KNR Q2FY16 performance was better than our estimate on account of better execution and higher than expected margins. Revenue of Rs 2.17bn (+27% YoY) and EBITDA of Rs 391mn (+29% YoY) came significantly higher than our respective estimates of Rs 1.76bn and Rs 250mn. EBITDA margin stood at 18% (+23bps YoY, +369bps QoQ), higher than our estimate of 14.2%. Reported PAT increased sharply by 4x YoY to Rs554 mn (much higher than our estimate of Rs 121mn) primarily led by expansion in EBITDA margin coupled with tax refunds related to earlier years.