According to Crisil Ratings, India’s construction equipment sector is projected to achieve modest growth of 2-4% in volumes during FY25 and FY26, influenced by subdued domestic demand stemming from a slowdown in road construction and a decline in real estate activity. Nonetheless, revenue is expected to increase by 6-8% each year, bolstered by targeted price increases that balance out rising compliance expenses. The report mentioned that stable steel prices and strong export earnings will help mitigate pricing pressures from low-cost imports, maintaining operating margins relatively stable at approximately 11%, compared to 12% last year. Crisil's examination of 17 key manufacturers, accounting for almost three-quarters of the market, showed that managed capital spending will uphold steady leverage and credit standings. The expansion of the industry continues to be mainly associated with infrastructure areas like roads, mining, real estate, railways, and energy. Earthmoving equipment remains the leader, representing 70% of total volumes, with material handling at 12%, concrete machinery at 10%, and road and processing equipment at 7%. In FY25, domestic sales accounted for 90% of total volumes, highlighting the industry's dependence on local demand, while exports still provide a stabilizing effect during cyclical changes in domestic infrastructure investment.