Domestic construction equipment to clock 2-4% volume growth in FY26, FY27: Crisil
- IBEF
- November 14, 2025
India’s construction equipment industry is expected to post moderate growth of 2-4% in volumes during FY25 and FY26, amid weaker domestic demand due to slower road construction and cooling real estate activity, according to Crisil Ratings. However, revenue is projected to rise 6-8% annually, supported by selective price hikes that offset higher compliance costs. The report noted that stable steel prices and firm export realisations will help limit pricing pressures from low-cost imports, keeping operating margins largely steady at around 11%, compared with 12% last year.
Crisil’s analysis of 17 major manufacturers, representing nearly three-fourths of the market, indicated that controlled capital expenditure will maintain stable leverage and credit profiles. The industry’s growth remains primarily linked to infrastructure sectors such as roads, mining, real estate, railways, and power. Earthmoving machinery continues to dominate, accounting for 70% of total volumes, followed by material handling (12%), concrete equipment (10%), and road and processing equipment (7%). Domestic sales comprised 90% of total volumes in FY25, underscoring the industry’s reliance on local demand, though exports continue to play a stabilising role amid cyclical fluctuations in domestic infrastructure spending.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
