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.