Tuesday, July 8: India’s highway toll collections have reached an unprecedented high in the first quarter of fiscal year 2026 (Q1 FY26), surging by 19.6% year-on-year to ₹20,681.87 crore. This marks a significant increase from ₹17,279.86 crore recorded in Q1 FY25. The robust growth is attributed to a combination of factors, including a lower base from the previous year, the implementation of increased toll rates, and the addition of new toll roads to the network.
User Volume Up, Economic Activity Improves
Data from the National Electronic Toll Collection (NETC) system, primarily driven by FASTag, reveals a notable 16.2% increase in the number of toll users during the April to June 2025 period. The user count rose to 1,173.30 million from 1,009.87 million in the same period last year. This surge directly reflects increased vehicular movement and a broader pick-up in economic activity across the country. The widespread adoption of FASTag has significantly contributed to the efficiency and transparency of toll collection, reducing congestion at plazas and minimising revenue leakage.
Monthly Breakdown Highlights Steady Uptick
The monthly breakdown of toll revenue for Q1 FY26 demonstrates a consistent upward trend compared to the corresponding months in the previous fiscal year:
- April 2025: ₹6,801.3 crore (vs. ₹5,592.3 crore in April 2024)
- May 2025: ₹7,087.2 crore (vs. ₹5,907.7 crore in May 2024)
- June 2025: ₹6,793.4 crore (vs. ₹5,779.8 crore in June 2024)
This consistent performance across all three months contributed to the record quarterly total of ₹20,681.9 crore in 2025, a substantial rise from ₹17,279.9 crore in 2024.
Government Optimistic About Full-Year Collection
With this strong momentum, government officials are optimistic that toll collections could surpass ₹80,000 crore for the first time in a fiscal year, exceeding FY25’s total of ₹72,931 crore. An official noted that ongoing improvements in road infrastructure and the government’s continued focus on accelerating road construction are key drivers for higher road usage and, consequently, increased toll income. The government’s ambitious projects like Bharatmala Pariyojana are enhancing connectivity and freight efficiency, further boosting toll revenues.
Annual Toll Rate Revision Supports Growth
Further contributing to the revenue growth, toll charges were revised upwards by 4–5% beginning April 1, 2025. This annual adjustment by the National Highways Authority of India (NHAI) is linked to the wholesale price index (WPI) inflation, ensuring that toll rates keep pace with economic indicators.
Future Outlook
The robust growth observed in highway toll revenue during Q1 FY26 is a strong indicator of recovery and expansion in road travel. This positive trend is significantly aided by continuous infrastructure upgrades and favourable policy changes, such as the mandated use of FASTag across national highways, which ensures seamless and cashless transactions. If the current pace continues, fiscal year 2026 is well-positioned to set new records in overall toll revenue generation, reflecting a healthy and growing road transport sector in India.