Synopsis:
KNR Constructions has won a new project (LOA) in Telangana worth Rs 459 crore. The work includes building multi-level flyovers at Khajaguda and IIIT Junctions, and widening roads in Cyberabad and surrounding areas.
The shares of this leading Hyderabad-based infrastructure project development company providing EPC services in segments such as roads and highways, irrigation, and urban water infrastructure management, are in focus after securing a massive order in Telangana. In this article, we will dive more into the details.
With a market capitalization of Rs 5,785 crore, the shares of KNR Constructions Ltd. made a day’s high of Rs 210 per share, up 2 percent from its day’s low price of Rs 205.50 per share. Over the past five years, the stock has delivered a return of 66 percent, underperforming NIFTY 50’s return of 120 percent.
About the order
KNR Constructions, through a stock exchange filing, announced that it has secured a Letter of Acceptance (LOA) for a brand new infrastructure project in Telangana worth Rs 459 crore (excluding GST).
The work involved in the project is the construction of multi-level flyovers at Khajaguda Junction and IIIT Junction, as well as road widening and development in Cyberabad and surrounding areas. The work will be done on an Engineering, Procurement, and Construction (EPC) or Turnkey basis with a time limit of 24 months for the completion of the project.
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Financial Highlights
The company’s revenue for Q1 FY26 came in at Rs 613 crore, down by 38 percent from Rs 985 crore in the same quarter last year. Additionally, on a sequential basis, revenue declined by 37 percent from Rs 975 crore in Q4 FY25.
Coming to its profitability, the company reported a net profit decline of 26 percent to Rs 123 crore in Q1 FY26 as compared to Rs 166 crore in Q1 FY25. However, on a QoQ basis, it recorded a sharp surge of 1,437 percent from just Rs 8 crore.
The company has delivered an excellent ROE and ROCE of 27.24 percent and 28.58 percent respectively, and is currently trading at a very low P/E of 5.61x as compared to its industry average of 21x.
KNR Constructions Limited is an Indian infrastructure company that is engaged in the construction and development of major projects. The company offers engineering, procurement, and construction (EPC) services for roads, highways, bridges, flyovers, expressways, and viaducts. Besides, it delves into irrigation and urban water management activities as well. With its subsidiaries, KNR is committed to providing top-notch infrastructure solutions throughout India.
Written by Satyajeet Mukherjee
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