India: Infrastructure and construction firms post strong FY26 growth on robust execution, record order books

• Healthy execution and strong order inflows support performance
  
  
• Government-led infrastructure spending underpins sector outlook
  
  

India's infrastructure and construction sector delivered a strong performance in FY26, supported by robust project execution, healthy order inflows and sustained investments across roads, railways, airports, energy and urban infrastructure. Record order books across major companies continue to provide strong revenue visibility, while ongoing government capital expenditure (capex) is expected to support growth over the medium term.

Company-wise performance

1. Larsen & Toubro (L&T): L&T reported a 12% y-o-y increase in revenue to INR 2.86 lakh crore in FY26, driven by strong execution across infrastructure, hydrocarbons, energy and transportation businesses. Order inflows reached a record INR 4.36 lakh crore, while the order book expanded 28% y-o-y to an all-time high of INR 7.4 lakh crore. Strong domestic and international project wins, particularly from the Middle East, continue to provide multi-year growth visibility.

2. Adani Enterprises: Adani Enterprises continued strengthening its infrastructure portfolio, with nearly 80% of earnings before interest, tax, depreciation and amortisation (EBITDA) generated from infrastructure and utility businesses. During FY26, the company commissioned the 464-km Ganga Expressway package, expanded its roads portfolio under Hybrid Annuity Model (HAM) and Toll-Operate-Transfer (TOT) projects, and secured large data centre orders through Adani Connex. Airport, logistics and digital infrastructure investments remain key growth drivers.

3. GMR Airports: GMR Airports reported a strong FY26 performance, with gross income increasing 40% y-o-y to INR 15,200 crore and EBITDA rising 47% to INR 6,200 crore. Passenger traffic across its portfolio reached 121.6 million during the year. Ongoing expansion projects, including Bhogapuram International Airport and international airport developments, are expected to support future traffic growth and earnings.

 

4. IRB Infrastructure: IRB Infrastructure delivered a resilient performance despite a marginal decline in revenue. EBITDA increased 4% y-o-y to INR 4,188 crore, while toll revenue across its road assets and Infrastructure Investment Trust (InvIT) portfolio grew around 13% y-o-y. The company commenced tolling on new highway assets and plans to increase its road asset assets under management (AUM) from around INR 80,000 crore to INR 1.4 lakh crore over the next three years.

5. IRCON International: IRCON International reported consolidated operating revenue of INR 9,071 crore in FY26, while maintaining stable EBITDA of INR 1,279 crore. Margin expansion was supported by improved project execution and cost efficiencies. The company remains well positioned to benefit from government investments in railway modernisation, Dedicated Freight Corridors (DFC), station redevelopment, railway electrification and metro infrastructure projects.

Outlook

India's infrastructure sector outlook remains robust, supported by annual central government capex exceeding INR 11 lakh crore and a combined order book of over INR 15 lakh crore across leading listed companies. Continued investments in transport, energy, logistics and industrial infrastructure are expected to sustain project execution and revenue growth over the coming years.