New Delhi, 3 January. India’s toll collection is expected to increase by 5-9 percent in the financial year 2026, according to a recent report. This growth indicates stability in the toll road sector for the financial year 2027.
The report, released by ICRA, states that the toll road sector remains stable and is likely to experience strong growth in the near future.
M Rajasekhar Reddy, Sector Head and Assistant Vice President at ICRA, said, “Due to persistently weak wholesale inflation, toll rate hikes for new projects in FY27 are expected to be around 3.2 percent, while for existing projects, the increase is estimated between 1.6 to 2 percent.”
The report adds that these factors could lead to a 5-8 percent rise in toll revenue in FY27. Increased toll collection combined with reduced operation and maintenance costs is expected to maintain adequate debt coverage metrics for BOT toll road projects.
It also highlights that recent tightening of bidding criteria for Hybrid Annuity Model (HAM) and Engineering, Procurement, and Construction (EPC) projects is a positive development. However, competition is unlikely to see a significant decline as many companies still meet the stricter standards.
The National Highways Authority of India (NHAI) raised ₹12,357 crore through Toll-Operate-Transfer bundles in the first nine months of FY26, taking the total collection since FY19 to ₹1,04,990 crore. With additional bundles planned, total revenue for the year is expected to reach about ₹1.3 lakh crore.
The Ministry of Road Transport and Highways completed 3,468 kilometres of road construction between April and October 2025, compared to 3,920 kilometres in the same period last year. For the full FY26, the agency forecasts road construction of 9,000-9,500 kilometres, slightly lower than the 10,660 km achieved in FY25.
ICRA also expects government-awarded road contracts to increase to 8,500-9,000 kilometres in FY26, up from the estimated 7,500-8,000 kilometres in FY25.
– ABS/
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