KNR Constructions Limited (KNRCON) AI Stock Analysis

• Market Cap: ₹33.89B
• Dividend Yield: 0.16%
• Average Volume (3M): 244.14K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.53
• Revenue Growth: -42.73%
• EPS Growth: -44.36%
• Country: IN
• Employees: 5,491
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.60
• Shares Outstanding: 281,234,600
• 10 Day Avg. Volume: 70,204
• 30 Day Avg. Volume: 244,138
• PEG Ratio: 0.22
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 1.35
• P/FCF Ratio: -9.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹137.67
• Price Target Upside: -13.90% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): 4.54
• Revenue Forecast (FY): ₹20.55B

• Rating: 74 Outperform
• Price Target: ₹135.00 ▼(-15.57% Downside)
• Action: Upgraded Date: 12/25/25
• Date: Action: Upgraded 12/25/25

The score is driven primarily by strong financial performance (profitability and growth) and attractive valuation (low P/E). It is held back by cash flow weakness (negative free cash flow) and a mixed technical picture with longer-term trend pressure despite near-term strength.

Positive Factors

Strong profitability and margins

KNR reports robust gross and net margins and a strong income statement, indicating durable cost controls and pricing power on projects. Healthy margins support reinvestment, buffer contract volatility, and sustain earnings quality across multiple quarters even if topline growth moderates.

Stable equity base

A solid equity position provides capital cushion against project delays and cost overruns, supports bonding and bank credit lines, and preserves operating flexibility. This balance-sheet strength underpins the company's ability to bid for large EPC and HAM contracts over the medium term.

Specialist roads & HAM EPC expertise

Focused expertise in roads/highways and experience with HAM and O&M give KNR structural advantages: repeat public-sector relationships, predictable annuity-style cash flows from HAM projects post-completion, and differentiated project execution capabilities versus generalist contractors.

Negative Factors

Negative free cash flow

Persistent negative free cash flow driven by capex reduces the firm's ability to self-fund working capital and new mobilization needs. Over months this increases dependence on external financing, raising refinancing and funding risk if project receipts or mobilization timelines slip.

Poor cash conversion (OCF vs Net Income)

Net income not converting into operating cash points to high receivables, retention money, or billing timing gaps typical in EPC work. Weak cash conversion limits capacity to finance bid bonds and mobilization, forcing reliance on debt or parent/group funding and raising medium‑term liquidity pressure.

Rising leverage

An increasing debt-to-equity trend reduces financial flexibility and raises interest burden, especially problematic together with negative FCF and weak cash conversion. Higher leverage magnifies downside from project delays or cost overruns and can constrain bidding and growth options over the next several quarters.

KNR Constructions Limited Business Overview & Revenue Model

Company Description

KNR Constructions Limited, together with its subsidiaries, engages in the construction, engineering, and infrastructure development businesses in India. The company provides engineering, procurement, and construction services for roads, highways, bridges and flyovers, expressways, viaducts, irrigation, urban water infrastructure management, agriculture, and commercial and residential projects. The company also undertakes BOT and HAM projects. KNR Constructions Limited was incorporated in 1995 and is based in Hyderabad, India.

How the Company Makes Money

KNR Constructions primarily makes money by winning infrastructure construction contracts and recognizing revenue as it executes and completes project work. Its key revenue stream is EPC/works-contract income from building roads/highways and other civil infrastructure, where payments are typically linked to contract milestones, measured work completed, and/or periodic certifications by the project owner/independent engineer (resulting in running account bills). Contract value generally covers reimbursement for materials, labor, equipment, subcontracting, and overheads, plus a margin for project execution and risk management; profitability depends on bid pricing, efficient procurement, project management, and timely execution. A second major way it earns is through Hybrid Annuity Model (HAM) road projects (where applicable): the company, usually through special purpose vehicles (SPVs), undertakes construction and then receives annuity-style payments over a defined period after completion, typically alongside operations & maintenance (O&M) responsibilities. Under this model, cash flows can come from (i) construction-phase receipts as per the concession framework and (ii) post-completion annuity payments and O&M receipts, subject to meeting performance and maintenance standards. In addition, the company can earn ancillary income from O&M services for completed assets under concession/contract terms and from interest or other income on cash balances or financial assets (to the extent such items are reported as other income rather than operating revenue). Key factors that influence earnings include the size and quality of the order book (new project wins), execution capability and cost control (materials like bitumen, aggregates, cement; equipment utilization; subcontractor management), working-capital management (timing of receivables, retention money, and mobilization advances), and the ability to achieve project milestones on schedule to avoid penalties and cost overruns. Information on any specific named partnerships or counterparties beyond project owners is null.

KNR Constructions Limited Financial Statement Overview

Summary

Strong income statement (revenue growth and healthy margins) and a stable balance sheet with solid equity support the score, but it is moderated by rising leverage and weaker cash generation (negative free cash flow and negative operating cash flow to net income), which increase liquidity risk.

Income Statement

KNR Constructions Limited exhibits strong revenue growth with consistent increases over the years. Gross profit and net profit margins have been robust, indicating effective cost management. The EBIT and EBITDA margins are healthy, supporting profitability. The company demonstrates a solid growth trajectory, enhancing its market positioning.

Balance Sheet

The company maintains a strong equity position with a favorable equity ratio, indicating financial stability. However, the rising debt-to-equity ratio suggests increasing leverage, which could pose a risk if not managed properly. The return on equity remains positive, reflecting efficient use of shareholders' equity to generate profits.

Cash Flow

KNR Constructions faces challenges with negative free cash flow, primarily due to high capital expenditures. The operating cash flow to net income ratio is negative, highlighting potential liquidity concerns. However, the company manages to sustain its operations through financing activities, suggesting reliance on external funding.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	43.81B	47.53B	44.43B	40.62B	36.06B	29.04B
Gross Profit	19.94B	17.02B	13.76B	14.30B	11.68B	5.86B
EBITDA	17.09B	18.00B	11.76B	9.75B	8.49B	8.19B
Net Income	9.53B	10.02B	7.77B	4.58B	3.82B	4.07B
Balance Sheet
Total Assets	0.00	71.31B	58.04B	43.42B	52.70B	40.07B
Cash, Cash Equivalents and Short-Term Investments	3.85B	3.85B	3.96B	2.06B	1.63B	1.43B
Total Debt	0.00	18.49B	12.62B	6.52B	14.64B	7.64B
Total Liabilities	-45.41B	25.90B	23.06B	15.94B	27.11B	20.31B
Stockholders Equity	45.41B	45.41B	35.54B	27.79B	23.28B	19.68B
Cash Flow
Free Cash Flow	0.00	-6.53B	-3.99B	10.40B	-6.94B	-1.72B
Operating Cash Flow	0.00	-6.25B	-3.16B	11.94B	-3.36B	-755.88M
Investing Cash Flow	0.00	-3.14B	-150.80M	668.13M	-4.08B	2.60B
Financing Cash Flow	0.00	6.86B	4.96B	-12.17B	7.65B	-978.30M

KNR Constructions Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 159.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KNRCON, the sentiment is Negative. The current price of 159.9 is above the 20-day moving average (MA) of 136.72, above the 50-day MA of 145.12, and below the 200-day MA of 183.15, indicating a bearish trend. The MACD of -6.30 indicates Positive momentum. The RSI at 25.71 is Positive, neither overbought nor oversold. The STOCH value of 10.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KNRCON.

KNR Constructions Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNRCON	74 Outperform	₹33.89B	11.13	―	0.16%	-42.73%	-44.36%
PATELENG	66 Neutral	₹23.59B	8.76	―	―	12.37%	-22.25%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DBL	60 Neutral	₹71.23B	2.45	―	0.21%	-13.57%	40.24%
HGINFRA	60 Neutral	₹31.38B	13.05	―	0.25%	-8.92%	-22.83%
HCC	45 Neutral	₹40.44B	118.38	―	―	-31.50%	-74.38%
SIMPLEXINF	44 Neutral	₹13.96B	62.16	―	―	-19.24%	-35.09%

KNR Constructions Limited Corporate Events

KNR Constructions Forms SPV for East Coast Road Corridor Project

KNR Constructions Limited has incorporated a new wholly owned subsidiary, KNR Mahabalipuram Infra Private Limited, as a special purpose vehicle with authorised capital of Rs 10 lakh. The subsidiary currently has no operating revenue and has been created as a related-party entity fully held by the parent company.

KNR Mahabalipuram Infra Private Limited will undertake construction and engineering work for a four-lane elevated corridor along the East Coast Road from Thiruvanmiyur to Uthandi in Tamil Nadu under the Hybrid Annuity Model. The move strengthens KNR Constructions’ presence in highway and urban corridor projects, potentially enhancing its order book and project portfolio in the high-growth road infrastructure segment.

KNR Constructions Files Q3 FY26 Earnings Call Transcript With Exchanges

KNR Constructions Limited has submitted to the stock exchanges the transcript of its earnings conference call for the third quarter and nine months of FY 2026, held on 6 February 2026. The disclosure, made under regulatory requirements, provides investors and other stakeholders with an official record of management’s commentary and financial discussion, enhancing transparency around the company’s recent performance and outlook.

The filing notes that the edited transcript may differ from the original audio, with the recorded version taking precedence in case of discrepancies. By formally releasing the call transcript, KNR Constructions reinforces its compliance with listing obligations and supports informed decision-making among shareholders and market participants.

KNR Constructions Files Q3 FY26 Investor Presentation with Stock Exchanges

KNR Constructions Limited has submitted its investor presentation for the third quarter of FY26 to the stock exchanges in compliance with disclosure requirements under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements Regulations, 2015. The filing signals the company’s ongoing engagement with capital market stakeholders by providing updated financial and operational information for Q3FY26, which will help investors and analysts assess its recent performance and outlook within the infrastructure and construction sector.

KNR Constructions Wins Key Tax Appeals, Awaits Final Assessment Orders

KNR Constructions Limited has received favourable orders from the Commissioner of Income Tax (Appeals) – 12, Hyderabad, for assessment years 2017-18 to 2020-21, allowing the company’s appeals against earlier disallowances made by the Assessing Officer. The earlier tax demands had arisen from disallowances of deductions claimed under Section 80-IA of the Income Tax Act and an arbitration claim related to one of its projects, and the appellate orders now support the company’s position. KNR Constructions is awaiting consequential orders from the Assessing Officer to implement the appellate decisions, and therefore the exact financial and operational impact cannot yet be quantified, though the outcome is potentially positive for the company’s tax liabilities and cash flows and will be closely watched by investors and other stakeholders.