KNRCON
Micro CapKNR Constructions Limited
Real Estate
KNR Constructions Limited (KNRCL) is a leading Engineering, Procurement, and Construction (EPC) company with 25+ years of experience in Roads & Highways, Irrigation, and Urban Water Infrastructure. It also has a portfolio of BOT/HAM projects across 12 states in India, with a recent entry into the mining sector.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 40/100Rev -29% YoY · PAT +1225% YoY · margin expansion · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹696 Cr | -28.6% | -6.3% |
| EBITDA | ₹169 Cr | -23.5% | +1.2% |
| Operating margin | 24.0% | +100 bps | +200 bps |
| PAT | ₹106 Cr | +1225.0% | +2.9% |
| PAT margin | 15.2% | +1441 bps | +137 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
KNRCON reported a sharp decline in FY26 standalone revenue by 38% YoY and PAT by 84% YoY. Consolidated revenue also fell 43% YoY, with PAT down 56% YoY, despite a significant Q4 consolidated PAT increase from a low base. Q4 standalone revenue and PAT also saw substantial YoY drops.
The substantial YoY decline in both standalone and consolidated revenue and profitability for FY26 raises concerns about execution and project pipeline conversion. While new HAM projects were awarded, the current financial performance suggests significant operational challenges or project delays impacting the core business.
Order Book Break-up (as on 31st March 2026, including recently won projects)
Latest issuer-disclosed distribution across 5 reported categories.
New HAM Project Awards
Received LOA for NHAI HAM Project in Telangana (Rs 1,734 Crore) and TANSHA HAM Project in Tamil Nadu (Rs. 2,163 Crore).
Mining Sector Entry
Bagged 1st ever Mining Project in JV from Patratu Vidyut Utpadan Nigam Ltd with contract value of Rs. 48,006 Mn in FY25.
Asset Monetization
Proposed sale of 100% shareholding in 4 HAM SPVs to Indus Infra Trust for a total consideration of Rs. 15,432 Mn, expected by Sep 2026.
Focus on Higher Engineering Skills
Strategy to focus on projects involving higher degree of engineering skills to capitalize on infrastructure development.
New HAM Projects
Incorporated KNR Manyamkonda Infra Private Limited for the NHAI HAM project and KNR Mahabalipuram Infra Private Limited for the TANSHA HAM project.
EPC Project Awards
Received LOA for widening and strengthening of pipeline road (Rs. 84 Crore) and construction of 4-lane unidirectional flyover (Rs. 50 Crore) in Telangana.
HAM Project Progress
Oddanchatram - Madathukulam HAM project is 100% physically complete. Ramanattukara - Valanchery and Valanchery - Kappirikkad HAM projects are 99.4% and 98.3% complete respectively.
Infrastructure Development
Management aims to capitalize on the opportunity of huge infrastructure development in the country.
Government Focus on Roads
Major projects in Roads & Highways, one of the fast-growing sectors, supported by NHAI and State Highways Authorities.
Revenue Contraction
Standalone and consolidated revenues declined significantly by 38% and 43% YoY respectively in FY26, indicating a slowdown in project execution or new order intake conversion.
Profitability Erosion
Standalone PAT plummeted 84% YoY in FY26, and consolidated PAT fell 56% YoY, reflecting severe pressure on margins and overall profitability.
Project Execution Delays
Significant revenue and profit declines suggest potential delays in project execution or slower ramp-up of new projects, impacting financial performance.
Dependence on Government Contracts
A large portion of the order book is from State and Central Government entities, exposing the company to policy changes and funding cycles.
Asset Monetization Timelines
The divestment of 4 HAM SPVs is expected by Sep 2026, but any delays could impact liquidity and future investment plans.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is essential to assess the annual performance and mitigate seasonality in project execution. QoQ provides insight into sequential momentum and recent operational trends, especially for project-based businesses where execution can fluctuate.
Order Book
Total Orderbook as on 31st March 2026 was Rs. 86,725 Mn. Including recently won projects, the total orderbook is Rs. 119,025 Mn.
Net Debt (Standalone)
Standalone Debt as of Mar-26 is Rs. 0 Mn, maintaining a debt-free status.
Net Debt (Consolidated)
Consolidated Borrowings (Non-current + Current) as of Mar-26 are Rs. 24,376 Mn.
Operating Cash Flow (Standalone)
Net Cash from Operating Activities for FY26 was Rs. 427.1 Mn, a significant improvement from -Rs. 2,637.0 Mn in FY25.
Strategic JVs
Continuously explores growth opportunities by forming strategic Joint Ventures (JVs).
Timely Project Execution
Management aims to execute all projects on time or ahead of schedule.
Focus on Complex Projects
Focus on projects involving higher degree of engineering skills.
Reputed Clients
Focus on securing EPC contracts from reputed Clients and Concessionaire.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Order Book Growth | Rs. 119,025 Mn (including recently won projects) | Monitor conversion of recently won projects into executed revenue and further order intake. |
| HAM Project Monetization | Expected completion by Sep 30, 2026, for 4 SPVs | Track the timely completion and realization of proceeds from the proposed asset divestment. |
| Operating Cash Flow | Standalone FY26: Rs. 427.1 Mn; Consolidated FY26: -Rs. 1,490.5 Mn | Observe sustained positive operating cash flow, especially at the consolidated level, to fund growth and reduce reliance on external financing. |
| EBITDA Margins | Standalone FY26: 8.5%; Consolidated FY26: 26.4% | Watch for stabilization and improvement in EBITDA margins, particularly standalone, which saw a sharp decline. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
52NeutralSMA20 +1.2% / mo
Technical chart
KNRCONdaily · 3Y-28.5%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 46. Wait for confirmation.
- SMA20 rising (~2.9% over last month) — short-term momentum positive.
- RSI(14) at 46 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 32% off 52W high · 17% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 40.9%.
- Valuation contributes 30/30 to the score.
- Balance sheet contributes 7/15 to the score.
Main drags
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Growth is weaker at 7/25; verify the latest quarterly trend.
- Cash flow is weaker at 3/10; verify the latest quarterly trend.
Execution business valuation: EV/EBITDA plus order and working-capital risk
Capital-intensive execution stories need cash-flow and balance-sheet checks alongside valuation.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +2 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 49th percentile of the scored universe and 73rd percentile within Real Estate. Main check: results consistency is weak at 31/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: Operating cash flow is negative at ₹-567 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Real Estate: 73rd pctile, median 61 · Micro: 33rd pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸7 years of positive FCF.
- ▸ROCE is 28.6%.
Trust risks
- ▸Operating cash flow is negative at ₹-567 Cr.
- ▸4 recent quarters had PAT decline worse than 25% YoY.
- ▸OPM spread across recent quarters is 23%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 8.16
- P/B
- 0.72
- EV/EBITDA
- 7.81
- Market Cap
- 3568.00Cr
Profitability
- ROE
- 9.19%
- ROCE
- 10.40%
- ROA
- 5.38%
- Dividend Y
- 0.20%
Growth (CAGR)
- Revenue 5Y
- -1.00%
- EPS 5Y
- 5.00%
- Revenue 3Y
- -13.00%
- EPS 3Y
- 2.00%
Balance Sheet
- Debt/Equity
- 0.49
- Interest Coverage
- 3.35×
- Altman Z
- 2.37
- Book Value
- 177.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 7/5
- OCF
- -149.00 Cr
- EPS TTM
- 15.54
Shareholding
- Promoter Hold
- 48.81%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 13%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Real Estate — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.