**Market Brief: Infrastructure Sector Surge Post-Budget 2026** **Union Budget 2026: Capex Hits ₹12.2 Lakh Crore** In a decisive move to sustain economic momentum, the Union Budget 2026-27 has hiked the capital expenditure outlay to **₹12.2 lakh crore** for FY27, marking a **~9% increase** over the previous year’s estimate. This record allocation reinforces the government’s decade-long push on core infrastructure, specifically targeting roads, railways, ports, and power transmission, creating immediate tailwinds for sector heavyweights. **L&T: Order Book at All-Time High** Larsen & Toubro (L&T) remains the prime beneficiary of the capex cycle. * **Record Order Book:** Consolidated order book stands at a massive **₹7.33 lakh crore** as of December 31, 2025, reflecting a **30% YoY growth**. * **Recent Wins:** The company secured **₹1.35 lakh crore** in new orders in Q3 FY26 alone, driven by renewable infrastructure, thermal power, and transmission projects. * **Revenue:** 9M FY26 consolidated revenue rose **12%** to ₹2.03 lakh crore, cementing its execution capability across domestic and international geographies. **Adani Ports: Volume Momentum Continues** Adani Ports and Special Economic Zone (APSEZ) data signals robust trade activity aligned with infrastructure expansion. * **Cargo Growth:** Handled **41.9 MMT** of cargo in December 2025, a **9% YoY increase**. * **YTD Performance:** Cumulative cargo handling for FY26 (Apr-Dec) reached **367.3 MMT** (+11% YoY). * **Container Segment:** Showed exceptional strength with **18% YoY volume growth**, outperforming broader market trends. **Mid-Cap Infra: Execution in Focus** * **IRB Infrastructure:** Reported strong asset monetization and traffic recovery. December 2025 toll revenue jumped **12% YoY** to **₹754 crore**, with key assets like the Mumbai-Pune Expressway delivering steady cash flows. * **KEC International:** The order inflow remains aggressive, with Year-to-Date (YTD) order intake crossing **₹18,000 crore**. Recent wins include a significant **₹1,150 crore** mandate in the Transmission & Distribution (T&D) space, supporting the national power grid upgrade narrative. **Sector Outlook** The increase in public spending to **₹12.2 lakh crore** provides long-term revenue visibility for construction and engineering firms. With L&T’s order backlog crossing historical milestones and port volumes rising, the sector is positioned for sustained earnings upgrades in FY27. Market sentiment indicates a continued re-rating for companies with strong execution records and low leverage.