NHAI Awards Fall to Seven Year Low as Focus Shifts to Debt Repayment
ROADS & HIGHWAYS

NHAI Awards Fall to Seven Year Low as Focus Shifts to Debt Repayment

Road building in India slowed sharply in the fiscal year ended March 2026 as national highway awards fell to their weakest level in seven years and construction activity returned to a level not seen since FY17, an analysis by Nuvama Institutional Equities found. The National Highways Authority of India awarded contracts for 3,124 km of road projects worth Rs 423 billion (Rs 423 bn) in FY26, up from 2,170 km worth Rs 470 bn in FY25 but well below the 6,300 km and nearly Rs 1.3 trillion (Rs 1.3 tn) in FY23.

When state-level awards are included, combined NHAI?plus?MoRTH awards in FY26 totalled 7,000 km, down from 7,538 km in FY25, a seven per cent year-on-year fall and far short of the more than 12,000 km awarded across FY22–23. Overall road construction declined 12 per cent year on year in FY26, after a 14 per cent fall in FY25. The report highlights persistent land acquisition delays that are lagging the pace of approvals.

The slowdown has structural implications for the commercial vehicle and construction equipment supply chain that supports highway building. Nuvama highlighted that listed developers' share of NHAI awards has shrunk from roughly 61 per cent in FY16–18 to 31 per cent in FY19–21 and to 25 per cent over FY22–25, with the share remaining at 25 per cent in FY26. Smaller unlisted players have been winning a larger slice of available work, reducing revenue visibility for listed firms.

NHAI's capital expenditure was roughly flat at Rs 2.4 trillion (Rs 2.4 tn) in FY26 while the agency's construction output fell about five per cent to 5,313 km, indicating a reallocation of funds. Asset monetisation raised around Rs 283 bn in FY26, slightly below earlier levels, and much of the proceeds is funding debt repayment as the debt to equity ratio fell to 0.17 times.

With a muted FY27 road outlay and the agency prioritising deleveraging over expansion, a near-term pickup in awards appears unlikely, the note suggested. Nuvama advised road developers to pursue segmental diversification as their ability to secure orders at desired margins is under question. The brokerage said it remained cautious on the roads sector given the subdued project pipeline and potential knock-on effects for allied industries.

Road building in India slowed sharply in the fiscal year ended March 2026 as national highway awards fell to their weakest level in seven years and construction activity returned to a level not seen since FY17, an analysis by Nuvama Institutional Equities found. The National Highways Authority of India awarded contracts for 3,124 km of road projects worth Rs 423 billion (Rs 423 bn) in FY26, up from 2,170 km worth Rs 470 bn in FY25 but well below the 6,300 km and nearly Rs 1.3 trillion (Rs 1.3 tn) in FY23. When state-level awards are included, combined NHAI?plus?MoRTH awards in FY26 totalled 7,000 km, down from 7,538 km in FY25, a seven per cent year-on-year fall and far short of the more than 12,000 km awarded across FY22–23. Overall road construction declined 12 per cent year on year in FY26, after a 14 per cent fall in FY25. The report highlights persistent land acquisition delays that are lagging the pace of approvals. The slowdown has structural implications for the commercial vehicle and construction equipment supply chain that supports highway building. Nuvama highlighted that listed developers' share of NHAI awards has shrunk from roughly 61 per cent in FY16–18 to 31 per cent in FY19–21 and to 25 per cent over FY22–25, with the share remaining at 25 per cent in FY26. Smaller unlisted players have been winning a larger slice of available work, reducing revenue visibility for listed firms. NHAI's capital expenditure was roughly flat at Rs 2.4 trillion (Rs 2.4 tn) in FY26 while the agency's construction output fell about five per cent to 5,313 km, indicating a reallocation of funds. Asset monetisation raised around Rs 283 bn in FY26, slightly below earlier levels, and much of the proceeds is funding debt repayment as the debt to equity ratio fell to 0.17 times. With a muted FY27 road outlay and the agency prioritising deleveraging over expansion, a near-term pickup in awards appears unlikely, the note suggested. Nuvama advised road developers to pursue segmental diversification as their ability to secure orders at desired margins is under question. The brokerage said it remained cautious on the roads sector given the subdued project pipeline and potential knock-on effects for allied industries.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Vedanta Metal Bazaar Expands to Global Markets

Vedanta Aluminium has expanded its digital e-commerce platform, Vedanta Metal Bazaar, to international markets, enabling overseas customers to order and purchase aluminium products online.The platform will now be available to buyers across Asia, Europe, Africa and the Americas, providing a digital gateway for export transactions with 24x7 access.In FY26, Vedanta Metal Bazaar processed transactions worth nearly $4.1 billion, or over Rs 380 billion, and fulfilled more than 23,000 orders. The platform is also used regularly by more than 550 MSMEs in India alongside large OEM customers.The export ..

Next Story
Infrastructure Urban

Ramky Infrastructure Q1 FY27 Revenue Rises 24.3%

Ramky Infrastructure Limited reported a 24.3% year-on-year increase in consolidated revenue from operations to Rs 471.2 crore for Q1 FY27, compared with Rs 3.79 billion in the corresponding quarter of FY26.Standalone revenue from operations rose 27.5% YoY to Rs 4.51 billion from Rs 3.54 billion, while total standalone income increased 35% to Rs 5.32 billion.Consolidated profit before tax stood at Rs 540.9 million during the quarter. The company highlighted a sharp sequential improvement compared with a pre-exceptional loss of Rs 190.1 million in Q4 FY26.Two of the three projects awarded during..

Next Story
Technology

LTTS Launches AgenticIQ AI Platform for Engineering

L&T Technology Services (LTTS) has launched AgenticIQ, an end-to-end agentic AI platform designed for engineering and manufacturing organisations.The platform is aimed at helping enterprises move beyond isolated AI pilots by enabling autonomous, multi-agent workflows across engineering, product development, manufacturing, industrial operations and customer experience.AgenticIQ is built on LTTS’ Engineering Intelligence portfolio and converts existing engineering capabilities into specialised, reusable AI agents. Its planning-first architecture is embedded into engineering and production ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement