KNR Constructions Gets ₹1,734 Crore NHAI Contract for NH-167 Highway Project in Telangana

By Kaushik Brahmakshatriya

Published On 31 March 2026.

India’s infrastructure sector has received another major boost. KNR Constructions Limited has officially received the Letter of Award (LOA) from the National Highways Authority of India (NHAI) for a highway construction project worth ₹1,734 crore. This is one of the most significant contract wins for the company in recent months and signals a strong revival in its order book after a tough financial year.

What Is the NH-167 Project?

The awarded contract involves the 4-laning of NH-167 from Gudebellur (Design Km 182+930) to Mahabubnagar (Design Km 262+940), which falls under the Hyderabad-Panaji Section. The total project length is 80.01 kilometers, located in the state of Telangana.
This stretch is strategically important for improving inter-district connectivity in Telangana and is part of India’s broader National Highway upgrade push under the Bharatmala programme.

Project Details at a Glance

Parameter
Details
Contract Value
₹1,734 Crore
Highway
NH-167
Section
Gudebellur to Mahabubnagar
Project Length
80.01 km
Configuration
4-Lane
Execution Mode
Hybrid Annuity Mode (HAM)
State
Telangana
Construction Period
730 Days
Operation & Maintenance
15 Years from COD

What Is the Hybrid Annuity Mode (HAM)?

The project will be executed under Hybrid Annuity Mode (HAM) with a 730-day construction period followed by 15 years of operation and maintenance. HAM is a public-private partnership model where the government pays 40% of the project cost during construction and the remaining 60% is paid as annuity over the operation period. This model ensures steady cash flow for the contractor while reducing upfront financial risk.
For KNR Constructions, HAM projects have historically been a key revenue driver, offering long-term revenue visibility — a critical factor for infrastructure investors.

When Was the LOA Received?

The company announced this development under Regulation 30 of SEBI (LODR) Regulations, 2015, confirming receipt of the LOA on March 27. The announcement was made in compliance with stock exchange disclosure norms, reflecting the company’s commitment to transparency with its investors.

Why This Contract Matters for KNR

KNR Constructions has had a challenging FY2025-26 so far. In Q3 FY26, KNR Constructions’ standalone revenue stood at ₹585.1 crore, down 21.3% year-on-year, with EBITDA falling 79.8% YoY due to a low executable order book and elevated subcontracting expenses. Against this backdrop, the ₹1,734 crore NHAI contract is a significant positive trigger for the company’s revenue pipeline going into FY27.
This contract award strengthens KNR Constructions’ position in India’s highway infrastructure development sector. The NH-167 project adds substantially to the company’s executable order book and provides multi-year revenue visibility through both the construction and annuity phases.

KNR’s Recent Order Activity

This is not an isolated win. KNR Constructions has been actively securing contracts across multiple verticals recently. The company had earlier secured a ₹2,163.07 crore four-lane elevated corridor project in Chennai in February 2026. Beore that, it also received an ₹83.64 crore road infrastructure project in Telangana from Hyderabad Growth Corridor Limited. These back-to-back order wins point to a recovering order inflow cycle for the company after a slow 2025.

Impact on Order Book and Stock

KNR Constructions’ order book as of March 31, 2025 stood at ₹5,052 crore, covering HAM projects, irrigation works, pipeline projects, and other road contracts. (Dcf-model) The addition of the ₹1,734 crore NH-167 project is expected to meaningfully expand this figure and boost investor confidence heading into the new financial year.
KNR Constructions engages in construction, engineering, and infrastructure development activities across India, providing EPC services for roads, highways, bridges, expressways, viaducts, irrigation, and urban water infrastructure. With over 6,000 lane km executed across 12 states, the company has deep domain expertise that makes it a preferred NHAI partner.

FAQ Section

Q1: What is the value of KNR Constructions’ new NHAI contract?
The new contract is worth ₹1,734 crore for the 4-laning of NH-167 in Telangana.
Q2: What is the length of the NH-167 project awarded to KNR?
The project covers 80.01 kilometers from Gudebellur to Mahabubnagar.
Q3: Under which model will the NH-167 project be executed?
It will be executed under the Hybrid Annuity Mode (HAM), with 730 days for construction and 15 years of operation and maintenance.
Q4: When did KNR Constructions receive the LOA?
The Letter of Award was received on March 27, 2026.
Q5: How does this contract impact KNR’s financials?
It significantly replenishes KNR’s order book after a weak Q3 FY26 and offers long-term annuity income over 15 years post-construction.

Disclaimer

This blog does not provide financial, investment, or trading advice. All content is for educational and informational purposes only. Please consult a certified financial advisor before making any investment decisions. The author will not be responsible for any financial losses incurred