MoRTH To Moderate Road Execution In FY27; Toll Growth Seen

28 Feb 2026 CW Team

ICRA projected road awards by the MoRTH at 7,250-7,750 km for FY2025-26, near 7,538 km in FY2024-25 but below earlier levels. Awards in the first eight months of FY2025-26 amounted to 1,951 km, 24 per cent lower than the 2,558 km in the comparable period a year earlier, and higher awarding was expected in the fourth quarter as several bids remained under evaluation.

Road execution under the MoRTH declined by three per cent year on year to 4,612 km in the first eight months of FY2025-26 from 4,761 km, and the report linked the fall to a decreasing backlog of sanctioned work. Despite reinstatement of earnest money deposits and additional performance security, bidding intensity has remained high in the National Highways Authority of India (NHAI) and MoRTH engineering, procurement and construction (EPC) projects.

ICRA warned that with awards likely to remain range bound, developer revenue growth could stay subdued over the next 12-15 months given that on-ground execution typically begins six to nine months after awarding, prompting firms to bid aggressively to rebuild order books. The report added that the early onset and elongated monsoon disrupted construction activity and compounded the slowdown in physical progress.

ICRA said toll collections remain healthy, with growth of seven to nine per cent in FY2025-26 and six to eight per cent in FY2026-27. Inflation-linked adjustments could raise tolls by about three point three per cent for newer projects and by about two point five to three point zero per cent for older contracts, while the report noted substantial bidding discounts in EPC and hybrid annuity model (HAM) projects and only a limited impact from annual FASTag passes.

The Ministry of Road Transport and Highways (MoRTH) is expected to see road execution moderate to 9,000-9,500 km in FY2026-27, according to a report by ICRA Limited (ICRA). The agency attributed the slowdown to a sustained reduction in project awarding over the past three years and projected execution at 9,500-10,000 km in FY2025-26. The trend reflects a shrinking order book for developers. ICRA projected road awards by the MoRTH at 7,250-7,750 km for FY2025-26, near 7,538 km in FY2024-25 but below earlier levels. Awards in the first eight months of FY2025-26 amounted to 1,951 km, 24 per cent lower than the 2,558 km in the comparable period a year earlier, and higher awarding was expected in the fourth quarter as several bids remained under evaluation. Road execution under the MoRTH declined by three per cent year on year to 4,612 km in the first eight months of FY2025-26 from 4,761 km, and the report linked the fall to a decreasing backlog of sanctioned work. Despite reinstatement of earnest money deposits and additional performance security, bidding intensity has remained high in the National Highways Authority of India (NHAI) and MoRTH engineering, procurement and construction (EPC) projects. ICRA warned that with awards likely to remain range bound, developer revenue growth could stay subdued over the next 12-15 months given that on-ground execution typically begins six to nine months after awarding, prompting firms to bid aggressively to rebuild order books. The report added that the early onset and elongated monsoon disrupted construction activity and compounded the slowdown in physical progress. ICRA said toll collections remain healthy, with growth of seven to nine per cent in FY2025-26 and six to eight per cent in FY2026-27. Inflation-linked adjustments could raise tolls by about three point three per cent for newer projects and by about two point five to three point zero per cent for older contracts, while the report noted substantial bidding discounts in EPC and hybrid annuity model (HAM) projects and only a limited impact from annual FASTag passes.

Infrastructure Urban

02 Jun 2026

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Infrastructure Urban

02 Jun 2026

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Infrastructure Transport

02 Jun 2026

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..