Target: ₹130
CMP: ₹132.10
KNR Constructions reported a significant decline in revenue, which fell approximately 37% to around ₹530 crore in Q4 FY26, surpassing analysts’ expectations by 16%. The company’s EBITDA margin decreased by 850 basis points to 5.3%, compared to the projected 9.9%. As a result, EBITDA plummeted nearly 76% to ₹28.3 crore, falling short of the expected ₹46 crore.
Reflecting the weak operational performance, adjusted profit after tax (APAT) decreased about 74% to ₹19.2 crore, compared to an estimate of ₹27.8 crore.
The firm’s current order book totals approximately ₹8,670 crore, which includes ₹3,550 crore from a mining project. The road sector saw limited project awarding activities during FY26, with both the Ministry of Road Transport and Highways (MoRTH) and the National Highways Authority of India (NHAI) experiencing slower award conversions. This sluggishness is attributed to extended approval timelines and land acquisition issues, despite a healthy project pipeline valued at ₹3.5 lakh crore.
KNR Constructions delivered disappointing results once again in Q4 FY26, significantly missing estimates due to slowed execution stemming from a limited executable order book. However, the order-awarding activity showed signs of improvement this quarter, with KNR securing the lowest bid in projects worth ₹3,230 crore.
Looking ahead, revenue is anticipated to improve in FY28 as recently secured orders commence execution. Earnings projections for FY27 and FY28 have been revised downwards by 8% and 3%, respectively, to account for ongoing execution weaknesses. Over the period from FY26 to FY28, revenue and EBITDA are expected to experience compound annual growth rates (CAGRs) of 22% and 45%, respectively. The stock continues to carry a Neutral rating, with a sum-of-the-parts-based target price set at ₹130.
Published on June 2, 2026
