Q3 2026 KNR Constructions Ltd Earnings Call Transcript
Key Points
- KNR Constructions Ltd (BOM:532942) has a strong order book of INR8,849 crores, which includes a diverse mix of projects such as road, irrigation, pipeline, and mining.
- The company has secured a share purchase agreement with Indus Infra Trust for the sale of its 100% shareholding in several special purpose vehicles, expected to generate proceeds of INR1,543 crores.
- The company received a completion certificate for the Avinashi Road project in Tamil Nadu and a letter of acceptance for a new iconic bridge project in Hyderabad, valued at INR319 crores.
- CRISIL reaffirmed the company's long-term bank rating facilities as CRISIL AA with a Stable outlook, indicating strong financial health.
- The company is targeting an order inflow of approximately INR10,000 crores to INR12,000 crores by September 2027, indicating a robust pipeline of future projects.
- The highway sector experienced a slowdown due to reduced project awarding by the Ministry, impacting construction and execution activities.
- The company's EBITDA margin for Q3 FY26 stood at 5.2%, significantly lower than industry standards, due to increased subcontract expenses and project completion costs.
- The consolidated debt increased to INR2,443 crores as of March 2025, compared to INR1,847 crores in the previous year, raising concerns about leverage.
- Execution challenges persist, with some projects facing delays due to land acquisition issues and legal disputes, affecting revenue realization.
- The company anticipates lower EBITDA margins in FY27 due to competitive intensity and project execution challenges, with expectations of improvement only by FY28.
Ladies and gentlemen, good day, and welcome to KNR Constructions Limited Q3 and nine months FY26 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict. (Operator Instructions). Please note that this conference is being recorded.
I now hand the conference over to Mr. K. Venkatram Rao, General Manager, Finance and Accounts from KNR Constructions Limited. Thank you, and over to you, sir.
Good afternoon. Thank you for joining us today on the call to discuss the financial results for Q3 and nine months FY26. Along with me, I have Mr. K. Jalandhar Reddy, our Executive Director, and Strategic Growth Advisor, our Investor Relations Advisor.
We have uploaded results and investor presentation on the
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