Construction sector revenues are expected to grow at a moderate pace, with operating income projected to rise by 2–4% in FY2026 and accelerate to 6–8% in FY2027, supported by an adequate aggregate order book that is expected to remain above 3x of operating income and improving execution momentum post monsoon. While overall credit metrics are likely to remain stable, diversified EPC players are better positioned due to a broader segment mix and stronger order book.

Exhibit : Budgetary Allocation to Key Construction Segments