KNR Constructions (532942) Q3 24/25 earnings summary

Executive summary

• Infrastructure sector momentum remains strong, with government allocating INR 2.87 trillion for road transport and highways, supporting robust project awards and execution pace.

• Secured two major irrigation projects in Telangana in January 2025, with a combined bid cost of Rs. 5,261.7 million and contract periods of 24 months plus 2 years defect liability.

• Arbitration claims from associates contributed Rs. 355.7 million to revenue and Rs. 1,035.4 million to other income in Q3 FY25, significantly boosting financials.

• Order book stands at INR 3,880 crores as of December 2024, potentially rising to INR 5,517 crores including recent awards and pending appointed dates.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024.

Financial highlights

• Standalone Q3 FY25 revenue: INR 743 crores; EBITDA: INR 151 crores (20.4% margin); Net profit: INR 182 crores, up 113% YoY.

• Standalone nine-month FY25 revenue: INR 2,507 crores; EBITDA: INR 508 crores (20.3% margin); Net profit: INR 650 crores, up from INR 296 crores YoY.

• Consolidated Q3 FY25 revenue: INR 848 crores; EBITDA: INR 256 crores (30.1% margin); Net profit: INR 248 crores, up 83% YoY.

• Consolidated nine-month FY25 revenue: INR 3,778 crores, up 25% YoY; EBITDA: INR 1,404 crores (37.2% margin); Net profit: INR 994 crores, up 142% YoY.

• Arbitration and project settlements, including NHAI agreement, significantly boosted revenue and other income.

Outlook and guidance

• FY26 revenue expected to be INR 3,500–4,000 crores, with 10–15% decline in FY25 due to lower order book and delayed project starts.

• EBITDA margin guidance for FY26 is 15–15.5%.

• Order inflow target of INR 8,000–10,000 crores by Q1 FY26, with focus on large-scale projects in highways, irrigation, and mining.

• Focus on timely project execution, expanding into new business verticals, and leveraging infrastructure opportunities.