Page 16 - Construction_Opportunities_December_2025

COVER STORY

Across the industry, sales are driven by roads (40%), mining
A major highlight of our participation (25%), real estate (15%), and sectors such as railways, water
this time is EarthBrain, Komatsu’s Smart management, and power. Earthmoving machinery dominates the
Construction ecosystem that connects product mix (~70%), followed by material handling (12%), concrete
machines, people and jobsites in a single equipment (10%), road machinery (5%), and material-processing
digital environment. By using drone surveys,
IoT sensors, 3D terrain models, machine equipment (2%).
data and AI-based analytics, EarthBrain Domestic sales accounted for ~90% of FY25 volumes, with
creates a digital twin of the jobsite and exports making up the balance. In the first half of the fiscal, overall
helps infrastructure development companies volumes dipped 1% year-on-year, offset by a strong 35% export
plan more accurately, monitor work in real surge. Approximately 1,900 km of roads were completed in the first
time, optimise material movement and
improve safety. One of its most impactful six months of FY25, compared to ~3,700 km a year earlier, with last
capabilities is secure remote operation. At EXCON 2025, year’s performance also affected by an election-cycle slowdown.
visitors can experience this by operating a Komatsu hydraulic Crisil Ratings Senior Director Anuj Sethi notes that road
excavator located in Japan or another remote jobsite construction—a key demand driver—is expected to moderate to
thousands of kilometres away, directly from our stall, which 23–25 km per day this fiscal, compared to 25–27 km in FY25 and
clearly demonstrates how future worksites can be managed
more safely and efficiently. 34 km in FY24. Erratic monsoons, stabilizing real estate demand,
ARVIND K GARG, ADVISOR TO CHAIRMAN & MD, L&T and higher equipment costs have contributed to slower execution.
CONSTRUCTION & MINING MACHINERY, LARSEN & TOUBRO Faster awards and on-ground progress in the remainder of the
fiscal will be essential to support the government’s ~`11-lakh-crore
infrastructure outlay.
Revival of domestic demand next year will depend on
The Current CE Landscape sustained public spending and stronger private capex. GST
India’s construction-equipment industry is expected to report rate rationalization has had negligible direct impact, with CE
modest volume growth of 2–4% this fiscal and next—to around equipment retaining the 18% slab. With domestic demand largely
1.45 lakh units—reflecting subdued domestic demand from flat, the projected 2–4% volume growth will rely heavily on export
slower road execution, moderated real estate activity, and higher momentum.
equipment costs following the January 2025 CEV-V1 rollout. Strong Crisil Ratings Director Poonam Upadhyay highlights that CEV-V
export orders, however, continue to provide critical support. compliance—while increasing costs by 12–15%—has improved
Revenue growth of 6–8% is projected, aided by selective price product reliability and global acceptability. The 35% export surge
hikes that partially offset compliance-related cost pressures. in H1 FY25 was led by Africa and Latin America, but the new norms
Stable steel prices and robust overseas realizations will ease margin now open pathways to Europe, North America, and Japan. India’s
pressure from low-cost imports, restricting operating-margin ability to capitalize on these opportunities amid geopolitical
contraction to ~11% from ~12% last fiscal. Capital-expenditure realignments will determine the resilience and expansion of its
discipline is expected to keep leverage and credit profiles stable. export footprint.

16 CONSTRUCTION OPPORTUNITIES|DECEMBER 2025