KNR Constructions secured a Rs. 4,800.57 crore coal mining contract in Jharkhand through its joint venture KNRCL-HCPL. Despite this major win, the company reported a 60.58% drop in Q4 FY25 net profit and a 31.03% decline in revenue.
Infrastructure firm KNR Constructions Ltd saw its shares edge up by 1.36% to ₹234 after revealing that its joint venture has landed a significant coal mining contract worth ₹4,800.57 crore in Jharkhand. The project, awarded by Patratu Vidyut Utpadan Nigam Ltd (PVUNL), a collaboration between NTPC and Jharkhand Bijli Vitran Nigam Ltd (JBVNL), focuses on the development and operation of the Banhardih coal mining block in Jharkhand.
The contract covers a five-year operational period
The winning joint venture, KNRCL-HCPL, comprises KNR Constructions with a majority stake of 74% and Harsha Constructions Pvt Ltd holding the remaining 26%. The contract covers a five-year operational period, preceded by a 360-day development phase. The Banhardih block is estimated to contain approximately 34.5 million tonnes of coal reserves.
This new win is expected to enhance KNR’s project portfolio, which already spans key infrastructure sectors such as roadways, irrigation systems, and water management. The company, founded in 1995 and headquartered in Hyderabad, is primarily engaged in engineering, procurement, and construction (EPC) services.
KNR Constructions’ Q4 Profit Falls 60%
Despite this positive development, KNR Constructions recently reported a steep decline in financial performance. For the fourth quarter of FY25, the company’s consolidated net profit fell by 60.58% to Rs. 139.24 crore, while its revenue from operations dropped by 31.03% compared to the same quarter last year. The new coal mining contract could potentially help the company rebound and strengthen its position in India’s growing infrastructure and energy sector.
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