New Delhi, Sept. 2 -- Road project awards by the National Highways Authority of India (NHAI) rose sharply in August, but a decline in construction and concerns over funding could limit the pace of activity in the road sector, Nuvama Research said in a report.

The NHAI awarded eight projects spanning around 95 km in August 2026, up 621 per cent year-on-year, compared with 13 km awarded in August 2025. However, awards declined from 127 km in July. Cumulatively, NHAI awarded around 329 km in FY27 so far, up 69 per cent year-on-year.

Nuvama said the increase in August awards needs to be seen against a backdrop of subdued awarding activity in recent years. The authority awarded 3,124 km in FY26, against 4,008 km in FY25, and missed its full-...