Business · India Bureau
Mining, construction equipment sector set for 8-10% growth in FY27
The mining and construction equipment industry is projected to expand by 8-10 percent in fiscal year 2026-27, with unit volumes expected to touch 1.5 lakh units. However, rising steel costs and logistics expenses threaten to compress operating margins across the sector.
LSN India ·
India's mining and construction equipment sector is poised for steady expansion in the coming fiscal year, driven by continued infrastructure development and mining activity across the country. Industry volumes are expected to reach 1.5 lakh units in FY27, reflecting sustained demand for earthmoving machinery, drilling equipment, and related hardware.
The 8-10 percent growth trajectory aligns with broader infrastructure investments and increased activity in the mining segment. However, manufacturers face headwinds from elevated input costs that could pressure profitability. Rising steel prices, elevated logistics expenses, and costlier imported components are expected to weigh on operating margins for equipment makers during the period.
The dual challenge of maintaining growth momentum while managing margin compression will test the resilience of equipment manufacturers. Industry players are likely to focus on operational efficiency and cost optimization to protect their bottom lines amid the challenging input cost environment.
The sector's performance will also hinge on sustained government support for infrastructure projects and mining sector activity. Any moderation in these areas could impact the growth projections and further compress the already-squeezed margins facing manufacturers in the segment.