Target: ₹130CMP: ₹132.10KNR Constructions’ revenue declined about 37 per cent to about ₹530 crore during Q4FY26 (16 per cent above our estimate). EBITDA margin decreased 850 bp to 5.3 per cent (vs. our estimate of 9.9 per cent) in Q4FY26. EBITDA fell about 76 per cent to ₹28.3 crore (vs. our estimate of ₹46 crore).In line with weak operating performance, APAT decreased about 74 per cent to ₹19.2 crore (against our estimate of ₹27.8 crore).The company’s current order-book stands at about ₹8,670 crore, including ₹3,550 crore from the mining project. The road sector witnessed muted project awarding activity during FY26, with both MoRTH and NHAI showing slower award conversion despite a healthy pipeline of ₹3.5 lakh crore due to extended approval timelines and land acquisition challenges.KNRC delivered a disappointing performance yet again in Q4FY26, missing estimates by a wide margin as execution slowed due to a thin executable order-book. However, order awarding activity improved during the quarter, with KNR emerging as L1 in projects worth ₹3,230 crore.We expect revenue to improve only in FY28 as recently-won orders move into execution. We cut our earnings estimates for FY27 and FY28 by 8 per cent and 3 per cent, respectively, factoring in weak execution and expect revenue and EBITDA CAGR of 22 per cent and 45 per cent, respectively, over FY26-28. We reiterate our Neutral rating on the stock with our SoTP-based TP of ₹130.Published on June 2, 2026