Construction Entities Revenue to Be Around 8-10% In FY25
ECONOMY & POLICY

Construction Entities Revenue to Be Around 8-10% In FY25

The revenue of Indian construction companies is expected to increase by 8-10% in FY2025, as compared to 15-18% in FY24, according to ICRA. As per the reports, the extended monsoon season, milestone-based billing in Q2 FY2025 (instead of monthly billing till March 2024), and the Model Code of Conduct in Q1 FY2025 all hindered construction activity. ICRA expects that the execution pace of Indian construction businesses would pick up in H2 FY2025 and that operational income will rise on a YoY basis by 8–10% in FY2025 and 10-12% in FY2026, though at a slower rate than the long-term CAGR of roughly 15% for the FY2018–FY2024 period. 
“The fresh order inflows were modest in H1 FY2025, mainly due to the impact of the General Elections and the monsoons. Though the order-awarding activity has picked up from Q2 FY2025 onwards, the order inflows in FY2025e are likely to trail those seen in FY2024,” said Suprio Banerjee, Vice President and Co-Group Head - Corporate Ratings, ICRA. Banerjee further added, “The cash conversion cycle is expected to sustain at the current levels, given that the expiry of the Atmanirbhar Bharat relief measures have already elongated the working capital cycle for the players in FY2025. While debt levels are expected to increase to support the higher working capital requirements, the corresponding operational leverage benefits are anticipated to keep the interest cover adequate at around 3.6-3.9 times in FY2026e. Given the moderate leverage and satisfactory debt coverage metrics, ICRA maintains a stable outlook on the construction sector.” 

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

The revenue of Indian construction companies is expected to increase by 8-10% in FY2025, as compared to 15-18% in FY24, according to ICRA. As per the reports, the extended monsoon season, milestone-based billing in Q2 FY2025 (instead of monthly billing till March 2024), and the Model Code of Conduct in Q1 FY2025 all hindered construction activity. ICRA expects that the execution pace of Indian construction businesses would pick up in H2 FY2025 and that operational income will rise on a YoY basis by 8–10% in FY2025 and 10-12% in FY2026, though at a slower rate than the long-term CAGR of roughly 15% for the FY2018–FY2024 period. “The fresh order inflows were modest in H1 FY2025, mainly due to the impact of the General Elections and the monsoons. Though the order-awarding activity has picked up from Q2 FY2025 onwards, the order inflows in FY2025e are likely to trail those seen in FY2024,” said Suprio Banerjee, Vice President and Co-Group Head - Corporate Ratings, ICRA. Banerjee further added, “The cash conversion cycle is expected to sustain at the current levels, given that the expiry of the Atmanirbhar Bharat relief measures have already elongated the working capital cycle for the players in FY2025. While debt levels are expected to increase to support the higher working capital requirements, the corresponding operational leverage benefits are anticipated to keep the interest cover adequate at around 3.6-3.9 times in FY2026e. Given the moderate leverage and satisfactory debt coverage metrics, ICRA maintains a stable outlook on the construction sector.” 

Next Story
Real Estate

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

Next Story
Infrastructure Transport

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Next Story
Infrastructure Transport

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?