ICRA projects 8-10% YoY growth in MCE volumes for FY2027, following a marginal decline in FY2026, supported by strong performance across domestic and export markets in 5M FY2027, improving infrastructure project execution, rising state-level infrastructure investments and the Government’s Rs. 12.2-lakh crore capex outlay in FY2027.

• Demand recovery gains traction after a weak FY2026 – There was a 6% YoY decline in domestic volumes in FY2026 due to delayed project awards, slower project execution and CEV-V-related price increases. However, industry volumes grew 14% YoY in 5M FY2027, supported by improving infrastructure project execution, increased state-level infrastructure spending, sustained public capex outlay and healthy export demand.
• Export grew at 34% YoY in 5M FY2027 – Export volumes grew 30% YoY in FY2026 and remained robust with 34% YoY growth in 5M FY2027, owing to improved emission compliance, cost competitiveness and OEM-led diversification across developed and emerging markets.