India's National Highway and Expressway sector had a defining year in FY2025–26. It didn't just hold its position as the country's largest infrastructure procurement engine — it widened the gap, driven by NHAI, MoRTH, NHIDCL and state PWDs pushing a steady stream of EPC, HAM and PPP opportunities under Bharatmala and PM Gati Shakti. And if the numbers are anything to go by, FY2026–27 is shaping up to be just as active.
A Year of Elevated Spending and Execution
The scale of public investment in FY2025–26 determines the growth story. MoRTH received a budgetary allocation of ₹2.71 lakh crore, while NHAI's own highway development spend came in at roughly ₹2.44 lakh crore. That signifies a lot of capital moving through the system, and it has been translated into real activity to overcome the challenges.
NHAI identified 124 National Highway and Expressway projects, covering 6,376 km and carrying an estimated value of ₹3.45 lakh crore. The project mix itself is worth noting — 80 Hybrid Annuity Model (HAM) projects, 32 EPC contracts, and 12 BOT concessions — reflecting NHAI's continued reliance on a blended financing approach rather than leaning on any single model.
As per the sources, it has been determined that by mid-2026, momentum had clearly built: bids had already been invited for 52 of these projects, spanning 2,188 km and worth close to ₹1.15 lakh crore. That's nearly a third of the identified pipeline already out to market, with more expected to follow through the rest of the year.
Delivery Kept Pace With Ambition
What makes this cycle stand out isn't just the size of the pipeline — it's that execution actually kept up. NHAI completed 5,313 km of highways in FY2025–26, about 15% above target. In a sector where slippage is often the norm rather than the exception, that is somewhat a meaningful signal of improved project management and on-ground execution capacity across contractors and agencies alike.
Where the Action Is Concentrated
The pipeline isn't evenly spread — a handful of states account for a disproportionate share of ongoing and upcoming project activity. Based on NHAI's current and tentative project lists, Uttar Pradesh, Maharashtra, Rajasthan, Madhya Pradesh, Tamil Nadu, Karnataka, Telangana, Andhra Pradesh, Haryana and Punjab feature most prominently — a mix of major EPC and HAM stretches, blackspot rectification works, flyovers and interchanges, and bypass construction.
Uttar Pradesh in particular stands out for sheer scale: the state carries over 8,400 km of national highways, split between NHAI and the state PWD, with several major EPC packages (including city bypasses like Jaunpur and sections of NH-24, NH-28 and NH-86) either underway or in the tendering pipeline.
Separately, and more precisely documented, NHAI has finalised a tentative list of 17 highway stretches covering about 1,693 km for asset monetisation in FY2026–27 under the Toll-Operate-Transfer (TOT) and InvIT routes. These are spread across nine states — Haryana, Jharkhand, Karnataka, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, Bihar and Maharashtra — and mark a parallel, capital-recycling track running alongside fresh construction awards. NHAI has raised close to ₹85,749 crore through such monetisation between FY2023–24 and FY2025–26, taking cumulative collections past ₹1.42 lakh crore across more than 6,100 km of operational highways.
What This Means for FY2026–27
Strong completion numbers don't just close out old projects — they open the door to new ones. That pace of delivery is expected to trigger a second wave of procurement activity in FY2026–27, this time shifting focus toward:
Toll operations and revenue collection systems
Asset management contracts for completed stretches
Rehabilitation and maintenance of aging highway assets
Blackspot rectification and road safety works
Intelligent Transportation Systems (ITS) upgrades
Alongside these, the underlying demand for DPRs, project management consultancy (PMC), independent engineer services, bridges, tunnels, interchanges, toll plazas, utility shifting and drainage works is expected to continue, as it does in any year where large-scale corridor development remains active.
The Bigger Picture
India's National Highway and Expressway sector remained the country's largest infrastructure procurement market in FY2025–26, and it's poised for another strong tender cycle in FY2026–27. For contractors, consultants, and investors tracking India's infrastructure story, the message is straightforward — the pipeline is deep, the execution machinery is working, and the next wave of opportunities is already taking shape.
