Anantam Highways Trust Q4 FY26 earnings call

Anantam Highways Trust reported a strong Q4 FY26 with consolidated revenue of INR224.5 crores and an EBITDA of INR202.6 crores. The NDCF at the SPV level was INR220 crores, while at the Trust level, it stood at INR54.38 crores. The Board approved a distribution of INR2.50 per unit for the quarter, comprising INR0.4141 as interest, INR2.08 as dividend, and INR0.003 as other income. The net asset value (NAV) as of March 31, 2026, was INR115.80 per unit, reflecting the quality of the underlying portfolio.

The Board approved the acquisition of seven additional ROFO assets, which are expected to double the InvIT's size. These assets are aligned with the strategy of pursuing disciplined, accretive acquisitions to strengthen DPU sustainability and long-term NAV growth. The ROFO framework with Alpha Alternatives and Dilip Buildcon provides a differentiated growth engine with strong visibility. The acquisition will be at a discount to the external valuation and is expected to be NAV accretive, with 46-47% equity funding via share swap.

The InvIT maintains a conservative financial profile with a debt-to-EV ratio of approximately 42%, down from 44% at IPO, and holds AAA stable credit ratings. Management utilized cash flows from operations and IPO capital to reduce debt, creating headroom for future acquisitions. The cost of borrowing is currently 7.5%, and the company is in discussions with lenders to reduce spreads and secure lower rates for new borrowings, aiming for parity with other InvITs.

Anantam's distribution philosophy is guided by a total return framework, combining consistent distributions with growth through accretive acquisitions. While the current DPU of INR2.50 per unit is entirely taxable, management expects the composition to evolve over time^⏳ to include tax-free components. The company aims to create a platform capable of delivering longevity and consistency of returns across cycles, emphasizing value creation over short-term DPU targets.

Since listing, Anantam has focused on building an InvIT platform that inspires long-term investor confidence through transparency, disciplined disclosures, conservative financial management, and alignment of interests. The company highlighted its differentiated business model, run by a professional asset management platform with best-in-class O&M support from Dilip Buildcon, ensuring fixed-price contracts even for major maintenance.

India's infrastructure sector remains central to the country's economic growth. Anantam believes its operational infrastructure assets with predictable cash flows are increasingly attractive to both domestic and global capital. The company is strongly positioned to participate meaningfully in this opportunity, with a long-term mindset and a commitment to building a scalable and credible infrastructure investment ecosystem.