A growth rate of 36.16% CAGR is projected for the road and highway industry. The road network acts as the lifeline of the country. There are several elements contributing to the massive expanse of Indian highways.
India’s massive population, paired with its exponential economic growth, requires an extensive road network connecting even remote areas. This ensures a decline in regional disparity.
Also read: Best Consumer Staples Stocks to Invest in India for 2024.
Road construction industry overview
The government plans to invest $1.4 Tn in infrastructural development by 2025. The sector is forecasted to testify a CAGR of 36.16%. In FY24, 12,349 kilometres of National highway was constructed in India.Â
The trends show a pinpointed focus of the government on the infrastructural overhaul of the country primarily through infrastructural development. It has rolled out over USD 10 billion worth of projects.
NHAI has also not stayed away from technological upgradation. It has adopted the Fully Digital initiative by enabling a unique cloud-based as well as Artificial Intelligence-powered Big Data Analytics policy.
Also read: SEBI halts C2C Advance Systems SME listing for auditor review.
Top road construction stocks in India
Curated below are the top road construction companies in India listed in the stock market. The corporations are ranked based on market capitalisation as of 20th March 2025.
Larsen & Turbo Ltd.
The group’s seven decades of versatility across many industries contribute to its dominance in the domestic EPC (engineering procurement construction) market. The corporation works on an array of initiatives, from straightforward manufacturing to intricate full EPC projects. The company enjoys a strong liquidity position. However, it is undergoing a working capital crunch.
IRB Infrastructure Developers Ltd.
IRBIDL was founded in 1998. The company has good connections with its stakeholders, including NHAI, the Ministry of Road Transport and Highways (MoRTH), and state government ministries. More than 15,000 lane kilometres of projects are either in operation or in development. With the inclusion of long-term operation and maintenance (O&M) contracts for three (Toll Operate and Transfer) TOT projects, the total order book increased to ₹34,800 crore.Â
Ircon International Ltd.
Ircon International Limited (IRCON) began operations as a railway manufacturing corporation in 1976. Since 1985, it has gradually expanded to become an integrated engineering as well as construction PSU with a focus on big, technologically complicated infrastructure projects in a variety of industries, including highways and railways.
Engineers India Ltd.
Originally founded to offer project management and engineering consulting services to the oil and gas industry, Engineers India Ltd. (EIL) has effectively expanded into the construction of roads and highways. The business is a useful partner for clients in the public and private sectors due to its proficiency in engineering and project management.
Reliance Infrastructure Limited
One of the biggest infrastructure firms, Reliance Infrastructure Limited (RInfra), develops projects using a variety of Special Purpose Vehicles (SPVs) in a number of high-growth industries, including the defence and infrastructure sectors, power, highways, metro rail, and airports. The company is involved in the generation, transmission, distribution, and trading of power. The corporation is a prominent utility company.
Dilip Buildcon
Dilip Buildcon was founded in 1987 and is the industry leader in the execution of EPC projects, with a primary concentration on road construction. The firm is headquartered in Bhopal, Madhya Pradesh, and is listed on the BSE and NSE. Under the NHAI, Dilip Buildcon and its strategic partner have started a highway project in Rajasthan.
PNC Infratech Ltd.
Incorporated in 1999, PNC Infratech is a pioneer in road construction. Large-scale projects like the Purvanchal Expressway, one of Uttar Pradesh’s most important infrastructure projects, have been completed by the corporation in the past. A few months ago, the Madhya Pradesh Road Development Corporation (MPRDC) awarded the PNC a hybrid annuity road project valued at ₹1,174 billion.
Afcons Infrastructure
Afcons Infrastructure Limited was established in 1959 and is headquartered in Mumbai. Afcons is a business that caters to the engineering and construction industries. Building infrastructure, including highways, bridges, metros, viaducts, ports, etc., is the company’s focus. Examples of Afcons Infrastructure’s projects include the Airoli Bridge and a 3-grade divider.
HG Infra Engineering Ltd.
The construction company H.G. Infra Engineering Limited (HGIEL) specialises in building roads, bridges, and highways. It was established in 2003 and is based in India. HGIEL essentially began carrying out civil construction projects, including railroads, site development, runway expansion and grading, and more.
NCC Infra
NCC Infra is a Hyderabad-based construction business that was founded in 2005. Roads, water, irrigation, housing, electricity, railroads, and power are just a few of the many infrastructural sectors it supports. With an excellent track record for completing large contracts on schedule, NCC Infra hopes to use every opportunity to transform road and transportation infrastructure across many countries.
Stock Comparison
The current market scenario of the road construction companies in India listed in the stock market as of 20 March 2025 is shown below.
| Name | Mar Cap ₹ Cr. | 5 Year Stock Price CAGR (%) | 1 Year Return (%) | Net Profit Margin (%) |
| Larsen & Toubro Ltd. | 460677.70 | 31 | -4.52 | 6.15 |
| IRB Infrastructure Developers Ltd. | 27700.89 | 51 | -14.96 | 15.67 |
| Afcons Infrastructure Ltd. | 17261.26 | – | – | 4.64 |
| Ircon International Ltd. | 15026.94 | 34 | -24.10 | 3.30 |
| NCC Ltd. | 12636.98 | 55 | -7.60 | 3.85 |
| Reliance Infrastructure Ltd. | 9415.96 | 88 | -4.82 | -2.38 |
| Engineers India Ltd. | 9096.61 | 23 | -7.23 | 14.22 |
| H.G. Infra Engineering Ltd. | 7029.65 | 44 | 20.44 | 9.10 |
| PNC Infratech | 6848.32 | 16 | -34.64 | 5.53 |
| Dilip Buildcon | 6790.28 | 11 | 16.27 | 3.33 |
Bottomline
Investing in the top road construction companies in India is like investing in India’s future. Given the rate of infrastructural development, the top stocks can be invaluable additions to your portfolio.
However, since it is the infrastructural sector, investors need to stay patient to see returns.
Also read: Adani Green shares slide 10% amid investment pause by TotalEnergies.
FAQs
1. Which stock is the best for road construction?
Larsen & Turbo is the best road construction company stock based on Market capitalisation. The group’s over seven decades of versatility across many industries, experience, and powerful brand all contribute to its supremacy in the domestic EPC market. The company works on a variety of projects, from straightforward construction to intricate full EPC projects.
2. Which listed company makes roads in India?
The trends show a pinpointed focus on infrastructural overhaul primarily through infrastructural development. Many companies are working with the government to construct roadways. Based on market capitalisation the top road construction companies in India are-
- Larsen & Turbo Ltd.
- IRB Infrastructure Developers
- Icron International Ltd.Â
3. Which construction share is best?
Based on market capitalisation Larsen & Turbo Ltd. tops the list of road construction companies in India listed in the stock market. The company enjoys a strong liquidity position. However, it is undergoing a working capital crunch.
4. What is the name of the National Highway stock?
The National Highway stock may indicate NHAI (National Highway Authority of India). It is listed on the stock exchange. NHAI is upheld by the Indian Parliament and overseas in the construction of the road network. It floats tenders and overseas successful completion of projects.
5. Is NHAI listed in the stock market?
NHAI is listed in the stock market. As of 27 November 2024, the stock has got a slight dip of 0.08% and is trading at a market price of 1069.12 on the Bombay Stock Exchange (BSE). It is listed on the stock exchange. NHAI is upheld by the Indian Parliament and overseas in the construction of the road network. It floats tenders and overseas successful completion of projects.
6. How do I evaluate the performance of road construction companies listed in the stock market?
The performance of road construction companies can be measured through fundamental and technical analysis of stocks. Fundamental analysis refers to analysing the financial statements of the company to evaluate its fiscal performance. Technical analysis measures the stock performance in the stock market. Investors and traders can also compare the performance of competitors.
7. How do I diversify my portfolio to minimize risk when investing in road construction companies?
Diversification is necessary to sustain the profitability of any investment. Investors can minimise the risk when investing in road construction companies by ensuring optimum diversification. Investors can diversify across industries. It implies that the portfolio basket should contain stocks of other industries as well. Investors can also diversify across assets like debt, ETF etc.
8. Which infra stock is best for the long term?
The stock market is prone to market volatility. However, market fluctuations often ease over time and the unstable market finds its equilibrium. The top ten stocks based on market capitalisation include companies like Reliance Infrastructure, Larsen&Turbo, IRB Infrastructure, etc. Market-leading companies can easily incorporate technical innovations and face the dynamic nature of the market.
