Top Infrastructure Stocks in India: A Guide for Investors 2025

List of Infrastructure Stocks in India 2025

Investing in top infrastructure stocks is the best way for investors to capitalise on India's rapid economic development. However, choosing the best infrastructure stocks in India is critical since companies with strong financial fundamentals, robust growth potential, and industry expertise are better positioned to leverage the sector’s growth potential. To help investors identify top infrastructure stocks that align with their investment objectives, we have curated an extensive list of the best infrastructure stocks in India. 

Data as of 2024

Top 5 Infrastructure Stocks to Consider

Infrastructure stocks not only provide exposure to stable and long-term growth but also offer diversification to an investor’s portfolio. Let us look at 5 of the best infrastructure stocks in India that investors can consider including in their portfolios. 

• Rail Vikas Nigam Ltd. 

One of the top infrastructure stocks in India, Rail Vikas Nigam Ltd. (RVNL) is a government-owned entity specialising in railway infrastructure projects. From track laying to electrification, RVNL plays a crucial role in modernising India's railway network. 

A key contender in the top 10 infrastructure stocks in India, the company has recorded an impressive 5-year sales and profit growth of 17% and 20% CAGR respectively. Additionally, RVNL’s low debt-equity ratio of 0.56 indicates it is not heavily reliant on debt. Investors looking for the best infrastructure stocks in India can consider RVNL for its strong financials, robust order book, and strategic government contracts.

• KNR Constructions Ltd.

KNR Constructions Ltd. is a leading player in road construction and urban infrastructure development. One of the many infrastructure stocks in India, the company’s ROCE of 19% and a low debt-to-equity ratio of 0.33 indicate a high level of financial stability and efficient capital management.

In terms of financial performance, the company’s operating profit margin (OPM) of 18.64% and 5-year profit growth of 23% CAGR are the highlights. With the Indian government’s emphasis on the National Infrastructure Pipeline (NIP), KNR Constructions is well-poised to capitalise on emerging opportunities, making it one of the top infrastructure stocks to consider for the long term.

• Techno Electric & Engineering Company Ltd.

Techno Electric & Engineering Company Ltd. specialises in power transmission and renewable energy solutions, making it a unique pick in the infrastructure stocks list. The company’s ROCE of 7% and zero-debt status make it financially robust, while its P/E ratio of 47.25 indicates a strong market valuation.

Although the 5-year sales and profit growth are moderate at 9% CAGR and 7% CAGR respectively, the company's niche expertise in power grid solutions and renewable integration make it one of the best infrastructure stocks in India. Investors can expect steady performance as Techno Electric scales up its renewable energy initiatives further.

• Ashoka Buildcon Ltd.

Another one of the top 10 infrastructure stocks in India, Ashoka Buildcon Ltd. is a diversified infrastructure company with expertise in road construction, power distribution, and real estate. The company’s high ROCE of 40% suggests exceptional efficiency in using capital to generate revenue. 

In terms of financial performance, the Ashoka Buildcon has registered an impressive 5-year profit growth of 66% CAGR. Combined with a dividend yield of 1.30%, the company offers investors a mix of stability and growth potential. Its consistent performance and strategic project execution justify its inclusion in the infrastructure stocks list.

• H.G. Infra Engineering Ltd.

H.G. Infra Engineering Ltd. specialises in highway and road construction projects, cementing its position among infrastructure stocks in India. With a remarkable 24% ROCE and consistent profit growth of 34% CAGR for 5 years, the company demonstrates strong financial performance. 

The company’s growth drivers include government initiatives like the Bharatmala Pariyojana and its robust execution of high-value urban infrastructure contracts. The low debt-equity ratio of 0.66 and P/E ratio of 17.78 make it a top choice among the best infrastructure stocks in India. 

An Overview of India's Infrastructure Sector

India’s infrastructure sector, which is critical for its economic growth, contributes significantly to the country’s GDP. The National Infrastructure Pipeline (NIP), launched in 2019, aims to mobilise ₹111 lakh crore ($1.5 trillion) for infrastructure development by 2025. It focuses on energy, transport, urban development, and water supply projects, reflecting the government's commitment to modernisation and job creation. 

The ambitious nationwide infrastructure development project, which aimed to capture around 6.835 projects when launched, has now grown to cover over 9.200 projects — spanning railways, roads and airports, among other sectors. This initiative is set to significantly boost employment opportunities and GDP. It also makes the top infrastructure stocks in India popular among investors. 

Private sector investment in this industry has also surged — contributing greatly to energy infrastructure, particularly in the renewable energy domain. Solar and wind energy projects are gaining momentum, and with projects like the Bhadla Solar Park, India is advancing toward a cleaner energy future​. Efforts to accelerate as private-public partnerships continue to play a crucial role​ in India’s infrastructure sector today.

What are the Benefits of Investing in India’s Infrastructure Sector?

Including the top infrastructure stocks in your portfolio could work to your advantage over the long term. Here are the most common benefits of investing in these stocks. 

• Long-term Growth Potential

As the country focuses on large-scale projects, investing in India's infrastructure sector could offer long-term growth opportunities. By adding the top infrastructure stocks to your portfolio, you can gain exposure to companies that will benefit from the nation’s continued push for infrastructure development.

• Diversification in Your Portfolio

The infrastructure sector in India offers diversification to investors by spreading risk across different sub-sectors like roads, railways, ports and energy. The best infrastructure stocks in India represent companies across these diverse areas. So, even if one segment faces challenges, others can potentially maintain their growth. 

• Government Support and Policy Boost

The Indian government has allocated substantial funds for infrastructure development under initiatives like ‘Make in India’ and ‘National Infrastructure Pipeline’. By investing in the top 10 infrastructure stocks in India, you can benefit from government spending that boosts demand for construction materials, machinery and energy today. 

• High Returns with Low Volatility

Infrastructure stocks in India have historically shown steady returns with relatively low volatility compared to other sectors. Due to their essential nature, infrastructure projects are less affected by short-term market fluctuations. If you focus on companies in the infrastructure stocks list, you may even find stable, income-generating options.

• Rising Demand for Modern Infrastructure

With rapid urbanisation and the growing need for improved transportation and energy solutions, India’s infrastructure sector is booming. As the demand for modern infrastructure continues to rise, the best infrastructure stocks in India are likely to see significant growth. They can help you capitalise on projects for urban development and industrial growth.

What are the Risks of Investing in Infrastructure Stocks in India? 

Investing in infrastructure stocks in India can be beneficial if you know how to find the most promising companies. However, there are some risks that you need to account for, such as:

• Regulatory and Policy Risks

Infrastructure projects in India are heavily influenced by government policies and regulations. Changes in these policies, delays in approvals or shifts in environmental regulations can all impact the timelines and profitability of infrastructure projects. If you are considering the top infrastructure stocks, you should account for how such changes could affect your investments.

• High Capital Requirements and Debt

Infrastructure companies often require significant capital investment, which could lead to high debt levels. If the company you want to invest in faces issues in managing its debt or securing funding for ongoing projects, it can negatively affect the stock performance. So, you need to evaluate the financial health of the best infrastructure stocks in India carefully, as high leverage can increase the risk during economic slowdowns or interest rate hikes.

• Economic and Market Fluctuations

The performance of infrastructure stocks in India is closely tied to the overall health of the economy. During economic downturns, government spending on infrastructure may slow down. This, in turn, could affect the revenues of companies in the sector. The top 10 infrastructure stocks in India may also face slower growth or even losses if the economy is hit by a recession or global market instability.

• Project Execution and Delays

Infrastructure projects often face delays due to factors like land acquisition issues, environmental clearances or unanticipated cost overruns. These delays can have a direct impact on the earnings of companies involved in such projects. So, even investing in the top infrastructure stocks carries some risk of such delays, which may result in lower-than-expected returns.

• Competitive and Market Risks

With numerous players vying for major contracts, the infrastructure sector is highly competitive. This intense competition can lead to pricing pressures and thin profit margins for many companies. If you want to invest in the best infrastructure stocks in India, you should be cautious about the market dynamics and competitive risks that could affect the profitability of these companies.

Investment Strategies for Infrastructure Stocks

To make the most of infrastructure stocks in India, you need to adopt suitable investment strategies. Here are some actionable tips that can help you leverage the opportunities offered by the infrastructure sector.

• Focus on Long-term Growth

Investing in infrastructure stocks requires a long-term mindset because infrastructure projects typically take years to develop and deliver returns. By identifying the top infrastructure stocks in India with a strong growth potential and a solid track record, you can benefit from the steady development of the infrastructure sector. A long-term strategy helps you ride out market fluctuations more effectively.

• Diversify Across Sub-sectors

The infrastructure sector in India includes a variety of sub-sectors like energy, transport, real estate and utilities, among others. To reduce your portfolio’s risk, it is advisable to invest in a mix of these areas. A diversified approach that includes a combination of the top 10 infrastructure stocks in India can help balance exposure to individual risks. It may also ensure that no single sub-sector's performance affects your entire portfolio.

• Monitor Government Spending and Policy Changes

Government policies play a significant role in the performance of infrastructure stocks. So, you should also keep an eye on public spending plans and policy reforms aimed at boosting infrastructure development in India. By focusing on the infrastructure stocks list of companies likely to benefit from initiatives like the National Infrastructure Pipeline, you can adjust your portfolios to align with new policy shifts and maximise potential returns.

• Invest in Dividend-Paying Stocks

Some of the best infrastructure stocks in India are known for paying consistent dividends, which provide the benefit of steady income along with potential capital appreciation. A strategy that focuses on dividend-paying infrastructure stocks offers the opportunity to earn passive income while benefiting from the sector’s growth. These stocks tend to be less volatile, making them a suitable choice if you’re a conservative investor looking for stability.

• Risk Management with ETFs and Mutual Funds

If you want to reduce the risks associated with individual stocks, investing in infrastructure-focused Exchange-Traded Funds (ETFs) or mutual funds can be an effective strategy. These funds typically invest in a broad range of infrastructure stocks in India — thus providing exposure to the sector while mitigating risks. By investing in these funds, you can gain access to the top infrastructure stocks without the need to pick individual winners.

A Model Portfolio of Infrastructure Stocks in India 2025

Building a portfolio of infrastructure stocks in India requires a strategic approach that balances growth, stability, and diversification. By investing in a mix of established and emerging players across various infrastructure segments, investors can maximise returns while mitigating risks. Here is a model portfolio curated by Samco Securities’ research team featuring some of the top infrastructure stocks.

Data as on 2024

A Detailed Overview of the Best Infrastructure Stocks in India 2025

Data as on 2024