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E&C Orders Dip 23% in Q3FY26 Amid Delays
9 Jan
Summary
- Order inflows declined 23% year-on-year in Q3FY26.
- Approval delays and funding issues hampered sector growth.
- Orderbooks remain strong, ensuring revenue visibility.
Engineering and construction order inflows experienced a significant downturn in Q3FY26, registering a 23% year-on-year decrease. This performance was primarily influenced by extended approval timelines, challenges in land acquisition, and constraints on state-level funding. A high base from the previous year also contributed to the decline.
Despite the subdued inflows, execution is anticipated to improve sequentially due to seasonal trends and substantial existing orderbooks. Companies like Larsen & Toubro, KNR Constructions, and HG Infra Engineering reported modest project wins, though others faced muted demand. NBCC India, however, demonstrated positive momentum, particularly in real estate sales.
Overall, the sector's orderbook is projected to grow by 21% year-on-year by the end of Q3FY26. With a book-to-bill ratio of 3.5 times, this strong order pipeline ensures considerable revenue visibility for the coming periods, suggesting resilience despite current headwinds.
