IndiGrid Trust — Q2 FY26 earnings call

Call held 12 Nov 2025

Management summary

IndiGrid Infrastructure Trust delivered a solid Q2 FY26, reporting a 2.6% YoY revenue growth and a 13.5% increase in NDCF. The company maintained its DPU guidance of INR 4 per unit, supported by strategic capital raises and new project wins. Despite a marginal dip in EBITDA due to one-off operational issues and lower solar collections, IndiGrid's balance sheet remains strong with improved net debt to AUM and a healthy project pipeline.

Highlights

  • Revenue for Q2 FY26 increased marginally by 2.6% YoY to INR 826.7 crores.

  • NDCF generated for the quarter was INR 362.9 crores, a 13.5% increase over Q2 FY25.

  • DPU declared for the quarter was INR 4 per unit, representing a 6.7% increase YoY and aligning with the full-year guidance of INR 16.

  • Successfully raised INR 438 crores via preferential allotment, improving net debt to AUM to approximately 60%.

  • Secured a second TBCB win for 125 megawatts of solar and 500 megawatt-hour of BESS projects.

Concerns

  • EBITDA experienced a marginal dip of 1.1% YoY due to one-off impacts from a solar turbine breakdown and a tariff true-up order.

  • Solar collections were 89% in Q2 FY26, a decrease from 117% in Q2 last year, with DSO days increasing to 51 from 47 in September 2024.

Key financials

  1. Revenue ₹826.7 Cr +2.6%YoY
  2. EBITDA Growth -1.1% -1.1%YoY
  3. NDCF ₹362.9 Cr +13.5%YoY
  4. DPU ₹4 +6.7%YoY
  5. AUM ₹32,500 Cr
  6. Net Debt to AUM (post pref issue) 60%
  7. Cost of Debt 7.4%
  8. Transmission Availability 99.7%
  9. Solar CUF 20.9%

What they filed

Q1 FY27: revenue up 29.4%, net profit up 228.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue836 772 874 840 827 −1%862 +12%2,240 +156%1,087 +29%
EBITDA759 692 710 696 714 −6%763 +10%889 +25%870 +25%
Net profit99 58 117 75 39 −61%100 +72%185 +58%246 +228%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹5,000 Cr

as of 2025-09-30 quantified

Inflow this quarter

₹460 Cr

Execution

EnerGrid projects to be acquired over the next 2 years

Composition

Mix 2 products
  • Solar 125 megawatts 20%
  • BESS 500 megawatt_hour 80%

Share of order book by product, derived from disclosed amounts

Pipeline

other

Market-wide pipeline for transmission and battery storage bids

IndiGrid has a known pipeline of signed projects worth INR 5,000 crores from EnerGrid to be acquired over the next two years, in addition to a recent TBCB win. The broader market also shows a healthy pipeline of INR 1,35,000 crores in transmission and BESS bids over the next 12-18 months.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • Acquisition of NERES XVI project ₹460 Cr
    In this quarter, we have signed one agreement, a definitive agreement to acquire a project called NERES XVI for an EV of about INR460 crores when the project is commissioned from Techno Electric.
  • Debt Gross ₹21,700 Cr Cost 7.4% · Maturity: Well-diversified and termed out borrowing to ensure not more than 10-12% comes up for refinancing annually.
    • Refinance Refinancing of INR 4-odd billion remaining for FY26, to be completed in next 2 quarters. ₹400 Cr
    Our weighted average cost of debt stands at an attractive 7.44%. Net debt to AUM stands at 61.4% and with the preferential issuance taking into consideration, it will be at around 60%. Out of the total gross borrowing of INR21,700-odd crores, 88% of the borrowings are in fixed rate nature, thereby insulated from highly volatile movements in interest costs. ...almost 71% of the borrowing book is in the form of NCDs, which are subscribed by various kinds of investors... And almost 30% of the book is provided by bank loans.
  • Dividend ₹4/share (interim)
    DPU, we declared a DPU of INR4 a unit... The record date for distribution is on November 14, 2025, and the tentative distribution date stands somewhere around November 21 or before that.
  • M&A NERES XVI Acquisition · Signed · Consideration ₹[object Object] (undisclosed)
    In this quarter, we have signed one agreement, a definitive agreement to acquire a project called NERES XVI for an EV of about INR460 crores when the project is commissioned from Techno Electric.
  • M&A EnerGrid projects Acquisition · Announced · Consideration ₹[object Object] (undisclosed)

    Growth of battery capacity and transmission assets.

    we are already signing contracts with EnerGrid for -- the EnerGrid already is executing one transmission project and two BESS projects. So we're going to acquire those projects over the next 2 years. So the growth of that itself is around INR5,000-odd crores.
  • Liquidity Cash ₹2,000 Cr Cash balance includes quarter 2 distribution plus DSRA and other balances.
    a cash balance of almost INR2,000-odd crores, which includes the quarter 2 distribution plus DSRA and other balances.

Guidance & targets

Dividend

  • Annual DPU Dividend · FY26 · High confidence INR 16
    So INR4 for the quarter continues to be in line with the annual DPU guidance of INR16 for fiscal year '25-'26.

    — Meghana Pandit

AUM

  • AUM growth AUM · next 5 to 6 years · Medium confidence double
    So I mean, I understand that this stays intact and the AUM is expected to kind of double in next 5 to 6 years.

    — Deep (analyst)

Fundraise

  • Capital raise Fundraise · next 12 months · High confidence INR 1,500 crores
    I think the Board has approved INR1,500 crores, we have made it public. So yes, over a period of total 12 months, we would look to raise INR1,500 crores. The exact timing and mode of issuances, I think, gets announced closer to the issuance when the decision has been made. But yes, we do plan to raise INR1,500 crores over next 12 months. Out of which first tranche is already raised.

    — Harsh Shah

Operational Performance

  • Transmission Availability Operational Performance · ongoing · High confidence at least 99.5%
    Asset management, again, continues to be a focus area to ensure we provide at least 99.5% of availability across the operational transmission portfolio and similar CUF levels on the solar portfolio as well.

    — Harsh Shah

  • Solar CUF Operational Performance · ongoing · Medium confidence similar levels

    — Harsh Shah

Portfolio Mix

  • Renewables share of portfolio Portfolio Mix · long-term · High confidence not beyond 30-35%
    So I don't think at any point in time, renewables will grow beyond 30-35% of our portfolio.

    — Harsh Shah

What to watch in Q3 FY26

Inclusion of DPU accretive acquisition slide

next quarter
Current Not included in Q2 FY26 presentation
Target Included in Q3 FY26 presentation

Why it matters

This slide provides specific details on how acquisitions contribute to DPU, which is a key metric for investors, and management committed to considering its re-inclusion.

I think certainly, we will add that. We used to add that in the past. We will consider when from next quarter probably.

Risks & concerns

  • Impact of extreme weather conditions and natural calamities

    medium

    Prolonged monsoons, thunder, lightning, and flooding in Gujarat and Maharashtra impacted solar availability and generation, and caused some trippings on transmission lines. Management noted that the overall impact was not material due to portfolio mix, force majeure clauses, and insurance.

    Management acknowledged

  • One-off operational issues impacting EBITDA

    low

    A solar turbine breakdown in Q1 (resolved in Q2) and a true-up petition tariff impact led to a marginal 1.1% YoY dip in EBITDA. Management stated these were one-off impacts and have been adjusted.

    Management acknowledged

  • Lower solar collections and increased DSO days

    low

    Solar collections were 89% in Q2 FY26, down from 117% in Q2 last year, and DSO days increased to 51 from 47. Management described this as a marginal and cyclical movement, not materially impacting the business.

    Management acknowledged

Q&A highlights

6 direct
Inclusion of DPU accretive acquisition slide in future presentations Direct
I think certainly, we will add that. We used to add that in the past. We will consider when from next quarter probably.

An analyst requested a specific slide for DPU accretive acquisitions, indicating investor interest in this metric, and management committed to considering it for future presentations.

Asked by Dhavesh Chandra

Plans for further fundraising in the near term Direct
I think the Board has approved INR1,500 crores, we have made it public. So yes, over a period of total 12 months, we would look to raise INR1,500 crores. The exact timing and mode of issuances, I think, gets announced closer to the issuance when the decision has been made. But yes, we do plan to raise INR1,500 crores over next 12 months. Out of which first tranche is already raised.

Management confirmed a board approval for a significant INR 1,500 crore fundraise over the next 12 months, with the first tranche already completed, signaling future capital deployment capacity.

Asked by Deep

Normalized EBITDA impact from one-off issues in Q2 FY26 Partial
I don't have that number exactly, but I can tell you that the cost plus true-up INR23 crores has an impact of last 10 years. So annualized impact is probably INR1-2 crores. It's just that 10-year impact is coming in the quarter, and that's why you see that number a little bit higher. ...rotator failure, I won't have the exact number, but we have about 40 days or 45 days in quarter 2.

Analyst sought clarity on the true impact of one-off events on EBITDA, and management provided an estimated annualized impact for the tariff true-up and duration of the rotator failure, but not a precise normalized EBITDA figure.

Asked by Deep

Historical trend of higher NDCF in H2 and its cyclical nature Direct
There is typically a trend that quarter 4 is high. And honestly, it's just that the economic activity in quarter 4 in the country is high. That means there's higher liquidity. Everybody wants to push for capex. So probably that's why we see higher collections coming in quarter 4. ...it's just a little bit cyclical nature. But if you can look at the numbers on Slide 10, it's marginal movement, right?

Management explained the cyclical nature of NDCF, with Q4 typically being higher due to increased economic activity and capex push, providing context for quarterly variations.

Asked by Deep

Future AUM composition and the dominance of transmission assets Direct
BESS for us is part of transmission business because Ministry of Power also classifies BESS depending on where it is located. ...So I don't think at any point in time, renewables will grow beyond 30-35% of our portfolio.

Management clarified that BESS projects are classified under transmission and reiterated that transmission will remain the dominant part of their AUM, with renewables not exceeding 30-35% of the portfolio.

Asked by Deep

Impact of current weather conditions and natural calamities on maintenance charges and solar availability Direct
I do feel that there is an impact of climate change in the entire country. We are seeing monsoons extending till October... our portfolio being only 25% on the solar, the overall impact has not been that material. ...First is our revenue is protected by way of force majeure clauses in our contracts, and therefore, we get paid. Second, we take sizable amount of insurance.

Management acknowledged the impact of climate change and monsoons on generation but assured that the overall impact on IndiGrid is not material due to portfolio diversification, force majeure clauses, and insurance coverage.

Asked by Shashank Sharma

Number of assets to be added given the improved debt to AUM ratio Direct
we are already signing contracts with EnerGrid for -- the EnerGrid already is executing one transmission project and two BESS projects. So we're going to acquire those projects over the next 2 years. So the growth of that itself is around INR5,000-odd crores. So those assets getting added over the next 2 years. That's something which is a known pipeline of projects that we have signed

Management highlighted a clear pipeline of INR 5,000 crores worth of EnerGrid transmission and BESS projects expected to be acquired over the next two years, providing visibility on future asset additions.

Asked by Shashank Sharma

2 min read 6 chapters

Detailed narrative

Q2 FY26 Financial Performance Overview

IndiGrid reported a Q2 FY26 revenue of INR 826.7 crores, marking a marginal increase of 2.6% year-on-year. Despite this, EBITDA saw a slight dip of 1.1% YoY due to one-off operational issues. However, Net Distributable Cash Flow (NDCF) demonstrated strong growth, rising 13.5% YoY to INR 362.9 crores. The company declared a DPU of INR 4 per unit, a 6.7% increase from Q2 FY25, aligning with its annual guidance of INR 16 for FY26.

Strategic Acquisitions and Capital Raising

During the quarter, IndiGrid signed an agreement to acquire the NERES XVI project for an enterprise value of INR 460 crores upon its commissioning. The company also successfully raised INR 438 crores through a preferential allotment, contributing to a healthier net debt to AUM ratio of approximately 60%. Furthermore, IndiGrid secured a second TBCB win for 125 megawatts of solar and 500 megawatt-hour of BESS projects, expanding its renewable energy footprint.

Balance Sheet Strength and Debt Profile

IndiGrid maintains a robust balance sheet with an attractive weighted average cost of debt at 7.44% and a net debt to AUM of 61.4% (reducing to ~60% post preferential issue). The total gross borrowing stands at INR 21,700 crores, with 88% in fixed-rate instruments, providing insulation from interest rate volatility. The borrowing book is diversified, comprising 71% NCDs and 30% bank loans, with a well-managed refinancing schedule ensuring no more than 10-12% of debt matures annually.

Operational Performance and Asset Management

The company reported a strong weighted average availability of 99.72% for its transmission assets and a solar CUF of 20.9%. Solar availability was 96.9%, though impacted by extreme weather conditions in Gujarat and Maharashtra, with some issues covered by insurance. IndiGrid continues to focus on strengthening self-reliant O&M capabilities through digital and AI-powered analytics to maintain superior asset performance.

Growth Pipeline and Future Outlook

IndiGrid has a clear growth pipeline, including the acquisition of EnerGrid's transmission and BESS projects valued at INR 5,000 crores over the next two years. The company's total battery capacity, including EnerGrid, will reach 2.1 gigawatt-hours. Management reiterated its long-term vision to double AUM in the next 5-6 years and maintain transmission as the dominant portfolio segment, with renewables not exceeding 30-35%.

Industry Trends and Market Opportunity

The power sector is experiencing significant growth, with peak demand reaching 229 gigawatts in Q2 FY26. IndiGrid sees a healthy market pipeline, with INR 28,000 crores in transmission bids and INR 12,000 crores in BESS bids concluded in Q2, and an estimated INR 1,35,000 crores in transmission and BESS bids expected over the next 12-18 months, indicating substantial opportunities for future expansion.

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