Roads: Robust awarding to keep revenue in fast lane, says CRISIL analysis

CRISIL expects revenue of road EPC players to grow 10-12 per cent and margin to remain range bound at 13.5-14 per cent

Awarding of road projects by the National Highways Authority of India (NHAI) continues to be robust this financial year (FY22), with the hybrid annuity model (HAM) accounting for 50 per cent of the 1,900 km awarded in the first half.

CRISIL expects 4,500-5,000 km to be awarded in FY22, of which 45-55 per cent should be under the HAM mode, another 40-45 per cent under the engineering, procurement and construction (EPC) mode, and less than 5 per cent under the build-operate-transfer (BOT)-toll mode. 

In FY23, CRISIL expects NHAI to award 4,000-4,500 km, given the strong pipeline of projects under Bharatmala and the