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India鈥檚 road construction pace is set to slow down in FY26, with the Ministry of Road Transport and Highways (MoRTH) expected to build 9,500-10,000 km, marking a 5% decline from the estimated 10,000-10,500 km in FY25, according to ICRA. The slowdown is attributed to reduced project awarding over the past two years. In the first nine months of FY25, MoRTH awarded just 3,100 km of projects, significantly lower than the 5,835 km awarded in the same period of FY23. However, a recent pickup in awarding since November 2024 could push project awards to 8,500-9,000 km in FY25, with potential growth of 9-11% in FY26 if the momentum continues. 鈥淲ith awarding expected to improve only in FY26, road developers may see subdued revenue growth over the next 12-15 months,鈥� said Vinay Kumar G, Sector Head, Corporate Ratings, ICRA, noting that competition will remain high as firms aggressively bid for limited projects. Meanwhile, toll collection growth is set to moderate due to slower expansion in the construction, manufacturing, and mining (CMM) sectors. Traffic growth is likely to ease to 2-3.5% in FY25, with toll revenue rising 5-7%. In FY26, an expected 3.5-4.2% increase in toll rates and 3-5% traffic growth could drive toll collections up 7-9%, the report added.