Shares of infrastructure major KNR Constructions witnessed a sharp uptick, climbing over 6% during Friday's trading session. This surge in investor sentiment followed the company's announcement of a significant share purchase agreement (SPA) with Indus Infra Trust for the divestment of its stake in several highway projects.
Details of the Major Highway SPV Divestment
In a regulatory filing made on December 25, 2025, KNR Constructions disclosed that it executed definitive agreements with Indus Infra Trust on December 24, 2025. The pact involves the proposed sale of the company's entire shareholding, including sub-debt, in four special purpose vehicles (SPVs). These SPVs are identified as KNR Palani Infra Private Limited, KNR Ramagiri Infra Private Limited, KNR Guruvayur Infra Private Limited, and KNR Ramanattukara Infra Private Limited.
The company stated that against a proposed investment of ₹566.83 crore (through equity and sub-debt) in these SPVs, it expects to receive an aggregate consideration of ₹1,543.19 crore from the transaction. This deal is seen as a strategic move to unlock value and streamline the company's portfolio. The completion of the divestment is subject to necessary approvals from relevant authorities and lenders and is anticipated on or before September 30, 2026.
Financial Performance and Share Price Trajectory
The positive market reaction to the deal comes despite the company reporting weak quarterly earnings. For the second quarter ended September 30, 2025, KNR Constructions posted a steep 76.3% year-on-year decline in consolidated net profit to ₹104.65 crore. Revenue from operations plunged 66.8% to ₹646.5 crore, attributed to slower project execution and the absence of one-off income from the previous year. EBITDA also fell sharply by 77.8% to ₹192.82 crore.
On the trading front, the KNR Constructions share price opened at ₹183.91 on Friday, compared to its previous close of ₹171.02 on Wednesday. The stock has gained as much as 26% in the past five trading sessions, indicating a bullish short-term trend. However, the longer-term outlook remains challenging, with the stock down 21% over six months and 43% over the past year. The share hit its 52-week high of ₹356.70 on January 6, 2025, and a low of ₹141.30 on December 18, 2025.
Market Implications and Investor Outlook
The execution of the share purchase agreement is a key development for KNR Constructions, signaling a strategic shift and potential for improved liquidity and focus. For stock market investors, such asset monetization events are often viewed positively as they can strengthen the balance sheet and provide capital for future growth initiatives. The market's strong response underscores the expectation that this deal will bolster the company's financial position in the near to medium term, even as it navigates a period of weaker operational performance.
