KRN Construction bags ₹4,800 crore coal mining block project in Jharkhand from NTPC; shares surge over 9%

KRN Constructions received a letter of acceptance worth ₹4,800.57 crore from NTPC on Wednesday, June 25, for the development and operation of a coal mining block in Jharkhand.

The letter of acceptance (LoA) was more specifically awarded to a KRN Construction-led joint venture (JV), KNRCL-HCP. KRN Construction is 74% owner of the JV, with Harsha Constructions Pvt Ltd representing the rest of the 26%.

According to a regulatory filing, the LoA is a short-term contract for developing and operating the Banhardih coal mining block in Jharkhand. Furthermore, the mine has a total reserve of 34.5 million tonnes.

It was awarded to the KNRCL-HCP JV by Patratu Vidyut Utpadan Nigam Ltd, a subsidiary of NTPC, in a JV with Jharkhand Bijli Vitran Nigam Limited (JBVNL).

The ₹4,800.57 crore (excluding GST) contract is valid for a period of five operating years, which includes an initial development stage period of 360 days.

KRN Construction’s March quarter performance

The construction company reported a 60.58% year-on-year (YoY) decline in its profit after tax (PAT) to ₹139.24 crore in the fourth quarter of FY25, compared to ₹353.30 crore in the corresponding period last year.

Its revenue from operations stood at ₹975.21 crore in the quarter under review, falling 31.03% YoY from ₹1,414 crore in Q4 FY24.

Stock performance details

Shares of KRN Construction closed 9.11% higher at ₹231.50 apiece on the National Stock Exchange (NSE) on Wednesday.

The stock has risen 9.16% over the week and 9.43% since the beginning of June. It has gained 1.12% so far in the first quarter of FY26 but lost 33.36% on a year-to-date basis.

It hit a 52-week low of ₹192.55 per equity share on April 7, 2025, and ₹415.40 on July 31, 2025.

KRN Construction has a total market capitalisation of ₹6,510.58 crore as of June 25, 2025, as per the data on the NSE.