Synopsis:Civil Construction company has secured a fresh highway infrastructure project from a key government authority, strengthening its order pipeline and providing long-term revenue visibility through both execution and post-completion operations.
The shares of this small cap company majorly engaged in providing EPC services in segments such as roads and highways, irrigation and urban water infrastructure management, soared upto 13 percent after securing an NHAI project.
With the market capitalization of Rs. 3352 Crores the shares of KNR constructions reached an intraday high of Rs. 123.50 per share raising nearly 12.5 percent from its previous day closing of 109.70 per share and is trading at a P/E of 6.79 whereas industry P/E stands at 15.
What is the NEWS
KNR Constructions Limited has declared to the exchange that the company has been awarded a Letter of Award (LOA) from the National Highways Authority of India (NHAI) for the 4-laning of the National Highway-167 from Gudebellur at design km 182+930 to Mahabubnagar at design km 262+940 on the Hyderabad-Panaji section in the state of Telangana. The total length of the highway is 80.01 km, and the work would be executed in the National Highway (Original) [NH(O)] Hybrid Annuity Mode (HAM) scheme.
The bid amount for the project is Rs. 1,734 crore, which is a significant order for the company. As per the agreement, the construction period of the project would be 730 days, along with an operation period of 15 years from the date of commercial operation (COD) for the company.
About the company and financials
KNR Constructions Ltd, incorporated in 1995, is a Hyderabad-based infrastructure EPC company engaged in roads and highways, irrigation, urban water infrastructure, and mining projects. The company executes large-scale public infrastructure works, including highway construction, pipeline networks, and water management systems.
As of 31 December 2025, it had a total order book of Rs. 8,848.8 crore, reflecting strong revenue visibility. Of this, Rs. 2,553.6 crore comes from the road sector, Rs. 2,742.8 crore from irrigation and pipeline projects, and Rs. 3,552.4 crore from the mining sector, highlighting a well-diversified project portfolio across key infrastructure segments.
Year on Year analysis: Revenue from operations has decreased from Rs. 848 Crores to Rs. 743 Crores, down 12.3 percent. Operating profit has decreased from Rs. 256 Crores to Rs. 167 Crores, down 34.7 percent and net profit has decreased from Rs. 248 Crores to Rs. 103 Crores, down 58 percent.
Quarter on Quarter analysis: Revenue from operations has increased from Rs. 646 Crores to Rs. 743 Crores, up 15 percent. Operating profit has decreased from Rs. 193 crores to Rs. 167 Crores, down 13.4 percent and net profit has decreased from Rs. 105 Crores to Rs. 103 Crores, down 1.9 percent
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