Projected 6–8% Increase in Toll Revenue for FY27 Driven by Traffic Growth
Synopsis
Toll revenues on national highways are set to rise by 6–8% in FY27 due to an increase in traffic. Despite limited inflation-linked rate hikes, strong economic growth is expected to support this trend. Learn more about the implications for road construction and toll collections.
Key Takeaways
Toll collections expected to increase by 6–8% in FY27.
Traffic growth projected at 4–5% in FY26.
Inflation-linked toll rate hikes to be limited.
FASTag issues are being resolved; minimal impact on tolls.
Road construction growth may moderate.
New Delhi, Feb 25 (NationPress) Toll revenues on national highways are anticipated to increase by 6–8 percent in FY27, driven by traffic expansion, even with a decrease in inflation-linked toll adjustments, as revealed in a report on Wednesday.
According to the report from ICRA, toll revenues are projected to experience a growth of 7–9 percent in FY26, fueled by a traffic growth rate of 4–5 percent, a rise from 2.5 percent in FY25.
For FY27, inflation-linked toll rates are expected to increase by approximately 3.3 percent for new projects tied to the December Wholesale Price Index (WPI) and by 2.5–3 percent for older projects associated with the March WPI, the report further noted.
“While the toll collection in FY27 may be affected by limited rate hikes, the anticipated traffic growth is likely to benefit from strong economic growth,” stated Suprio Banerjee, Co-Group Head of Corporate Ratings at ICRA.
An analysis by ICRA indicated that the annual FASTag passes have had a minor effect on toll revenues. The initial challenges related to FASTag are being addressed, with most developers now receiving payments from the authority on a weekly basis, Banerjee mentioned.
The projected stability in toll revenues comes despite a forecasted slowdown in road construction under the Ministry of Road Transport and Highways (MoRTH), the report highlighted.
Road projects awarded by MoRTH are estimated to be between 7,250 and 7,750 km in FY26, similar to the 7,538 km awarded in FY25, as per the report.
ICRA also pointed out that it typically takes 6–9 months from the awarding of projects to the commencement of on-site execution (first billing milestone), suggesting that the decrease in awards is likely to keep execution levels subdued in the short term.
“With an increased emphasis on constructing expressways or high-speed corridors, the growth rate of road construction in terms of lane-km expansion is expected to be comparatively better,” Banerjee added.
Point of View
The forecasted growth in toll collections is a positive indicator of traffic inflow and economic activity. However, the impact of muted toll rate hikes could pose challenges. It is essential to monitor how this dynamic unfolds in the coming fiscal year.
NationPress
12 May 2026
Frequently Asked Questions
What is the expected increase in toll collections for FY27?
Toll collections are projected to rise by 6–8% in FY27.
What factors contribute to the growth in toll revenues?
The growth is primarily supported by traffic expansion and buoyant economic growth.
How will inflation affect toll rates in FY27?
Inflation-linked toll rates are expected to increase by about 3.3% for new projects and 2.5–3% for older projects.
What is the role of FASTag in toll collections?
FASTag has had a limited impact on toll collections, but initial issues are being resolved.
How is road construction expected to change in the near future?
Road construction growth is expected to moderate, but expressways and high-speed corridors may see better lane-km expansion.
