New Delhi, March 30, 2026: Revenue growth of construction companies in India is expected to improve to around six to eight percent in the financial year 2026 to 2027, according to a report by ICRA, indicating a stable yet moderated outlook for the sector.
The report suggests that while the industry continues to benefit from a strong pipeline of infrastructure projects and government spending, growth is likely to remain measured due to execution challenges and slower awarding activity in certain segments.
Experts note that sectors such as urban infrastructure and energy are expected to support growth momentum, partially offsetting pressure in road related projects and other areas facing delays.
The construction sector remains a key contributor to the Indian economy, generating significant employment and supporting overall development. However, factors such as rising competition, stretched working capital cycles, and execution risks may keep profit margins within a narrow range.
Despite these challenges, the outlook remains stable, supported by ongoing investments in infrastructure and a healthy order book, which provides visibility for future growth in the sector.
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