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Mining and construction equipment sector to witness acceleration of new award activity in H2 FY26: ICRA
Jul-16-2025

Rating agency ICRA in its latest report has said that the mining and construction equipment (MCE) sector which reported a marginal volume decline in the first quarter of this fiscal year (H1 FY26), is expected to witness an acceleration of new award activity in the second half of this financial year (H2 FY26), especially led the government initiatives. 

According to the report, early arrival of monsoons and unseasonal rains in some regions disrupted the construction and mining activities in the first quarter, which is also reflected in the flattish production data reported by Coal India during this period compared to a year ago. The tepid new award activity and slowdown in road construction and Jal Jeevan Mission (JJM) projects has also hampered demand for the earthmover segment, which constitutes a bulk of the Indian MCE (mining and construction equipment) sector demand.

Further, the report said several industries are set to witness continued industrial and warehousing construction demand because of domestic market focus, thereby supporting volumes. ICRA projects the industry to display a muted year-on-year (YoY) volume growth of 2-5 per cent in FY2026, corresponding to volumes of 1.43-1.47 lakh units. 


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