KNR Constructions Limited (NSE: KNRCON) Q3 2026 Earnings Call dated Feb. 06, 2026
Corporate Participants:
Jalandhar Reddy — Executive Director
Venkata Ram Rao — General Manager, Finance and Accounts
Analysts:
Shravan Shah — Analyst
Niteen S Dharmawat — Analyst
Vaibhav Shah — Analyst
Ritesh Poladia — Analyst
Deepashi Joshi — Analyst
Bhavin Modi — Analyst
Vasudev Ganatra — Analyst
Dheeraj Kripalani — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to KNR Constructions Limited Q3 and 9 months FY26 earnings conference call. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone.
Please note that this conference is being recorded. I now hand the conference over to Mr. K. Venkata Ram Rao, General Manager, Finance and Accounts from KNR Constructions Ltd. Thank you. And over to you sir.
Venkata Ram Rao — General Manager, Finance and Accounts
Good afternoon. Thank you for joining us today on the call to discuss the financial results for Q3 and 9 months FY26 along with me I have Mr. K. Jalandhar Reddy, our Executive Director and Strategic Growth Advisor, our Investor Relations Advisor. We have uploaded results and investor presentation on the stock exchanges as well as our company website. I hope everyone got an opportunity to go through it. We would like to touch upon our key company updates and industry events post which we have a question and answer session on. The past few quarters the infrastructure has operated in challenging environment, testing, execution capability and balance sheet resilience across the industry.
The high risk in particular experienced a slowdown primarily due to moderation in the project awarding by the Ministry. This led to a lower conception and execution activity during the financial year. Reflecting this trend, Road project award during nine months FY26 remain muted with the Ministry of Road Transport and highways and NHIS awarding 1,448 km and 712 km of the project respectively. Looking ahead, the outlook for project award is improving. NHI has already invested invited bid for projects aggregating to 1.5 trillion. Against this backdrop, awarding utility is expected to gather meaningful momentum in the future quarter.
Support by the Robust order pipeline with a strong bias towards HAM project followed by BoT and CPC opportunities. Despite the near term pressure, the outlook for sector remains constructive supported by Renewed Policy Trust. The union budget provides a strong impetus to the infrastructure sector with capital expenditure increased by 9% to Rs 12.2 lakh crores for FY 2627 reinforcing the government’s continuing emphasis on infrastructure led growth under the future Ready Bharat Initiative. Policy measures are meaningfully focused on driving balanced regional development with great emphasis on tier 2 and tier 3 cities, the development of high speed rate corridor to promote sustainability mobility and Urua Dry initiative aimed at strengthening industrial connectivity along the east coast.
Complementing these measures contribute the introduction of the new Infrastructure Risk Guaranteed fund providing partial credit guarantee to the lenders in aim to de risk infrastructure development during the construction and early operation phase thereby encouraging greater private sector participation. At the same time sector fundamentals continue to strengthen. Fast tech based coal collection have maintained healthy momentum with volume rise by around 17% year on year during October to November quarter and value collection increased by approximately 12.7% on year on basis. This sustained growth enhances the cash flow of operational road assets and accelerated assets modernization by the Ministry which also creates value unlocking opportunities for companies with mature toll profitability.
As a result, assessed monetization has emerged a key funding lever for NHI in enabling to generate resources beyond veritical allocation. Monetization proceed of approximately 35 to 40,000 crores are expected in FY26 and are intended to support new infrastructure investment while maintaining financial discipline. To sum up, while the sector has navigated a phase of moderation and near term challenges, the underlying fundamentals remain strong. With improving awarding momentum support, free budgetary allocation and robust quality framework and growing monetization revenue, the road infrastructure sector is well positioned to enter its next phase of sustainable growth now. Key updates of the Company the percentage of physical Progress as of 12-31-2025 for HAM project is as follows.
Ramanathara to voluntary 99.4% voluntary to Capri part 98.3% Chitur to tattoo around 97.4% Magadi to Somart around 90.1% Neripadu to Somar Padu approximately 64.9% and Mysore to Kushangar package 5 10% and Mysore to Kushangaar package 4 approximately 6% as of 12-31-2020. The company has already invested 727 crores of out of 962 crores equity inclusion required for all the HAND projects. The additional equity requirement of 235 crores to be infused as 87 in FY26 and around 148 in FY27. For this you can refer to slide number 23 of our investor presentation on the 24th of December 2025 the company executed share purchase agreement with Indus Infrastructure for the proposed sale of its 100% shareholding along with the subordinated in the following special purpose KNR Palmi Infrastructure Private Limited KNR Ramgiri KNR Guru Vayur and Kran Ramana Takar A part of this transaction the company will invest around 566.8 crores in crore actually in the Pharma equity and subject again this company is expected to receive total proceed of 1543 crores which includes rupees 1398 for sale consideration and around 145 crores was the estimated cash surplus which will be streamed up to the company in agreed manner.
In November 25th the company received a completion certificate for Avanasi Road projects in the Tamil Nadu as of 8th October 2024 the company also received a letter of acceptance from the Musi Riverfront Development Corporation for the construction of an iconic bridge across Miralam 10 connecting Bengaluru national highway at Saskaripram to Chinthua Met under the EPC mode the project has a contract value of 319crores in consistency period of 24 months. Lastly, the Crystal review the company’s long term bank rating and reaffirm them as a Crystal AA with stable outlook while removing the ratings from the rating voice with developing implications.
The short term rating was also referred as Crystal A1 and also removed from rating was with developing implications now coming to the other position as of 12-31-2025 the company’s total auto book includes recently won EPC project stand at 8,849 crores. This is divided into 29% for the roads project, 19% for irrigation project 20, 12% for pipeline project and 40% for mining projects. Land by bifurcation is 84% of other wickets from the third party and balance 16 is from captive project. The third book order book percentage is split between state government around 80% and central government 2% and 2% from the other private.
The current order book will be able to exclude over period of around two years excluding mining projects. With the government emphasis on infrastructure development, we anticipate new order award in the coming quarters. We are hereby aiming at order inflow of approximately 10 to 12,000 crores by end of September 27th with a mix of projects like MSCI, irrigation and other state government projects. Now let me move to the Q3 and 9 months FX notices standalone financial performance. The revenue for the quarter stood at 585 crores and EBITDA for Q3FY26 stood at 30 crore and EBITDATA margin is 520 crores.
Net profit for the quarter was 18 crores on 9 months FY26 high lakhs revenue for 9 months FY26 issued at 1561 crores issued at 150 crores and margin at 9.6%. Net profit for 9 months FY20 stood at 98 crores. Now coming to Q3 9 months F26 consolidated performance. The revenue for the quarter stood at 743 crores and EBITDA for q3 of I26 stood at 160 crores. EBITDA margin is 22.4%. The net profit for the quarter was 104 crores. The moving on 9 months. The price is highlight the revenue for 9 months FY26 excluded 2002 crores.
EBITDA for 9 months FY26 stood at 542 crores with EBITDA margin of around 27.1%. Net profit for 9 months FY26 332 crores. Now moving on the standalone balance sheet the company continue to remain strong balances. The working capital rate stood at 82 crores compared to 93 crores as of March 23. A consolidated debt as of 31.03.25 is stood at 2443 crores as compared to 1847 crores as of 31st months 2025. The net debt to it will be on consolidated basis. 31.3.25 stand at 0.5 times as compared to 0.41 times as of 31.3.2024. With this we can open the floor for question and answers.
Questions and Answers:
operator
Thank you very much. We’ll now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. Our first question comes from the line of Shravan Shah from Daulat Capital. Please go ahead.
Shravan Shah
Hi sir. Thank you sir. Just trying to understand on the revenue and order inflow front. So if you can elaborate on that front. So I will try to break it in the past. So first in the balance of fourth quarter how much execution or the revenue we are looking at out of this? 8,850 odd per order book. And out of this in FY27 how much revenue are we looking at? That is first. T hen on the order employee will come.
Jalandhar Reddy
Yes sir. Actually order backlog concerned the what we have very little in fact certain portion is from mining. So mining actually to start with I think we are able to start that in coming second quarter next financial year or third quarter. Practically it is possible to make it in third quarter as the forest clearance and village Gram Sabha could not be concluded. So this is going to further take another eight to 10 months to start with. So this is the situation. So what we are left with is only that around 4000 plus which is need to be executed and that needs to be executed within upcoming say two years time whatever we have. But the projecting the Bangalore Bijor highway is that package 13 could be closed by April. We are expecting that to be taken with the pcod so those things will be closed. So ongoing project will go on for this year and I think you can take around say 2000 crore could be executed this year. This financial year. I need to say so further sir actually hopefully there is a good robust expectation from NSA as well.
We are even gearing up for upcoming railway boats as well. High speed rail also we have already taken one CO for high speed rail and railways so that is being now taken care. So we are continually looking for big. So again we are also participating in state highway tenders for what do you say power project also we are trying to participate as well. We are also participating in west the US vendors also we are participating. Apart from that irrigation we are doing again there are likely projects to come up from Irrigation and Rajasthan as well in Madhya Pradesh and also from Orissa state.
So these are now on the boat. So we will be participating in those tenders. So definitely sir we are trying our best to target the tenders and get some order books for the company because it’s very very need of the hour and we all understand the importance of the thing and yeah we. We even mind our investors. Concerns about this.
Shravan Shah
Yeah so so so further just trying to understand. So let’s say break it part. So till now how much orders that we have bidded and also if you can specify NHI or state level and the segment wise where bid is yet to open that is one separate second. How much more are we planning to bid before March though I. I understand the Venkat sir has said that we are looking at 1012000 by September 1st. Just trying to break it part and also let’s say if we how much we are we are looking at to get before March.
And if so so in terms of the converting into the revenue in FY27. How much can be converted out of this into the revenue in FY27.
Jalandhar Reddy
Actually you have asked about the main how many bits we have placed right now. First I’m going to answer this. There are the projects which we are Orissa. We have participated in some ham projects I think extended on three days ago. And apart from that we have also participated in certain tenders. I think in. And apart from that we are now aching nothing now other than that. But Maharashtra pit is also there. We have placed this Maharashtra. But there are smaller. You know 600, 700 crores. So almost about 6, 7 to 8,000 crores. We have quoted as of now sir. Waiting for those results to come down. Apart from that there is Chennai bid which we have quoted. And we are waiting for that results to come out as well as the court case and all that. It is four directions are needed for that. Apart from that sir, we are. We have nothing now. But we will be placing bits in mining. There is a. Only there is 5000 crore project is there which we are now trying to participate in. Apart from that there is almost 63 projects are there in before March. I can see the list also offering from 3000 to 3000 to 500 also there are different project sizes are there.
Even 4000 crores is also there. And there are a lot of work like that. Sir. There are bigger size projects also. So looking forward I think even if you are able to succeed in getting 3 bits out of NHA also will be having enough order in hand. And as you all know the time to take any project to come in it depends on again depending on the plan situation in the project and minimum time from big stage to the financial project phase is also. You know that as you know seven to eight months it is slightly precise there the mandatory time that can be before financial closure.
So these are all the hurdles which we have in this. Apart from that there are railways also 26 weeks are there trying to participate metro only one bid is there that also will be participating. And solar project which we are trying. I think the bids are able to come from Karnataka as well from Maharashtra also which we are. We made an initial level inquiry from the department. So there are bits going to come up in March. The bits may happen in April or May. So this is the situation sir. There are 11 bits which we are targeting. Sir. Are there.
Shravan Shah
This irrigation 11 bits in terms of the value would be how much and railway 26 bits that you said that the value would be how much? No issue so broadly in terms of 7 to 8,000 crore bid which we have already placed where outcome is yet to come. And if I just summarize maybe 30, 40,000 crore kind of a bid we are planning to put in now and out of that we are looking at 10 to 12,000 odd corrode. But given that let’s say we do another 500 crore kind of execution now. So for FY27 and the way the bids are then let’s say we if we win that also how one can look at the execution or the revenue for 27 and particularly for FY28.
Because as you highlighted once we get this and it will take six, eight months to start the execution then for us to recoup the whatever the loss or rather we have missed on the revenue front. That way we should be covering in FY28. So there how one can look at. Can we look at 4,500 crore kind of a revenue in FY28? Is it possible?
Jalandhar Reddy
Most probably it could be possible, yeah.
Venkata Ram Rao
If get right now order book is 8850 on that actually mining advice around 3500. If we exclude them then order book is come to around 5300. And that irrigation is almost 1700 are there out of that almost 800 is that is only unbilled is there if you remove that 800 only and a new irrigation only. So we left out of around 4300. Crores of order book. Existing order book out of 4300. We can execute around. We can say 2000 actually work in next year 2027 out of the current order book. And if any order is coming and we can able to execute that will be added. Actually with current order book definitely we can able to execute around 2000 crores in FY27.
Shravan Shah
Okay. And lastly margin though this quarter, if you can highlight specific reason why it has significantly fallen. And going forward once we get this order inflow can we look at again 13, 14% kind of EBITDA margin.
Jalandhar Reddy
Actually. To regularize that I think we hope not exactly this year or FY27 also we are not expecting that veza. But I think 2028 could be very. That’s what I’m thinking. Because you know all these new projects, whichever we did then they win. And that will launch in the last quarter or third quarter of the upcoming year. So definitely the exhibition will be very less in 47. So at this stage it is difficult to say. But the competitive intensity is also very very tough here sir, nowadays. So with all that I think adding to our perception definitely I think it should go little bit lower side on this 2027 maybe it’s quite difficult to expect like levels like 13, 14 levels right now.
But I think we can expect something near to 9, 10 figures to be deliverable. Because the entire project force is project manpower is completely on and the number of turnover is coming down. So definitely there is an impact on that and sitting idle. And second equipment is very huge with us and that is not performing to the required level. So this is also proposing such thing.
Venkata Ram Rao
And Sivan with that actually what said because lot of project is coming to final stage. If you see our Guruvayur project, our Ramanath project, our Nagri project and Avinasi project, all this project was almost fed up the end. So what is happening? There won’t be not much revenue but corresponding expenditure will be there. Arthur is talking bigger expenditure is already there. So that’s why actually this quarter actually this has come down. And as you know that in one of the project actually due to this construction of viaductor. So around 20 crores actually extra additional cost has come in this quarter.
So these are the mainly reason actually why our EBITDA has come down from 5% in spite of our industry level. But in future actually next year also will be the maybe 9, 10%. But 2028 onwards. Actually when this we get all the projects and definitely we should try to get the our sustainable ego data of around 30.
Shravan Shah
Okay, got it. So thank you and all the best.
Venkata Ram Rao
Thank you.
operator
Thank you. Our next question comes from the line of Nitin S. Dharmawat from Aurum Capital. Please go ahead.
Niteen S Dharmawat
Yeah. Thank you for the opportunity. Emma.
operator
There your voice is breaking.
Niteen S Dharmawat
Hello. Am I audible?
operator
Yes.
Niteen S Dharmawat
So my question is regarding the projects from nhai. So what is the status now? Are these projects coming? Are they you know putting more projects for bidding? Or is there still stress in the system? What is the sense you’re getting especially for next financial year?
Jalandhar Reddy
Yes sir. Up to March end we could see almost 63 number bids from NHI we have selected. I think it’s on selected only. I’m talking about in which the size of the projects are varying from different different sizes. Almost 5 to 6,000 crore sizes to it is varying drop to 400 also. So these are the project sizes we have sir. Most of them are above 1000. Very few are below 500 or so. So we have selected in a pattern where it could be our Interest or the nearby projects or side by side projects, all that smaller scale.
So we are grouping and trying to bid so that you know it becomes a bigger portfolio for us. So like that we are targeting sir. But I think one aspect I can say that because the aggression in the market is very heavy here. So we are also not looking at the margins as we used to look at earlier. Maybe we will have to dilute 2, 3% of the margins and then go ahead. So that is to be also noted for few projects, not all. Maybe for stay time and all we are very good. We can get a little bit more.
But NHI is concerned only to make ourselves right now comfortable. We would be bidding little bit few projects, little bit lesser because the initial level aggression will be there. So there we will. But the size of the projects are more than 3000 crores projects there we can end right margins as we used to get earlier. So definitely sir, hitting on bigger size projects will always be helpful. That’s what I am thinking right now.
Niteen S Dharmawat
I got it sir. Because last few projects that we lost, we lost with, you know, very small numbers if I understand it correctly. So maybe some bit of aggression from our side would come help. Is that something that we are concluding?
Jalandhar Reddy
Yes sir, that’s what I’m also looking at sir.
Niteen S Dharmawat
Sorry sir, what you said.
Jalandhar Reddy
Yeah. Actually some sort of healthy biddings only we have to do sir. But however we’ll have to little bit dilute on the margin side so that to keep ourselves first comfortable and then make bids. So as a combination it could be good one. That’s what the conceptual thing which we are trying to design.
Niteen S Dharmawat
Correct sir? Correct. My second question is about the net debt. So with you know all the deals that we have done recently, what will the consolidated debt after we receive all the money can you highlight that and how it is going to look from the balance sheet perspective when we are bidding for the new projects.
Venkata Ram Rao
This overall actually our debt is consolidated as of December is there around 2400 crores out of 400. 2400 what are the 4H that we are doing the monetization their debt is around 2100. So as of that consolidated as of December will be around 300 crores. And in future also the date of this basically one this we have this three ham project is going on actually on that only debt will come. So you can say by March. Actually our debt will be after completion of this divestment program our debt will be around 500 crores on consolidation.
Niteen S Dharmawat
Got it sir. Thank you so much and wishing you myself.
operator
Thank you.
Venkata Ram Rao
Thank you.
operator
Thank you. Our next question is from the line of Vaibhav Shah from JM Financial. Please go ahead.
Vaibhav Shah
Sir you indicated that we will be closing at 2000 crores revenue in FY26. So it indicates a revenue of only 450 crores for Q4. So there will be a sharp fall in a Q business in Q4.
Venkata Ram Rao
Because we have whatever the existing order book is there. Based on that only we are projecting that we will get around 450 so total this year we are going to achieve around 2000 crores of the turnover.
Vaibhav Shah
And next year also 2000
Venkata Ram Rao
next year is based on our existing order books. It will be 2000. If we are getting some good good project actually in the current maybe in first quarter or maybe in Q2 also then we can try to expedite and we take some IFC work is coming definitely we can look into. If it is then you know almost it will take further nine, eight to nine months to complete. So that’s what if additional order is coming. So definitely that will further added.
Vaibhav Shah
So worst case number is 2000 for next year.
Venkata Ram Rao
Based on our existing.
Vaibhav Shah
Okay so secondly our order inflow in YTD would be somewhere around 4, 300.
Venkata Ram Rao
This year will be.
Vaibhav Shah
Mining order and two EPC projects.
Venkata Ram Rao
Will be around. It will be around 4000 crores.
Vaibhav Shah
Around 4000. So there were two orders. One was multi level flyover at Kajaguda and other was iconic bridge across Meralam tank. So that put together it will fill around 800 crores.
Venkata Ram Rao
450 actually.
Vaibhav Shah
And mining is around 3 and a half. So it will be around 4344 only crore. According to media articles there are also one project called. Project from the. I think from state government. Any update that? Your L1 in that ham project.
Jalandhar Reddy
The Chennai project. Sir actually there is a court case. So that court case the. The hearing is on 12. So yeah. It is very difficult to say anything but however you know actually the department is also under discussion with the you know committee. There is a committee that discussing on how to go about that court case after that. So the court cases regarding. Actually sir that one of the bidder he disqualified. He has no qualification actually. But he’s fighting in the course to qualify as he is left by so much amount like that. So that day he went to the court one single bench has cleared in our Octavia not our favor.
This is a department because it is we are no way concerned with it. Generally he made an allegation on that about the European blacklisted. So how you can do it like that? He made an allegation for which we have submitted our documentation. Because you know we have the co. We went to the court and we got nullified that father. After that NHIS considered with a saying that we will do the flyover entry of course and they will not put us in the blacklist. So there is no blacklist for us. So which we have explained to the court.
And that part we got clear from the events. And now he went to the government actually. So now government hearing is on first. So once that outcome comes then we can be able to tell you what happens.
Vaibhav Shah
Okay. Okay sir. Secondly, any update on Bandara Garchi Roli order? So do we expect anything to happen?
Jalandhar Reddy
This is pending in a long way. We have been extending the bank entities and waiting for that. Because the land acquisition only concerned what they are talking about. But I think in a months time we’ll be able to know that. They also said we will somehow clear it in March.
Vaibhav Shah
So any possibility of getting LOA sometime in first quarter next year or is there a possibility of cancellation of order?
Jalandhar Reddy
Both the possibilities are there. We really do not know it’s spelling with CMO office. Actually the cmo. CMO is what CM takes a view. That depends on it actually. But after lagging on to the project for so many years, so many days generally it will not go in cancellation. Because if they had to cancel they would have cancelled by now. Because they have cancelled that multi model corridor. And they’re recalling the tenders in the OT toll. So this is not cancelled as of now.
Vaibhav Shah
Okay. And sir, lastly one bookkeeping question. So out of your irrigation book of 1700 crores as of December what would be the unbilled portion?
Venkata Ram Rao
Around 800 crores. 816 crores.
Vaibhav Shah
So the revenue potential is only 900 odd crores from the irrigation book.
Jalandhar Reddy
Yeah.
Vaibhav Shah
Incrementally.
Venkata Ram Rao
Yeah.
Vaibhav Shah
And what will be the total unbuilt revenue at the company level?
Venkata Ram Rao
It is around 13 and 1355.
Vaibhav Shah
And in the water pipeline order we have seen that the order book is roughly 1033 crores. So also there is some unbilled portion over there with Indian order.
Venkata Ram Rao
This pipeline work?
Vaibhav Shah
Yeah, pipeline.
Venkata Ram Rao
So there is a unbuild is there around 100 and 140 crores unbuild is there.
Vaibhav Shah
So that also should be reduced. As if you want to look the revenue potential.
Venkata Ram Rao
It will also reduce. Yeah. Correct.
Vaibhav Shah
Okay. Thank you. So those are my questions.
Venkata Ram Rao
Yeah. Okay. Thank you. Thank you.
operator
Thank you. Our next Question comes from the line of Ritesh Polaria from Girac Capital. Please go ahead.
Ritesh Poladia
Yeah, thanks for the opportunity. Sir, if you can give us some. Comments on Kalashwaram package C and package for how much needs to be done. More.
Venkata Ram Rao
Total this outstanding receivable from this. Because package three there is no outstanding receiver. What are the certified bills who are there? It is already paid off and package for around 677 crores is the certified bill that is pending for payment. And other than this unbuild is in both the project is around 650 crores. So total around 1430 crores is the amount that we supposed to receive from the government of Telangana for certified and unbuilt person. And do we need to spend more on this project or is this over from our end? Package C is definitely no issue because we are receiving the collection.
As far as package 4 is concerned that left out order book is around 100 crores is only they are explaining package 4 only. So for that actually we may have to incur expense. Otherwise most of the work of package four is also completed.
Ritesh Poladia
Okay. And sir, is there any legal actions we are taking or we are still waiting for government to come back to us. Definitely we are following with the government and we are as you know we have already put our appeal to the also both processes we are following. Actually both following with the department as well as through court also that’s it. Is you can give us by what time this can be cleared out or is there any chance that we need. To write it off?
Venkata Ram Rao
Definitely in government side there is a delay. There is no question of write up Because definitely
Jalandhar Reddy
actually writing off means such a huge port. Second thing, the main government is not saying that they will not pay. And they are really certifying the bills that they want us to do. The project and all that they say this month, that month it is expanding. But the thing is hopefully I am also thinking partial payments can be recognized. In this month’s March. By March ended the partial payment should come out. That’s what we are thinking. Because you know there is a necessity of that project to be coming that come up. Recently in CMO assembly also there was discussion. After that there is a CMO office. There is a discussion. All the upstairs concerned upsets were called there and they wanted water for Hyderabad. The Hyderabad badly needs water. So for that you know it is going to be a critical thing for them. Unless they commence this project upcoming year they cannot give the water properly. So to address this they wanted this project to be speeded up.
So they said, the department has said that it has been not paid for so many years and contractor is slowly moving on it and there is no significant progress which expected progress is not there. That’s what they said. So then TM said no we’ll pay them, ask them to speed it up like that. They said they approach, the department approaches and they said okay, pay us bill, speed up. That’s what we said. So it stands as this. So I think hopefully the heat is coming up from the requirement side. So definitely they should consider to pay us.
Ritesh Poladia
Okay. So another question on high speed rail side, what kind of projects you will be targeting?
Jalandhar Reddy
Actually it’s a very peak because you know I think already the high speed rail network is being done in India right now. Hyderabad, Pune and all that they are supposed to launch on the project side. So we are also right now we have recruited one CFO for railways, not for hybrid railways. He is a PE retired person, has been taken on the board. Now he is forming the PE and also he is likely to visit the concern department in next week. So we get more information on that side because as budget they have allocated a lot of fund towards doing these projects.
So definitely we also want our footprint over there so that you know, now that road we had some bad hit these two years onwards. Definitely we want to have another portfolio where we can keep us in growth. That’s what our conceptually we are thinking because it’s a civil construction. We are all there. The civil construction only the rail mechanism and all that. We need to little bit learn with the design consultant and all that. There are lot more people available with the grid. So definitely we can cope up and do work. That’s what our gap will be.
So that’s why we are starting off, sir. It’s a very, very starting stage with us.
Ritesh Poladia
Yeah, that’s all from my side. Thank you.
operator
Thank you. Our next question comes from the line of Deepa Shri Joshi from Ambit Capital. Please go ahead. Miss Joshi. A line has been. Yeah, please go ahead.
Venkata Ram Rao
It is not audible. I think it’s.
Deepashi Joshi
Am I audible now?
operator
Yes.
Deepashi Joshi
Hello.
operator
Yeah, this is better.
Venkata Ram Rao
Yeah, go ahead.
Deepashi Joshi
Yeah. For the Kanai project is there a change in scope for the. For the bitcost. The canal project? Irrigation.
Venkata Ram Rao
That is your. That your new one. The last time it is 327 crores. Yes, this is the same only. Other book is the same only.
Deepashi Joshi
So my question is because the total irrigation project in September 25th in the order book the number was around 15. 1500 crores. And now the number is increased to 1700 crores. So just wondering where the increase has come from.
Venkata Ram Rao
It is that addition in our package four. Actually. So what is our package four? Was there. So there are some. Re has been approved actually. So there was some addition in our package 4. It is not due to this project. It is due to our existing packages.
Deepashi Joshi
Okay, so whatever addition is because of package four.
Venkata Ram Rao
Yeah.
Deepashi Joshi
Okay. And when is the the Paleru canal and the other Sitaram list, when is that expected to start?
Venkata Ram Rao
Actually because there is some land acquisition issues are there in that project. So this now government is starting out there. So it may start in somewhere in next year. Q1 of next year.
Deepashi Joshi
Okay, got it. Just one more thing. What is the capex guidance for 26 and 27?
Venkata Ram Rao
Definitely if because what are the existing CAPEX are there that is actually sufficient. For us ourselves in if we are. Adding some new project. So for that CAPEX may require. So really there too we have to see that when we are getting this project. So based on that we may go up to around. You can say under capacity next year.
Deepashi Joshi
Okay. Okay, got it. And sorry last question for the package 4 and 5 my store packages. What is the expected execution or the revenue that you’re expecting in in Q4 which projects package 5? Package 4. Package 5.
Venkata Ram Rao
For these two projects in this quarter you are talking Q4 or next year? Actually ma’, am, that yes, this is concerned. There has been almost the new land problems have crop up there because it’s a complete Greek build land which is cutting down entire villages access to the other part of the field. So they wanted some service roads for. Which state government supposed to do the land acquisition which Erika is supposed to construct it. But the thing is now because of. These issues, sorry, because main problem is with the public. They have already not started any land acquisition as of now by the Natal government. So the public were angry and they stopped in certain areas. So the package. Fight concerned. There is land problem over concerned. I think only 50 55% land is available. On package five. The land is almost. 50 55% available. That’s it. So within that only we have to finish. So that’s what we are planning is that we do a little bit early completion is ensured. Leaving the gaps of the land shoes. And balance we’ll be going for. Completion. I think the issue is taken into PMO purview to pursue that matter as NHI failed to convince the people. So this is under PMO’s purpose for you. So maybe it just gets solved in another 45 months. What they are saying to three months at least. So this is the situation. So here the completion can happen I think by May, May, June. We are expecting to do the PCOD for that targeting. It’s not that we are doing.
Deepashi Joshi
Okay. So for package four you will still be able to maybe finish because there are no issues as such. But package five is still a concern.
Venkata Ram Rao
Yes.
Jalandhar Reddy
Whatever the leftover land, whatever the land for working is available that will finish and go for PCOD as such contractors and number of gaps which they doesn’t give you before six months that can be deleted for our dealing. And then again after that we will be doing PCOD2.
Deepashi Joshi
Okay. So both combined what do you think will be the will be the revenue from these two project in Q4?
Jalandhar Reddy
Actually the these two projects are about pay is around 10,000. So roughly we get around say 300350 crores. Because already partially is executed now almost 1100 11.
Venkata Ram Rao
So which will come around 400450 in next year FY27. Out of that we can expect around 40 50%. Around 450. 500.
Deepashi Joshi
Okay. Got it. Got it. Thank you so much.
operator
Thank you. Our next question comes from the line of Bhavan Modi from Anandrati. Please go ahead.
Bhavin Modi
Hi sir. Thank you for giving the opportunity. So just wanted to understand. There’s a hike in you know the subcontract expense around 216 crore. And and that has led to the you know the decrease in the EBITDA margin to 5%. So can you just help me what is this cost pertaining to?
Venkata Ram Rao
Actually as you know what are the pipeline project is there. That is we have given back to back to our subcontractor. So on this project actually around 170 crores. Actually turnover is happening actually out of 216 crores. 170 crores is pertaining to these subcontractor things are there. So that’s why subcontractor expenses has increased. And as you know subcontractor project has actually compared to less margin. So that is also one of the reason that our total Udita has reduced and other reason as already told you due to and completion of our projects in the final stage.
And one issuing wire at construction. So these things has actually has factors and reduce the evidence.
Bhavin Modi
Okay. Okay. And so what about that you know the. The. There was an accident right on NH 66 for which we had to you know do the sum of the rework. Right. Work 20, 25 crores. So what is the status with respect to that we did some settlements and.
Jalandhar Reddy
Yes sir, the construction is going on. Sir, I think substructure is 100% completed. Superstructure is complete by this month.
Bhavin Modi
So sir, how much money did we spend?
Venkata Ram Rao
We spent around 30 crores. Actually as of now around 1415, 20. 1530. You have to do that.
Ritesh Poladia
And that has been reflected. Okay. Okay, got it. Yeah. So that’s it from my side.
Venkata Ram Rao
Okay, thank you.
Bhavin Modi
Thank you.
operator
Thank you. Our next question comes from the line of Vasudev from Navama. Please go ahead.
Vasudev Ganatra
Yeah. Thank you for the opportunity. So sir, I just wanted to know how is the progress going on the irrigation and the pipeline project. Like how much have we executed in nine months spending on the book and when do we expect to complete these projects?
Venkata Ram Rao
Actually out of this 1033 actually we already around 150 crores work already done in the month of December and in this quarter actually Q4 we are expecting around 200 crores worth in this quarter. So already 100 crores billing is there. Actually that we have to put the bill and balance 100 crores in the next month. So definitely out of 11. If you see 1100 crores, almost 450, around 350 crores actually is going to be executed by this year end and maybe in next year we may execute around 2300 to balance maybe around 400 crores working pipeline project for the next years.
Vasudev Ganatra
Okay. And so just for clarification on the subtracting expenses you said 170 crore was for irrigation projects where you know we haven’t received the amounts. So like revenue is in book but cost has been incurred so that’s when margins are low. Is the understanding correct.
Venkata Ram Rao
Corresponding? Because you know our accounting is based on expenditure basis. So already I have considered in our cost as well as in our revenue to the extent of margin what are the our margins are there. We had to revenue also consider expenditure also consider. But with us being the subcontractor expenditure we won’t get that 13, 14% EBITDA in that general subcontractor back to a contractor will have around 3 to 4% margin. So that margin only has been built up in the financials.
Vasudev Ganatra
Okay, sure sir. And just a few bookkeeping questions. So you know if you can help me with your standalone debt and cash levels. The segmental revenue split and capex that we did in the third quarter.
Venkata Ram Rao
The. Stalin debt is zero actually and there. Is a cash surplus as of December. Of 80 crores in their understanding.
Vasudev Ganatra
Okay. The CapEx in Q3 and the revenue, segmental revenue split.
Venkata Ram Rao
We have only one segment. Actually we are not. We have only one segment. So whatever the revenue is there that is only from one segment. And as far as Capex is concerned we added just actually 5 crores of the Capex actually in this this year.
Vasudev Ganatra
Okay sir, I was meaning like now the total revenue how much is from the road hand projects, epc, irrigation. So if you can give that split for the third quarter.
Venkata Ram Rao
That percentage there in ham it is a 27, 28% and irrigation is around 17% and back to back is around 33%. And our own execution is around 20%.
Vasudev Ganatra
Okay sure. So that’s it from my side.
Venkata Ram Rao
Thank you.
operator
Thank you. Our next question is from the line of Dheeraj Kriplani from EV Spark. Please go ahead.
Dheeraj Kripalani
Hello. Am I audible? So my question is follow up on one of the previous questions. Like we said ytdfy26 we have secured 4300 crores of orders. And like you said up to March and 63 bits of O2 come from NHI. So can we expect some additional order inflows in 4Q and what will be our target for FY26? FY27 ordering source?
Venkata Ram Rao
Definitely. Actually because this quarter we are expecting more of the bid from nhi. So definitely we are targeting to addictly some of the other in Q4 we have bidded actually 5000 crores. So definitely it is an target. Actually we want to add some in total around 10 to 12,000 crores. We are targeting by September 26. Actually we should able to get actually further order inflow of around 10 to 12,000 crores by September 20. So these are the target and towards the target almost 7 to 8,000 crores we already bid. And we already identified 30 to 40,000 crores that we are going to bid.
So that’s why we are working on that in hopes.
Dheeraj Kripalani
Okay. Okay, thanks.
operator
Our next question is from the line of Shravansha from Dollar Capital. Please go ahead.
Shravan Shah
Hi sir, just a clarification. The further equity that to be invested you say 235 crore. But given the whatever the adjustment that or the rather lower equity for the 4 that we are we are selling it it should be 107 that we should be putting additionally.
Venkata Ram Rao
That’s why out of this revised equity out of 962 we already put 7. The left out is only 235 crores. Of liquidity in our future and project.
Shravan Shah
Okay, I. I will have a word with you on that. And. And this entire 1543 crore how much out of that we are likely to receive as a cash by March.
Venkata Ram Rao
Actually first two projects. That is funny. And with Ramire actually that we are. Planning to complete because we already had. Applied to the banks or NOC and to the NHI also. And we are expecting that we should able to close it. We are targeting to close this. Palmy and Rangiri that group together is coming to around 500 crores actually by this March end and balance with Ramana Toara and Guru in first quarter of the next year. That is our target actually to complete that.
Shravan Shah
Okay. Okay. And then the. The. The capex for this mining that we got. So when we will be doing the capex for that?
Venkata Ram Rao
Definitely this as you told us there is still forest clearance has not come based on that. So maybe in next year end of the year maybe we have to do the some. When we see that there is a feasible frontage available to institute accordingly we will make up the requirements. So we expect that somewhere in Q4 of the next year we may able to take some capex in that project.
Shravan Shah
So total capex on that project is 350odd crore if I’m not wrong.
Venkata Ram Rao
Yeah, tentatively.
Shravan Shah
Okay. So some we will do in 4QFY27 and the balance will be in FY28.
Jalandhar Reddy
Yeah.
Shravan Shah
Okay, got it. So thank you.
operator
Thank you. Our next question is from the line of Webhouse from JM Financial. Please go ahead.
Vaibhav Shah
Sir, you indicated that in the Kerala project the cost which we have to bear of via the construction it will be roughly 1450 not crore in Q4 as well.
Venkata Ram Rao
Yeah, yeah definitely for Q4 is left out is on $15. So that’s where you execute it.
Vaibhav Shah
Yeah, that will come in Q4.
Venkata Ram Rao
That will come in Q4.
Vaibhav Shah
Okay. So secondly for the. For the pipeline order what revenue are we targeting for FY27?
Venkata Ram Rao
FY27 we are targeting around 400 crores. 400 to 450 crore on that.
Vaibhav Shah
As you can completed in FY28.
Venkata Ram Rao
Now balance is in F20.
Vaibhav Shah
Okay. And sir for the the two new orders which we got the the two EPC projects 450 and 300. What is the timeline for those two orders? One was 24 months. Mir Alam bridge. What about the second order?
Venkata Ram Rao
Both are also 24 months only.
Vaibhav Shah
So that should be completed by FY28. Both of them. And when. When do we actually start the execution on them.
Venkata Ram Rao
Is going to start already. It is packet work is packed. Just mobilization is going on. Piling work is also started. But actually there is a change in design because of the Water it’s in the complete in the pond. So there is some change of design which we have submitted and that is approved. So detailed design on the based on that need to be approved. Actually the in principle. Changes were approved. So detailed design need to be made and then it could we got approved. So for few foundations we have started the work actually where there is some.
Vaibhav Shah
Clarity and other project.
Venkata Ram Rao
Other project is packet going on. There is some tree cutting problems are there but they are solving in the.
Vaibhav Shah
Okay. As a further two irrigation projects the total around 4430 crore value. So when do we expect to start the work on both of them? It was quite a bit delayed.
Venkata Ram Rao
Yeah. It may be in because there was land acquisition was there. So maybe in Q1 of next year it will start.
Vaibhav Shah
And we can do roughly 40 odd percent in a year. But they were 24 month projects both of them.
Venkata Ram Rao
Definitely land is available for that. Yes, definitely you can do it around 30 to 40% in the first year.
Vaibhav Shah
Okay. And that we have seen some uptick in revenue for the the two Karnataka HAM projects package four and package five. So combined what revenue would be expecting for 27 from those two projects.
Venkata Ram Rao
Both two projects is around. Maybe around. You can say four around because we have to maybe around 500 crores. Actually around 500 crores on both the projects.
Vaibhav Shah
So then the land issues are sorted in the both of them right now.
Venkata Ram Rao
In one project land issue was there one project is. Okay. That we can ensure. So that’s why we consider around 50% of the balance at around 450 crores we can do it.
Vaibhav Shah
Okay. Okay. Thank you. So those are my questions.
operator
Thank you. Next we have a follow up question from Nitin S. Dharmawat from RM Capital. Please go ahead.
Niteen S Dharmawat
Yeah, thank you. So just wanted to know what is the receivable amount now from the Telangana projects that we had earlier. So. And what is the recovery cycle we’ll be having over here.
Venkata Ram Rao
This Telangana out of 870 crores of receiver. Around 677 receivers from the government of Telanga. That is from the package board. And if I if we consider unbuild Also total around 1430 crores is there from actually from Irrigation Department from Government of Kelana. And as far as collection.
Niteen S Dharmawat
Yeah. Yes, go ahead.
Venkata Ram Rao
And as far as collection is concerned actually as told that we are trying to put a few pressure. We are expecting some part of collection in the by end of the March. Actually some part out of this 677 crores. So that’s why we are putting a lot of pressure that’s why that’s why we are working towards that
Niteen S Dharmawat
so how. Much we are expecting almost 50% or less than that if we can have. Some guesstimate over there .
Venkata Ram Rao
so maybe around Around 50% we are expecting 50% of the certified what are the certified bills are there around 670 we are expecting some around 50% in.
Niteen S Dharmawat
Got it Got. It and we have not filed any case for this right we are still negotiating with the government only.
Venkata Ram Rao
My case is already filed.
Niteen S Dharmawat
Okay thank you sir.
operator
Thank you as there are no further questions I would now like to hand the conference over to management for closing comments.
Venkata Ram Rao
Thank you all for joining us on this call Please reach out to our investor relations consultant Strategic Growth Advisors R Us directly should we have any further queries we can now close the call thank you.
operator
Thank you sir on behalf of KNR Constructions Ltd. That concludes this conference thank you for joining us and you may now disconnect your lines.