NEW DELHI: The Indian construction equipment (CE) industry witnessed a muted start to FY26, posting a marginal 1% year-on-year decline in total sales with 28,687 units sold in the April–June 2025 period. This compares to 28,902 units sold in Q1 FY25.
The latest quarterly data, compiled by the Indian Construction Equipment Manufacturers’ Association (ICEMA), reveals a broad-based slowdown across major equipment categories, even as exports surged to provide a bright spot amid otherwise sluggish market demand.
Market performance and segment insights
Domestic sales dropped nearly 5% year-on-year with 24,809 units sold versus 26,020 units in the same quarter last year. In contrast, exports rose robustly by 34.5% year-on-year, climbing from 2,882 units in Q1 FY25 to 3,878 units in Q1 FY26, driven by strong overseas demand for Indian-made equipment. Segment-wise, the numbers reflect the ongoing volatility in infrastructure project execution:
| Segment | Q1 FY26 units | YoY change |
|---|---|---|
| Earthmoving Equipment | 17,021 | -3.8% |
| Concrete Equipment | 3,477 | +15% |
| Material Handling Equipment | 2,673 | -24.5% |
| Road Construction Equipment | 1,072 | -11.8% |
| Material Processing Equip. | 566 | +4.6% |
“This slowdown gives us a chance to reassess the pace of infrastructure rollout, especially at the state level. Delays in project implementation continue to weigh on demand,” said Deepak Shetty, president designate, ICEMA and CEO & MD, JCB India.
Factors impacting demand
Industry stakeholders attribute the slowdown primarily to subdued activity in critical end-use segments, particularly roads, highways, and mining. Regional disparities further impacted demand, with some states recording a pickup in infrastructure while others lagged behind. Sector leaders flagged execution delays in government projects and the seasonal nature of construction activity as key contributors to the softer quarter.
V. Vivekanand, president, ICEMA, commented that the start of FY26 reflects a declining phase for the industry after a high-growth Q4, with muted demand in key sectors being a concern. He stressed the importance of expediting planned infrastructure projects to revive momentum in the coming quarters.
Industry outlook
While the current slowdown is seen as partly seasonal, the sector remains cautiously optimistic, citing innovation, localisation, and sustainability as ongoing focus areas. Citing credible data from OEMs that represent 95% of India’s CE industry, ICEMA analysts warned that unless infrastructure execution picks up, demand could remain challenging in Q2 FY26.
Industry leaders urged the government to closely monitor and accelerate the rollout of major projects as a means to sustain investments and deliver on ambitious national infrastructure goals.
