Budget 2026: Roads capex isn’t slowing—top plays for the run-up
Subscribe to enjoy similar stories. Ahead of Budget 2026, markets are positioning for continued heavy public capex in roads, railways, and energy, with clear sector-specific triggers and a strong thematic bid in related stocks.
As a “lead-up to budget", we shall highlight the current positioning of each of these sectors, with prominent listed plays in each space. In the run-up to Budget 2026, commentary from brokers and policy watchers converges on one core expectation: the government is unlikely to dilute its highway and logistics capex push, given its linkage to growth, job creation, and election-cycle commitments. The focus has shifted from only announcing new corridors to ensuring faster execution on Bharatmala, multimodal logistics parks, and last-mile connectivity to economic clusters. If we focus our attention on the commentary that is leading up to the budget, we can conclude that: • likelihood of sustained or mildly higher allocation to the ministry of road transport and highways, with emphasis on economic corridors, border roads, and expressways. • greater use of hybrid annuity model (HAM) and TOT/InvIT structures to recycle capital. On the ground, order inflows for key EPC players have remained healthy through FY25-26, supported by continuous tendering from the NHAI and state agencies.
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