New Delhi [India], December 2 : Road sector activity remained muted in November 2025, with project awards by the National Highways Authority of India (NHAI) showing a sharp slowdown, according to a new report by Nuvama Research.
The report noted that the weak momentum in awarding new road projects continues to affect the sector for the second straight year.
It stated "Nov-25: Road activity remains muted......The NHAI awarded approx. 78km road projects in Nov-25 (440km in Nov-24). No increase in road capex in the budget for FY26E implies that a pickup in road awards is unlikely".
The report highlighted that the NHAI awarded only around 78 km of road projects in November 2025, compared to 440 km in the same month last year. Despite this, the pace of construction saw an improvement, rising to 292 km in November 2025 from 220 km in November 2024.
However, the overall performance for the year so far remains soft. Year-to-FY26, NHAI's total road awards stood at 468 km, marking a 36 per cent decline year-on-year. Road construction during the same period also fell 8 per cent YoY, highlighting the broader slowdown.
The report noted that the muted awards are largely linked to the government's earlier decision to halt project allocations under the Bharatmala programme, a key highway development initiative. This pause has had a prolonged impact, with FY25 already witnessing subdued road awarding for the second consecutive year.
It pointed out that the lack of an increase in road capital expenditure in the FY26 Budget further reduces the possibility of a recovery in project awards in the near term.
Even as the overall awarding remains weak, news reports indicate that NHAI has invited bids for 52 road projects in YTD FY26, covering 2,188 km and valued at around Rs 1.15 trillion. But the report believed this may not be enough to significantly revive the sector's momentum.
The report also flagged concerns about the declining participation of listed developers. Their market share in NHAI awards has fallen steadily, from around 61 per cent in FY16-18 to 24 per cent in FY25.
Given the ongoing sluggishness in road awards, the report suggested that road developers should explore segmental diversification to reduce dependence on highway projects.
The firm maintained a cautious view on the overall roads sector, citing limited visibility of improvement in the awarding pipeline.
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