SYNOPSIS: This EPC company received an LoA worth Rs. 2,163 crore for a four-lane elevated corridor project in Tamil Nadu under HAM, with execution subject to pending legal proceedings before the Madras High Court.
Shares of an infrastructure project development company providing EPC services in segments such as roads and highways, irrigation and urban water infrastructure management surged nearly 8 percent on BSE, after securing an order worth Rs. 2,163 crores for construction works.
With a market cap of Rs. 4,095 crores, shares of KNR Constructions Limited were trading green at Rs. 145.6 on BSE, up by around 6 percent, as against its previous closing price of Rs. 137.35. The stock has delivered negative returns of around 40 percent in one year, but has gained by over 3 percent in the last one month.
What’s the News
As per the latest disclosures with the latest stock exchanges, KNR Constructions Limited has received a receipt of a Letter of Acceptance (LoA) for construction works, with a bid project cost of Rs. 2,163.07 crores under the Hybrid Annuity Mode (HAM). The project entails a construction period of 1,095 days and an operation period of 5 Years from the Commercial Operation Date (COD).
The scope of work includes the construction of a four-lane elevated corridor along the East Coast Road (ECR), spanning from design chainage Km 11+480 to Km 11/800 (West Avenue Road) and extending up to Km 24+780 (ECR), covering the stretch from Thiruvanmiyur to Uthandi in SH-49 under HAM. Further, the execution of the Concession Agreement is subject to the outcome of the Writ Appeal (WA) No. 284 of 2026 pending before the Madras High Court.
Financials & More
KNR Constructions reported a decline in consolidated revenue from operations of more than 12 percent, from Rs. 848 crores in Q3 FY25 to Rs. 743 crores in Q3 FY26. Likewise, its net profit decreased during the same period from Rs. 248 crores to Rs. 103 crores, representing a decline of nearly 58 percent YoY.
Operating performance deteriorated during the quarter, with EBITDA falling to Rs. 166.7 crore, marking a decline of around 35 percent YoY from Rs. 255.6 crores in Q3 FY25, while EBITDA margins decreased to 22.4 percent, reflecting a contraction of 770 bps YoY from 30.1 percent.
KNR Constructions Limited, one of the leading companies providing Engineering, Procurement and Construction (EPC) services, is engaged in the business of the infrastructure sector, primarily in the construction of roads, bridges, flyovers and irrigation projects.
As of December 2025, the company reported an order book of Rs. 8,848.8 crores. The Mining Sector contributed the largest shares at Rs. 3,552.4 crores, followed by the Irrigation and Pipeline Sector at Rs. 2,742.8 crores, while the Roads Sector at Rs. 2,553.6 crores. The company aims to add more business verticals to the organisation in the fields of construction of Elevated Metro Rail and Railway Projects.
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