KNR Constructions Limited has announced that the Greater Hyderabad Municipal Corporation (GHMC) has revoked an EPC contract worth Rs 157.55 crore. Originally awarded on August 29, 2026, the project involved constructing flyovers and an underpass in Banjara Hills, Hyderabad. This cancellation reduces the company's pending order book, potentially impacting revenue visibility for the period. Investors should note that the contract value will be removed from the firm's total backlog.
KNR Constructions: GHMC Revokes Rs 157.55 Crore EPC Contract
Contract Value: Rs 157.55 crore removed from order book.
Project Status: EPC contract for Banjara Hills flyovers and underpass cancelled.
Reader Takeaway: This reduction in the order book affects future revenue pipelines and demands monitoring of infrastructure project liquidity.
What just happened
KNR Constructions Limited informed the stock exchanges that the Greater Hyderabad Municipal Corporation (GHMC) has officially revoked a Letter of Acceptance (LOA) previously issued to the company. The project, which was initially announced on August 29, 2026, involves major civil works in the Banjara Hills area of Hyderabad.
Why this matters
For an infrastructure firm like KNR Constructions, order book stability is a primary metric for growth. The cancellation of a project valued at Rs 157.55 crore directly subtracts from the company's backlog. As these projects are typically executed over a multi-year period, this move affects the long-term revenue recognition expected from the Telangana region.
Project Context
The cancelled contract was structured as an Engineering, Procurement, and Construction (EPC) project in Telangana. It primarily covered:
- The construction of a 2-lane unidirectional flyover at the NFCL Junction, Banjara Hills.
- The construction of a 2-lane unidirectional underpass and a 3-lane unidirectional flyover at the TV9 Junction, Banjara Hills.
What to track next
Shareholders should look for management commentary regarding potential costs already incurred on preliminary work and whether the company is pursuing any legal or contractual recourse. Further, investors should watch for updates on new order inflows to offset the impact of this revocation on the total order book size.