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NHAI Awards Stall in April, FY27 Outlook Remains Tough: Nuvama

The National Highways Authority of India awarded no road projects in April 2026, continuing a trend of weakness. Construction activity plummeted 78% year-on-year to just 40 km during the month. For FY26, NHAI awarded 3,124 km, missing its target of 4,500 km due to approval delays and limited private sector interest. The FY27 outlook remains challenging, with no increase in NHAI's budgetary allocation.

Key Points: NHAI Road Awards Stall in April; FY27 Outlook Challenging

  • NHAI awarded no road projects in April 2026
  • Construction fell 78% YoY to ~40 km in April 2026
  • FY26 awards down 22% to 3,124 km, missing target
  • FY27 outlook challenging with no budget increase for NHAI
2 min read

NHAI road award slowdown deepens, FY27 outlook remains challenging: Nuvama

NHAI awarded no road projects in April 2026, with construction down 78% YoY. Nuvama report highlights weak outlook, citing approval delays and limited private sector participation.

"The NHAI did not award any road projects during Apr-26 against 1,632km across 131 projects awarded in Mar-26. - Nuvama Institutional Equities"

New Delhi, May 5

Road project awarding by the National Highways Authority of India remained subdued in April 2026, with no projects awarded during the month, according to a report by Nuvama Institutional Equities.

The report highlighted that this marks continued weakness in the sector, following nil awards in April 2025 and a sharp drop from 1,632 km awarded in March 2026. The report noted, "The NHAI did not award any road projects during Apr-26 against 1,632km across 131 projects awarded in Mar-26."

Construction activity also declined significantly, falling 78 per cent year-on-year to around 40 km in April 2026.

The report notes, "Road construction too fell 78% YoY to just ~40km in Apr-26 against (1,619km in Mar26 and 182km in Apr-25)."For the full financial year 2025-26, NHAI awarded 3,124 km of road projects, down 22 per cent year-on-year and below its target of approximately 4,500 km. The report says, "Delays in project appraisal and approval along with reluctance on part of the private sector to take up BOT projects have caused the NHAI to miss its full-year awarding target of ~4,500km for FY26".

Road construction during FY26 stood at 5,313 km, reflecting a marginal 5 per cent decline from the previous year, though it exceeded the authority's internal target of 5,000 km. The report attributed the slowdown in project awards to delays in approvals and limited private sector participation in build-operate-transfer (BOT) projects. It also noted that road awarding has remained weak over the past few years, with project award values significantly lower than earlier peaks seen in FY22 and FY23. Looking ahead, the outlook remains challenging. The report pointed out that there is no increase in budgetary allocation for NHAI in FY27, suggesting limited scope for a near-term recovery in project awards. Additionally, the market share of listed developers in NHAI awards has declined further to 24 per cent in FY25, continuing a multi-year downward trend. Meanwhile, overall road sector capital expenditure in the FY27 budget is estimated at around Rs 2.9 trillion, reflecting an 8 per cent increase after two years of muted growth.

- ANI

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Reader Comments

P
Priya S
Yaar, 78% drop in construction activity is shocking. We were just celebrating record highway building a couple of years ago. Hope this is a temporary blip and not a structural slowdown. The budget allocation also not increasing for NHAI is a red flag. 🚩
M
Michael C
Interesting analysis from Nuvama. The fact that market share of listed developers has fallen to 24% suggests smaller, regional players are stepping in. Might be a concern for quality and execution timelines. Also, zero awards in April is a very slow start to the fiscal year.
A
Arjun K
Private sector reluctance for BOT is understandable—with inflation and interest rates high, toll revenues are uncertain. But the government should consider more hybrid annuity models to keep the momentum going. We can't afford to slow down on road infrastructure when we're aiming for a $5 trillion economy. 💪
S
Sneha F
I work in the construction sector, and the slowdown is real. Delays in environmental clearances and state-level approvals are causing projects to stall. The central government needs to streamline the approval process if we want to meet targets. Also, why no increase in NHAI budget? 🤔
D
Deepak U
This is disappointing. Road infrastructure is crucial for rural connectivity and economic growth. The fact that construction fell 78% YoY in April is alarming. The government should consider public-private partnerships more aggressively and offer better incentives to attract private capital.

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