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KNR Constructions reported a 2.4% year-on-year decline in consolidated net profit to ₹102.2 crore for the second quarter of FY27, compared with ₹104.7 crore in the corresponding quarter last year.
Revenue from operations fell 7.2% to ₹600.2 crore in Q2FY27 from ₹646.5 crore in Q2FY26. The company’s EBITDA declined 23.5% year-on-year to ₹147.4 crore, against ₹192.6 crore in the year-ago period. The EBITDA margin also contracted to 24.6% in the September quarter from 29.8% a year earlier. Asset monetisation During the quarter, KNR Constructions transferred its entire shareholding in KNR Guruvayur Infra Private Limited to Indus Infra Trust. The transaction was completed for a consideration of ₹485.86 crore. After adjusting for the net assets on the transfer date, the company recognised a profit of ₹55.48 crore as an exceptional item in its consolidated financial results. The company had also transferred its entire shareholding in KNR Palani Infra Private Limited and KNR Ramagiri Infra Private Limited to Indus Infra Trust during the June quarter. The combined consideration for these two subsidiaries was ₹432.48 crore, resulting in an exceptional gain of ₹113.17 crore in the consolidated results. KNR Constructions also recognised a modification loss of ₹96.10 crore due to a change in estimates of financial assets receivable from the two subsidiaries. The loss was accounted for under other expenses and, according to the company, arose from accounting adjustments under Ind AS and had no cash flow impact. Kaleswaram project dues The company’s trade receivables, retention amounts and unbilled revenue included ₹1,380.95 crore related to the Kaleswaram Package 4 Irrigation Project in Telangana as of September 30, 2026. Collections from the project have remained stalled since March 2023. KNR Constructions said it continues to execute the project in line with contractual requirements and to demonstrate that it was not at fault in the execution. The management expressed confidence in recovering the existing and future dues based on the contractual terms, internal assessments and discussions with the authority. Order book and project updates The company’s total order book stood at ₹11,708.8 crore as of September 30, 2026. This included road projects, irrigation work, mining projects and pipeline projects. During the quarter, KNR Constructions also received a Letter of Acceptance from the Hyderabad Metropolitan Development Authority for the construction of an elevated corridor from ICCC Banjara Hills to Shilpa Layout Flyover Road in Hyderabad. The project has an estimated cost of ₹1,396 crore and a construction period of 24 months. KNR Constructions shares closed at ₹109.50 on the NSE, down ₹1.62 or 1.46%.
