Revenue of large, diversified EPC firms to grow 9-11% in FY26: Crisil

Diversified engineering, procurement and construction (EPC) companies are likely to witness a modest rise of 9-11 per cent in revenue in the current financial year, according to Crisil Ratings.

The growth in revenues for large and diversified EPC firms is expected to be driven by steady growth in infrastructure capital expenditure, healthy order books and faster project execution, with a favourable shift in the order mix, Crisil Ratings said on Monday.

The Crisil Ratings study covered 15 EPC companies, which accounted for Rs 3.15 lakh crore in annual revenue during the previous fiscal year.

The fortunes of these companies are closely tied to the capital expenditure (capex) outlays of both government and private sector entities, it said in a statement, adding that infrastructure capex alone accounts for 75 per cent of India's total capex.

Additionally, a few EPC companies have also expanded overseas to tap opportunities in diverse infrastructure sectors.

"This fiscal, the total domestic infrastructure capital outlay is expected to grow 7-9 per cent, driven by steady budgetary allocation by the central and state governments and a moderate increase in private sector participation.

"The share of private investments is expected to rise to 11 per cent, up from 9 per cent in the previous fiscal, driven by the government's efforts to revitalise the build-operate-transfer model in the roads sector and increasing private investments in the renewable energy sector," Crisil Ratings Director Gautam Shahi said.