ICRA Forecasts Revenue Growth and Profitability on the Rise in India’s Infrastructure Sector

According to ICRA, revenue growth for the fiscal year is expected to rise between 18-20%, a substantial increase from earlier projections. This optimistic outlook is supported by a strong order book inflow, translating to a favorable order book-to-billing ratio of approximately 3.2 times.The sector’s gross value added (GVA) is anticipated to grow by 8.5%-9%, benefiting from government-led infrastructure projects and a decrease in raw material prices. Notably, projects like the Mumbai-Ahmedabad High-Speed Rail Corridor are progressing well, with significant milestones achieved. Despite anticipated cost escalations, experts maintain a stable outlook, suggesting that improved execution momentum and operating leverage will bolster profitability in the coming years.