In the first nine months of FY25, MoRTH awarded just 3,100 km of projects, significantly lower than the 5,835 km awarded in the same period of FY23. However, a recent pickup in awarding since November 2024 could push project awards to 8,500-9,000 km in FY25, with potential growth of 9-11% in FY26 if the momentum continues.
“With awarding expected to improve only in FY26, road developers may see subdued revenue growth over the next 12-15 months,” said Vinay Kumar G, Sector Head, Corporate Ratings, ICRA, noting that competition will remain high as firms aggressively bid for limited projects.
Meanwhile, toll collection growth is set to moderate due to slower expansion in the construction, manufacturing, and mining (CMM) sectors. Traffic growth is likely to ease to 2-3.5% in FY25, with toll revenue rising 5-7%. In FY26, an expected 3.5-4.2% increase in toll rates and 3-5% traffic growth could drive toll collections up 7-9%, the report added.
