Toll collections on national highways are predicted to increase by 6–8% in FY27, driven by growing traffic volumes despite modest toll rate hikes linked to inflation, according to a report by ICRA. The report also forecasts a 7–9% growth in toll collections for FY26, supported by a rise in traffic of 4–5% compared to the previous year. Inflation-linked toll rates are anticipated to climb approximately 3.3% for new projects tied to the December Wholesale Price Index (WPI) inflation and 2.5–3% for older projects linked to March WPI in FY27.
“The toll collection in FY27 may be affected by limited rate increases, but traffic growth is expected to benefit from a strong economic outlook,” mentioned Suprio Banerjee, Co-Group Head of Corporate Ratings at ICRA. A study by ICRA revealed that the introduction of annual FASTag passes had a minimal impact on toll collections, with initial issues being resolved as developers receive regular payouts from the authority. Despite a projected slowdown in road construction under the Ministry of Road Transport and Highways (MoRTH), toll revenues are expected to remain resilient.
The MoRTH is estimated to award road construction projects covering 7,250–7,750 km in FY26, a figure in line with the previous fiscal year. The report highlights that it typically takes 6–9 months from project awarding to on-ground execution, indicating that the slowdown in project awards could moderate execution levels in the short term. “With a focus on constructing expressways and high-speed corridors, the growth in road construction in terms of lane-km expansion is expected to be relatively stronger,” added Banerjee.
