NEW DELHI, Feb. 25 -- India's road construction pace is likely to slow over the next two years as weak project awards shrink developers' order books and weigh on execution, ratings agency Icra said on Wednesday.

Road building by the road transport and highways ministry is projected at 9,500-10,000 km in FY26 and 9,000-9,500 km in FY27, down from 10,660 km in FY25, Icra said in a sector note. The moderation reflects three consecutive years of lower project awarding.

Awards are estimated at 7,250-7,750 km in FY26, largely flat versus 7,538 km in FY25, but well below the levels seen between FY21 and FY23.

In the first eight months of FY26, awards fell 24% year-on-year to 1,951 km. While several projects are under bidding, awards are yet t...