New Delhi, July 22 -- ICRA has revised its revenue growth forecast for the Indian construction industry in FY2026 to 6 to 8 per cent, down from its earlier projection of 8-10 per cent.

According to the report by ICRA, this downgrade stems from sluggish activity in road projects and delayed execution in the Jal Jeevan Mission of the government.

However, the report highlights that despite these hurdles, a recovery is expected compared to the flat performance recorded in FY2025, driven by ramp-ups in urban infrastructure and irrigation segments.

The rating agency expects profitability in the sector to remain constrained, forecasting operating margins in the narrow range of 10.25-10.75 per cent for FY2026, marginally lower than 10.6 per ce...