Ladies and gentlemen, good day and welcome to KNR Constructions Limited Q1 FY 2026 earnings conference call. This conference may contain forward-looking statements about the company, which are based on beliefs, opinions, and expectations of the company as of the date of this call. These statements are not the guarantees of the future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. I now hand the conference over to Mr. K. Venkatram Rao, General Manager, Finance and Accounts, KNR Constructions Limited. Thank you, and over to you, sir.
Good morning. Thank you for joining us today on the call to discuss the financial results for Q1 FY 2026. Along with me, I am Mr. K. Jalandhar Reddy, Executive Director and Strategic Growth Advisors, our Investor Relations Advisor. We have uploaded the results and investor presentation on the stock exchanges as well as on our company website. I hope everyone got an opportunity to go through it. We would like to touch upon a few key company updates and industry events, post which we will have the question and answer session. The first quarter of this fiscal year saw muted ordering activities in the road sector, with the NHAI awarding only 166 km of the highway project between April and June. On the execution side, however, there was a modest improvement, with NHAI constructing 1,092 km of the highway in the quarter slightly ahead of Q1 FY 2025 level.
One of the key factors contributing to the slowdown in the project rollout has been the government's prudent decision to initiate bidding only after securing 90% of the required land, and this measures aim at minimizing delay and ensuring smooth execution. However, the upcoming project pipeline remains strong, with a robust portfolio worth of 3.4 trillion, encompassing 124 highways and expressway projects spanning 6,376 kilometers. Of these projects, around 84 are expected to be under the HAM model, 28 through the EPC mode, and 12 under the BOT model. Despite the slower pace of new awards, operational indicators remain strong. FASTag toll collection recorded robust growth, with the toll user volume rose by 16% year-on-year, and the total collection increased by 19% in Q1 FY 2026.
The government is actively addressing key challenges by tightening bidding norms through the additional performance security requirement and introducing strict eligibility criteria for DPR consultants and engineers. At the same time, the highway sector is implementing smart construction technology and innovative practices to enable real-time monitoring, enhance transparency, and boost productivity. Together, these reforms and technological advancements are set to significantly elevate the efficiency, speed, and quality of the infrastructure development. Now, coming to the key updates of the company, the percentage of physical progress as of June 30, 2025, for the HAM project is as follows: Ramanattukara to Valanchery approximately 99%, Valanchery to Kappirikkad approximately 98%, Chittoor to Thatchur approximately 94%, Magadi to Somwarpet around 89%, and Oddanchatram to Madurai approximately 43%. As of June 30, 2025, the company has already invested INR 676 crores out of INR 990 crores of the revised equity requirement for the HAM project.
The additional requirement of INR 314 crores to be infused as INR 185 crores in FY 2026 and INR 129 in FY 2027. You can refer to slide number 23 of the investor presentation for the detail on each HAM project. On May 21, 2025, the National Highways Authority of India issued a show cause notice to the KNR Ramanatt ukara Infra Private Limited, a wholly-owned subsidiary of KNR Constructions Limited, as well as to the parent company itself regarding certain concerns relating to the main carriage service road and the associated structure. This notice led to one-month suspension for participating in the future bidding process. In response, the concessionaire promoter submitted a detailed reply to the NHAI, addressing the concern raised. Subsequently, given the implication of the suspension, the concessionaire approached the Hon'ble High Court of Delhi, seeking relief to allow continued participation in ongoing and future bids.
On July 21, 2025, the Hon'ble High Court of Delhi is of considered opinion that the impound order by the NHAI has lived its life and further observed that under the guise of the suspension, the bar on the petitioner's right to bid in the future bidding seems to be a drastic measure. The investigation is completed, and also the one-month period as mentioned in the NHAI letter is completed. Therefore, the suspension order should not be treated as disqualification anymore. The department, however, shall be at liberty to take further action in accordance with the existing policies. Furthermore, the company in the joint venture with HES Infra Private Limited has received a letter of acceptance from the NTPC for development and operation of Vanaidih Coal Mine Block in the Jharkhand, with the company's share of 74% and the other partner's share of 26%.
The project has a contract value of INR 4,800 crores excluding GST, with a five-year operation period plus initial development period of 360 days. The coal quantity to be extracted is approximately 34.5 million tons. The project marks the company's strategic entry into the new business segment, expanding its presence beyond core infrastructure. Now, coming to the order book position, as of June 30, 2025, the company's total order book stands at INR 8,305 crores, which is divided into 27% of the road project, 17% for the irrigation project, 13% for the pipeline project, and 43% for the mining project. Client-wise, the classification is 29% of order book is from the third-party client, and balance 21% is from the captive HAM project.
The third-party order book percentage is split between the state government contract of 74%, including the mining project, whereas 4% for the central government, and the balance 1% is from the other private sector. The current order book will be executed over a period of one and a half to two years, excluding mining projects. With the government emphasis on infrastructure development, we anticipate new order awards in the coming quarter. We hereby aim an order inflow of approximately INR 10,000-INR 12,000 crores by the end of 2026, with a mix of NHAI projects, irrigation projects, mining projects, and other state government projects. Now, let me take through the Q1 FY 2026 standalone financial performance first, followed by the consolidated performance. The revenue for the quarter issued at INR 483 crores.
EBITDA for Q1 FY 2026 issued at INR 66 crores as compared to INR 192 crores in Q1 FY 2025. EBITDA margin in Q1 FY 2026 is 13.6%. Net profit for the quarter was INR 51 crores, while there was INR 134 crores in Q1 FY 2025. Now, coming to Q1 FY 2026 consolidated financial performance, the company recorded a total revenue of INR 613 crores in Q1 FY 2026 as compared to INR 985 crores in Q1 FY 2025. EBITDA came at INR 183 crores in Q1 FY 2026 compared to INR 279 crores in Q1 FY 2025. EBITDA margin in the current quarter issued at 29.9%. Profit after tax issued at INR 123 crores in Q1 FY 2025.
Now, moving on the standalone balances, the company continued to maintain a strong balance sheet. The working capital base now issued at INR 169 compared to INR 93 as of March 25. The consolidated debt as of June 30, 2025, issued at INR 2,018 crores as compared to INR 1,847 crores as of 31 March 2025. The net debt to EBITDA on consolidated basis as of 30 June 2025 stands at 0.3 times 0.43 times as compared to 0.41 times as of 31 March 2025. With this, we can open the floor for question and answer. Over to you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Shravan Shah from Dolat Capital. Please proceed.
Hi, sir. Thank you, sir. Sir, two main things I want to understand. Yes, sir. Good morning. Sir, two things I want to understand.
Hello, Mr. Shravan Shah.
Yes, sir. Can you hear me, sir? Hello.
Are there any questions from the current participants? The next question is from the line of Alok from Motilal Oswal. Please proceed.
Yeah, am I audible? Hello. Hello.
Yeah, yes, sir. Please go ahead, sir.
Yeah, yeah, yeah, yeah. So, sir, just had a few questions. One is execution has been very muted in this quarter. So, you know, first is what led to such a low execution, even if you look at YoY basis or, you know, considering it was not even a monsoon quarter, still we have delivered pretty soft execution. So, how are we seeing the coming quarter? Because again, now we are in the monsoon quarter, so again, the execution will be slow. So, for full year, you had guided for nearly INR 2,500-INR 3,000 crore revenue in the last earnings call. So, any update on that?
Definitely, actually, this quarter, the revenue has muted. The reason is being that actually what are the existing order book is there. So, except for four projects, other projects is almost over 90% has been completed, and the four projects what is there, that is basically two HAM projects where we have got appointed it in the month of April only. And another one project is the Mangalore, and one project we got appointed it in the last year. So, due to actually the project has achieved almost complete, except these four projects, almost all projects have been completed. And this quarter also, the revenue from the irrigation has been very, it is just 6% of the total revenue. So, because the project has achieved all projects in the order book is also very less, and the project has achieved almost more than 90%.
What new projects are there? They have just started. So, that's why this quarter is the muted turnover.
So, what's the outlook now since we got appointed it also for a project in April? So, what's the outlook on execution for 2Q as well as the remaining part of FY 2026?
Actually, sir, that Mysuru project we are talking about, there are two projects inside. I think it's whose EPC value may come to INR 1,000.
INR 1,200.
1,200 it is. So, here we have a focus to complete this project by coming October-November. So, one more year, we are planning bonus also as every resources are agreed. So, we would like to build more trucks to complete this project as soon as possible. So, anyway, it is going to take another one year. Up to November, we'll be able to complete this project. So, entire revenue, whatever that is there, periodically will come. Okay, rainy season it is a little less, but during the dry season, it is on the team. So, more or less, dry season will be about to do INR 40 crores in each of the projects. So, INR 80 crores we can expect in dry months. During the rainy month, it is hardly around INR 10 crores because most of the progress is not that fast.
So, for full year, what is our guidance? Any number you want to share?
I think after this market, I think we'll be able to do around, say, INR 40 crores-INR 2,000 crores entire company.
Sorry? Entire company.
For the standalone entire company.
We are asking for INR 2,000-INR 2,500, we are thinking on it. But however, any new orders which are coming up and there are commitments are happening, those will add to that, actually.
So, sir, actually, INR 2,000 and INR 2,500 is a big range, actually. And I mean, we had started last quarter.
Five-year anticipating like this is that most of the projects have come to an end one day. And the new projects under pipeline which were considered to be started, we do not know when they get started. So, that is the major reason this is unpredictable, a little bit dilemma.
Okay. Because last quarter also, we knew about these projects getting over. So, we mentioned about approximately INR 2,500-INR 3,000 revenue.
Yes, sir. Actually, I'm very sorry this time. We could have done our best in pushing the orders. Wherever there is a tender, we got in and all that, we have done our best. But due to the market being very, very aggressive, so we couldn't achieve the L1 status of any of the projects. There are certain projects which we have already told you that some pipeline projects, they would likely come down in two months' time, which is Maharashtra one or something in MSRDC. So, and a few other projects in Telangana, we have some flyover projects about the INR 700 crore L1 status we are enjoying, I think. I think by the time they come up, another one to one will be coming.
Sure. Sir, so if I just take the first quarter number, I mean, then the quarterly run rate will remain largely the same only of INR 500 crore. There is no improvement in the second half if we are going to do INR 2,000 crore revenue.
I cannot expect anything because the rate is like that. As well, rather, you might have seen that rainy season is very aggressive this time. Most of the time, it is aggressive, but we are in a very aggressive rainy state, like in Karnataka. Some Mangalore project is also a little bit of work left out in that, but there are also heavy rains going on. And the Kerala, you know the Kerala is kind of bad. So, all other areas like Mangalore, the JV and all, they are okay. Mysuru also, to some extent, we are able to do. Nothing wrong.
Sir, just one last question. This working capital has spiked quite significantly if you look at just as compared to March, especially the debtor days have gone up like from four and a half months to nearly eight months now. What's happened there?
Basically, out of the infra section, irrigation is almost around INR 800 crores. That's the irrigation actually, and INR 1,200 crores the HAM project is there, out of INR 1,200 crores of the infra section. And irrigation is still with unbilled and everything is still around INR 1,300 crores are pending with the state government. So, in this quarter, we got only just INR 14 crores actually. That's all the small amount only we got in this quarter. So, that's why the irrigation days are more and now that corresponding turnover has also reduced. So, that's why if you compare with that, that's why the working capital cycle has come more actually.
Sure. Okay, sir, I think that's all from my side. Thank you and all the best, sir.
Yeah, yeah. Thank you very much.
Thank you. The next question is from the line of Shravan Shah from Dolat Capital. Please proceed.
Hi, sir. Can you hear me now?
Yes, sir, please.
Yeah. Sir, again, coming on the execution front and the order info, so that's the two pain points for us. So, let me bifurcate all these things. So, in terms of the mining order that we have received, INR 3,500 crore, how much revenue this year, next year, are we looking to get from that?
So, this year, actually, hardly around that means commitment after commitment, within one year, we can only spend about, say, INR 90 crore. And later, we should go by INR 700 crore per annum kind of thing. So, that is the expected revenues in that area.
Okay. Got it. Second, in the water pipeline, this INR 1,000 crore that we have, so there, how much INR 1,073 crore is the kind of a value is there? So, out of that, how much revenue are we likely to get this year and next year?
Actually, sir, that by March, I think it's around INR 500 we are expecting out of that. And balance, we need to complete within November of next year.
Okay, okay. Balancing the entire will be in FY 2027. Okay. Got it. Yeah. Third, as you already said, two HAM projects are INR 1,200 crore that we will be completing in next year. And one more HAM project is there, so Magadi, Somwarpet, which is so that we will be entirely completing this year?
We will complete most in this year.
Okay. Okay. Got it. Then the balance is the irrigation projects. So, first of all, the old one, how much more do we think? So, first is on the payment. So, INR 1,300 crore is pending. Do we think that we will be able to get the money from there by this month and how much? And second is the two new irrigation projects that we have got in Telangana around INR 430 crore. So, from there, how much more revenue are we looking to get in this year?
Actually, sir, around one week back, our MD sir and the minister, concerned minister, had a meeting. They have promised to pay within a month's time. Now, actually, we heard from the government and reliable sources that they have moved to get this loan on track. Once the loan coming onto the track, I think we'll get paid. This time, we have a strong assurance to get paid from the Q. That is one good news, sir. The rest of it, the balance work, we will complete. Once this is on track, there should not be any problem. I think by March, we will be able to complete the entire project. Only that is, the canal project, which is having land problems. I think if they pay for that land acquisition also, that project gets completed.
Because the compound project, they can come in by another two, three months. But what happens once they pay, I think two, three months, we will take once we get the payment, we will take two to three months to commit the project, actually. But inflow canal is not ready because we are doing that inflow canal. So, that will be the meaningless thing. So, they'll be very keen to do that also. And we heard from the sectoral sources, one more thing that central government wanted this entire collection project to be completed. Once they completed and they are ready to take over to pay the installments to the bank, central government is going to pay the installments to the bank. So, they have got certain assurance to go ahead. So, further, there should not be any issues. We are thinking.
Still, I wanted to ask, out of INR 1,300 crore that we will still have to get from the government for this irrigation, how much do we think that by March we will be able to receive?
So, actually, if everything is on track, I think INR 1,200 crore has to come in. But we can not go ahead because of the pending agreement.
Okay. Got it. Second is on the yes, sir.
Out of the total, INR 800 is certified itself. So, INR 800, once this issue is sorted out, INR 800, they will immediately release. And balance is once the bill has been approved. So, that will also they will release the balance.
Okay. Okay. Got it. Second, sir, this INR 10,000-INR 12,000 crore order inflow that we are looking at, so I hope that excludes this INR 3,500 crore. So, we will be additionally looking at INR 6,500-INR 8,500 crore order inflow. So, there also, if you can help us, how much value of projects we have already bid? Is there any L1? And second, do we think that this INR 3.5 lakh crore NHA pipeline, initially, will there be a decent competition? And how much are we looking to bag from NHA particularly?
That is what we are projected. INR 10,000-INR 12,000 crore is excluding mining projects. So, right now, we are targeting INR 10,000 crore. INR 8,300 crore is our goal. And above that, INR 10,000-INR 12,000, we are targeting. So, out of that, actually, almost around INR 2,500 crore we are targeting in Tamil Nadu. And MSRDC is there, that INR 2,200 is there. And around INR 2,000 crore we are targeting in Andhra Pradesh. And around INR 700 crore projects that flyover projects are there in the GHMC that in Hyderabad. And some projects in Musi Riverfront also, we are expecting some projects. And definitely, some of the projects in irrigation sector in Madhya Pradesh, Rajasthan, and some projects in the Bihar. And definitely, NHAI is also coming with INR 3.2 lakh crore of the order. So, on that also, we are targeting.
So, after considering all aspects, we are targeting around INR 10,000-INR 12,000 crore of the order.
Okay. So, sir, net net 10 plus this INR 3,500 crore, so INR 13,500 crore at least we will be targeting for this year. That's great. And last, sir, in terms of this mining project and whatever the new, do we think that 13%-14% margin guidance, EBITDA level, that will be maintained or will there be a possibility that we may have to maybe lower down to maybe a 1% or 2% lower?
Yes, sir. 1% or 2% lower, we can think of it, but it's very early to say anything on that. As a new subject for us, and all the care that has been taken there with the available data bank and the consultant we have taken on board. So, with all those inputs only, we have quoted that tender. But however, margins are a little lesser only in mining. You also know that.
Okay. Okay. But at a blended level for companies, still, a 13%-14% EBITDA margin is doable now or maybe 12% or 1% is the way one can look at it?
Yes, sir. It depends, sir. Main thing is that we are thinking it should be doable because we are expecting some more orders to add in this coming quarter. So, main thing is that if we add some more order and start execution on those orders, then the dilution will happen on the manpower expenditure and equipment expenditures. So, then that will stand too. Otherwise, little bit here and there things will happen.
Okay. Lastly, two things, sir. Monetization has anything we were supposed to do by this July? So, any progress there? And how much CapEx? Because for mining, we have to do a decent INR 300-INR 400 crore kind of a CapEx. So, for this year and next year, what will be the CapEx?
It will be, sir, for monetization, this project. Monetization process is underway. We are in very advanced stage. We are expecting that within next month, actually, we will by one month, we should sign the SPA actually with the prospective investor. As far as capital requirement for this mining project, so initially, the OB removal will be there. So, that we will do with our existing assets. But once we will go in depth and start extracting the coal, so at that time, we may require some big machinery and equipment. So, not much requirement in this year, but definitely in the next year, there will be big requirement for mining assets.
What will be the company level?
So, Shravan.
Yeah. Yeah.
David, I want you to join the Q.
Oh, Shravan, you can go. Last question. Yeah.
Yeah. The CapEx number only, sir. Wanted the next year, will it be a INR 300-INR 400 crore kind of a CapEx in FY 2027?
It could be. It could be.
Okay. Okay. Thank you, sir. And all the best for ordering.
Yeah, yeah. Thank you.
Thank you. The next question is from the line of Niteen from Aurum Capital. Please proceed.
Yeah. Thank you for the opportunity. Am I audible?
Yeah, yeah, yeah. Can you go ahead?
Yes, sir. So, my question is, since now our order book is getting built during the current financial year, so what will the revenue and EBITDA guidance for the year? Will there be a negative growth during the year?
Because, as already we explained to you in the earlier of our questions, this year, right now, we have order book of around INR 8,300 crore. Out of that, around INR 3,500 pertaining to mining. In mining this year, actually, we may not expect much turnover. Maybe around INR 90,000-INR 100,000 turnover will come from the mining projects only. So, this year, that's why our target is around INR 2,000-INR 2,500 crore we are going to execute in this year.
Oh, okay. No, because in the last call, we mentioned about INR 2,500-INR 3,000 crore. So, is there any reduction in the target for the revenue?
Because, actually, last call, we thought that we will receive this order, actually. But we have not got any order except mining. And mining order has its own gestation period. So, still, if we receive some order, actually, which order immediately and which can be executable, so definitely, we will achieve that target. But now, almost already five months have gone. If we receive any HAM project, definitely, it is not going to contribute in this year. If we receive some EPC projects, then we may try to do some contribution in the Q4. But as our guidance now, we have decreased our guidance. Now, it is around INR 2,000-INR 2,500 for this year.
EBITDA, sir? What is the range?
Pardon me?
EBITDA. EBITDA.
EBITDA will be somewhere around 13%-13.5%.
Okay. And my second question is, sir, we had filed a court case against regarding a payment delay from the Telangana government. And if I remember, the payment amount was INR 977 crore, something like that. So, what is the status of that?
That's why now, actually, EBITDA has already explained. Actually, last month, actually, we have one very progressive meeting with the government of Telangana. Now, they are sorting out that bank funding issue for the project. We expect that now they will clear it earlier. By this March, definitely, whatever the certified bill is there, around INR 800 crore, we should get it. Balance also, whatever the unbilled of around balance around INR 400-INR 500 crore is there, that also we are target to bill it and take the money.
Got it, sir. And this includes the interest due also. So, there is a delay or any other amount also, or just the billed amount that we are recovering?
Interest is definitely we have put the claim along with the interest. But we have to see, actually, how interest we have to get done. But first, we are targeting to get our principal amount. And definitely, for the interest, whatever the action is required from our side, definitely, we will take it.
Got it, sir. Thank you. And wishing you the best, sir.
Thank you, sir.
Thank you. The next question is from the line of Ketan Jain from Avendus Spark. Please proceed.
Thank you. Thank you for the opportunity. Sir, my first question was on the order inflow part. I understand that there has been a slowdown because of the land acquisition issues, and NHAI has put up a pipeline of INR 3.4 lakh crore in FY 2026. I just wanted to understand, is there also a delay because every project needs to get a cabinet approval for NHAI to award? That is my first question, first part of the question, and second part of the question is, when do you expect any new long-term plan on roads from the cabinet, something like a Vision 2047? Yeah. I just wanted to understand what the government is thinking in terms of order inflow for roads.
Actually, sir, internally, NHAI has a direct compulsion to get the approval. So, that is right. Further, they are also linking to the land acquisition issues. So, the delay that is causing all these. And then the second question, what was that?
Vision 2047.
Yes, sir. I thought main thing is this linked as it is linked to the land acquisition issues. Maybe really, that is quite difficult to say how much they are going to get. But I think if they're a little bit dilute on the term, that's okay. Because any HAM project, I think likely HAM project could come up at around INR 2 lakh crores to be on HAM only. That's what the news is this time. So, according to that, once so much HAM is coming out, definitely, we all have our own role to play. But second thing, sir, the land acquisition can happen in phases. So, if they have confidence to complete the land acquisition within six months' time, they can as well go for tendering. So, the tendering time would be around 45 days.
Further, again, another one month to issue the LOA and further announce LOA and do the LOA also. Then, after that, this agreement will take another. So, the announcement is a 9-10-month package they will have in hand. So, within that, they can do wonders if they plan it well. So, but actually, what they are really thinking to push the case because they are targeting so much. So, probably, they will dilute this and come to this time. That's what HAM is estimating, sir.
Understood. Understood. Sir, just for my understanding, to summarize what you said, NHAI first has to acquire the land 90% and then get a cabinet approval and then award the project, or first the cabinet approval comes and then the land acquisition comes?
Actually, sir, cabinet approvals, I think they will put the status of the EC, once they are sending the files, they'll put the current status of the land acquisition they are sending it and assurance to complete the balance land acquisition, they are maintaining some date and sending it. That's what it is happening, what I heard.
Okay, but they do need a cabinet approval, right, after about INR 1,000 crore project?
Absolutely. Absolutely. That's what the news is.
Understood. Understood. So, it's more like a check.
They may not be sending. But below INR 1,000, there is no meaning also to go down because what is happening is now.
Understood. So, just the last point to conclude. So, everything depends on the land acquisition, how fast and how well planned the NHAI does the land acquisition. Am I right?
Yes. Yes. Yes. If they have confidence.
Thank you. Thank you very much.
They can as well go.
Give me a call. Understood.
No thinking in other lines.
Understood. Thank you. And all the best, sir.
Thank you.
Thank you. The next question is from the line of Rehan Syed from [inaudible] . Please proceed.
Oh, yeah. Thank you. Good afternoon, sir. Thank you for being so patient. So, my questions are already answered. So, I want just more clarification on the sector diversification side.
Sir, your voice?
Am I audible?
Right, sir?
Now it's clear, sir?
Hello.
Hello. Am I clear now, sir?
Yes, sir. Somewhere better, yeah.
Sir, I want just more clarification on the diversification side. You have mentioned an intention to enter metro and railway EPC. What steps have been taken towards the railway and advancement?
Sir, your voice is ringing.
Okay. I'll speak slowly again. Sir, you have mentioned a decision to enter metro and greenfield EPC. So, what tangible steps have been taken towards this and other avenues in advance? Please just throw some more light on that.
Sir, your voice is not audible. We could not be able to understand.
Sir, I'm asking regarding sector diversification.
Yeah. Please, please.
Can I repeat my question again, sir?
Hi, sir. Sir, please repeat, sir.
Yeah. Sir, regarding sector diversification, you have mentioned that in addition to entering metro and railway EPC. So, what tangible steps have been taken towards this? Are there any enabling advances? Please shed some more light on that.
Your voice is not clear, sir. It is not clear.
Sir, I'm asking regarding diversification in metro and grantee EPC.
Diversification into metro and railways? Metro and railways.
Like, how is management working towards it? What tangible steps you have taken?
Diversification to metro and railways. Yeah. Actually, sir, there are big quantum of size which we are expecting. Definitely, we are there, sir. We have already discussed with NCC to quote in metros. And earlier also, we have quoted. In future also, we are expanding to quote this.
Like, sir, if I may clarify, which year we have seen some contribution from the sector by FY 2027 or the next quarter?
Oh, one question. Sir, there is an echo coming, sir. We could not be able to understand.
Okay. I'll make it the echo one. Okay.
Thank you. The next question is from the line of Faisal Hawa from H.G. Hawa. Please proceed.
Sir, once this money comes in from the HAM projects of the equity as well as the profit, do you feel that we will be net cash positive? And from December, assuming that this money comes in in October, will the interest of this INR 48 crores go down to less than INR 10 crores? December ended quarter. That is one question. Secondly, sir, in this quarter, the consolidated EBITDA has come to 30%, whereas you are guiding for 13%-14%. So, what has happened in this quarter that we have had this 13% EBITDA?
Sir, one thing is that definitely, as of now also, we are cash positive. In standalone, we have INR 5.5 crores of the debt and INR 81 crores is there in the cash, actually. So, as of now also, we are net cash. But definitely, on the monetization of these assets, it will further improve our liquidity position. I think you are telling about consolidated figures. So, definitely, once we will monetize these assets, so interest will be going to the prospective investors. So, definitely, what are the finance costs is there? So, what are the four assets if we diluted? Definitely, that debt actually will definitely pass on to the investors. That is one thing. And.
How did you manage this 30% EBITDA? Sir, that is in console level, sir. But even in console, I mean, what is the? Standalone EBITDA is 13.5%, sir, standalone. Is there any kind of extraordinary payments from any kind of sale of projects?
No, no, nothing. That will come even standalone also. We sell in our investment also. So, that amount also will reflect in the standalone. But I think you are talking about the consolidated perspective.
So, definitely.
Yeah, yeah. So, definitely, because whatever the finance cost is there, that is below EBITDA. So, that's why it is showing comparatively more. Otherwise, on average, it is PBT only around 23% and PAT around 20%.
Yeah. Yeah. But, sir, again, this financial year itself, if we get this around INR 1,000 crores from Telangana previously used and say another INR 1,000 crores comes as HAM equity profit and we generate another INR 500 crores cash, you said that the CapEx is hardly something like INR 200 crores for this year. So, and our stock has reached almost where the book value of the stock is. So, why is the company not using this money to go in for a buyback or more aggressive dividends?
Sir, whatever definitely by receipt of.
The cash which is going to come in this financial year is almost half of our market cap.
But actually, whatever the money we are there because now we are targeting to get actually we want to diversify in another sector. So, we are targeting some even BOT, toll assets also. But we are talking to the investors, if suppose at least one or two projects if required, we can quote our own also. So, we are seeing that options also. That's why whatever cash actually available with the company, definitely we are going to use in our future projects only because now we are diversifying some metro or some other sectors like in mining has started and other sectors, solar also. So, definitely there is cash requirement will be there. So, whatever money available in the company, we are going to use for the growth of the business of the company.
And, sir, once this proceeds from the HAM project equity sale comes through, is my assumption right that the interest cost even on consolidated basis will be almost less than INR 10 crores?
We have to see because a lot of debt will also wipe off on the balance sheet. So, definitely, interest will be reduced. But new projects also will add, actually. So, we have to really see. But definitely, we are almost INR 2,000 crores debt in the existing four assets. So, definitely, it is going to be reduced, actually.
Okay. Thank you so much, sir.
Yeah. Thank you.
Thank you. Before, ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Bhavin Modi from Anand Rathi. Please proceed.
Hi, sir. Thank you for giving the opportunity. Sir, can you give me the breakdown of the revenue with respect to the different segments, how much revenue each segment contributed this quarter?
Yes, sir, this quarter, actually, we got 58% revenue from the HAM road project and 6% from the irrigation and 31% from our EPC road project and 5% will be our back-to-back projects.
Okay, sir. My second question is with respect to, sir, so what is our unbilled revenue standing today?
Unbilled is around 900. It is 996 crores.
So, sir, my order book of around INR 8,000 crore, does it include this 996 crore also?
You have to exclude that, actually, 996 in order book.
So, then my net order book is something around INR 7,000 crore, something like that, right?
Yeah. Yeah. Yeah. Correct.
Okay. Okay. Got it. And, sir, this INR 996 crores entirely belongs to the irrigation unbilled revenue?
No. No. It will have the entire roads also, which belongs to irrigation as well as roads, entire all put together.
Okay. So, I will take the breakup of this unbilled revenue offline. Thank you.
Yeah. Thank you, sir. Right. Thank you.
Thank you. The next question is from the line of Monish Verma from the Vardhan Wealth Management. Please proceed.
Hello. Hi, sir. Thank you for the opportunity. Sir, with respect to the coal mining block that we have been recently awarded, how much CapEx and depreciation should we factor in for this project?
Sir, as you told me, because this year is the first year, this project is five years operation and one year development. The first year will be the development stage. This year, definitely, we are not expecting much CapEx. We may do some overburden removal in this year. That we will do with our existing assets only. This year, CapEx requirement may not be much. But definitely, once we start extracting the coal, actually, then we require heavy mining machinery. That will be not in this year, maybe from the next year onwards, that requirement will come. For the entire project, we are expecting somewhere between INR 300-400 crores of CapEx.
Okay, sir, and, sir, regarding depreciation?
Depreciation will be, you can say, almost because we will work in the three-fifths, actually, on that project. So, almost five years will be there. So, entire five years, actually, we will depreciate the entire asset.
Okay, sir. Understood. Sir, what will be the working capital cycle for this project?
For this specific project, actually?
Yeah. Yeah. Regarding this project.
So, that we have to really assess because, you know, that we will pay the money when we extract the coal only. So, whatever overburden we are removing, we will get only 10% of payment against overburden only. So, we have to just assess, actually, entirely we have to see the mining plan and we have to do the bore log and where coal is nearby. So, like that, we have to do the entire planning only. Then only we can really tell us.
Sure, sir. Noted. Sir, what is the amount of CapEx that we have incurred in Q1 FY 2026?
This one?
In this quarter, yeah.
3 crores, actually.
Three crores?
Just INR 2 crore, actually.
Okay, sir. Noted. And, sir, for the entire year, it's INR 200 crores, right? You mentioned INR 200 crores for this entire year.
No, no, not this year, actually. Next year might be. Next year, from mining project, it will be required INR 300-INR 400 crores. But this year, depend upon when we are getting this project.
Sir, I'm asking the CapEx for the entire company. For the entire company assets, how much CapEx have we incurred in Q1 FY 2026 for the entire company operation?
Only two crores. That's the answer. Our entire company, there are only two crores.
Okay. Sir, yeah.
Entire year, maybe maximum INR 100 crores.
100 crores. Okay, sir. Sir, lastly, what is the bid pipeline?
Bid pipeline is almost INR 2,000 crores. Almost INR 3,500 is there.
INR 3,500 crores?
Yeah, yeah.
Sir, can you give a bifurcation of the same?
Under MSRDC, MSRDC is there, INR 2,200 crores, and up to INR 700 crores is standing L1 in Telangana flyover project, so that is almost equal to INR 3,000 crores.
Yes, yes.
It is around INR 3,000 crores today.
Okay, sir. Thank you so much, and all the very best.
Yeah. Thank you.
Thank you. The next question is from the line of Vaibhav Shah from JM Financial. Please proceed.
Yeah. Sir, you mentioned that FY 2026 revenue would be impacted. But can we see a sharp growth in 27 given the uptick in the HAM projects and also revenue coming in from the water and newly opened mining projects? So can we see a revenue of around, say, INR 3,000-INR 3,500 crores?
Sir, again, it is an assumption ahead of time. So definitely, we are focusing on this around INR 1,000 crores order intake. If we are able to get this in next year, that upcoming year will be a complete full-scale execution year. So definitely, we will come into the normal mode of turnovers as well.
Secondly, what was the execution of the water project in Q1, and what are you targeting for the entire year?
Q1 water project. Q1, actually, we have done just a very minimal only we did, actually, not just one. We have done not much in this year. But entire year, we are targeting somewhere around INR 500 crores.
It will pick up from Q2 itself?
Pardon?
The execution should pick up from second quarter itself for the pipeline project?
It should pick up because, actually, we did around INR 200 crores of the work in that project, but it is not built because you know that until we put tap and water is coming, then only we are able to get the revenue, so a lot of overwork, overhead times, pipeline, that work we completed, actually, but we could not be able to build it, and this work, we have given to our subcontractor work we have given. That's why we cannot consider in our unbilled also, so because we have not incurred that expenditure, so once, actually, they will achieve that milestone, so immediately billing will be there, so that's why we are targeting around INR 500 crores worth is going to be certified in this year.
Okay. And sir, lastly, out of the unbilled revenue of INR 996 crores, irrigation would be around INR 500 crores. So remainder is entirely roads or some water also is there?
No, the water is not there. Water is not there. I told you water is there, no WSP. But.
So it is INR 500 each from highways and irrigation?
Yeah. It is. Total INR 990 crores is there. Out of that, almost INR 500 crores is irrigation, and that is roads, actually.
Sir, and what execution are we targeting from irrigation segment in 2026 and 2027?
Because right now, we have almost INR 1,400 crores is the order book is there of irrigation. Out of that INR 1,400 crores, INR 500 is anyway we have built. So now, net order book is only just INR 900 crores. So out of INR 900 crores, this year, we may execute, you can, around INR 300-400 crores in this year.
Okay. And sir, lastly, on the MSRDC project, when do we expect to get the LOA? And what execution are we targeting in FY 2026?
Actually, I think another two months within that because of the land acquisition only they are handling that, I think. And I think final approval at CM is pending. So another two months, they said.
Sir, so in this year, can we expect revenue from INR 200 crores or 10% execution?
Actually, let the order come, sir, then only I can comment. Okay. Though I have taken some assumptions to the turnover expectation, maybe yes, INR 200 crores is possible if it comes in two months. Definitely, we can do some earthworks and all that. And we'll have at least four, five months in hand. So okay.
Okay. Thank you, sir. Those are my questions.
Yeah. Yeah. Thank you.
Thank you. The next question is from the line of Shravan Shah from Dolat Capital. Please proceed.
Hi, sir. Sir, just a clarification. Sir, when we in the previous question answer, when you said that the bid pipeline is INR 3,500 crore, that means that this is the INR 3,000 crore value, INR 2,200 crore MSRDC, and INR 700 crore Telangana. We are kind of a L1. Telangana, obviously, we are L1 flyover. And INR 2,200 crore MSRDC also, once the government approves, so we will be getting that. So that is the way you wanted to say because the question was in terms of how much more bid pipeline that you are looking to bid. So I think that's why I just wanted a clarification there.
Yeah. What you said is correct, Tony. We are L1, that is the status we told you.
Okay. In terms of the bid pipeline, so total for this year across the sectors, obviously, the NHAI and the irrigation, mining, whatever we are looking to diversify, metro, everything, how much value of projects now we are likely to bid by March end?
Because actually, last time only we identified almost INR 80,000 crores orders are there in the road sector that we identified, around 45 projects. So that project is still there in this. So definitely, maybe around definitely more than around INR 80,000-90,000 crores definitely we will try to bid at.
Okay. Okay. Okay. Got it.
That project is going to come up for bid. Definitely, we will try to bid that project.
Got it. Got it. And lastly, on the consolidated cash is how much, sir?
Consolidated cash is INR 280 crores. It is around INR 280 crores.
Okay. Got it, sir. Yeah. Got it, sir. Got it. And just a clarification, if you can give. In one or two projects, actually, this Oddanchatram HAM project, we have invested INR 64 crore. And the equity requirement is INR 80 crore. But we have already completed INR 100 crores. So actually, now the equity requirement is lower because presentation still shows INR 80 crore.
No further requirement. Yeah. Definitely. Requirement is lower.
Yeah. Yeah. So that's the way one can look at wherever we have completed the project and whatever equity we have invested, that should be the value. Obviously, the original equity requirement may be on the higher side, but we have infused a lower and we have completed the project.
Yeah. Yeah. Correct. Correct.
Okay. Okay. Got it. Thank you.
Okay.
Thank you. The next question is from the line of Ketan Jain from Avendus Spark. Please proceed.
Thank you for the follow-up, ma'am. I just wanted to ask one question. Sir, how much was the NHAI order or NHAI or the Road Ministry's order inflow in FY 2025? Was it similar to what FY 2024 was, around INR 8,500 crores?
What order was actually from NHAI?
Yeah. Yeah. In FY 2025.
NHAI last two years, there is not much order from the NHAI. Even 2023, we got the order. After 2024, 2025, we have not got anything. From NHAI's side also, these two years is order is very muted order only.
I'm sorry, sir. Your voice was broken. Is there any number on how many kilometers in FY 2025?
Actually, the number is there. Actually, we'll let you know separately.
Okay, sir. Okay. Thank you, sir.
Thank you.
Thank you. The next question is from the line of Bhavin Modi from Anand Rathi. Please proceed.
Yeah, sir. Can you just help me with, sir, the working capital items? And if you can give me the numbers, you know the standalone business. So what is the amount of debtors, like billed revenue? What is outstanding today?
Debt is actually INR 1,228 crores.
Does this include INR 996 crores of unbilled revenue, right?
No, no. It is excluded. It is certified billing, actually. Debtor is certified billing.
Okay. And what is the creditor amount?
Creditor will be INR 286 crores.
Okay. And mobilization advance and retention money?
Just retention money received is INR 338 crores. And mobilization advance received is INR 48 crores. And retention payable is INR 150 crores.
INR 150?
Yeah.
And sir, so what is the process we are expecting from the HAM monetization? And are we also going to take any mobilization advance from this mining project?
In mining project, there is no mobilization advance, is there. That is because on this OB removal, they will pay actually 10% of your whatever the price you have quoted, they will pay 10% of that quantity for OB removal. So as far as HAM monetization is there, so we are discussing with that. So on proper forum, actually, we'll let you know.
Okay, sir. And just last question on mining projects, sir. Like, sir, the stripping ratio which I saw, right, it's around 7.76. So would it be impacting our EBITDA margin?
That's good to say because accordingly, rate is also there. Stripping ratio is based on the quantity. We have quoted good rate also.
Sir, can you just help us, right, sir, what is the mining fee that we quoted?
We already scored INR 1,365 actually per metric ton, actually, we have quoted.
13.65?
No, 1,365. INR 1,365.
1,365. Okay, sir. Got it.
Per ton. Per ton. Excluding GST that we have quoted.
But this INR 1,365 also includes the cost for removing Nala and bridge that is there?
That is separate. Separate is there. For village development and Nala thing, separately, they will pay around INR 90 crores against that.
Okay. Got it. Got it. Thank you, sir. Thank you, sir.
Yeah.
Thank you. The next question is from the line of Vasudev from Nuvama. Please proceed.
Yeah. Thank you for the opportunity, sir. I've joined a little late. Sorry if the question is already answered. I just want to know what is the status of our pipeline project, how much revenue have we clocked in this quarter, and our target for the full year?
The pipeline project, actually, this quarter, we have not done much work, actually. But entire year, we are targeting around INR 500 crores of the work in that pipeline. And on that, we did around INR 200 crores of the work. Our contractor is there. But it cannot be able to build, actually, because they have to achieve that milestone. Then it is going to the build. So that's why this year, our target is around INR 500 crores on pipeline project.
Okay. Sure, sir. And sir, lastly, what is our standalone gross debt and cash level?
Standalone gross debt is INR 6 crores. And what is your second question?
Cash, cash only.
Cash is INR 81 crores.
Okay. Sure, sir. That's it from my side. Thank you.
Thank you.
Thank you. Due to time constraints, that was the last question. I now hand the conference over to the management for the closing comments.
Yeah. Thank you all for joining us on this call. Please reach out to our investor relations, consultants, Strategic Growth Advisors, or us directly. Should you have any further queries, we can now close the call. Thank you.
Thank you.
Thank you.
Thank you.
Thank you. On behalf of KNR Constructions Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.