Construction stock jumps 9% after company to sell entire stake in its SPVs for ₹1,500 Cr

Synopsis: The shares of the company surged today after it reported the execution of the Share Purchase agreement with Indus Infra Trust, under which the company will receive an amount of Rs 1,543 crore, over its initial investment to SPV’s.

The share of this company engaged in providing EPC services in segments such as roads and highways, irrigation, and urban water infrastructure management is in focus after its deal with Indus Infra Trust to sell 4 of its SPV’s.

With a market capitalization of Rs 5,013 crore, KNR Constructions Ltd’s shares on Friday made a day high of Rs  185.9 per share, up by 8.5 percent from its previous day’s close price of Rs 171.25 per share. The shares have delivered a negative return of  44 percent over the last year.

What happened

KNR Constructions has signed agreements to sell its entire stake, including sub-debt, in four road project SPVs- KNR Palani, KNR Ramagiri, KNR Guruvayur, and KNR Ramanattukara to Indus Infra Trust. The deal, executed on December 24, 2025, involves a 100 percent stake sale in these SPVs, subject to approvals from regulators, lenders, and conditions laid out in the concession agreements with NHAI.

Through this transaction, KNR proposes to invest Rs. 566.83 crores, and it expects to receive a total of about Rs 1,543.19 crore, which includes sale proceeds and estimated cash surplus from the SPVs. The final amount may change slightly at closure, with the divestment targeted to be completed by September 30, 2026.

About the company

KNR Constructions Ltd, incorporated in 1995, is a Hyderabad-based infrastructure project development company providing EPC services in segments such as roads and highways, irrigation, and urban water infrastructure management.

The Firm’s strong order book stands at Rs 8,215.9 crore as of September 30, 2026, with 43 percent of the book consisting of Mining projects, Roads 20 percent, Irrigation 19 percent, Pipeline 13 percent and Others 5 percent. It also has a strong marquee clients involving NHAI, GMR Projects, Ministry of Road Transport & Highway and many others.

Financial Highlights: revenue from operations declined by 67 percent to Rs. 646 crore in Q2 FY26 from Rs. 1,945 crore in Q2 FY25. EBIDT declined by 78 percent to Rs. 193 crore in Q2 FY26 from Rs. 870 crore in Q2 FY25. Accompanied by a 77 percent decline in net profit to Rs. 105  crore in Q2 FY26, excluding exceptional items.

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