Revenue of large, diversified engineering, procurement and construction (EPC) companies to grow 9-11% in FY26: Crisil

Large engineering, procurement, and construction (EPC) companies are projected to register revenue growth of 9-11% in FY26, up from 8.3% in FY25, according to a Crisil report. The growth outlook is supported by steady infrastructure capital expenditure (capex), robust order books, faster project execution, and a healthier order mix. Revenue expansion, which averaged 20% Compound Annual Growth Rate (CAGR) during FY22-24, moderated to 8.3% in FY25 due to a high base effect, in line with the 6% increase in domestic infrastructure capex. For FY26, capex is expected to grow by 7-9%, supported by sustained central and state budgetary allocations and moderate private sector involvement.
Private sector participation, which accounted for 9% of overall infrastructure capex in FY25, is forecast to rise to 11% in FY26, driven by revived build-operate-transfer (BOT) projects in roads and stronger renewable energy investments. Crisil’s analysis of 15 large EPC firms with combined annual revenue of Rs. 3,15,000 crore (US$ 35.9 billion) in FY25 highlighted that sector performance is closely tied to both public and private capex, with infrastructure comprising 75% of India’s total capex. Order books remain strong, with the order book-to-revenue ratio improving to 3.7 times as of March 2025, up from 3.5 times a year earlier. Overseas orders have also risen significantly, contributing 27% of total order books compared to 23% in March 2024 and 16% five years ago. Crisil noted that profitability is expected to improve, with operating margins projected at 9.5% in FY26, aided by stable commodity prices and completion of legacy projects. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.