KNR Constructions Limited (KNRCON) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to K&R Constructions Ltd. Q1 F527 Earnings Conference Call. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risk and uncertainty that are difficult to predict. As a reminder, all participant lines will be in the listen only more, 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 processing star from zero on your touchstone phone. Please note that this conference is being recorded. I now have the conference over to Mr. K. Venkatarama Rao, General Manager, Finance and Accounts, KNR Constructions Ltd. Thank you, and over to you, Mr. Rao.

Good morning, everybody. Thank you for joining us today on the call to discuss the financial results for Q1 FY27. Along with me, I am Mr. K. Jalanda Reddy, Executive Director and Strategic Growth Advisor, our Investor Relations Advisors. We have uploaded results and investor presentation on our stock exchange as well as 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 posts, which we will have a question and answer session. The road sector is currently going through a phase of the recalibration, with a project awarding remain subduced in the initial month of FI27. Following the softness witnessed through FI26. During the quarter, NHIA awarded approximately 107 km of the project, while the execution also moderated to around 638 km. That means the government continued to bear the sector with a strong spending commitment for FI27. The union budget has allocated close to 3.1 lakh. And the road sector capex outlay is up around 8% after two relatively sublease years. This gives us confidence that the groundwork is in place for awarding activity to pick up even though tendering and award has been slower to come through in this first quarter. NHI has also outlined a revised FI-27 plan to award 54 highways and exploratory projects covering through 2,444 kilometers worth of combined 1.8 lakhs crores across 13 states so that the near-term awarding environmental remains measured. This identified pipeline gives us reasonable visibility for coming quarter. Overall, while the sector is seeing some moderation right now, we remain positive on the awarding outlook for the rest of the year, and believe that underlying spending pipeline is healthy.

Beyond, we are also seeing the promotion. Speaker, sorry for interrupting. Your voice is breaking. Is it open up?

Yes, please go ahead. Yeah, the government continues to focus strongly on the railway's capacity expansion and modernization with a record of 2.93 lakh crore of the capital expenditure allocated to the Indian Railway for FY27 going towards capacity augmentation, multi-tracking, freight corridors, safety, station redevelopment, and better rail connectivity. This is creating a healthy pipeline of the project across the rail. Particularly encouraging from the Antipodesh, which has received a record 10,134 crores railway allocation for FI27 and the operationalization of South Coast Railway Zone, which further strengthening the focus on rail infrastructure in the region and support new project execution. We see this in an opportunity to gradually diversify our order book into the railway civil works. Correct infrastructure and related works. With this strong government spending and the growing pipeline across the southern region, railways are gaining increasing importance in our medium-term business mix. Urban mobility is another segment that continue to see healthy activity with the government supporting the expansion of metro and mass rapid transit. New calls and extensions are being planned across key cities, creating a sizeable pipeline across elevated corridors, viaduct stations, bridges, and related civil work. As part of our medium-term diversification strategy, we are actively evaluating railway and metro projects as they come up for standard. Through our focus remain on selectively pursuing projects where we see adequate execution visibility, attractive returns, and good fit with our existing capacity. Another emerging opportunity is the battery energy storage system segment, which are expected significant over the coming year. Overall, we believe that long-term infrastructure opportunity in India remain intact, although the composition of growth is evolving. Railway will continue to remain our core opportunity, but we see the next phase of growth becoming increasing diversified across expressway, railway, urban mobility, mining, irrigation, logistics, and emerging areas such as energy storage. We remain positive on overall opportunity and will continue to focus on building a strong and diversified order book while maintaining our discipline on the project selection and returns. Now coming to the key update of the company, the percentage of physical progress as I am 30th June 2026 for The ham project is as follows. The additional equity requirement of 210 crores to be infused as 125 crores and 85 crores is 527 and 28 respectively. You can refer to slide number 26 of investor presentation for detail on each HEM project. The company may require further additional equity investment of Around 510 crores for Chennai ECR and Telangana NHI hemp projects. During the contract, the company, along with its JV partner, Sushi Infra & Mining Limited, received a letter of acceptance from Southeastern Coal Field Limited for a coal mining project at Kusmunda in Chattisgarh. The project has a total value of 3,361 crores excluding GST and is to be executed over a period of 8 years. As part of the share purchase agreement with Indus InfraTrust, the company completed the transfer of its 100% stake in K&R Ramgiri InfraPrivate Limited and K&R Palni InfraPrivate Limited. In K&R Ramgiri, the company has invested 53 crores in SPV through equity and sub-debt and received a total consideration of 227 crores from the purchaser. And for KNR, the company has invested Rs. 64 crores in SPV through equity and subordinate debt and received a consideration of 295 crores, including 90 crores of cash surplus as EPC claim from the purchaser. On the credit front, Crystal rating reaffirmed the company's long-term bank facility rating at Crystal AA stable and short-term rating at Crystal A1 plus, reflecting the company's strong credit profile. Now coming to the order book position. As on 30 June 2026, the complete total order book stands at 8,667 crores. This order book does not include the recently won two ham project and mining project. Including the ham project and the mining project, the company's total order book is 10,234 crores. This is divided into 38% for the road sector, 11% for the irrigation project, 6% for the pipeline project, and 45% for the mining project. Client-wide diversification is 71% of order book is from the third-party client and balance 29% from the captive-hand project. Third-party order book percentage is also split between state government contractless 24%, whereas 46% for the central government and balance 1% from the other private party. The current order book will be executable over a period of three and a half years, excluding the mining project. This line, the company is targeting order inflow of a range of around 8,000 to 10,000 flows during FI 27, comprising a healthy mix of NHI projects, irrigation projects, and other state government infrastructure works. Now, let me take through the Q1 FI 27 standalone financial performance first, followed by the consolidated. Revenue for the quarter ended stood at Rs.

436.7 crores.

EBITDA for Q1FI27 stood at Rs. 65 crores and EBITDA margin is 15%. Net profit for the quarter was Rs. 282.3 crores. Now coming to Q1FI27, Consolidated Financial Performance, the revenue for the quarter stood at Rs. 587.9 crores, EBITDA for Q1FI27 stood at Rs. 96.4 crores, and EBITDA margin is at 16.4%. Net profit for the quarter-wise rupees 80 pounds, 7 crores. Now, moving on the. The consolidated stand-alone balance sheet, the company continued to remain in a strong balance sheet. The working capital debt stood at 133 days compared to 78 days as of March 26. The consolidated debt as of 30 June 2026 stood at 1,975 crores as compared to Rs 2,438 crores as of 31 March 2026. The net debt to equity and consolidative basis as of 30th June 2026 stands at .9. As compared to 0.49 as of March 26. With this, we can open the floor for question and answer. Over to you.

Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Nitin S. Dalmavad with Orul H. LLPT2.

Yes, sir.

Mr. Darmavad, please go ahead. Mr. Darmavad, please unmute yourself and go ahead. Since there is no reply from the line, Mr. Darmavad will move to the next. That is, Web of Shah with JM Financial. Please go ahead.

Yeah, please go ahead. From the execution front, how do we see the entire year for FI 27 and what could be the growth in FI 28?

May 27, actually, we are targeting because you know that we did last year around 2000 crores. Thank you. So, this year, actually, definitely, we will cross more than 2,000, but maybe you can say 10 to 15 percent more. So, maybe around 2,200 to 2,300 will be up by 27, because what are the execution is going to start our ECR Chennai project and Telangana Mahabubanagar project and this in the Q3 and mining project of Kusmunda Chathisgarh that is going to start in next, you can say, by next month. So, 27 will be this, and as far as 28 is concerned, definitely, that year should be the good year, actually, because what are the projects are there, they will, everything project will actually completely start in FI 28. So, 28 should be more than, actually, 3,000 crores, we will try to achieve.

Okay, and for the two new hams, when do we expect the ED?

They will start in Q3, actually, that's why.

We expect in AD, in Q3, the AD is for 2 years.

Ah, yeah, yeah, Q3, we are expecting AD.

In the older mining project, last year's mining project.

Last year in the Chhattisgarh actually, so this project has got only the forest clearance, one stage only clear. The stage clearance 2 has not come. So it will take further actually around 8 to 10 months to start the project. But what are the project in Kusmun, the Chhattisgarh recently we got actually. That project is going to start in within one month actually.

The older one will start in FI 28 only probably.

For that 28 only actually.

Okay. So how is the exhibition going on in the water pipeline order, and what revenue we target for next two years, 27-28?

Water pipeline project is now, initially there was some challenge in that project, but that project is doing good actually. So order book is left out around 830 crores is there. So this year definitely we are target to do somewhere around 300, around 300 to 400 crores in this year and balance in the next year.

Uh, for year, year as a whole, what margin are we targeting for 27 and 28?

Really, because you have seen the Q1 as well as Q2 also, so margin will be the same only, but definitely from Q3, well, the execution of this, our ham project and our mining project will start. So Q3, Q4 margin should be good actually. It will be somewhere around 11 to 12 percent EBITDA will be there in Q3, Q4, and definitely in next year actually it should be better because once all project will be in the full operational capacity, then definitely once turnover will be more. So corresponding our EBITDA will be more. But average around 12 to 13 percent of EBITDA we can achieve.

In next year? And for, for FI 27, it could be something around 90 percent.

Ha 9, because Q3, Q4 will be only around, around, around 10 to 11 percent. So, average will be around, you can say, 9, 8 to 9 percent will be there.

Okay, okay. And lastly, on the irrigation recovery, so what are our expectations? So, how do you see those coming down? Did we have any talks recently with the ministry?

Yeah, yeah. The recent talks, this week developments we speak about, there had been a positive discussion with the finance ministry as well with the irrigation department as because of the lesser rains that are happening and expecting huge crisis of water into Hyderabad city kind of thing. And our project, one of that package four, Stand very suitable for them to pump out some water and emergencies and all that. So they are now considering to speed it up, actually. So for that, they thought they will pay in installments. They even asked us to continue for a speedy working up. So, I think earlier also this discussion was done by CMO, but right now they are very serious. They are talking about installment payments. They said every month they'll be paying us around 80-90 crores kind of arrangement, which they said within, I think, almost 650 crores is outstanding on that project. And again, there is some RE, the revised estimate is also there, which is more than 700-800 crores. So, I think this 650 crore part, they said they'll be paying in 6-7 installments. Maybe they have spoken about 10 installments, but we said it's not possible. If you go for 10 installments, it will run in a year time, and we'll be losing a lot of money towards the interest payments only because the delay has been so much, and further delay is not acceptable to us. So, they said that they will try to adjust in five to six installments. I think some positive news, if they pay first installments, then definitely we will see that something is happening on that front, actually. So, again, some positive discussion is there, which I am sharing. Later, we have to see what happens. But I think this time they are serious. This time they are serious, I think.

Sir, so this year we can expect something around 600 crores from the government in 27?

600 crore, yes, sir, actually, but they said about, say, the 5-6 installments, they were talking about the 650 crores only, and that are you concerned, I have a submission, you know, that there is a committee, a technical committee has cleared that the revised estimate has to be sanctioned by the government. So, I think that is constituted by the same government itself. So, they have decided that this is a genuine thing and it could be paid. So, I think it needs a finance ministry approval as well as irrigation ministry approval after that committee. Then they should make a GEO, then it will come into payment. So, that may take five, six months process. So, I think once they get over with these payments, they will start doing that also, kind of that. Right now only dispatch news is with me, sir.

Can you expect 400 to 500 crores coming in this year?

Yes, of course, I am expecting.

Okay, okay. And, sir, lastly, out of the irrigation book of 6385 crores as of June, what would be the unbuilt portion where revenue has already been diminished?

Around 825 crores is there.

And so what will the HAM data as of June?

HAM data as of June is 178 crores.

Thank you, sir. Those are my questions. Thank you.

Thank you. Next question comes from the line of Savan Shah, Adult Capital. Please go ahead.

Hi, sir. Sir, a couple of questions.

Good morning, sir. How are you, sir?

Good, sir.

Yeah.

Yeah.

Yeah. So couple of things. So first, what is the value of L1 currently? Second, how many value of projects that we have bidded and when bid is yet to open?

So around 1500, we have L1 announced, but I think L1 is set to issue. Few are in Chennai and few are in Hyderabad city actually. So, apart from that, pipeline, we have submitted a couple of bits. I don't know. I'm not very sure about things, what is happening there. Yes, sir.

Okay, okay. Second, sir, in terms of a capex in Q1, how much we have done, and now this Kuspunda-Virigy's mining will also start. So overall, in both the mining, how much capex we need to do, and in effort 27, how much, and in effort 28, how much we are planning to do the capex for that.

Yes, sir. Actually, the first Bandhadi mine we speak about, sir. There is some land acquisition is still going on, sir. I think we expect around five months to six months that can happen for the land acquisition. So after that, I think we'll have to deploy equipment and all that. There also we'll be needing about, say, 350 to 400 crore, roughly the equipment will be required. Second, I talk about the Kushmunda mine, which is now on execution. I think we have been issued L.O.A. one-and-a-half-month banks, and now they are insisting us to start the work, but they have given that 100-ton dumpers the minimum capacity to be started with the O.V. removals. So, those equipment which we don't have, and we have started procuring them. Right now, I think appointed date is expected in the first week of September. In fact, they are insisting us to take from Agass itself, but Agass itself, there is a big rain that is happening. I think non-stop rains are happening there. We are trying to prepare that road widening and all because that haul road, we call it as haul road. Haul road is not prepared. So, that widening we are doing, because 100-ton movement

earlier, we will be needing 30-meter widened road is required.

That we are unable to do, because daily there is rain going on. So, then we are refusing to take the appointed date, because you cannot insist us to take an appointed date in the rainy season and ask us to do some progress, by which we will fall into issues. So, which they are considering, I think, first week, they are talking about when the day to happen. Most probably, I think, September, first week onwards, it should go dry. We are also expecting that. So, definitely, I think that will come into operation from first, second week of September. And equipment also, we have purchased enough. I think around the... So, 500 to 600 crore equipment will need to be deployed. Certain, we are planning old, that's why I am saying the vague word between the 500 and 600. So, certain old equipments are, can be used for old transportation and all. So, this we are trying to use.

So, total capex for Kuspunda is 500 to 600 crore or 500 to 600 crore dumpers we are seeing.

No, sir, everything. Actually, it's put together, you know. There is, we need surface miners, dumpers, excavators, and then dozers, hull road preparation and maintenance of the road will be used by the graders and supporting other equipment like lighting equipment and then, you know, the other, what do you call, coal dumpers. And then surface miners, all that put together, we are talking about.

Okay, so both have put together close to a kind of a 900,000 crore capex is there. So in Q1, how much we have already spent and in a portfolio for 2727, how we look at in terms of capex for this?

Actually, so Q1, we spend nothing. I think Q2, these things are coming up. I think almost around 200, 250 crores we have already given orders. The rest of it, we will be giving it because, you know, the land is not fully available there also. But in available land, we are trying to start around 46 hectares they are supposed to give us, which will run also for one to one and a half years. So, meanwhile, that Riddhi village is there. Riddhi village need to be acquired. That will, if you acquire the QD village in one to one year time, definitely we will be able to make a clear stretch for another two and a half years. So it goes like that, sir, actually.

Okay.

Q1, we did only 14 growths of the detection.

Okay, so overall, if we have to build in in terms of number for capex, so for 27, 28, including this mining and others, how much capex one can build in? So accordingly, the question is how one can look at the depreciation and when it will start in Jingle?

Because all this capacity will take, as I told you, and phase-wise only, so definitely Kusmunda work is going on, so there will be more, and for Jharkhand project, because it will take further around 9 to 10 months to start. So, as far as Kusmonda is concerned, definitely that is phase-wise, so maybe this year we will do somewhere 250 to 300 crores, and balance if available land is there, so we will do in the next year.

Actually, the department is insisting us for fully mobilization, they are assuring that we will not keep your equipment idle, we will even give from, that is actually SCL is doing one patch, out of which they are using only 45 to 50% of their patch only, so other patch is free to do some work. So, they are asking us, unless your Riddhi village is vacated, we will be accommodating there also. That's what they are saying. Definitely, I think it has some meaning. So, 60 to 70 percent, 80 percent of the situation we will have to do this year, if they insist.

So, next year, then the capex would be a 5-600 crore kind of a number should be there. Obviously, the phase basis, but broadly, if I have to break it down for 28, roughly 400, 500 or 5-600 crore kind of a capex will be there.

Actually, sir, this year, I think Kushmunda, you can take 400, we'll be doing this year, 400, 450, up to 450, we'll touch. Then, Banhadi, if it happens, you know, that is around 200 this year, we'll have to do, because we can use a lot of old equipment, there is no restriction on using the higher capacity equipment. So, you are free to use whatever the equipment you have, you can do the mining. So, all our road equipment, which is ever working, if they are not busy, I can deploy and do that.

Yeah. Okay, so some of the depreciation then, how one can look at, so this quarter, 10 crore was there?

Actually, that's what I couldn't get the figure. Actually, I have asked our team to calculate it properly. You know, what happens, there's around, see, on overall Kushmunda, if you take, I'm just talking about an example. It is almost around 500 to 600 crore, means 550 crores you can take for that matter. But the turnover you can expect with that equipment is around 400 crores. So there, the depreciation is taxed heavily. So I don't know what sort of EBITDA that will fetch, because it's not like roads. You know, roads we used to deploy 10% of the entire project cost, that is another thing. But every year we used to get, even if I take a 1500 crore project, 700-800 crores will directly come in a year. So that will, that is distributed quite in a proper way for the highways, but here complete equipment-based and labor-based and HSD, the diesel, all three are major components. Nothing else is the other thing. The year is quite difficult for me today, but I'm very sure, you know, while quoting the bid or while assessing my, even after bid, we have done a lot of practical data collected from various other players and all that, and with the different manufacturers, we have collected the data. After that data, I'm very confident that we'll be able to make PAT level about, say, 6+.

Okay, okay. But broadly, 7-8 years, we will be depreciating whatever the capex that we do, we will depreciate over 7-8 years. That's the way one can look at broadly?

Sir, actually, we are working out different ways. You know, one sort of method which we started for these dumpers, you know, that Caterpillar is offering every 2 years buyback policy. And that is working out much cheaper for us, you know, because the maintenance cost after the second year is going up like anything for that dumpers. So what we are also planning to go by by-back method only. So, and they assure around 75% of return to us after two years. So, completely we used for two years, again, we replaced with the new trucks, so that, you know, efficiency of the trucks is good, and fuel efficiency is good, and maintenance is less. So, with that, I think the capital cost, what we are incurring, the differential capital cost, what we are incurring, even we take it into the consideration, we are in good profit for that. So, such methods are there for Caterpillar equipment. So, even the Komatsu dumpers we have placed in order because of the urgency, we even have to choose that Caterpillar-grade equipment also, the Komatsu equipment. The Komatsu is also offering similar type of buybacks. We have insisted that, they agreed for that. So, we will have that. But like certain equipments are surface miners and then certain dozers and all that, they don't have this type of arrangement. Even for coal equipment is also not having such an arrangement. So there we'll have to take it for five years and then scrap it and then go for the new ones. Every five year cycle we are taking.

Okay, okay. Got it, sir. Thank you and all the best, sir.

But surface miner being a higher cost equipment, that we are continuing for eight years. Because that surface miner, each one is costing about, say, 13 crore, and we will be requiring four numbers right now, and if at all any delay that happens, we will have to induce one more. So, 5 up to 5, that itself is becoming a bigger ticket. So, that we will continue for this thing. So, the sudden pattern is there, which we have decided, by which company can make good margins.

Okay, okay. Got it, sir. Thank you and all the best.

Thank you. Thank you. Next question comes from the line of Faisal Hawa with HGiWire Company. Please go ahead.

Sir, now that the CAPEX, at least for the coming year, is only on account of the mining project, why are we not giving a larger dividend or a suitable buyback?

Yes, buyback, we are considering, sir, we'll come back on it. I think most of the decisions are getting done. The final meeting needs to be concluded to come back on that. Second, sir, the capex that is happening in… The capex thing concerned definitely that coal mines we have to do and certain maintenance capex is also there in that actually. You know, that most of the projects got completed, and there, the equipments, they become a little bit older, and not viable for operation. Those we have decided and we are replacing with the new ones. But, you know, actually, we have completed the two Kerala projects, and then Mangalut project, and Ghinashi also. With all that, those equipments, wherever we can accommodate, we will try to accommodate. Then after that, whatever we need, then those only we will try to replace. Rest of them, we will just sell it and then be ready for another order to come and then deploy.

It is a very hard thing to note that now mining, which was not even a major vertical for us, has now become 45% of our total order book.

Sir, actually, yeah, the ticket size looks bigger, but here turnover will become very less, actually, you know, that 3,300 crores is the order size which looks at, but it can give you only 400 to 350 crore turnover. And the Kushmunda mine is also 5,000 crore, out of which my share is about 75%, that is only stood at 3,500. So, like this, there are a lot of ifs and buts, and those to be completed in 5 years. And Kushmunda is almost 8 years we need to complete. So, this is the way that the scatterings are.

So, is it like, and we said, it's stable in the future that... We have many sectors entering our order books, and they really become quite significant for us. Things like solar EPC, or even, for example, something to do with data center, or even large bridges or dam projects.

Sir. Yeah, yeah, sir. We have. The main thing is that, you know, most of the flyovers are coming in the EPC mode itself. So the minimal working capital will be required, that's it. And the other highway projects transfer most of the equipment we own, and then wherever there is an equity commitment that we are just keeping it resolved. In fact, not taking the decision early on buyback proposals is one of the reasons that we are keeping preserved with our future requirements on equity as well on the CapEx. So those things we are keeping in mind, then we are moving forward. So this is the cautious call which we are trying to take, actually.

And then about the Telangana outstanding, you feel that once at least the first installment comes through, then the rest of the installments will come without follow-up or you will have to make rounds of government every month and try to participate?

Sir, actually, we have decided to make full rounds and get that at least because, you know, every time I have to, and actually, you know, that is gear of an hour. Now I'll be needing that money badly. So I'm making a lot of efforts on that, actually. I don't want to leave them. The committed date, I'll go sit there. Unless they write the check, I'll not come back. Like that we are planning. Let us see, sir, how it goes.

This will not be like an automatic thing. You will have to keep on following every month.

Sir, actually, see, they say it's an automatic thing. Once we start doing, we'll do every month, we'll be paying you 70 crore, 80 crore, whatever they're saying. But unless you don't push, things will not happen. You know that in Telangana government now, situation is different. Earlier, we used to get, actually, we never used to even go for payments. We submit the bill, we used to get. That gut feeling, I went on a bigger order book size, and I landed into this issue, actually.

No, but to your credit, sir, you have never taken any Andhra Pradesh orders, even though you have been so close to the state, and I mean, we will try to keep a close

watch on it, sir, and we will be pushing back very hard. Pardon, sir? Pardon, pardon?

No, it is that you have always avoided even Andhra Pradesh orders, so you have been ever careful with outstanding, but these are accidents which sometimes happen in business, and I don't think we can blame the management for this.

Thank you.

Thank you. Next question comes on the line of Nitin from Orem Edge. Please go ahead.

Yeah, thank you for the opportunity. Sir, my line got disconnected in the initial part, so just wanted to understand what exactly we are planning in storage space, what kind of capabilities we are developing, and what do we want to achieve from there, any revenue guidance that we are taking over there?

Battery storage? You are talking about battery storage?

Yes, sir. Yes, sir. Sir, battery storage, initially we tried some bits. They went very bad, actually. So, right now, I think we are just preparing some bits, but I'm not very sure of winning a contract because the way things are moving here in India, they are very wrong, actually. You know, and moving out that another risk is there with the increasing dollar price and all other external factors, it has got assigned with its own risk, actually. So we are just cautiously going, that's it.

Understood. And you mentioned about the entire mining project's revenue in our part. So, if I had to understand out of this 15,000 crore plus order book, what is the expected total revenue and during what period it will get executed based on the understanding as of today?

So, sir, as I told you, excluding mining, it will be executed between 3 to 3.5 years, and mining project, you know that one project is the 5 years and one project is the 80 years. So, based on that timeline only, project is going to complete.

Okay. So, for these years, what will be the revenue guidance and EBITDA guidance? I missed that. Sorry if you already covered that.

This year actually we are targeting somewhere around you can say 2,200 to 2,300 crores of revenue with EBITDA of around 8 to 9% this year. And next year should be the good year. We are thinking they'll try to cost 3,000 plus with EBITDA of around 11 to 12%.

Any new orders that are adding in these days, sir, will add up to our expectations, but we have not taken anything into consideration.

Got it. And as a previous participant also asked about the buyback, I think this may be the time considering the valuations that we are having. So, what is the, you know, amount that you are keeping in mind? I know that decision is subject to the board, but there must be some amount, percentage amount that you must have kept in mind, which you would like to assign towards buyback. Will it be in market buyback or some other mechanism, what you're considering?

Actually, sir, there is a conclusion meeting supposed to happen, sir, on that. Definitely after that, we will try to come out with the details. Right now, what is all under assumptions on you?

I got it.

Board meeting only to decide.

Okay, okay, sir, got it. Thank you and wishing you best, sir.

Yeah, yeah, thank you.

Thank you. Next question comes from the line of Vasudev with Nuwama. Please go ahead.

Yeah, thank you for the opportunity. Sir, can you just guide us the kind of revenues that we are looking to clock in irrigation, pipeline, and mining projects in FY27 and 28?

Now, irrigation is left out. If you adjust the unwield, irrigation order book is almost left to only 800 crores only. And out of that, majorly is the back-to-back project actually is there. And one package, three is there. So this year, from irrigation, it made, we do somewhere around 200 crores only. And pipeline is definitely 800 crores order book is there. We will do somewhere around 300 to 400 crores. 5-10% in this year.

And, sir, from mining, overall what kind of revenues can we expect this year and next year?

Sir, actually, this year we are planning about, say, 150 crores this year. Because mining is one, there are two projects, but I think this year, by March, we can only start on one. That too, it is starting from September, and you know, they ask for 100-ton dumpers. Actually, those dumpers are likely to get delivered, the required quantum of dumpers are supposed to deliver by November end, I think. By the time we put them into operation, it will be a few more days. So, I think last quarter only we'll be able to do solid execution in that thing. But however, the quantity is happening from September with the partial available equipments. So, whatever best we can do, we'll do. But 150 crores we are expecting from this. Plus or minus 30-40 crores could be 20-30 crores.

Okay, and then next year, how much can we target from the mining project?

The 400, 400 crores.

Both the projects?

No, actually, only one kushmunda I am talking about. If that starts, I think, Banhadi again, it will be around 500 crores per annum, but we don't know when it will start. That's the problem, actually.

Okay. Okay. Got it, sir. Answering EBITDA margin, like we're guiding for 8% to 9% for the full year, and you said around 11% to 12% in the second half. In Q1, we already did about 15%. So, was there any one-off? Because even our subcontracting expenses were quite low during this quarter.

Actually, in this quarter, actually, as we already told that, you know, one of the, we didn't actually upstream of cash surplus of around 19 crores, including GST. We did in this, in our deal with our investors. So that was there in actually our Q1 results. So that's why this year, it looks, it is considered that EBITDA is coming to 15%.

Okay, so excluding of that, what would be our EBITDA margins?

Around 5.5% is there.

Okay, got it, sir. And, sir, if you can just help me with the revenue split segment size for the first quarter.

Yeah, the first quarter revenue is actually from irrigation it is just 3% actually, from ham actually it will be 70% and our EPC work, it is 25%.

Okay.

And, sir, on the CAPEX front, you know, like, at the company level, what is the overall

CAPEX, you know, that we are planning for FI27?

Actually, as we already informed, Q1, we did around 14th rows, actually. And FI27, we are planning somewhere around, you can say around... 350 to 400 crores, actually, including, basically, mining capex will be more capex. So, including that, it will be around 350 to 400 crores.

Okay, got it, sir. And so, just some bookkeeping questions. What is a standalone debt, cash, and, you know, outstanding receivables from Telangala as at the end of the first quarter?

Yeah, standalone debt is nil, actually, and console debt is 1975 crores. And standalone cash is 310 crores, and console cash is 435 crores, and this, basically, receivables from the Telangana from package 4 is there, 1300 crores is there actually, that is it. Overall receivables from irrigation will be around 1400, 1450 crores is there.

Okay, that's it from my side, thank you.

Thank you. Thank you. Next question comes from the line of Bhavin Modi with Anandurati. Please go ahead.

Hi, sir. Thank you for the opportunity. So, first question is with respect to the order book, sir. You know, we have the order book of around 8,700 crores. So, what is the amount of unbuilt revenue factored in that order book? And second thing was with respect to the, so what is the amount, you know, for the, you know, unexaminated order book for the Sombar Padu, you know, which we have explored this time and kept in the orders.

So, out of order, unbuild is, total is around 1220 crores was there, unbuild, in our order book as of now. And your second question, you know, what is Sombar Padu is there?

So, last time it was around 153 crores. So, what is there this time, the unexecuted order book?

It is 100 crores is there.

So, it's around 100 crores. So, for the 12, you know, for the 12, 20 crores, it can provide the breakup in terms of what is on a bull driving for the road, you know, for the irrigation pipeline?

Irrigation is around 825 crores and around 400 crores is rest actually. Yes, sir.

Sir, thank you. Thanks. The second question was with respect to when I am seeing, you know, the numbers, you know, order book numbers on executive day. So, sir, the Mysore Kushal Nagarov, you know, package is still not picked up, sir. So, what is the reason and what are we planning for this year?

Sir, actually, two months back, I think they have handed over full of land. Otherwise, we had only 5-6 kilometers in hand for 5 and 4 also. 4 also was there, only 30-35% of the land was available. Because suddenly, the local public has reverted to asking for some service route. So, wherever they wanted the service road, they blocked that highway construction itself. So, that was dealt with the government, and then the center government, what NHAA made an agreement with the state government, that state government will acquire the land and then give them for execution of that service roads. Then they would do. So actually, it has taken a long time for giving the police protection to vacate those people from the obstructing. So recently, two months back, they have vacated entire land and they gave us. Now the exhibition is speeded up. I think this quarter onwards, things will move better, actually. We are even making arrangements, actually, you know, we are even making arrangements for going COD by December for whatever the land which they made available for us, around 30-40% available land was there. On that only, we would like to do the PCOD and balance will execute in the thing. Otherwise, you know, I am coming into, if the revenues are not started on the project, I am coming into kind of, you know, more clocked IDCs and all. So, we are starting in that way also for that.

So, then what we are factoring, you know, revenue from these two projects for the rest of the year?

So actually, you know, entire project has to be completed, entire project should be completed by April. We are planning. April end of, coming April and May maximum. That's it. We want to close that.

Okay, so one more question was with respect to, you know, the recent mining order that we won. So, it was, I think, in the partnership, right, 58 to 50. So, are we getting the back-to-back 100% EPC? So, that's why we have taken the entire amount of the order.

Yes, sir. Yes, sir. Yes, sir. I am, we are doing 100% EPC by taking back-to-back, sir.

Okay, and the last question is, you know, now most of the, you know, the road players, you know, are also entering the elevated metro space. We have still not, you know, obviously there must be some working, you know, team building must be happening in the elevated metro space. So, how are we looking, you know, at that space, the elevated, have we started bidding for the projects in the elevated metro space?

Actually, sir, that Odisha Bhuvaneshwar bid we have done for elevated metro, but subsequently that went with unhealthy price, so we were not there in that. Later, it got cancelled also, but I am not going by that. But however, our struggles are on to go on this. Because we have done a lot of segmental construction, so which that is easing out our this thing. And we have sorted the JV with 10cc also for going on this project.

Right, sir, Anish. Sir, any back-to-back, you know, arrangement with any of the, you know, leading groups, you know, for example, Adani or NCC, you know, or any of the, you know, big road players like Welsman, any talks which are going on?

Actually, sir, in fact, KNR, they wanted us to come in. The thing is, the prizes and all that were not shooting. And some pretender understanding we were asking, I think it is on. The discussion is on. Actually, there are certain southern projects only I am challenging because if you go with the third parties, because of the rainy seasons, extended timings and all, we will not be able to deliver in time. At least in South, things are in control. So, we would like to go in South only with the private players. So, we are sorting certain bits, sir. Those bits could not happen.

But geographically, sir, you know, there are many bits which are coming up in Madhya Pradesh, you know, in the UPEDA especially. So, are we open to, you know, those states or those geographies?

Sir, Upeda are not getting qualification because they asked for some express highways to be constructed. My express highways have not been completed yet. Only one we are doing. Greenfield Express Highway Experience they are asking. So, at Upeda, I am not getting qualification. So, I am not participating in that, but the rest of them has been kind of participating. Okay.

Thank you. Thanks a lot, sir.

Thank you.

Thank you. Next question comes from the line of Rajesh Srimaitva with Ingrid Liskabaya.

Thanks for the opportunity. So, this question has been already addressed. Your EBITDA margin being 5.5%. So, what is the exact on-term? I didn't get the number that has been booked, which is a one-off.

One-off is in revenue. It is around 76 crores added in the revenue. In expenditure side, also, it is around 30 crores has been there in expenditure side. So, net 46 crores has been considered in the EBITDA. Okay, thank you. Thank you.

Thank you. A reminder to all the participants that in the press star and want to ask a question. Next question comes from the line of Sudheep Bora with Ambit Capital Private Limited. Please go ahead.

Thank you, sir, for the opportunity. Sir, I know you talked about it earlier, but just wanted to have an understanding about the margins and the IRR profile for the mining projects. Like, what range are we looking at?

The mining project is concerned, we have considered while bidding, I think we have considered about six plus pack levels in that. You know, because I'm right now, I'm unable to, I haven't calculated for that equipment component, but actually generally, you know, we used to have an idea on highways, how EBITDA is coming up, but in this mining sector, what is happening, that almost 500 to 600 crores worth of equipment is deployed, and 400 crores turnover is expected around. And every year. And this is to be continued for eight years period of time. So that there are certain equipments which are getting terminated on buyback basis on every two years. Certain equipments are getting terminated on five years. So all that we need to have a detailed triangulation, then only we will get the EBITDA levels. But otherwise, 6 plus PAT levels are possible. Our estimate is going to go into that.

Okay, sir, I got it. And I just wanted to confirm the outstanding order book numbers on a few projects, like the

multi-level flyover at IIIT Hyderabad, and the two EPC projects, one is the GHA MC and the Shankarpalli Road at MJIT.

This is actually for Khazagora, Teperlite, Jamsan. It is actually 459 carousel is the closing order book. And MGI to Manikonda, I think you asked, that is same, around 83 carousel is there.

Okay, and the other

project, like three-lane flyover at Kukatsalli, that is completed?

No, no, that is, the Y Jensen flyer is still there. It is not completed. 72 crores is order book is there. It has to start at the project history, sir.

Okay. Okay. Okay. Yes, sir. So, these were my questions. Thank you. Thank you.

We have a question that is from the line of Web of Shah with GM Financial. Please go ahead.

In Q1, what is the revenue from Waterpipeline order? Revenue from? Waterpipeline order revenue.

Because actually, Waterpipeline is just 7 crores is their revenue.

Is that 830 crore order book, what will be the unbuilt portion in water pipeline?

Water pipeline is always back-to-back is there, so there won't be any unbuilt portion in the water pipeline, actually. It is the back-to-back work will be there, actually.

Okay, okay. Thank you, sir.

Okay, right. Okay. Thank you. Thank you. Ladies and gentlemen. As there are no further questions, we have reached the end of question and answer session. I now hand the conference over to the management for closing comments.

Yes. Thank you all for joining us on this call. Please reach out to our investor relations consultant, strategic growth advisor, or us directly, should you have any further queries. We can now close the call. Thank you, everybody. Thank you.

Thank you. On behalf of KNR Constructions Limited, that concludes this conference. Thank you for joining us. You may now disconnect your line.