KNR Constructions Awarded ₹1,734 Crore Telangana Highway Project

KNR Constructions Limited announced it has received a Letter of Award (LOA) from the National Highways Authority of India (NHAI) for an 80.01 km, 4-lane highway project in Telangana. The total bid cost for the project is ₹1,734 crore. The project will be executed on a Hybrid Annuity Mode (HAM) basis, including a 15-year operation period. Construction is expected to take 730 days.

Project Announcement

KNR Constructions Limited officially announced on March 28, 2026, that it secured a Letter of Award (LOA) from the National Highways Authority of India (NHAI).

This project involves the construction of an 80.01 km, 4-lane highway stretch located in Telangana.

The total bid project cost for this new venture is ₹1,734 crore.

It will be executed under the Hybrid Annuity Mode (HAM) and includes a 15-year operation period, with construction slated to take 730 days.

Strategic Importance

This award represents a significant addition to KNR Constructions' project pipeline, expected to drive future revenue growth.

The Hybrid Annuity Mode (HAM) offers a long-term structure, spreading financial risk between the NHAI and KNR Constructions.

The win further solidifies KNR's standing in executing large infrastructure projects for key government bodies like NHAI.

Company Background

KNR Constructions has a strong track record in India's infrastructure sector, especially in roads and highways, having completed over 6,000 lane km of projects across 12 states.

The company has consistently focused on HAM projects, which involve government funding and annuity payments over extended concession periods, reducing direct traffic risk for developers.

However, the company has recently contended with financial challenges, including revenue declines and margin pressures. These stemmed partly from slow order inflows and issues with receivables from specific state projects.

Impact on Order Book

This ₹1,734 crore project significantly enhances KNR Constructions' order book.

It provides greater revenue visibility through the project's construction and operational phases.

This award also strengthens KNR's relationship with NHAI, a key client for national infrastructure development.

Execution and Financial Risks

Efficient management of execution timelines is crucial to avoid cost overruns, a common risk in large infrastructure projects.

KNR has historically faced challenges with receivables from some state projects, requiring close monitoring of payment cycles under its HAM contracts.

Recent periods have seen margin pressures due to factors like increased subcontracting costs, which may persist depending on project specifics.

Competitive Landscape

KNR Constructions' peers, including PNC Infratech (₹20,104 Cr order book as of Q2 FY26) and Dilip Buildcon (₹29,372 Cr order book as of Q3 FY26), also actively compete for large NHAI contracts.

These companies operate in a competitive environment, often bidding for similar HAM and EPC projects. Efficient execution and robust project pipelines are therefore crucial for sustained growth.

Financial Snapshot

KNR Constructions' order book was ₹8,849 crore as of Q3 FY26. The company has a visible bid pipeline of approximately ₹30,000-₹40,000 crore.

For Q3 FY26, standalone revenue was ₹585.1 crore. FY25 revenue was estimated between ₹3,500-3,600 crore.

Standalone EBITDA margins have faced pressure, reported at 5.2% for Q3 FY26.

What to Watch For

Tracking progress on the commencement and execution of the new ₹1,734 crore highway project.

Monitoring future order inflows to further strengthen the company's order book and revenue visibility.

Observing the resolution of outstanding receivables and the improvement in standalone EBITDA margins.

Listening for management commentary on project execution efficiency and pipeline conversion in upcoming financial results and investor calls.