New Delhi: ICRA said toll collections are projected to grow 7–9 per cent in FY26. This growth will be driven by traffic growth of 4–5 per cent, higher than the 2.5 per cent seen in FY25.
Higher vehicle movement on highways, supported by steady economic activity, is helping toll revenues remain strong.
Lower Toll Rate Hikes In FY27
However, toll rate hikes linked to inflation are expected to be lower in FY27.
For newer projects linked to the December Wholesale Price Index (WPI), toll rates may rise around 3.3 per cent. For older projects linked to the March WPI, the increase may be between 2.5 and 3 per cent.
ICRA said the lower rate hike could slightly impact overall toll growth in FY27. Still, traffic growth is expected to balance this effect.
FASTag Impact Limited
The report also said that annual FASTag passes have had only a limited impact on toll collections.
Initial issues related to FASTag payments are being resolved. Most developers are now receiving weekly payouts from the authority, which has improved cash flow visibility.
Road Construction May Slow
Even though toll revenues are expected to remain stable, road construction activity under the Ministry of Road Transport and Highways (MoRTH) is likely to slow down.
Road project awards are projected at 7,250–7,750 km in FY26, similar to 7,538 km awarded in FY25.
ICRA noted that it usually takes 6–9 months from project award to the start of on-ground execution. Because of this time gap, any slowdown in awards may affect execution levels in the near term.
Focus On Expressways
ICRA added that the government is focusing more on building expressways and high-speed corridors. As a result, expansion in lane-kilometres may still remain healthy despite moderate growth in total project awards.
