KNR Constructions Ltd
NSE:KNRCON
KNR Constructions Ltd
KNR Constructions Ltd., founded in 1995, emerged as a beacon in the infrastructure sector of India, transforming landscapes one project at a time. With a focus on engineering excellence, KNR initially carved its niche in the highway construction domain, capitalizing on India's burgeoning need for robust road infrastructure. The company harnesses cutting-edge technology and innovative construction practices, enabling it to deliver projects with precision and timeliness. This dedication to quality and efficiency has established KNR as a trusted partner for government and private entities alike, furthering its reputation through successful ventures that span road, irrigation, and urban infrastructure development.
The revenue streams of KNR Constructions largely flow from its project-based business model, where the company bids for public and private sector contracts. Once awarded, it leverages its profound expertise and extensive resources to execute these projects, primarily focusing on sectors such as highways, expressways, flyovers, and other infrastructure undertakings. Operating under fixed-term contracts, KNR strategically manages costs by employing efficient resource allocation and harnessing scale efficiencies. This model not only ensures steady revenue but also positions the company to benefit from India’s continual push towards infrastructural advancement. KNR Constructions crafts its story through each project it undertakes, building not just structures but a legacy of engineering marvels throughout the subcontinent.
KNR Constructions Ltd., founded in 1995, emerged as a beacon in the infrastructure sector of India, transforming landscapes one project at a time. With a focus on engineering excellence, KNR initially carved its niche in the highway construction domain, capitalizing on India's burgeoning need for robust road infrastructure. The company harnesses cutting-edge technology and innovative construction practices, enabling it to deliver projects with precision and timeliness. This dedication to quality and efficiency has established KNR as a trusted partner for government and private entities alike, furthering its reputation through successful ventures that span road, irrigation, and urban infrastructure development.
The revenue streams of KNR Constructions largely flow from its project-based business model, where the company bids for public and private sector contracts. Once awarded, it leverages its profound expertise and extensive resources to execute these projects, primarily focusing on sectors such as highways, expressways, flyovers, and other infrastructure undertakings. Operating under fixed-term contracts, KNR strategically manages costs by employing efficient resource allocation and harnessing scale efficiencies. This model not only ensures steady revenue but also positions the company to benefit from India’s continual push towards infrastructural advancement. KNR Constructions crafts its story through each project it undertakes, building not just structures but a legacy of engineering marvels throughout the subcontinent.
Revenue Decline: Q3 consolidated revenue was INR 743 crores, with full-year revenue expected to fall to INR 2,000 crores, reflecting a slowdown in execution and order awards.
EBITDA Margin Pressure: Q3 EBITDA margin dropped sharply to 5.2% standalone and 22.4% consolidated, due to project completions, cost overruns, and higher subcontracting expenses.
Order Book & Pipeline: Order book stands at INR 8,849 crores, but only about INR 5,300 crores is executable in the next two years; aggressive order inflow targeting INR 10,000–12,000 crores by September 2026.
Guidance: Management expects FY '27 revenue to remain around INR 2,000 crores unless new large orders are won, and sees potential for a recovery to INR 4,500 crores revenue by FY '28 if execution ramps up.
Debt Reduction: Consolidated debt is expected to drop from INR 2,400 crores to around INR 500 crores after monetization of four HAM assets and receipt of sale proceeds.
Receivables Challenge: Significant receivables remain from Telangana irrigation projects, with INR 1,430 crores including unbilled amounts, and efforts ongoing for recovery.
Margin Outlook: FY '27 EBITDA margins are expected to stay around 9–10% due to tough competition and low turnover, with a return to ~20% margin targeted in FY '28 if project wins materialize.
