Synopsis: A Hyderabad-based infrastructure and construction company, through a joint venture, has received a Letter of Acceptance from South Eastern Coalfields Limited for coal mining works at Kusmunda OCP in Chhattisgarh, with the total contract value amounting to Rs. 3,361.11 crore (excluding GST), to be executed over a period of approx. 8 years.
India’s mining infrastructure opportunity is quietly becoming one of the most lucrative corners of the EPC universe, and a Hyderabad-based construction major has just added one of its largest non-road contracts to its execution pipeline. With Coal India subsidiaries ramping up mechanized mining capacity, a fresh Letter of Acceptance signals that diversification beyond highways is beginning to pay off in a meaningful way.
With a market capitalization of Rs.3,656 crore, the shares of KNR Constructions Limited were trading at Rs.130 per share, with a 52-week range of Rs.245 to Rs.108.65. It is trading at a P/E of approximately 8x.
Order Update
KNR Constructions Limited, through its joint venture M/s KNR-SIML JV (KNR Constructions Ltd: 51%, Sushee Infra & Mining Limited: 49%), has received a Letter of Acceptance from South Eastern Coalfields Limited (SECL) for coal mining works at Kusmunda OCP in Chhattisgarh, valued at Rs.3,361.11 crore (excluding GST). The contract is to be executed on an item rate basis over a period of 2,920 days (approximately 8 years).
The scope of work is extensive, covering four distinct job categories. Job 1(A) involves soft soil excavation without drilling, covering a quantity of 11.97 million cubic metres, while Job 1(B) covers hard strata excavation with drilling across an overburden quantity of 246.19 million cubic metres taking the total overburden removal to 258.15 million cubic metres with a minimum daily output of 88,410 cubic metres.
Job 2 involves surface miner deployment for mechanical coal extraction across multiple seams without drilling or blasting, targeting a coal quantity of 142.89 million tonnes at a minimum daily output of 48,934 tonnes. Jobs 3(A) and 3(B) cover coal loading via pay loader and transportation via tippers from coal faces to railway sidings and conveyor receiving points, again for 142.89 million tonnes over the contract period. The order is domestic in nature, awarded by a Government of India undertaking. No related-party involvement has been disclosed in the filing.
Financial Snapshot & Business Overview
KNR Constructions Limited is a Hyderabad-based infrastructure and construction company with 30 years of experience in road and highway EPC, irrigation, urban water infrastructure, and mining. The company has successfully executed more than 9,127 lane km of road projects across 12 states in India, serving marquee clients including NHAI, MoRTH, and several state highway authorities. As of 31st March 2026, KNR’s total order book stood at Rs.8,672.5 crore, with mining accounting for 41% of the backlog at Rs.3,552.4 crore.
On a consolidated basis, the company reported total revenue of Rs.2,698 crore in FY26, down 43% year-on-year from Rs.4,753.2 crore in FY25. EBITDA came in at Rs.711.4 crore at a consolidated margin of 26.4%, while PAT stood at Rs.436.9 crore, down 56% from Rs.1,001.9 crore in FY25. In Q4 FY26, consolidated revenue was Rs.695.6 crore with EBITDA of Rs.169.1 crore and PAT of Rs.106.1 crore, up sharply from just Rs.7.6 crore in Q4 FY25.
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