Construction Equipment Growth Forecast: Crisil

New Delhi, Nov 13 (PTI) The domestic construction equipment industry will continue to clock 2-4 per cent volume growth this fiscal year and the next, amid subdued domestic demand on account of moderating real estate growth and slower road construction, Crisil Ratings said on Thursday.

Revenue, however, is expected to rise 6-8 per cent this fiscal year and the next, driven by selective price hikes that partly offset higher compliance costs, Crisil Ratings said in a statement.

Firm export realisations and stable steel prices will help mitigate pricing pressure from low-cost imports, limiting the contraction in operating margin to 11 per cent from around 12 per cent last fiscal year.

A disciplined approach to capital expenditure will keep the companies' leverage in check and credit profiles stable.


Our analysis of 17 manufacturers, accounting for nearly three-fourths of the industry volume, indicates as much, it said.

Sales of construction equipment are driven by roads, mining, real estate, and other sectors such as railways, water supply and power.

In terms of product mix, earthmoving machinery accounts for 70 per cent of volume, with material handling 12 per cent, concrete equipment 10 per cent, road equipment 5 per cent, and material processing equipment 2 per cent making up the rest.

In FY25, domestic sales accounted for 90 per cent of total construction equipment volume, and exports for the rest.