An all-time high need for strong infrastructure is being driven by the ongoing economic expansion of India. 2025 might prove to be a profitable year to invest in infrastructure stocks. Did you know that by 2030, the construction sector is predicted to contribute 15% to India’s GDP and generate employment for more than 70 million people. The enormous development potential in this industry is highlighted by these astonishing numbers. Here is a detailed overview of the best infrastructure stocks to buy in 2025.
What are Infrastructure stocks?
Infrastructure stocks encapsulate ownership in enterprises dedicated to constructing and sustaining vital physical structures and systems. This includes developing and maintaining crucial elements like roads, bridges, utilities, and transportation networks.
Investing in these stocks offers a tangible stake in fostering societal development and maintaining the backbone of a nation’s fundamental infrastructure.
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Top 10 Infrastructure Stocks to Invest in 2025
Here is the list of the top 10 infrastructure stocks to invest in 2025:
- Larsen and Toubro Ltd
- JSW Infrastructure Ltd
- IRB Infrastructure Developers Ltd
- NBCC (India) Ltd
- KEC International Ltd
- Afcons Infrastructure Ltd
- Ircon International Ltd
- NCC Ltd
- Techno Electric & Engineering Company Ltd
- ITD Cementation India Ltd
Overview of Best Infrastructure Stocks to Invest in India
1. Larsen & Toubro Ltd
Founded in 1938, L&T excels in global technology, engineering, and construction. The company is present in 50 countries and has manufacturing facilities in 8 countries. Its business segment includes construction, carbonlite solutions, heavy engineering, shipbuilding, etc.
2. JSW Infrastructure Ltd
Part of JSW Group, this company is the second-largest private port operator in India, having a cargo handling capacity of 170 MTPA. JSW Infrastructure handles 10 ports in India and also has a liquid tank storage facility in the UAE.
3. IRB Infrastructure Developers Ltd
Indian firm IRB Infrastructure Developers Ltd specialises in road construction, managing EPC, operations, and maintenance. Divided into BOT/TOT for maintenance and Construction for development, they oversee 12,000+ lane kilometres across 22 assets.
4. NBCC (India) Ltd
NBCC (India) is a Navratna CPSE, which has three business segments: project management consultancy, engineering procurement & construction (EPC), and real estate development. It also has overseas operations in Nepal, Dubai, Mauritius, Maldives, etc.
5. KEC International Ltd
Part of RPG Group, this company is present in transmission and distribution, civil, transportation, renewables, and cables. Apart from India, it also has manufacturing facilities in Dubai, Brazil, and Mexico. Currently, it has more than 300 ongoing projects, and its supply chain spans 110 countries.
6. Afcons Infrastructure Ltd
Afcons Infrastructure is a leading infrastructure and construction company of the Shapoorji Pallonji Group. Its areas of operations include marine, surface transport, oil and gas, and urban infrastructure. Till now, it has completed 76 projects and has 67 ongoing projects.
7. Ircon International Ltd
Ircon International Limited excels in engineering and construction in railways, highways, tunnels, and diverse infrastructure sectors. Incorporated in 1976, this PSU infrastructure company covers the entire spectrum of construction activities and services.
8. NCC Ltd
NCC is a diversified construction and infrastructure company, having presence in buildings, transportation, water and environment, mining, and railways sectors. It has executed over 490 building projects, 20,000 kilometers of water pipelines, and completed electrification in more than 35,000 villages.
9. Techno Electric & Engineering Company Ltd
Techno Electric & Engineering Company Limited, an Indian power-infrastructure firm, specialises in EPC services, energy generation, and corporate services across the power sector. TEECL is working towards establishing data centres with a capex of $1 billion by FY 2030.
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10. ITD Cementation India Ltd
Incorporated in 1978, ITD Cementation is an engineering and construction company that works in heavy civil and EPC segments. From marine structures, airports, hydro power, to dams, highways, and bridges, it has a strong hold in executing projects across India.
Latest Performance of Top 10 Infrastructure Stocks
Here is the performance of the top 10 infrastructure stocks, including market price, returns, and key ratios:
*(Data as on May 15, 2025)
Overview of the Infrastructure Industry in the Indian Market
India’s pursuit of economic superpower status centres on robust infrastructure growth. The government, aware of its catalysing impact on the economy, consistently amplifies the capital expenditure budget. The investment in this sector is expected to grow from 5.3% of GDP in FY24 to 6.5% of GDP by FY29. In the Union Budget 2025, the infrastructure sector got a stable capital allocation of ₹11.21 lakh crores.
India is the world’s third-largest construction market in the world, with initiatives like the National Infrastructure Pipeline, Housing for All, PM GatiShakti, Cargo Terminals, and Smart Cities Project ushering in substantial opportunities for infrastructure expansion, aligning with the nation’s ambitious goals.
Advantages and Risks Associated with Investing in Infrastructure Stocks
1. Stability and Growth
Infrastructure, integral for economic development, ensures portfolio stability with sustained demand, displaying resilience amid economic fluctuations.
2. Government Support
Infrastructure projects benefit from government initiatives and funding, providing stability and predictability to investments.
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3. Long-Term Returns
Extended lifespans of infrastructure projects promise consistent returns over many years.
While the infrastructure sector appeals to investors, regulatory uncertainties, project delays, and economic fluctuations can impact returns. Additionally, dependence on government support poses potential challenges for investors.
Why Should You Invest in Infrastructure Stocks in India?
India’s economic growth is intricately tied to the vitality of its infrastructure sector. Despite a swiftly advancing economy, India faces a developmental gap in crucial areas like roads and railways.
The government’s proactive measures, particularly the production-linked incentive (PLI) schemes, herald a turnaround for infrastructure stocks. This strategic push catalyses GDP growth and addresses the pressing need for extensive infrastructure development in a dynamically growing nation, making it a suitable time for investors to capitalise on the sector’s potential.
How to Start Investing in Infrastructure Stocks?
SMC guides your investment journey, turning complexities into rewards within the dynamic infrastructure stocks sector.
Here are three easy steps to start investing in infrastructure stocks:
- Go to the SMC Global Securities official website or simply download the SMC ACE App
- Open a free demat account
- Start investing
Conclusion
In the dynamic landscape of 2025, investing in India’s thriving infrastructure sector emerges as a strategic opportunity for financial growth. The government’s unwavering commitment, evident through substantial budget allocations and progressive initiatives, positions infrastructure stocks as a cornerstone for stability and long-term returns. The top 10 infrastructure stocks showcased robust prospects in diverse sectors, enticing investors seeking a foothold in India’s ambitious growth trajectory.
As a reliable guide, SMC facilitates this investment journey, transforming complexities into rewards. As India charts its course towards economic supremacy, infrastructure stocks are a promising avenue for investors poised for success.
Author: All Content is verified by SMC Global Securities.
WHY SMC
- 20 Lac+ unique clients
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