National Highways Construction to Drop 7-10% in FY25: CareEdge Ratings

10 Feb 2025 CW Team

The pace of National Highway construction in India is expected to slow by 7-10 per cent in FY25, with the estimated completion dropping from 12,350 km in FY24 to around 11,100-11,500 km in FY25, averaging nearly 31 km per day. This decline is primarily due to challenges in execution, increased competition, and significant delays in receiving appointed dates after project awards.

Approximately 55 per cent of the under-construction projects, valued at Rs 0.1 million with a combined bid project cost (BPC) of Rs 1 trillion, have been delayed by over six months. This is mainly attributed to escalating execution hurdles, a more competitive environment, and delays in project scheduling after award announcements.

CareEdge Ratings also conducted an extensive financial analysis of 17 sponsors and EPC contractors involved in Hybrid Annuity Model (HAM) projects. Despite a 14% compound annual growth rate (CAGR) in total operating income (TOI) between FY21 and FY24, reduced project awards in FY24 and H1FY25 have significantly decreased revenue prospects.

The order book-to-TOI ratio has dropped from 2.78x in FY22 to 2.15x in FY24, reflecting a much smaller executable order book, with many projects still awaiting appointed dates. Operating profitability is expected to decrease by 200 basis points in FY25, due to heightened competition and rising overhead costs.

Additionally, the discontinuation of the Atma Nirbhar Bharat scheme for monthly payments is likely to extend the working capital cycle by 15-20 days in FY25, placing further strain on developers. The Hybrid Annuity Model continues to dominate, accounting for nearly 55 per cent of the total projects awarded between FY21 and FY24, with a combined BPC of over Rs 4.03 trillion across 374 HAM projects.

News source: The Free Press Journal

Infrastructure Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..