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flag Construction firms face slow growth due to fewer projects, but rebound expected in 2026.

flag Construction firms in India face sluggish revenue growth of 2-4% in 2025-26, according to ICRA, due to reduced road project awards and a slowdown in water infrastructure construction. flag However, a rebound is expected in 2026-27 with 6-8% growth driven by higher government spending and an extended water project timeline. flag Diversified construction companies are forecast to outperform, while road-focused firms face margin pressure from rising input costs.

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