India’s Construction Equipment Sales Dip 5% in Q1 FY26; Exports Surge 34%

The Indian Construction Equipment (CE) industry recorded total sales of 28,687 units in Q1 FY26 (April–June 2025), reflecting a marginal 1% year-on-year (Y-o-Y) decline and a 30% quarter-on-quarter (Q-o-Q) drop from Q4 FY25. Domestic sales in Q1 FY26 stood at 24,809 units, nearly 5% lower compared to 26,020 units sold in Q1 FY25, and even lower than the Q1 FY24 figure of 24,891 units.

During Q1 FY26, the industry’s performance across most equipment categories reflected a broad-based slowdown, driven by subdued domestic demand — particularly in key end-use segments namely roads & highways and mining. Regional disparities further contributed to uneven demand for construction equipment, with some states experiencing a pickup in infrastructure activity while others saw significant deceleration, dampening overall market momentum.

Segment-wise Domestic Sales Scenario:

• Earthmoving Equipment: 17,021 units (-3.8% Y-o-Y)
• Concrete Equipment: 3,477 units (+15%)
• Material Handling Equipment: 2,673 units (-24.5%)
• Road Construction Equipment: 1,072 units (-11.8%)
• Material Processing Equipment: 566 units (+4.6% Y-o-Y).

Exports, however, provided a bright spot, registering a 34.5% year-on-year (Y-o-Y) growth — rising from 2,882 units in Q1 FY25 to 3,878 units in Q1 FY26. Except for the material processing equipment segment, all four other segments recorded strong growth in exports.

Industry Outlook and Concerns
Despite the challenging quarter, the industry remains cautiously hopeful. However, unless infrastructure execution and construction activity see a significant uptick, the next quarter may also prove difficult. The sector urges the Government to closely monitor the implementation of planned infrastructure projects, as these are crucial for sustaining demand in the CE space.

V. Vivekanand, President, ICEMA and Managing Director, Caterpillar India, said: “The Q1 FY26 performance marks a declining phase for the Construction Equipment industry, following a high-growth Q4. While part of the slowdown is not unexpected due to seasonality, the muted demand across key end-use sectors such as roads and mining is a cause for concern.

To maintain momentum, it is imperative that planned infrastructure projects regains the pace of execution. The industry remains committed to innovation, localisation, and sustainability, and looks forward to a stronger demand revival in the coming quarters.

Deepak Shetty, President Designate, ICEMA and CEO & MD, JCB India, stated: “The current slowdown in sales of earthmoving, material handling, and road construction equipment is an opportunity to closely assess the pace of on-ground infrastructure activity. These segments serve as key indicators of progress in the Construction Equipment industry and reflect the momentum of infrastructure development nationwide. The government’s strong policy intent and strategic vision are commendable. However, the slow pace of project implementation particularly at the state levels remains a concern, as it affects the timely realization of planned infrastructure outcomes. Addressing these execution challenges will be essential to unlocking demand, sustaining industry investments, and driving forward the transformative goals of Make in India and Viksit Bharat 2047.”

Jaideep Shekhar, Convener, ICEMA Industry Analysis & Insights Panel and Vice President & Managing Director, Terex India, added: “The 1% Y-o-Y dip in overall sales and 30% sequential decline underline the impact of regional inconsistencies in infrastructure activity and cautious buying sentiment post-CEV Stage V rollout. While exports offered some relief, domestic demand was uneven. The upcoming quarter will be critical, and we hope to see a stronger push from the Government in project implementation to revive demand across segments.”

Prepared by the ICEMA Industry Analysis & Insights Panel, the Q1 FY26 report is based on data from member OEMs representing 95% of India’s CE industry, offering credible and actionable insights for industry stakeholders and policymakers.