<ul data-eligibleForWebStory="true"><li>The National Highways Authority of India has slowed down awarding projects over the last two years impacting major road construction companies' order book growth.</li><li>Road awards remained tepid for a second year in a row in FY25 according to Nuvama Research, causing concerns about revenue visibility in the sector.</li><li>Listed developers' market share in NHAI awards dropped from 61% over FY16–18 to 24% by the end of FY25, as per Nuvama report.</li><li>Key concerns in the road sector include government halting project awards under the Bharatmala project, leading to sluggishness in road awarding.</li><li>Muted road capex budget in Union Budget 2025 and increased competition causing tenders below expected rates are impacting road players' margin profiles.</li><li>Outlook ahead includes signs of recovery in order awarding from the fourth quarter onwards, with a FY26 highway construction target set at 10,000 km.</li></ul>

NHAI Brake On Awarding Projects Dampens Outlook For Major Road Players

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