NHAI road awards fall, construction pace improves

New Delhi

The National Highways Authority of India (NHAI) saw a decline in new road project awards for the second year in a row, according to a report by Nuvama Institutional Equities released on Wednesday. However, the pace of actual road construction has increased during this period.

In 2024-25, NHAI awarded 2,170 km of roads, up from 1,300 km in 2023-24 but still far below earlier years. The value of projects awarded stood at Rs 47,000 crore in 2024-25 and Rs 35,000 crore in 2023-24, much lower than Rs 1.5 lakh crore in 2021-22 and Rs 1.3 lakh crore in 2022-23.

The report blamed the drop on the government’s halt of new projects under the Bharatmala programme and no increase in road capital spending in the 2025-26 budget. As a result, a quick rise in new road awards is unlikely.

Despite fewer new awards, road construction activity gained momentum. In June 2025, 404 km of roads were built, up from 375 km in May 2025 and 248 km in June 2024. In the first quarter of FY26 (April-June), total road construction reached 961 km, up 14% year-on-year.

NHAI exceeded its construction target for 2024-25 by 9%, completing 5,614 km. However, this was still 15% lower than the previous year, reflecting slowdowns in past awards.

The report also highlighted a drop in listed developers' market share of NHAI awards, falling to 24% in 2024-25 from 25% over 2021-22 to 2023-24.

Nuvama suggested that developers focus on other segments as the ability to secure enough road orders at good margins has become uncertain.