KNR Constructions (KNRC IN) – Q1FY27 Result Update – Order book build up continues – HOLD
Published on 15 Aug 2026
KNR Constructions (KNRC) reported muted Q1FY27 performance, with revenue declining 10% YoY and adjusted EBITDA margin at 5%, impacted by delayed commencement of new HAM and mining projects and execution delays in Karnataka HAM packages. However, order build-up remains healthy, with Q1FY27 order book at INR 87bn (4x TTM revenue) and an additional INR 66bn of L1 orders. Including L1 orders, mining accounts for ~45% of the order, followed by roads at ~38%, increasing the company’s exposure to the mining segment. Mining projects are yet to enter the execution phase, with Kusmunda MDO expected to commence in Sep’26 and Banhardih likely to commence in FY28. Management reiterated FY27 revenue guidance of INR 22–23bn and expects 30–35% revenue growth in FY28, supported by a meaningful improvement in execution from Q3FY27 as the Chennai ECR HAM, Telangana HAM and Kusmunda MDO projects ramp up. On capital allocation, management indicated that a share buyback is under consideration, while standalone cash stood at INR 3.1bn in Q1FY27 and INR 10bn is awaited from the asset sale. We maintain our HOLD rating with a SoTP-based target price of INR 126/share. While the stock trades below book value, valuations remain demanding at 18x FY28E EPS, limiting near-term upside.
