India’s infrastructure sector saw a 66% year-on-year surge in May 2026 tenders, crossing Rs 2.1 lakh crore, with L&T leading in contract wins across metals, highways, and real estate segments.
Furthermore, Larsen and Toubro was the top recipient of orders during the month, winning contracts worth a cumulative Rs 25,300 crore across segments including metals and mining, buildings and factories, hydrocarbons and power.
The numbers come after a subdued stretch in the second half of FY26 and marks a meaningful acceleration heading into the new financial year.
Tendering hits an 18-month high
Tendering activity in May 2026 came in at Rs 2.1 lakh crore, up 81% from April and well above the FY26 monthly average of Rs 1.41 lakh crore. Highways alone accounted for nearly half of all tendering at Rs 99,500 crore, three times the level seen in May 2025, the report said.
JM Financial noted that real estate was another standout segment in May. Tendering in the category rose 4.8 times year-on-year to Rs 25,500 crore.
The report noted that the surge was driven largely by a single mega project. The project involves the development of an integrated residential township at Airoli in Navi Mumbai.
The tender, issued by the City and Industrial Development Corporation of Maharashtra (CIDCO), was valued at Rs 21,500 crore. It was the largest tender announced during the month.
Buildings tendering, at Rs 17,800 crore, was the only major segment to see a year-on-year decline, falling 11%, the report added. NHAI was the largest tender issuer at Rs 38,600 crore, followed by CIDCO at Rs 21,600 crore.
Orders cross Rs 1 lakh crore
Order awards in May 2026 reached Rs 1.07 lakh crore, up 2.1 times year-on-year and 2.6 times from the previous month. The figure came in above the FY26 monthly average of Rs 94,700 crore, as per the report.
Apart from L&T, Afcons Infrastructure was second with orders worth Rs 5,400 crore, principally for offshore breakwater construction at the greenfield Vadhvan Port near Dahanu.
The largest single order of the month went to L&T: an EPC contract for blast furnaces, steel melt shops and critical process facilities across JSW Steel’s expansion projects, valued at Rs 12,500 crore, the report noted.
South Eastern Coalfields emerged as the most active awarder after JSW Steel, with contracts worth Rs 7,600 crore going to KNR Constructions and others for coal mining services in Chhattisgarh.
NHAI’s bid pipeline builds up
On the highways front, the bid pipeline improved materially month-on-month. As of June 4, the total highways bid pipeline stood at Rs 1.12 lakh crore, up from Rs 84,800 crore in May.
Of that, NHAI’s pipeline alone was Rs 88,200 crore, comprising HAM projects worth Rs 36,000 crore, EPC projects worth Rs 29,500 crore, and BOT projects worth Rs 22,700 crore, as per the report.
Delhi and Maharashtra together account for nearly half the NHAI pipeline by value, with projects worth Rs 22,400 crore and Rs 19,100 crore respectively.
The report further added that NHAI’s construction performance in FY26 exceeded its annual target. The authority completed 5,313 km of national highways against a target of 4,640 km, approximately 15% above plan, though that figure was still 13% lower than FY25.
Awarding, however, lagged at around 3,100 km against an initial target of 4,500 km.
Highway monetisation steps up
NHAI is also pushing ahead with its asset recycling programme. The authority raised around Rs 28,300 crore through asset monetisation in FY26 via a combination of InvIT structures and Toll-Operate-Transfer bundles.
For FY27, NHAI plans to monetise 28 operational highway stretches totalling 1,800 km, with a target to raise around Rs 35,000 crore through InvIT and TOT routes. Haryana and Uttar Pradesh account for the largest share of assets identified in the current monetisation pipeline, as per the report.
The report also noted that the government has also introduced a three-month relief package for national highway projects in Q1FY27 to offset rising fuel and material costs, which have been a recurring concern for contractors.
Key tenders of the month
According to the report, beyond the CIDCO township project, NHAI issued tenders for a six-lane greenfield highway from Ahilyanagar to Hasapur worth Rs 9,000 crore, and a BOT-Toll project for the Adgaon-Ahilyanagar stretch valued at Rs 7,600 crore.
In the power sector, NHPC issued tenders for the 1,720 MW Kamala Hydroelectric Project, covering diversion tunnels, the main dam and associated infrastructure, worth Rs 5,500 crore.
The Central Public Works Department tendered construction of Common Central Secretariat Buildings (Kartavya Bhawan 4 and 5) in New Delhi, worth Rs 3,200 crore including a five-year operations and maintenance contract, as per the report.
In railways, Noida Metro Rail Corporation issued a tender for an elevated viaduct and 10 stations for the NMRC Aqua Line extension, worth Rs 1,300 crore.
Bharatmala update
The report further noted that as of February 2026, approximately 26,425 km, or 76% of Phase-I of the Bharatmala Pariyojana highway programme, had been awarded, against a total phase target of 34,800 km. Construction had been completed on 22,223 km, or 66% of the target. Around 4,200 km remained under active construction.