Roads awards by the ministry are likely to improve in FY2027 given the healthy increase in budgetary allocations. However, delays in requisite approvals or revision in awarding process, if any, could derail the expected improvement in awarding, and poses downside risk to estimates. Given the decline in order book and consequent impact on revenue visibility and profitability, ICRA believes that meaningful pick-up in order awarding activity from the MoRTH remains vital to ease competitive pressure.

Exhibit: Budgetary allocations over the last 10 years

Source: ICRA Research; Union Budget documents; IEBR: Internal and Extra Budgetary Resources; BE: Budget estimates; RE: Revised Estimates