IndiGrid Trust — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

IndiGrid Trust delivered a strong Q3 FY26 with double-digit revenue and EBITDA growth, supported by new asset acquisitions and a successful INR1,500 crores equity raise. The company maintained high operational availability and declared a DPU of INR4, consistent with its annual guidance. While NDCF was muted due to working capital dynamics, IndiGrid continues to focus on value-accretive growth and optimizing its capital structure amidst a robust power sector outlook.

Highlights

  • Revenue grew 11.7% year-on-year to INR862 crores, driven by new project additions.

  • EBITDA increased by 13% to INR784.3 crores, reflecting strong operational performance.

  • Successfully raised INR1,500 crores through institutional placement, reducing net debt to AUM to 56.5%.

  • Declared a DPU of INR4, maintaining consistency with the full-year guidance of INR16.

  • Weighted average portfolio availability remained high at 99.77%, with solar CUF at 21.6%.

Concerns

  • Net Distributable Cash Flow (NDCF) for Q3 was muted at INR328 crores, primarily due to changes in working capital and collection timing.

  • Required utilization of INR52.7 crores from reserves to meet the quarter's distribution of INR381 crores.

Key financials

2 periods

Headline

  • Revenue
    ₹862 Cr
    YoY +11.7%
  • EBITDA
    ₹784.3 Cr
    YoY +13%
  • AUM
    ₹32,800 Cr
  • Net Debt to AUM (post-placement)
    56.5%
  • DPU
    ₹4
    YoY +6.7%
  • Portfolio Availability
    99.8%
  • Solar CUF
    21.6%
  • NAV per unit
    ₹146.4
  • Average Cost of Debt
    7.4%
  • Interest Coverage Ratio
    1.92×

Q3

  • NDCF
    ₹328 Cr

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

₹2,534 Cr

as of 2025-12-31 quantified

Inflow this quarter

₹2,534 Cr

Execution

expected to come 3 years from now

Pipeline

other

Under-construction portfolio across IndiGrid and EnerGrid, offering a predictable pipeline for future acquisitions.

The under-construction portfolio of INR7,500 crores, including EnerGrid assets, is not direct under-construction risk for IndiGrid as assets are acquired post-COD. The signed agreements for INR2,534 crores are expected to materialize into acquisitions in about 3 years.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Gross ₹21,000 Cr Cost 7.4% · Maturity: diversified and termed out borrowing profile, ensuring no more than 12-13% of gross borrowing matures in any particular year.
    • Refinance Remaining refinancing for the fiscal year ₹200 Cr
    On the gross borrowing of around INR21,000-odd crores, the mix between NCDs and bank loans stands at 72% and 28%, with a diversified debt investor across mutual funds, banks, corporates, provident funds and a mix of PSUs as well as private banks. The refinancing schedule that we see at the bottom of the chart shows a diversified and termed out borrowing profile.
  • Dividend ₹4/share (interim)
    DPU for the quarter is declared at INR4, in line with the guidance for this fiscal of INR16. On the collection and receivable days, the transmission assets portfolio had collections of 90% in Q3FY26 versus 100% year-on-year basis. But the days outstanding, DSO days stood at a very healthy 38 days as of December 2025 compared to 48 in December '24. ... The gross distribution for this quarter stands at INR381 crores with a record date of Feb 17th and tentative distribution around February 24th.
  • M&A Gadag Transmission Limited Acquisition · Announced · Consideration ₹[object Object] (cash)

    Expansion of transmission assets

    187 kilometers, 1,000 MVA capacity ISTS project in Karnataka.

    We signed SPA to acquire Gadag Transmission Limited from ReNew. It's 187 kilometers 1,000 MVA capacity, an ISTS project in Karnataka for approximately INR372 crores. We're expecting to close this transaction in this quarter.
  • M&A EnerGrid Battery Project (UP) Acquisition · Signed · Consideration ₹[object Object] (cash)

    Expansion into battery energy storage systems, with NVVN as counterparty.

    500-megawatt hour capacity battery project.

    We also signed definitive agreements with EnerGrid to acquire two of the under-construction projects after 1 year of commissioning its day one during the quarter. One of them was a battery project of 500-megawatt hour capacity in UP, with a counterparty as NVVN for an EV of approximately INR957 crores.
  • M&A EnerGrid ISTS Project (Madhya Pradesh) Acquisition · Signed · Consideration ₹[object Object] (cash)

    Expansion of inter-state transmission system assets.

    180 circuit kilometers and 4,500 MVA transformation capacity.

    And another, ISTS project in Madhya Pradesh, with 180 circuit kilometers and 4,500 MVA transformation capacity for an EV of approximately INR1,577 crores.
  • Liquidity Cash ₹1,659 Cr Cash balance includes DSRA and distribution for the quarter.
    Cash balance, again, including DSRA, including the distribution for the quarter stands at around INR16.59 billion and an interest coverage ratio of 1.92x.

Guidance & targets

Dividend

  • DPU Dividend · FY26 · High confidence INR16
    We give DPU guidance, which is intact by INR16.

    — Harsh Shah – Managing Director

Operational Performance

  • Portfolio Availability Operational Performance · Ongoing · High confidence at least 99.5%
    Resilient asset management, again, remains an important pillar where we focus on sustaining at least 99.5% of availability from the operational transmission portfolio.

    — Harsh Shah – Managing Director

Project Execution

  • Under-construction projects (INR7,500 crores) Project Execution · Next 3 months to 3 years · High confidence on track and delivered on time
    The Greenfield Development projects which are there between IndiGrid and EnerGrid, our focus is ensuring that, that execution of the augmentation work as well as the under-construction projects of INR7,500 crores continue to remain on track and we deliver on time.

    — Harsh Shah – Managing Director

What to watch in Q4 FY26

DPU Slide Disclosure

next quarter
Current Not provided in Q3 FY26 presentation
Target DPU slide to be included in Q4 FY26 annual presentation

Why it matters

The DPU slide provides crucial details on asset contribution and expansion plans, which analysts found important for understanding DPU trajectory.

So if you look at our last DPU slide you would have given in quarter 4 of '25, now we'll give in quarter 4 F '26. So it doesn't change quarter-on-quarter, but we will add that in the next quarter.

Risks & concerns

  • Quarterly Volatility in Transmission Collections

    medium

    Transmission collections were 90% in Q3FY26, lower than 100% last year, but management stated 12-month average is >100% and DSO days have improved.

    Analyst downplayed

  • Muted NDCF Performance

    medium

    NDCF for Q3 was INR328 crores, showing muted performance due to changes in working capital and collection timing, requiring reserve utilization for distribution.

    Management acknowledged

  • Interest Rate Fluctuations Impacting Future Acquisitions

    low

    Analyst raised concern that fixed-value agreements for future acquisitions could be impacted by interest rate changes, with management agreeing it could go either way.

    Analyst acknowledged

  • Asset Availability Issues (JKPTL)

    low

    A small asset (JKPTL) experienced availability issues, but management stated it's a very small percentage of overall assets (less than 0.75%) with minimal revenue impact, expected to return to normal in Q4.

    Analyst acknowledged

Q&A highlights

5 direct
Transmission Collection Rates and DSO Direct
I think on your first question, on Slide number 10, if you can have a look at it, you have to average on an annual basis. So the last quarter was 108%. Before -- quarter before that was 93% and before that was 115%. So if you really look at last 12 months, we've honestly collected more than 100%.

Analyst questioned the dip in transmission collections to 90%, but management clarified that the 12-month average was over 100% and DSO days had improved, indicating healthy collection efficiency.

Asked by Shresth Singhania

Absence of DPU Slide in Presentation Direct
Sir, you used to give the DPU slide in Q1FY26 and you've been giving that historically. But since last quarter and this quarter, I think it has been stopped. Can you please give that slide, it helps us understand what the existing asset will give and what is the expansion plan? It was a chart with multiple indicative DPU profile? ... So we don't give growth guidance. We give DPU guidance, which is intact by INR16. So that will continue. Growth that comes in the quarter 4 annual Board Meeting is when we do. And even the DPU projection typically we have done annually. So if you look at our last DPU slide you would have given in quarter 4 of '25, now we'll give in quarter 4 F '26. So it doesn't change quarter-on-quarter, but we will add that in the next quarter.

Analyst noted the absence of a DPU slide, which management confirmed is an annual disclosure and will be provided in the Q4 FY26 presentation, clarifying their DPU guidance of INR16 is intact.

Asked by Deep Vakil

Godawari Green Asset Operational Status and Revenue Recognition Partial
Okay. And sir, I think there is 1 asset which was non-operational, Godawari Green due to some transformer and generator failure. So I mean we have recognized the revenue for that. I mean we have not recognized a revenue loss for that. If I'm not mistaken, there was a similar asset where there was some generator failure last quarter or last to last quarter? ... It is a matter of fact, yes it is a factual position that I shared. And subsequently in July, the asset has started back on tax. So there is no second case. It is the same case which is repeated in the balance sheet for a matter of fact. Yes. There's nothing else that has happened. And on insurance part, I think it's an ongoing proceed. We are considering that we'll receive and there are positive developments. As and when we receive fully, we'll be recognizing that in the books of accounts. So you will get to realize that.

Analyst questioned the non-operational status and revenue recognition for Godawari Green, with management clarifying it's operational since July and revenue is recognized only when electricity is sold, with an insurance claim ongoing.

Asked by Deep Vakil

GR Infra MOU Expiry and Communication to Stakeholders Partial
Okay. Fair enough, Mr. Harsh. But we didn't hear about this agreement expiring and so maybe that is something that was a necessary communication to be sent out to stakeholders. Because you did announce the MOU, right? ... Fair enough. So I think it's just a point of view. We respect that. We will consider obviously the disclosures are typically we have to see in line with the terms of the agreement. So we'll go back and see if we are able to do it.

Analyst raised concern about the lack of communication regarding the expiry of the GR Infra MOU, to which management responded they would review their disclosure practices for non-binding agreements.

Asked by Sachin Jog

Under-construction Risk from EnerGrid Pipeline Direct
No, good point. So first, the INR7,500 crores includes EnerGrid assets. So we do not have -- this entirely is not our asset. So EnerGrid build these assets and subsequently sells to us after it is revenue-generating in operations. So under InVIT regulation, we are not allowed to cross 10%. ... This INR2,600 crores will come to IndiGrid when assets are revenue generating for 1 year. So it is probably going to come 3 years from now.

Analyst questioned if the INR7,500 crores pipeline represented excessive under-construction risk, but management clarified that IndiGrid acquires these assets post-COD, keeping its direct under-construction exposure below the 10% regulatory limit.

Asked by Sachin Jog

Missing DPU Accretive Figures for Acquisitions Partial
Previously, whenever there was an acquisition because I have been investing in IndiGrid for a long, long time, and there always be -- used to be a very clear figure as to how much the acquisition would be DPU accretive. So why is it that we don't have that figure in the later acquisition, the past two acquisitions that you had? ... I think a few reasons. One, we have found it sometimes an asset-specific accretion misleading because an individual asset, whether we show as funded in what manner. So what debt equity. So it becomes, I would say, extremely complicated for unitholders to make interpretation. However, in the press release, we still mentioned how much is the NDCF coming for that acquisition. So that data is still available. So you can refer to respective press releases.

Analyst noted the absence of DPU accretive figures for recent acquisitions, with management explaining they provide NDCF contribution in press releases and find asset-specific DPU accretion potentially misleading.

Asked by Sachin Jog

Bias Towards Institutional Investors in Fundraising Direct
No, there is no bias of retail versus institutional or otherwise. I think it is a pure strategy, for example, we have done a rights issue, if I'm not wrong, 4 years ago. So it's not that we have not done rights issue. We have done it, in 2021. However, what happens is for rights issue to succeed, we need to have 90% subscription. ... And that requires us to give discount to ensure that 90% subscription happened, which I don't think is in the right business decision for the business itself. So if there are unitholders who are valuing the unit, I'd say our institutional placement was INR163 rather than do a rights issue at INR155.

Analyst questioned the preference for institutional placements over rights issues, and management justified it by explaining the need for a discount in rights issues to ensure 90% subscription, which is not optimal for the business.

Asked by Sachin Jog

Bidding for Solar/Wind Projects Direct
Yes, we EnerGrid is an exclusive arrangement between IndiGrid, Norfund and BII for transmission and BESS projects. We are not exclusive on solar. And at this point in time, we have not bid for any solar or wind project. And I don't think there is anything in plan that we will expand in the next quarter or 2 and start bidding for solar projects.

Analyst inquired about IndiGrid's plans to bid for solar/wind projects, to which management clarified that EnerGrid's mandate is transmission and BESS, and IndiGrid has no immediate plans to enter solar/wind bidding.

Asked by Suneel

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Detailed narrative

Robust Financial Performance and Strategic Equity Raise

IndiGrid Trust reported a strong Q3 FY26, with revenue growing 11.7% year-on-year to INR862 crores and EBITDA increasing by 13% to INR784.3 crores. The company successfully raised INR1,500 crores through an institutional placement, which was oversubscribed by 2x. This capital infusion significantly improved the net debt to AUM leverage ratio from 61% to 56.5% post-placement, providing substantial headroom for future growth and acquisitions.

Expansion through Acquisitions and Strong Pipeline

The Trust signed definitive agreements for two EnerGrid projects, a 500 MWh battery project in UP for INR957 crores and an ISTS project in MP for INR1,577 crores, totaling INR2,534 crores, expected to be acquired post-COD within three years. Additionally, an SPA was signed to acquire Gadag Transmission for INR372 crores, anticipated to close this quarter. The combined under-construction portfolio for IndiGrid and EnerGrid stands at INR7,500 crores, supporting a potential AUM growth from INR32,000 crores to INR40,000 crores.

Consistent Distributions and Operational Excellence

IndiGrid declared a DPU of INR4 for Q3 FY26, aligning with its full-year guidance of INR16, representing a 6.7% increase over the prior year's Q3. The company maintained a high weighted average portfolio availability of 99.77% and a solar CUF of 21.6%. Collection efficiency improved, with transmission DSO at 38 days (down from 48 days) and solar DSO at 32 days (down from 50 days), contributing to better working capital management.

Optimized Capital Structure and Debt Management

The company's gross borrowing stood at approximately INR21,000 crores, with a diversified mix of NCDs (72%) and bank loans (28%). The average cost of debt was 7.41% as of December 31. IndiGrid ensures that no more than 12-13% of its gross borrowing matures in any given year, with most of the current fiscal's refinancing already completed, barring about INR200 crores. The company maintains AAA ratings from all three rating agencies.

Muted NDCF Performance and Reserve Utilization

Despite strong revenue and EBITDA growth, the Net Distributable Cash Flow (NDCF) for Q3 FY26 was INR328 crores, a muted performance primarily attributed to changes in working capital and the timing of collections. To cover the gross distribution of INR381 crores, IndiGrid utilized INR52.7 crores from its reserves, which now stand at INR520.7 crores, sufficient for 1 to 1.5 quarters of distribution on diluted capital.

Industry Tailwinds and Future Growth Opportunities

Management highlighted significant growth in the power sector, with peak demand reaching 241 GW and installed capacity at 514 GW. The draft NEP-2026 focuses on strengthening grid reliability and transmission planning. The increasing importance of energy storage, evidenced by 13 GWh bids under VGF and India's target of 100 GW of pumped storage, presents substantial opportunities. The overall transmission and BESS bid pipeline is estimated at INR157,000 crores, indicating robust future growth prospects.

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