KNR Constructions Ltd, incorporated in 1995, is a Hyderabad-based infrastructure project development company providing EPC services in segments such as roads and highways, irrigation and urban water infrastructure management. The company is a leading EPC service provider with a presence across diverse infrastructure projects, including highways, flyovers, bridges, irrigation systems, urban water infrastructure, and urban development. It executes projects on an EPC, BOT, and Hybrid Annuity Model (HAM) basis.
KNR Constructions has established itself as a prominent player in India's infrastructure sector over nearly three decades of operations. KNR Constructions is one of the leading companies in the Roads and Highways sector having executed 6,000+ lane km of projects across 12 states in India. The company also has an established presence in Irrigation and Urban Water Infrastructure Management.
The company demonstrated strong financial performance in recent quarters. For Q2 FY25, KNR Constructions reported an 87% YoY rise in consolidated revenue, of Rs 19.4 billion (bn). Profit after tax (PAT) increased by 306% year-on-year (YoY) to Rs 5.8 bn compared to Rs 1.4 bn a year earlier. The company's operating profit saw a sharp jump of 276% YoY to Rs 8.7 bn, up from Rs 2.3 bn in the same period last year. Operating margins improved significantly by 22.5 basis points to 44.7%.
However, the company faced some challenges in subsequent quarters. KNR Constructions Ltd's revenue fell -3.21% since last year same period to ₹970.39Cr in the Q3 2024-2025. KNR Constructions Ltd's net profit jumped 78.06% since last year same period to ₹248.59Cr in the Q3 2024-2025. KNR Constructions' Q4 FY25 results show a 60.6% drop in net profit to ₹139 crore, driven by a 31% decline in revenue and margin contraction.
#### Key Financial Metrics
- Q4 FY25 (ended March 2025):
- Revenue: ₹975.21 Cr
- Net Profit: ₹139.24 Cr
- Net Profit Margin: 14.28%
- Q3 FY25 (ended December 2024):
- Revenue: ₹970.39 Cr
- Net Profit: ₹248.59 Cr
- Net Profit Margin: 25.62%
- Market Capitalization: ₹ 6,184 Cr (as on March 19, 2025)
- P/B Ratio: 1.55 times (as on March 19, 2025) - 31% discount to peers' median of 2.25 times.
- P/E Ratio: 5.64 times (as on March 19, 2025) - 72% discount to peers' median of 20.04 times.
The company's stock has shown strong performance historically. The stock touched its 52-week high of Rs 415 on July 31, 2024, and a 52-week low of Rs 236.7 on March 15, 2024. KNR's share price has grown at a 21% CAGR over the past five years (from ~₹109 in August 2017 to ~₹260 levels in August 2022).
KNR's total order book as of September 30, 2024, stood at Rs 44.1 billion. Contributions came from various sectors, with 33% from the road HAM segment, 23% from irrigation, and 25% from pipeline projects. This diversified order book provides strong revenue visibility for the company.
The company recently secured significant new contracts. KNRCL was awarded a INR 4,800.57 Cr coal mining contract in Jharkhand for 5 years plus a development period (as of June 2025). The company received an order for Rs. 1157,41,91,862/- (Rupees One Thousand One Hundred Fifty Seven Crores Forty One Lakhs Ninety One Thousand Eight Hundred and Sixty Two only) (including GST) from the Highways Department, Govt. of Tamil Nadu.
Its projects include highway projects, irrigation and water management, river bridges, and urban development. Its ongoing urban development project is the Challaghatta Main Valley Project (Package CVD-II). This project involves the remodeling of primary and secondary storm drains, bridges/culverts, and related works in the Challaghatta Main Valley in Bangalore City.
The company plans to bid aggressively for upcoming HAM and EPC projects, with an estimated inflow of Rs 60-80 billion in new orders in the current financial year. Having delivered decades of robust performance in roads and irrigation, KNR is now expanding into new sectors to counter the slowdown in project awards in its traditional areas. It is building expertise in urban infrastructure, pump storage, railways, and tunnel projects, taking on these projects independently or through joint ventures.
State governments in Andhra Pradesh, Telangana, and Tamil Nadu are launching large-scale irrigation and urban infrastructure projects, while L1 companies in some projects are subcontracting work to experienced EPC firms. This presents significant growth opportunities for the company.
Its subsidiaries include:
- KNR Agrotech & Beverages Private Limited
- KNR Infrastructure Projects Private Limited
- KNR Energy Limited
- KNRC Holdings and Investments Private Limited
- KNR Tirumala Infra Private Limited
- KNR Srirangam Infra Private Limited
Reported a 16.3% revenue CAGR over FY17-22 and has consistently delivered industry-leading operating margins of ~20% throughout the past 3 years. Operating income grew 9.3% year-on-year to Rs 4,100 crore in fiscal 2024 from Rs 3,752 crore, led by strong execution of work orders in both roads and irrigation projects.
The company maintains a strong focus on operational efficiency and quality execution. KNR is enhancing its operational efficiency through innovative execution methods and robust cost controls. By diversifying its project mix, focusing on sustainable practices, and tapping into emerging opportunities, KNR aims to build a resilient business model.
KNR Constructions continues to be a key player in India's infrastructure development story, with a strong track record of project execution, healthy financial metrics, and strategic expansion into new business verticals. The company's diversified order book and focus on operational excellence position it well for future growth in the infrastructure sector.
