ICRA Forecasts Moderate Road Construction and 6-9% Toll Growth Through FY27

ICRA projects India's road construction to moderate to 9,000-9,500 km in FY27 due to a sustained slowdown in project awards over the past three years, with awards estimated at 7,250-7,750 km in FY26. Toll collections are expected to grow 6-9% in FY26, supported by traffic growth of 4-5%, despite lower inflation-linked toll rate hikes of 2.5-3.3% in FY27. Competition for projects remains high amid a shrinking order book and delayed execution.