As per ICRA, the construction sector, particularly road infrastructure, is expected to witness moderated revenue growth of 8-10 per cent in FY 2025 due to factors like the model code of conduct in Q1 FY 2025, and extended monsoons and milestone-based billing in Q2 FY 2025. Revenue growth for a sample set of 19 companies with a combined turnover of Rs 1.28 trillion in FY 2024 was modest at 1.5 per cent year-on-year in H1 FY 2025.
Order inflows in FY 2025 are expected to lag behind FY 2024 levels, especially in the road segment, which has seen muted activity over the past four quarters.