KNR Constructions Ltd. share price target

KNR Constructions reported a disappointing Q2FY26, with consolidated revenue plunging 66.8% YoY to Rs6.5bn, impacted by sluggish execution and delayed project ramp-ups, though modestly up 5.5% QoQ. EBITDA dropped 78% YoY to Rs1.9bn with of margin 29.8%, while PAT fell 82% YoY to Rs1.0bn as monsoon disruptions, high employee cost, and legacy project tapering hurt performance. The standalone business saw sharper margin compression (10.9% vs 18.6% YoY) and weak cash generation amid elevated receivables and working capital of 144 days. Order book stood at Rs87.4bn, with two HAM projects achieving...

We maintain our HOLD recommendation on the stock.

KNR Constructions (KNRC)’s revenue dipped 42.4% YoY to ~INR4.9b in 2QFY26 (16% below our estimate). EBITDA margin contracted 520bp YoY to 10.9% in 2QFY26 (vs. our estimate of 13.4%).

KNR Constructions (KNR) reported a revenue of INR 4.8bn in Q1FY26, down to a five-year trough. The lukewarm execution was primarily rooted in a smaller executable order book (OB).

We maintain our HOLD recommendation on the stock.

KNR Constructions reported a sharp slowdown in execution, with consolidated revenue declining 38% YoY to Rs6bn and standalone revenue falling 45% YoY to Rs5bn, as most legacy projects neared completion and newly awarded contracts were still ramping up. Consolidated EBITDA stood at Rs2bn, translating to a strong margin of 29.9% due to segment mix effects, while standalone EBITDA fell 66% YoY to Rs0.6bn, with margins compressing to 13.6%. Consolidated PAT came in at Rs1bn (PAT margin 20.1%), down 26% YoY, while standalone PAT declined 62% YoY to Rs0.5bn (margin 10.6%). The divergence between...

We maintain our HOLD recommendation on the stock and rollover our estimates to FY27.

The company holds an order backlog of Rs.3,888cr, equivalent to 1x TTM revenue, ensuring near-term revenue visibility. However, the current NHAI ban and a lack of significant order inflows over the past nine months may adversely affect performance. We wait for further clarity on the subject...

We maintain our HOLD recommendation on the stock with a TP of Rs 255/share.

In 3QFY25, KNR Constructions (KNRC) received certain arbitration claims. For a like-to-like comparison, we have adjusted the same in revenue, other income, other expenses, and total taxes for 3QFY25 and have shown them as exceptional items.

We maintain our recommendation to HOLD with a TP of Rs 285/share.

In 1QFY25, KNR Constructions (KNRC) received certain arbitration claims. For like-to-like comparison, we have adjusted the same in revenue.

For Q1FY25, adjusting for one-off arbitration claim, standalone revenues were lower than estimates,
while OPMs marginally lagged. Higher other income led to marginal miss on standalone net profit.

We change our recommendation from BUY to HOLD and revis our estimates downward based on the management guidance of lower margin.