A few bumps aside, road ahead is largely smooth for Infra developers

Though competition is very high, stabilisation of commodity, input and energy prices should support margins

The government has followed a counter-cyclical policy through the last two years as it has attempted to regain growth momentum after the near collapse during the 2020 lockdown. The Budgets have since focussed on building infrastructure capacity. One key measure is the speeding up of the building of highways.

As a result, there are healthy order books across road developers and this means steady revenues for developers through the next three fiscals. In 2021-22, NHAI awarded over 12,000 km of roads in 127 new projects, an increase of 22 per cent year-on-year (YoY). Of these, 62 projects were under HAM