Road builders sweat as tenders dry up

improvement in awards this year will likely start reflecting in the second half of FY27 or in FY28.

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Industry players are keeping their eyes peeled on the second half of FY26, anticipating a pick-up in highway tenders.

(MINT)

To offset the impact on profitability, several companies have diversified into other areas.

Kulkarni estimates that road-focused EPC firms now get around a third of their order book from non-road sectors—up from about 10-12% five years ago.

For instance, Bhopal-headquartered Dilip Buildcon, which started diversifying three years ago, has eight other business verticals now—including operating mines, metro and railway construction, irrigation, water distribution and tunnelling.

It recently also ventured into laying optical fibre for broadband connectivity and constructing solar plants.