New Delhi, Aug. 19 -- Infrastructure companies could see a recovery in margins from the second quarter of FY27 as project execution picks up and cost pressures ease, despite near-term margin pressure from higher input costs, a report by Centrum said.

The report said that while the near-term impact of higher costs has affected margins, companies have retained their FY27 outlook, indicating that the current pressure is expected to be temporary.

It stated, "Despite the near-term cost-led margin softness, companies broadly reaffirmed their FY27 guidance on revenue, margins and order inflows, with management expecting margin normalization from 2QFY27 onward".

The report said the infrastructure sector's performance in Q1FY27 was mixed, with ...