New Delhi [India], July 9 : The growth in road project awards by the National Highways Authority of India (NHAI) could reach 9-11 per cent in FY26, according to a report by Axis Securities.
The report noted that while there has been a slowdown in awarding activities so far in the current fiscal, a slight improvement since November 2024 suggests that growth momentum may pick up in the coming months.
It stated "a slight improvement in project awarding has been observed since Nov'24, and if this trend continues, growth could reach 9-11 per cent in FY26".
As of July 2025, both the NHAI and the Ministry of Road Transport and Highways (MoRTH) have witnessed delays in awarding new highway projects.
However, the report expects that the total length of roads awarded in FY26 will be in the range of 8,500-9,000 km, which is broadly similar to FY25 levels.
The report highlighted that the recent pickup in project awarding activity since November 2024, if sustained, could lead to growth.
In terms of construction, NHAI built a total of 5,614 km of national highways in FY25, surpassing its set target of 5,150 km.
Despite this achievement, the government has announced a lower construction target of 10,000 km for FY26, the lowest in the past seven years.
MoRTH recently informed the Department-Related Parliamentary Committee on Transport that the construction budget for FY26 is lower than Rs 10,421 crore. In addition, the monetisation target for FY26 is also below the Rs 39,000 crore previously expected.
During the first quarter of FY26 (April-June 2025), NHAI took major steps under the second phase of the National Monetisation Pipeline (NMP 2.0), aiming to unlock Rs 10 lakh crore in capital over a five-year period. Of this, the road sector is expected to contribute Rs 3.5 lakh crore.
In June 2025, NHAI also released its first-ever Asset Monetisation Strategy Document. The document outlines plans to raise capital through various models, including Toll-Operate-Transfer (ToT), Infrastructure Investment Trusts (InvITs), and securitisation.
These efforts are part of a broader strategy to mobilise funding for infrastructure development without placing additional pressure on government finances.
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