KNR Constructions (532942) Q1 26/27 earnings summary

Executive summary

• Q1 FY 2027 saw subdued project awarding in the road sector, but government CapEx for roads and railways increased, supporting a healthy project pipeline.

• The company is diversifying into railways, urban mobility, mining, and energy storage, with mining now comprising up to 45% of the order book.

• Major HAM projects are progressing, with several nearing completion and new projects set to commence in Q3 FY 2027.

• Recent asset monetization through transfer of SPVs to Indus Infra Trust, generating substantial cash inflows.

• Approved unaudited standalone and consolidated financial results for Q1 FY27, with board and audit committee review.

Financial highlights

• Q1 FY 2027 standalone revenue: INR 436.7 crores; EBITDA: INR 65 crores (15% margin); Net profit: INR 282.3 crores (includes exceptional gain).

• Q1 FY 2027 consolidated revenue: INR 587.9 crores; EBITDA: INR 96.4 crores (16.4% margin); Net profit: INR 80.7 crores.

• Standalone PAT margin at 64.6% in Q1 FY27 due to exceptional gain; consolidated PAT margin at 13.7%.

• Working capital debt increased to 133 days from 78 days sequentially; consolidated debt reduced to INR 1,975 crores from INR 2,438 crores.

• Exceptional gain of ₹28,533.06 lakhs (standalone) and ₹11,317.07 lakhs (consolidated) from sale of two subsidiaries.

Outlook and guidance

• FY 2027 revenue guidance: INR 2,200–2,300 crores with 8–9% EBITDA margin; FY 2028 revenue expected to exceed INR 3,000 crores with 11–12% EBITDA margin.

• Order inflow target for FY 2027: INR 8,000–10,000 crores, focusing on NHAI, irrigation, and state infrastructure projects.

• Mining revenue expected at INR 150 crores in FY 2027 and INR 400 crores in FY 2028 from Kusmunda; Banhardih project start pending.

• Management remains confident of recovering significant receivables from the Kaleswaram Package 4 project, despite stalled collections since March 2023.

• Strategic expansion into mining and metro rail segments, with a strengthened order book pipeline.