Synopsis:
K&R Rail Engineering declined 5% to hit its lower circuit after it reported an 82% decline in YoY net profit and a 38% decline in its revenue collection.
The shares of this leading EPC railways provider are in focus after it announced its financial results for its first quarter of the financial year 2026. In this article, we will discuss more about it in detail.
With a market capitalization of Rs 186 crore, the shares of K&R Rail Engineering are currently trading at Rs 65.3 per share, down by 87 percent from its 52-week high of Rs 507 per share. Over the last six months, the stock has delivered a negative return of 80 percent.
Also Read: Smallcap stock jumps 5% after reporting 50% YoY increase in net profits
Q1 Highlights
K&R Rail reported a revenue of Rs 88.06 crore in Q1 FY26, down by 38 percent from its Q1 FY25 revenue of Rs 142.23 crore. On a quarterly basis, it declined by 63.42 percent from Rs 240.78 crore.
Coming to its profitability, the company reported a net profit decline of 82 percent to Rs 57 lakh in Q1 FY26 as compared to Rs 3.18 crore a year ago. Previous quarter, it reported a net loss of Rs 8.35 crore.
Additionally, it also informed that the company has decided to shut down its Dubai-based subsidiary, K&R Global LLC – FZ, which has been inactive since its inception.
The company clarified that this move won’t affect its financial standing, and there has been no sale or transfer of assets involved. The board has given its approval for the closure, which will proceed through the appropriate legal channels in Dubai.
Coming to its shareholding structure, 44.32 percent is held by its promoters, followed by the public with 55.65 percent and FIIs with 0.04 percent.
K&R Rail Engineering Limited is all about providing comprehensive railway infrastructure services across India. They take care of everything from engineering and procurement to construction and commissioning (EPCC) for railway projects. This includes work on earthworks, bridges, tracks, electrification, and signaling.
On top of that, the company offers a range of services like railway operations, maintenance, and consultancy, which covers project planning, design, feasibility studies, technical reports, and ensuring regulatory compliance.
They also supply essential railway materials such as rails and sleepers, deploy the necessary equipment and workforce, manage logistics, maintain quality control, and oversee final testing and approvals for railway projects.
Written by Satyajeet Mukherjee
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