Research Report

In FY2026, domestic construction equipment sales were impacted by slower infrastructure project execution, particularly in roads, highways and mining, alongside uneven state-level activity. Seasonality after a strong Q4 FY2025 base and cautious contractor spending amid delayed awards further weighed on quarterly demand. 

The full transition to CEV-V emission norms from July 1, 2025, following the phase-out of non-compliant equipment, further dampened demand. Elevated equipment costs, compounded by a tighter financing environment, added to the pressure on offtake.

Source: ICEMA, ICRA Research; Equipment mix data is for 11M FY2026