Engram will be considered week-to-week, a source told ESPN's Adam Schefter.
Engram was hurt when he was hit low by Texans defensive back Kareem Jackson after a catch. Engram limped off the field after the 19-yard gain, his only catch of the day.
The second-year tight end was checked by the trainers and did some light sprints on the sideline. It looked as if he might return.
The Giants originally listed him as questionable to return before the final decision was made to keep him out for the remainder of the contest. Engram said it just "didn't feel right." He was wearing a brace on his right knee after the game.
Engram had nine catches for 85 yards and a touchdown coming into Sunday.
ESPN's Jordan Raanan contributed to this report.