KNR Constructions Ltd. share price target

KNR Constructions’ (KNRC) 1QFY27 revenue declined 9% YoY to ~INR4.3b (13% below our estimate). Reported EBITDA margin expanded 210bp YoY to 15% (vs our estimate of 10%), with EBITDA rising ~6% YoY to INR655m (vs our estimate of INR503m).

KNR Constructions (KNRC) reported another weak quarter, resulting in FY26 revenue declining ~38% YoY. Although order inflows improved materially to INR 35bn in FY26 (vs. INR 5bn in FY25), execution of these projects is expected to commence only from Q4FY27E. Additionally, the company secured fresh road orders worth INR 32bn in Q1FY27, taking the current order book to ~INR 119bn (~5x TTM revenue), providing strong execution visibility for FY28E and beyond. Management refrained from providing formal FY27 revenue guidance but indicated a standalone revenue target of over INR 20bn. EBITDA margins are expected to remain subdued at 1011%, reflecting...

KNR Constructions (KNRC)’s revenue declined ~37% YoY to ~INR5.3b during 4QFY26 (16% above our estimate). EBITDA margin decreased 850bp YoY to 5.3% (vs. our estimate of 9.9%) in 4QFY26.

Q3FY26 Performance: KNR Constructions standalone revenue at 585.1 crore, was down 21.3% YoY (17.4% on adjusted basis), given the low executable order book. EBITDA stood at 30.6 crore, down 79.8% YoY (73.9% on adjusted basis), with margins contracting 1134 bps YoY to 5.2%, due to elevated subcontracting expenses and negative operating leverage. PAT came in at 17.6 crore, down...

KNR Constructions (KNRC) is likely to see muted growth during FY26E27E after a sustained decline in revenue over the last 2 years (FY2325). Revenue in Q3FY26/9MFY26 declined by 21%/38% YoY, reflecting weak execution. While KNRC recorded order inflow of over Rs40bn in 9MFY26, equivalent to ~2x its annual revenue, lifting the order book to Rs88bn (5.7x TTM revenue) as of Q3, more than 50% of the backlog remains at an early stage, with a meaningful pick-up in execution expected only toward the end of FY27E. The management has guided for near-term EBITDA margin of 910%, with a return to 1314% now...

We maintain a Sell rating on the stock.

KNR Constructions (KNRC)’s revenue declined ~17% YoY to ~INR5.8b during 3QFY26 (14% above our estimate). EBITDA margin contracted 1,140bp YoY to 5.2% (vs. our estimate of 12.5%) in 3QFY26. The margin was hit by a spike in subcontracting expenses.

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 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...

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.

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.