Strategic Project Acquisition & Financial Update – KNR Constructions Ltd.

Executive Summary KNR Constructions Ltd. has successfully secured a Letter of Acceptance (LoA) for a significant infrastructure project valued at ₹319.24 crore in Hyderabad. This development serves as a vital addition to the company’s order book, providing revenue visibility despite a challenging second quarter characterized by a high-base effect and lower execution rates. Key Development: New Order Win Project Scope: The Company has been awarded an Engineering, Procurement, and Construction (EPC) contract to construct an "Iconic Bridge" across the Mir Alam Tank in Hyderabad. Client: Musi Riverfront Development Corporation. Strategic Value: The bridge is a critical component of the Musi riverfront mobility upgrade, connecting the Bengaluru National Highway at Shastripuram to Chintalmet. Execution Timeline: The project is slated for completion within 24 months. Financial Context: Q2 FY26 Performance Investors should note that this order win comes against the backdrop of subdued financial performance for the quarter ending September 30, 2025 (Q2 FY26), largely impacted by year-on-year variances in one-time income. Consolidated Net Profit: Reported at ₹104.65 crore, reflecting a 76.3% decline YoY compared to ₹441.47 crore in the corresponding quarter of the previous fiscal year. Revenue: Operations generated ₹646.5 crore, a decline of 66.8%, attributed primarily to lower project execution volumes during the quarter. Operational Efficiency: EBITDA stood at ₹192.82 crore (down 77.8%), with margins softening to 29.83% from 44.73% a year prior. Management Insight The steep year-on-year statistical decline in financials is largely attributed to a high base effect. The previous year’s strong performance included a significant, one-time exceptional gain arising from asset monetization.