KNR Constructions Limited (NSE: KNRCON), a leading infrastructure EPC firm specializing in roads, highways, and irrigation projects, reported consolidated net profit of ₹102.8 crore in its latest Q3 FY26 quarter (ended December 2025), reflecting a challenging 58.65% decline year-over-year amid revenue drop and margin pressures. The stock closed at ₹152.14 on February 6, 2026, implying a market capitalization of approximately ₹4,195 crore.
Quarterly Results
KNR Constructions Limited reported standalone total revenue of ₹5,850.6 million for the third quarter ended December 31, 2025, a 21% decrease compared to ₹7,434.7 million in the prior year period. Standalone Profit After Tax was ₹176.3 million, down 90% from ₹1,821.8 million in Q3 FY25. Standalone operating expenses for the quarter were ₹4,690.6 million.
The standalone EBITDA margin contracted to 5.2% from 20.4% in the previous year-ago quarter. Consolidated total revenue was ₹7,432.0 million, down 12% year-on-year. Consolidated Profit After Tax for Q3 FY26 stood at ₹1,027.2 million, a decrease of 59% from ₹2,482.8 million in Q3 FY25. On a sequential basis, standalone revenue grew 19% from ₹4,930.0 million in Q2 FY26.
Annual Performance Context
For the nine months ended December 31, 2025, standalone revenue reached ₹15,613.8 million, down 38% from ₹25,074.5 million in 9M FY25. Total standalone EBITDA for the period was ₹1,498.4 million compared to ₹5,084.4 million in the prior year, with margins decreasing from 20.3% to 9.6%.
Consolidated 9M FY26 revenue was ₹20,024.3 million, representing a 47% decrease year-on-year. Consolidated Profit After Tax for the consolidated nine-month reporting period dropped 67% to ₹3,307.6 million from ₹9,942.8 million. The company’s standalone net worth as of March 2025 was ₹39,450 million.
Business and Operations Update
The company’s order book as of December 31, 2025, totaled ₹88,488 million, with the mining sector accounting for 40%. Irrigation and pipeline projects account for 31%, while the road infrastructure sector comprises 29%. Geographically, 60% of projects are located in South India and 40% in East India.
In December 2025, the company signed Share Purchase Agreements with Indus Infra Trust to sell its 100% shareholding in four Hybrid Annuity Model special purpose vehicles. KNR expects to receive ₹15,432 million against an investment of ₹5,668 million. It also received an EPC bridge project win worth ₹3,192 million.
Forward Outlook
Management stated their strategic priorities include exploring growth opportunities through strategic Joint Ventures and focusing on projects involving high degrees of engineering skills. The company aims to add new business verticals in elevated metro rail and railway projects. Its stated vision is to develop as a center of excellence in infrastructure services.
The divestment of the four vehicles is expected to be completed on or before September 30, 2026. Timeline completion is subject to approvals from authorities and lenders in conformance with concession agreements. CRISIL Ratings reviewed the company’s credit, assigning a CRISIL AA Stable rating for long-term bank facilities and CRISIL A1+ for short-term ratings.
Performance Summary
KNR Constructions’ latest results show a year-on-year decline in standalone and consolidated revenue and profit. The company maintains an order book of ₹88,488 million and is progressing with its business monetization agreement. Milestones include new project wins in the EPC segment and the completion of infrastructure development in Tamil Nadu.