ICRA expects toll collections on national highways to expand by 10-12% in FY2028, supported by higher toll rate revisions and stable traffic growth of 4-5%. The higher toll rate growth in FY2028 is likely to be supported by the expected favourable movement in WPI inflation amid the crisis in West Asia. Project awarding activity of MoRTH likely to improve to 8,000-8,500 km in FY2027, given the increase in budgetary allocation.

• Road execution by the Ministry of Road Transport and Highways (MoRTH) is expected to remain range bound at 9,000-9,500 km in FY2027, compared to 9,380 km in FY2026, owing to continued slowdown in project awarding over the past three years.
• The sharp increase in bitumen prices and disruptions in its availability amid the ongoing West Asian crisis have adversely impacted road execution in Q1 FY2027.
• The road awards by the MoRTH declined to around 7,000 km in FY2026 from 7,538 km awarded in FY2025, amid the Ministry’s focus on addressing land acquisition issues and environmental clearances prior to awarding projects.