KNR Constructions Ltd has secured a major infrastructure win, with its joint venture clinching a ₹4,800 crore contract from Patratu Vidyut Utpadan Nigam Ltd, a subsidiary of NTPC, for the development and operation of the Banhardih Coal Mining Block in Jharkhand. The announcement sent KNR shares soaring 9.1% to close at ₹231.50 on June 25.
Project Details and Strategic Impact
The contract, awarded to the KNRCL-HCPL JV (KNR Constructions Ltd holding 74% and Harsha Constructions Pvt Ltd 26%), includes a 360-day development phase followed by five years of operational activity. The coal block holds 34.5 million tonnes of reserves, significantly boosting KNR’s mining portfolio.
“This project marks a strategic diversification for KNR, traditionally focused on roads and irrigation, into the high-margin mining sector,” said market analysts.
Market Reaction and Financial Snapshot
The stock hit an intraday high of ₹235.85, with over 66 lakh shares traded, reflecting strong investor confidence. Despite recent quarterly headwinds—including a 60% YoY drop in Q4 net profit—the order win has renewed optimism around KNR’s growth trajectory.
Expanding Order Book and Sectoral Diversification
With this contract, KNR’s order backlog crosses ₹11,000 crore, offering revenue visibility for the next 3–4 years. The company is also actively bidding for hybrid annuity model (HAM) road projects and exploring long-term opportunities in mining services.
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