ICEMA Q1 FY26 Sales Report: Domestic CE Sales Down Nearly 5% YoY; Exports Rise Over 34%

The Indian Construction Equipment (CE) industry recorded total sales of 28,687 units in the first quarter of FY26 (April–June 2025), marking a marginal 1% year-on-year (YoY) decline and a sharper 30% quarter-on-quarter (QoQ) drop compared to Q4 FY25, according to the latest report from the Indian Construction Equipment Manufacturers Association (ICEMA).

Domestic sales fell by nearly 5%, reaching 24,809 units in Q1 FY26 compared to 26,020 units in Q1 FY25, and slightly lower than Q1 FY24 levels of 24,891 units. The slowdown was attributed to weaker demand in key sectors such as roads, highways, and mining, coupled with regional disparities in infrastructure activity.

Segment-wise domestic sales revealed mixed trends. Earthmoving equipment sales declined by 3.8% YoY to 17,021 units. Concrete equipment grew by 15% with 3,477 units sold. Material handling equipment fell by 24.5% with 2,673 units, while road construction equipment dropped 11.8% to 1,072 units. Material processing equipment rose 4.6% YoY to 566 units.

Exports showed stronger performance, increasing by 34.5% YoY from 2,882 units in Q1 FY25 to 3,878 units in Q1 FY26. All categories, except material processing equipment, recorded export growth.

Despite the subdued quarter, industry leaders expressed cautious optimism while highlighting the need for faster implementation of infrastructure projects.

V. Vivekanand, President, ICEMA and Managing Director, Caterpillar India Pvt. Ltd., noted that while some slowdown was expected due to seasonality, weaker demand in sectors such as roads and mining was concerning. He emphasised the need to accelerate infrastructure execution to help revive demand in upcoming quarters.

Deepak Shetty, President Designate, ICEMA and CEO & MD, JCB India Ltd., stated that the sales slowdown in key equipment categories reflects the pace of infrastructure activity. He pointed out that although government policy direction remains strong, project delays at the state level continue to affect planned outcomes. Addressing these issues, he said, will be important to sustain investment and progress.

Jaideep Shekhar, Convener, ICEMA Industry Analysis & Insights Panel and Vice President & Managing Director, Terex India Pvt. Ltd., added that the 1% YoY and 30% sequential sales decline highlights the impact of regional variation and buyer sentiment post-CEV Stage V implementation. He expressed hope for improved government push in project rollouts to support demand recovery.

The Q1 FY26 report, compiled by ICEMA’s Industry Analysis & Insights Panel, is based on data from member OEMs representing 95% of India’s construction equipment market and aims to provide actionable insights for industry stakeholders and policymakers.