Budget 2026: Infrastructure Push Likely to Rise; 5 Stocks That May Benefit Most
As anticipation builds ahead of the Union Budget 2026, market experts expect infrastructure spending to remain a key focus area for the government. According to Vinit Bolinjkar, increased capital expenditure could support economic growth, job creation, and help cushion the impact of global uncertainties, including potential pressure from US tariffs.
All eyes will be on Nirmala Sitharaman as she presents the Union Budget for FY 2026–27 on Sunday, February 1.
Budget 2026: Infrastructure Spending in Focus
In the Union Budget 2025, the government allocated a record ₹11.21 lakh crore towards infrastructure, marginally higher than the ₹11.11 lakh crore allotted in the previous year.
For FY27, experts expect the government’s capital expenditure (capex) to rise by 10–15%, potentially taking the total outlay to ₹12–12.5 lakh crore.
“Infrastructure is expected to remain the central theme in Budget 2026. Every ₹1 spent on infrastructure delivers an estimated ₹3 impact on GDP, making it critical for long-term economic resilience,” Bolinjkar said.
He also indicated that the budget could include a ₹25,000 crore fund aimed at reviving stalled infrastructure projects, which may benefit segments such as highways, urban development, and logistics.
Budget 2026: Key Expectations for the Infrastructure Sector
According to Bolinjkar, the upcoming budget may outline several long-term measures, including:
Sustained growth in government capex
Launch of National Infrastructure Pipeline (NIP) 2.0, covering 2026–2032, as a successor to NIP 2020–25
Expansion of infrastructure plans beyond the earlier ₹111 lakh crore framework to support emerging needs such as high-speed rail and logistics corridors
The government is also expected to provide clarity on its plan to monetise ₹10 lakh crore worth of underutilised PSU land banks by FY30, which could boost construction activity and new order inflows.
In addition, financing initiatives such as green bonds, credit enhancement mechanisms for bond markets, and land-value capture tools may improve funding access for large infrastructure projects.
Budget 2026: 5 Infrastructure Stocks to Watch for the Long Term
With expectations of higher infrastructure spending, Bolinjkar has identified five infrastructure-related stocks that could potentially benefit over the long term.
Larsen & Toubro (L&T)
Target Price: ₹4,849
L&T is entering a strong growth phase, supported by a record order book, operational efficiency improvements, and strategic exits from non-core assets.
Order book at ₹7.33 lakh crore, up 30% year-on-year
Near-term project pipeline of ₹5.92 trillion
Improved working capital efficiency, with NWC-to-revenue ratio reduced to 8.2%
Management has reiterated confidence in achieving 15% revenue growth and maintaining margins for the full year.
NBCC
Target Price: ₹167
NBCC operates an asset-light, consultancy-led business model and holds a dominant position in government redevelopment projects.
Order book at ₹1.28 lakh crore as of September 2025
Monopoly-like presence in GPRA redevelopment projects
Zero-debt balance sheet with negative working capital
The company is also expected to benefit from the PSU land monetisation programme planned through FY30.
IRB Infrastructure
Target Price: ₹87
IRB Infrastructure is one of India’s largest private road developers, with a significant presence in toll and highway projects.
44% market share in the toll-operate-transfer (TOT) segment
Asset base of nearly ₹94,000 crore across 13 states
Uses Infrastructure Investment Trusts (InvITs) to optimise capital and fund growth
Support from global investors further strengthens its long-term outlook.
Interarch Building Solutions
Target Price: ₹2,633
Interarch is the second-largest player in India’s pre-engineered buildings (PEB) segment, a market expected to triple by 2033.
Current order backlog of ₹1,634 crore
High repeat order ratio of 81%
Plans to expand manufacturing capacity to 200,000 MTPA by FY28
Despite expansion, the company remains debt-free, supporting financial stability.
HCC
Target Price: ₹64
HCC is undergoing a turnaround phase, backed by debt resolution and a growing project pipeline.
Order book of ₹13,152 crore as of September 2025
Strong presence in complex engineering, including nuclear and hydro power projects
Bid pipeline of nearly ₹57,000 crore for FY26
Management aims to further reduce debt through internal accruals and a rights issue.
Bottom Line
With infrastructure expected to remain a priority in Budget 2026, companies linked to construction, highways, urban redevelopment, and industrial infrastructure may stay in focus. While actual outcomes will depend on policy announcements and execution, analysts believe sustained government capex could provide long-term support to select infrastructure stocks.
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