The financial year steady growth and 2025-26 marked a year of steady growth and strategic diversification for Markolines Pavement Technologies Limited (MPTL). The Company strengthened its position in highway operations and maintenance while expanding its presence in specialized construction and infrastructure. This progress was supported by disciplined execution, operational efficiency, technology-led capabilities and continued infrastructure development across India. During the year, the contribution from specialized construction increased from approximately 25% to approximately 35% of total revenues, reflecting the growing role of rehabilitation, maintenance and adjacent infrastructure opportunities in the Companys business mix.
According to the International Monetary Funds World Economic Outlook Update (July 2026), global growth is projected to moderate to 3.0% in 2026, before strengthening to 3.4% in 2027, compared with an average of 3.5% during 2024-25. The slowdown reflects the negative supply shock stemming from the conflict in the Middle East, although its impact is being partly cushioned by stronger demand from the global technology cycle, particularly investment driven by advances in and the adoption of artificial intelligence.
The effects of these competing forces are uneven across economies. Energy exporters outside the conflict zone and countries deeply integrated into the global technology value chain are expected to see relatively stronger activity, while energy-importing economies with limited exposure to the technology upturn are likely to face greater pressure. Global headline inflation is forecast to rise from 4.1% in 2025 to 4.7% in 2026, before easing to 3.9% in 2027. This marks a pause in the disinflation trend that has been underway since early 2024, largely reflecting higher energy and food prices. Average petroleum spot prices are projected at USD 89 per barrel in 2026, about 32% higher than 2025 levels, while natural gas and fertilizer prices have also been revised upwards.
Risks to the global outlook remain tilted to the downside, although they are more balanced than in the IMFs April 2026 assessment. A renewed escalation of the Middle East conflict could trigger further commodity price volatility, disrupt supply chains and tighten financial conditions. Other risks include deeper trade fragmentation and a potential correction in technology-driven asset valuations. On the upside, faster-than-expected normalisation of energy markets, stronger technology-related investment and renewed international trade cooperation could provide additional support to global growth.
Emerging market and developing economies are projected to grow by 3.8% in 2026 and 4.5% in 2027, continuing to outperform advanced economies, where growth is forecast at 1.7% and 1.8% respectively. Against this backdrop, the IMFs policy priorities centre on maintaining price stability through credible monetary policy, rebuilding fiscal buffers and implementing structural reforms to strengthen energy security and economic resilience amid continuing geopolitical and technological shifts.
According to the OECD Economic Outlook (June 2026), Indias real GDP growth is projected to moderate to 6.3% in FY2026-27 and 6.4% in FY2027-28, following estimated growth of 7.6% in FY2025-26. The moderation is expected to reflect higher inflation, softer private consumption and weaker investment amid elevated oil and gas prices and constraints on gas availability.
Despite these headwinds, economic activity remained resilient through the third quarter of FY2025-26, with real GDP expanding 7.8% year-on-year. However, softer industrial production and other high-frequency indicators point to some loss of momentum. Headline inflation is expected to rise to 4.8% in FY2026-27, driven by higher food, energy and fertilizer costs, as well as currency depreciation. The rupee has weakened by around 7% against the US dollar since the beginning of the year, increasing the domestic cost of imported fuel and fertilizers.
Indias significant dependence on Middle Eastern energy supplies leaves the economy particularly exposed to geopolitical and commodity-price shocks. Crude oil accounts for around 46% of total imports, while natural gas accounts for approximately 57%. Government measures, including lower excise duties on petrol and diesel and measures to prioritise natural gas supplies, have helped moderate the pass-through of higher international energy prices to domestic consumers. Nevertheless, the current account deficit is projected to widen to 2.1% of GDP in FY2026-27, as the increase in energy import costs outweighs the impact of softer domestic demand.
Against this backdrop, fiscal policy is expected to become more expansionary in FY2026-27, with energy-related support measures projected to widen the fiscal deficit by around 0.4% of GDP relative to the budgeted trajectory. On the monetary policy front, the OECD expects the Reserve Bank of India to raise its policy rate by around 25 basis points early in FY2026-27 to contain inflation within its 4% to 2% target band. As inflationary pressures ease, monetary policy is expected to become more accommodative again in FY2027-28.
Overall, India enters the period with relatively strong underlying growth momentum, but its near-term trajectory will depend increasingly on the evolution of global energy prices, geopolitical risks, currency movements and the pace at which private investment and domestic consumption regain momentum. The countrys road and highway infrastructure continue to expand, creating a sustained requirement for construction, operations, maintenance and rehabilitation services. The national highway network has increased from 91,287 km in March 2014 to 146,342 km, while the average pace of national highway construction has risen from 11.6 km per day in 2014 to 34 km per day in June 2025. The continued development of highways, expressways and access-controlled corridors is creating a large addressable market for specialised maintenance and pavement preservation solutions.
The Governments focus on infrastructure development, strengthening and widening of the road network, and increasing participation of the private sector in highway projects continues to support the long-term outlook for the sector. Due to wear & tear by usage, the highway assets require regular operations and maintenance which is recurring in nature. While increasing investment by Private Multinational Funds/InvITs in highway sector schemes such as HAM and TOT are supporting greater outsourcing of highway O&M to private-sector operators.
The scale of planned road development further reinforces the opportunity. The Ministry of Road Transport and Highways is developing 27 greenfield corridors covering 9,860 km at an aggregate capital cost of Rs. 4,22,851 crores. In addition, Bharatmala Poriyavati has covered 26,425 km of awarded projects, with 20,378 km constructed as of March 2025. These developments, alongside the continued growth of the highway network, are expected to support demand for maintenance, rehabilitation and specialised pavement technologies.
India has the second-largest road network in the world, and the continuing expansion of highways is accompanied by an increasing need to preserve and improve existing assets. The recurring maintenance cycle of roads, together with the development of new greenfield corridors and access-controlled highways, creates a huge opportunity across preventive maintenance, major maintenance and repairs, pavement rehabilitation and specialised construction.
The industry is also witnessing increasing participation from private-sector infrastructure funds, InvITs and international investors in highway assets. This is creating demand for professional operators with proven execution capabilities, technical expertise, strong safety standards and regulatory compliance. Markolines pavement technologies is positioned as a market leader in this market through its integrated highway operations and maintenance offering and its first-mover advantage in specialised technologies such as microsurfacing and Cold In-Place Recycling (CIPR).
Markolines pavement technologies delivered a steady financial performance in FY26, supported by higher revenues, continued execution and diversification into specialised infrastructure segments. Consolidated revenue from operations increased 13.35% year-on-year to Rs. 348.49 crore from Rs. 307.43 crore in FY25. EBITDA increased 8.74% to Rs. 48.54 crore, while EBITDA margin stood at 13.93% compared with 14.52% in FY25. Profit after tax (PAT) increased 15.46% to Rs. 26.23 crore from Rs. 22.72 crore, with PAT margin improving to 7.53% from 7.39%. Basic EPS increased 17.10% to Rs. 11.90 per share from Rs. 10.16 per share.
Over the FY22-FY26 period, the Company reported a revenue CAGR of -17%, EBITDA CAGR of -21%, PBT CAGR of -24% and PAT CAGR of -27% demonstrating the strengthening of its earnings profile over the medium term.
[Image: Photograph of a highway with a yellow gantry structure]
During FY26, Markolines pavement technologies continued to strengthen its position in highway maintenance while expanding its specialised construction portfolio. The Company has completed 128 lakh square meters of Microsurfacing work, 5,670 lane kilometers of Major Maintenance & Repairs (MMR), 1,37
1akh cubic metres of FDR/soil stabilization work in India and has 197.52 lane kilometres of CIPR experience, the highest in India. The Company has also executed 2.94 km of tunnelling work till date.
The Company operates across three principal business verticals: Highway Maintenance, Specialised Maintenance Services, and Specialised Construction Services. Its specialised maintenance capabilities include microsurfacing and other pavement preservation and maintenance solutions, while its specialised construction capabilities encompass soil stabilization/FDR, tunnelling and other infrastructure development activities. Leveraging its established expertise and capabilities in the highway sector, the Company has also expanded into other infrastructure development opportunities.
As of the end of FY26, the Company had an outstanding order book of over Rs. 600+ crores and active pipeline of approximately Rs. 2,000 crores.
The road sector offers recurring operations and maintenance (O&M) opportunities, with an established O&M cycle of approximately 5-7 years, providing a sizeable addressable market for the Company. Building on its established position in highway O&M, the Company intends to increase the average ticket size of projects, broaden its service offerings and expand its capabilities into adjacent infrastructure segments, while leveraging its core technical and execution expertise.
FY26 marked important progress on the Companys corporate and capital-market initiatives. Markolines pavement technologies successfully listed on the NSE Main Board on 14 October 2025, enhancing visibility, liquidity and investor accessibility. The Company had earlier migrated to the BSE Main Board, where it also witnessed an improvement in trading volumes and market participation.
The proposed amalgamation of Markolines Infra Limited with Markolines Pavement Technologies Limited progressed during the year. The scheme was submitted to the stock exchanges, clarifications were provided and Sohbaya Capital Options Limited was appointed as the Merchant Banker for the proposed merger. The amalgamation is intended to consolidate capabilities and support a more integrated platform for growth.
Earlier, the Company had issued convertible warrants to non-promoter investors. The same has been converted into an equity share strengthening its capital structure in this financial year.
Markolines pavement technologies has established expertise in road infrastructure and highway maintenance, supported by a strong portfolio of completed projects across national and state highways, an experienced execution team and long-standing relationships with clients and regulatory and government authorities. The Company offers in-house capabilities across routine and specialised maintenance and end-to-end solutions spanning planning, execution and asset management.
The Companys first-mover advantage in emerging pavement technologies remains a key differentiator. Markolines pavement technologies has built a market-leading position in microsurfacing and Cold In-Place Recycling in terms of quality and execution experience, while also developing capabilities in soil stabilisation. Its technology centre for pavement preservation, customer-centric approach, adherence to standard operating procedures and focus on Health, Safety, Security and Environment further support its competitive positioning.
The infrastructure sector remains exposed to changes in commodity prices, financing conditions, supply chains and geopolitical developments. For Markolines pavement technologies, fluctuations in the prices of raw materials and fuel can affect project cost structures, while delays in client payments can influence working capital and cash flows. Though company has escalation clause for all major raw materials in most of the agreements to mitigate the price variation impact. At the same time, increasing participation of private and international funds in Indian highway operations and maintenance is expanding the addressable market for professionally managed infrastructure services.
The growing emphasis on efficient asset management and pavement preservation also creates opportunities for technologies that extend road life and improve lifecycle economics. Markolines pavement technologies experience in microsurfacing, CIPR and FDR positions the Company to participate in this shift towards specialised and technology-enabled maintenance solutions.
Markolines pavement technologies operates in an industry exposed to execution, financial, operational, regulatory and market risks. The Companys key risks include dependence on government contracts and budgets, high capital and operating costs, delays in client payments, volatility in raw material and fuel prices, skilled workforce availability, natural disruptions and increasing competition.
The Company seeks to manage these risks through disciplined execution, established operating processes, experienced teams, contingency and risk-management practices, customer diversification, and close project monitoring. Its competitive advantages include strict adherence to standard operating procedures and ethical practices, 100% statutory compliance, a strong executive team and a focus on Health, Safety, Security and Environment. Contractual mechanisms, where available, can also help mitigate exposure to input-cost volatility.
Risk: The industry requires skilled and experienced manpower for the execution of specialised maintenance and construction projects. High demand for skilled personnel can create recruitment and retention challenges and may affect project execution if resources are constrained.
[Image: Photographs of construction equipment and site]
Mitigation: Markolines pavement technologies has an experienced operations and execution team, with low attrition. The Company places emphasis on standard operating procedures, safety, compliance and on-ground execution capabilities to maintain quality and operational continuity.
Risk: A significant part of the infrastructure ecosystem is linked to government policies, project awards and budget allocations. Changes in policy, project timelines or government spending could affect project availability and execution schedules.
Mitigation: The Company is diversifying across highway maintenance, specialised maintenance, specialised construction and also looking to enter other infra sectors such as marine, Sports etc. Its growing presence across private-sector funds, InvITS, municipal bodies and other institutional clients also support broader market participation.
Risk: Fluctuations in the prices of raw materials and fuel can affect project costs and profitability. Supply-chain disruptions and broader market volatility may further increase execution costs.
Mitigation: The Company monitors project costs and supply chains closely and, where contractually available, uses escalation provisions to manage changes in input prices. Its focus on operational efficiency and disciplined execution also supports margin protection.
Risk: Infrastructure execution requires adequate capital for mobilisation, specialised equipment, raw materials and day-to-day operations. Delays in client payments can increase working capital requirements and place pressure on cash flows.
Mitigation: Marklines payment technologies follows a disciplined approach to financial and operational management and has strengthened its capital structure through equity and warrant-related actions. The Company continues to focus on project execution, cash-flow management and maintaining adequate financial flexibility to support growth.
Risk: The infrastructure and allied services sector is attracting increasing participation, which can intensify competition and pricing pressure.
Mitigation: Marklines payment technologies seeks to differentiate itself through domain expertise, first-mover advantage in specialised pavement technologies, a broad service portfolio, established client relationships and proven execution capabilities. Its integrated highway &OM offering and experience across more than 5,670 lane kilometers MMR Executed of National Highway strength in its competitive position.
The Company operates in a business environment where strategic, operational, financial and compliance risks are inherent. Marklines payment technologies maintains a structured approach to risk management, supported by standard operating procedures, contingency and risk-management practices and a strong emphasis on statutory compliance.
The Companys stated competitive framework includes 100% compliance with statutory requirements, ethical practices and a focus on Health, Safety, Security and Environment. The Companys safety focus is also reflected in multiple certificates of appreciation for zero lost-time injuries, zero incidents, incident-free project execution and good HSE practices across projects. These practices support safe execution, regulatory compliance and stakeholder confidence.
Human capital remains an important enabler of Marklines pavement technologies growth, particularly as the Company expands into specialised construction and adjacent infrastructure segments. As of 31 March 2026, the Company had 322 employees. Its leadership and execution teams bring extensive experience across infrastructure, operations, project management, technology, finance and business development.
The Company places emphasis on maintaining an experienced and stable execution team, with management highlighting low attrition among team members. Its people practices are supported by adherence to SOPs, professional execution standards, safety practices, and a continuous focus on Health, Safety, Security, and Environment. As the business scales, strengthening talent and execution capabilities will remain important to supporting larger and more complex projects.
The outlook for Marklines pavement technologies remains positive, supported by Indias expanding road and highway network, continued government focus on infrastructure development, increasing participation of private and international funds in highway assets, and the recurring requirement for road maintenance and rehabilitation. The development of greenfield corridors and access-controlled highways is expected to create opportunities not only in construction but also in the subsequent maintenance and preservation of infrastructure assets.
The Company enters the next phase of growth with an unexecuted order book of more than Rs. 600 crores, an active pipeline of nearly Rs. 2,000 crore and a broader service portfolio. The increasing contribution of specialized construction including other infra sector orders, provides an additional growth avenue beyond the Companys core highway &OM business.
Management remains confident in the Companys ability to achieve nearly three-fold growth in revenue, accompanied by a commensurate scale-up in profitability, over the coming years. The Companys key strategic priorities remain focused on expanding its service portfolio, pursuing larger and more complex opportunities, increasing the average ticket size of projects, and extending its capabilities into adjacent infrastructure segments, while continuing to leverage its technology-led execution capabilities. Supported by its established market position, first-mover advantage, diversified capabilities and strong execution track record, Marklines pavement technologies is well positioned to capitalize on the long-term growth opportunities arising from Indias expanding infrastructure ecosystem.
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