Avoid KNR Constructions on Weak Q1, Bearish Charts: Analyst
KNR Constructions, a leading infrastructure development company, has reported a lackluster first quarter (Q1) for the financial year 2026. The company’s Q1 FY26 sales fell 31% year-over-year (YoY) to ₹975.2 crore, while Profit After Tax (PAT) plunged 56% to ₹155.2 crore. The decline in sales and profits has sent shockwaves through the market, with many analysts warning of a bearish trend.
According to SEBI analyst Chandel, the company’s weak earnings and bearish technical charts make it a stock to avoid. In a recent report, Chandel noted that KNR Constructions’ stock is currently trading below its 200-day Exponential Moving Average (EMA), which is a bearish sign. Additionally, the stock is facing resistance at ₹360, making it difficult for it to break out to the upside.
Despite the support level at ₹204-216, which may provide some cushion for the stock, Chandel advises investors to exercise caution and avoid KNR Constructions for now. The analyst’s bearish outlook is based on the company’s weak Q1 earnings, which were impacted by several factors, including a decline in sales and a surge in interest costs.
KNR Constructions’ Q1 FY26 sales fell 31% YoY to ₹975.2 crore, with the company’s PAT plunging 56% to ₹155.2 crore. The decline in sales and profits was driven by a number of factors, including a slowdown in the company’s construction business and a rise in raw material costs.
The company’s margins also took a hit, falling to a 5-quarter low of 22.71%. This decline in margins was driven by a surge in interest costs, which rose 68% YoY to ₹145.6 crore. The increase in interest costs was a major contributor to the company’s decline in profits, and is likely to continue to be a challenge for the company in the coming quarters.
Despite the company’s weak Q1 earnings, KNR Constructions has been a popular stock among retail investors in recent months. However, the company’s bearish technical charts and weak earnings make it a stock that investors should avoid for now.
In the short term, the stock may bounce back to its support level at ₹204-216, but Chandel’s bearish outlook suggests that the stock is unlikely to break out to the upside anytime soon. Instead, investors may want to consider other infrastructure development companies that have stronger earnings and technical charts.
In conclusion, KNR Constructions’ weak Q1 earnings and bearish technical charts make it a stock that investors should avoid for now. While the company may have some support at its current level, the outlook for the stock is bearish, and investors would be wise to exercise caution and avoid it until the company’s earnings and technical charts improve.
