KNR Constructions Ltd is in focus after its joint venture with Sushee Infra & Mining Ltd received a Letter of Acceptance from South Eastern Coalfields Ltd (SECL) for coal mining works at the Kusmunda Open Cast Project (OCP) in Chhattisgarh.
The contract is valued at ₹3,361.11 crore, excluding GST.
Shares of the Hyderabad-based infrastructure company were trading at around ₹130. The stock has touched a 52-week high of ₹245 and a 52-week low of ₹108.65. The company has a market capitalisation of about ₹3,656 crore and trades at a price-to-earnings multiple of nearly 8 times.
Contract awarded to joint venture
The project has been awarded to M/s KNR-SIML JV, in which:
- KNR Constructions holds 51%
- Sushee Infra & Mining Ltd holds 49%
The contract will be executed on an item-rate basis over 2,920 days, or nearly eight years.
SECL, a Coal India subsidiary, awarded the project. The company said there is no related-party involvement.
Scope of work
The order covers excavation, coal extraction, loading and transportation activities.
Overburden removal
The project includes:
- 11.97 million cubic metres of soft soil excavation without drilling
- 246.19 million cubic metres of hard strata excavation with drilling
Total overburden removal is estimated at 258.15 million cubic metres.
The minimum daily output requirement is 88,410 cubic metres.
Coal extraction
The contract also involves mechanical coal extraction through surface miners.
Key details:
- Target quantity: 142.89 million tonnes
- Mining without drilling or blasting
- Minimum daily output: 48,934 tonnes
Loading and transportation
The project includes loading coal through pay loaders and transporting it via tippers.
Coal will be moved from mining faces to:
- Railway sidings
- Conveyor receiving points
The transportation work covers the entire 142.89 million tonnes targeted under the project.
Order book
As of March 31, 2026, KNR Constructions had an order book of ₹8,672.5 crore.
Mining accounted for 41% of the backlog, equivalent to ₹3,552.4 crore.
Financial performance
On a consolidated basis, the company reported:
FY26
- Revenue of ₹2,698 crore, down from ₹4,753.2 crore in FY25
- EBITDA of ₹711.4 crore
- EBITDA margin of 26.4%
- Profit after tax of ₹436.9 crore, compared with ₹1,001.9 crore a year earlier
Q4 FY26
- Revenue of ₹695.6 crore
- EBITDA of ₹169.1 crore
- Profit after tax of ₹106.1 crore
In the corresponding quarter of FY25, profit stood at ₹7.6 crore.
About the company
Founded in Hyderabad, KNR Constructions Ltd has been operating for around three decades.
The company has executed more than 9,127 lane kilometres of road projects across 12 states. Its key clients include:
- National Highways Authority of India (NHAI)
- Ministry of Road Transport and Highways (MoRTH)
- Various state highway authorities
Apart from roads, KNR has expanded into irrigation, water infrastructure and mining projects.
TL;DR
KNR Constructions’ joint venture with Sushee Infra & Mining has secured a ₹3,361 crore coal mining contract from South Eastern Coalfields for the Kusmunda project in Chhattisgarh. The order will be executed over nearly eight years.
AI Summary
- KNR-SIML JV won a ₹3,361 crore contract from SECL.
- The project is located at Kusmunda OCP in Chhattisgarh.
- Execution period is about eight years.
- The order includes excavation, coal mining and transportation.
- KNR’s order book stood at ₹8,672.5 crore as of March 2026.
