KNR Constructions Q2 FY26 Earnings Results

KNR Constructions Ltd, incorporated in 1995, is a Hyderabad-based infrastructure project development company providing EPC services in segments such as roads and highways, irrigation and urban water infrastructure management.

 

Q2 FY26 Earnings Results

• Consolidated Revenue: ₹646.5 crore, down 66.8% YoY from ₹1,944.86 crore, reflecting significant execution challenges and project completion cycles without offsetting order inflows.​

• EBITDA: ₹192.56 crore, down sharply from ₹869.69 crore YoY but reflecting margin resilience at 29.78%, slightly down sequentially from 29.86% margin in Q1 FY26.​

• Profit After Tax (PAT): ₹104.66 crore, down 76.29% YoY from ₹441.47 crore due to much lower revenue base and higher interest cost impact.​

• Interest Cost: ₹52.73 crore, up 9.06% QoQ, with EBITDA interest coverage ratio dropping to 3.65 times, indicating reduced debt servicing cushion.​

• Standalone segment revenue: ₹493 crore with standalone PAT ₹27.91 crore, down from ₹334 crore previously, pointing to profitability pressures at the standalone level too.​

• Order book size stood robust but less than prior year, reflecting industry-wide slow project awarding and execution.​

 

Management Commentary & Strategic Insights

• Management attributes the sharp revenue decline to project completions, subdued new order inflows, and extended monsoon affecting site activities.​

• Focus on working capital optimization, cost efficiency, and renewed bidding momentum expected from H2 FY26 onwards to drive recovery.

• Strategic diversification into higher margin sectors like railways, desalination, and renewables underway with active pursuit of private sector projects.

• Despite near-term pressures, long-term fundamentals remain strong with a five-year sales CAGR of 12.39% and ROCE averaging 20.21%.​

• Debt reduction and prudent capital management prioritized to sustain balance sheet strength amidst cyclical challenges.​

 

 

Q1 FY26 Earnings Results

• Consolidated Revenue: ₹613 crore, down 36.6% YoY from ₹965 crore due to slower execution.

• EBITDA: ₹183 crore, down from ₹279 crore YoY; margin at 29.9%, showing some operating leverage retention.

• PAT: ₹123 crore, down 25.6% YoY from ₹166 crore due to lower revenues.​

• Standalone net profit: ₹51 crore, down from ₹134 crore YoY.​

• Management anticipates revenue stabilization and margin improvement by FY27 with growing private and government projects

 

To view the company’s previous earnings and latest concall transcripts, click here  to visit the Alphastreet India news channel.