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India’s Mining and Construction Equipment Volumes Expected to Rise
India’s mining and construction equipment industry is expected to recover next year.
A report by ICRA says sales could rise by 8-10% in FY27.
That would bring the number of machines sold to about 150,000.
Sales fell slightly in FY26, but demand inside India and exports have improved.
Domestic sales rose 14% in the first five months of the current fiscal year.
Exports grew even faster, increasing by 34%.
Government spending on roads and other projects is helping support demand.
Companies may earn more revenue, but higher costs could reduce their profit margins.
India’s mining and construction equipment volumes are projected to grow 8-10% year-on-year to about 150,000 units in FY27.
Industry volumes declined 2% in FY26, but domestic demand and exports are showing recovery.
Domestic equipment volumes increased 14% and exports rose 34% during the first five months of the current fiscal year.
Government capital expenditure rose nearly 30% in the first four months, while retail registrations turned positive in July.
Revenue at 14 large equipment companies may grow 11-13% in FY27, although operating margins could fall to 6-8%.
- Who
- India’s mining and construction equipment industry, including 14 large companies assessed by ICRA.
- What
- The industry is forecast to grow 8-10% in FY27 to around 150,000 units.
- Where
- India, with export activity also contributing to the recovery.
- When
- The forecast covers fiscal year 2026-27; recent indicators cover the first five months of the current fiscal year.
- Why
- Higher government capital expenditure, infrastructure funding, domestic demand and rising exports are expected to support growth.
Key facts
- FY27 volume forecast
- 8-10% year-on-year growth
- Expected FY27 volume
- Around 150,000 units
- FY26 volume change
- A 2% decline
- Domestic volume growth
- 14% in the first five months of the current fiscal year
- Export growth
- 34% in the first five months of the current fiscal year
- Revenue outlook
- 11-13% growth for 14 large MCE companies in FY27
- Margin outlook
- Operating margins expected at 6-8%, down from 8.4% in FY26
Sources
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