs 655.0m.
• Standalone PAT Rs 2,822.7m; PAT margin 64.6%.
• Consolidated revenue Rs 5,879.4m; EBITDA Rs 964.3m.
• Consolidated PAT Rs 807.2m; PAT margin 13.7%.
• Standalone PBT Rs 3,427.4m; Consolidated PBT Rs 1,650.7m.
• Standalone Total Comprehensive Income Rs 2,824.6m; Consolidated Rs 809.1m.

Capital Structure & Liquidity

• CRISIL ratings reaffirmed: Long-Term AA; Short-Term A1+; Stable outlook.
• SPV divestment via Indus Infra Trust; completion targeted by 30 Sep 2026.

Strategy & Outlook

• Aim to be Centre of Excellence in eco-friendly infrastructure.
• Growth drivers: BOT/HAM pipeline, urban water, and metro/rail expansion.
• Crossed standalone revenue milestone of Rs 20,000 million; net worth milestone.

Governance & Leadership

• Founder–MD: K. Narasimha Reddy; 50+ years in highways.
• Executive Director: K. Jalandhar Reddy; heads tendering.
• Company Secretary: Haritha Varanasi.

Financial results approved

• Unaudited standalone results for quarter ended 30 June 2026 approved.
• Unaudited consolidated results for quarter ended 30 June 2026 approved.

Related party transactions

• Material related party transaction with KNRHC Baidyanath Banhardih Coal Mine Pvt Ltd approved, subject to members' approval.
• Material related party transaction with KNR-SIML (JV) approved, subject to members' approval.

AGM notices and governance

• Draft Notice of 31st AGM scheduled for 25 September 2026 at 12:30 PM via video conference.
• Draft Directors' Report, Corporate Governance Report, and MD&A approved.

Scrutinizer appointment

• Vikas Sirohiya, Practicing Company Secretary, appointed Scrutinizer for AGM e-voting.

Dividend and record date

• Record date fixed for dividend payment on 15 September 2026.

Regulatory / Emphasis of Matter

• Emphasis of Matter on Kaleswaram Package 4 dues; management confident of recovery.
• Dues: Rs 1,37,309.28 Lakhs (standalone) and Rs 7,37,309.28 Lakhs (consolidated).

Segment reporting

• Group treated as a single operating segment under Ind AS 108.

Meeting Details

• Date and time: 14 August 2026, 2:00 pm onwards.
• Nature of meeting: 1x1 investor meetings.
• Organised by: Equirus Annual Conference.
• Place: Mumbai.

Participants

• Key participants: Company officials (including Company Secretary).

Purpose

• Purpose: Investor conference discussing publicly available information.

Additional Notes

• Discussions will be based on publicly available information; UPSI will not be discussed.

Meeting Details

• Date and time: Friday, 14 August 2026 at 11:30 AM IST.
• Type and mode: investor conference call, virtual.
• Topic: Q1 FY27 earnings call.
• Organizer: KNR Constructions Limited.

Participants

• Key company participants: Executive Director & CFO; General Manager (Finance & Accounts).

Purpose

• Discuss Q1 FY27 financial performance for quarter ended 30 June 2026.

Additional Notes

• Pre-registration required; reference KNRC_Q1FY27_Earnings Call.
• Access numbers will be shared with registrants.
• RSVP contact: Strategic Growth Advisors Pvt. Ltd.

Meeting Details

• Date and time: Friday, 14 August 2026 at 11:30 AM IST.
• Type and mode: Virtual group conference call.
• Event/organiser: Investor Conference Call hosted by KNR Constructions Limited.
• Key participants: Executive Director & CFO; General Manager–Finance & Accounts.
• Purpose: Discuss Q1 FY27 financial performance.
• Pre-registration requested for call access.

Meeting Details

• Board meeting scheduled for 13 August 2026 at the company's registered office.

Key Agenda Items

• Consider and approve unaudited Standalone and Consolidated financial statements for Q1 2026 (quarter ended 30 June 2026).
• Any other matter with the Chair's permission.

Other Notes

• Trading window closed from 1 July 2026 to 15 August 2026 (48 hours after results).

Dematerialisation processing and listing

• Dematerialisation requests processed; securities confirmed to depositories (accepted/rejected).
• Securities dematerialised listed on exchanges where earlier issued securities trade.
• Physical certificates dematerialised were mutilated and cancelled after verification.
• Depository name substituted as registered owner within prescribed timelines.