ICRA projects 2-5% YoY growth in MCE industry volumes for FY2026, in line with last estimates. Despite flat volumes in 5m FY2026 due to price hikes, unseasonal rains, and weak project-awarding activity, the outlook remains stable, supported by expected macroeconomic improvement, sustained Government infrastructure push, healthy export prospects and steady commodity prices. The Indian MCE industry is experiencing tepid growth in FY2026, with domestic sales declining 6% in the first five months due to delayed project awards, monsoon disruptions, and price hikes from emission norm transitions. Export momentum remains robust, especially in concrete and road equipment, but overall industry volume growth is projected at a modest 2–5% YoY, supported by macroeconomic improvement and Government infrastructure push.

Exhibit : Equipment mix (domestic + exports): FY2025