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    Indus Inf. Trust

    INDUSINVIT
    Services·4 Feb 2026
    Management Summary

    Indus Infra Trust reported stable Q3 FY26 performance with a distribution of INR 3.40 per unit, bringing the 9-month cumulative distribution to INR 10 per unit. The Trust is actively pursuing portfolio expansion, having signed an SPA for 4 HAM assets from KNR Constructions and added one ROFO asset from GR Infra, with more GR Infra assets under evaluation. While interest income saw a slight dip and impairment was noted, the Trust maintains a strong focus on yield-accretive acquisitions and managing its cost of borrowing.

    Highlights

    5

    • Q3 FY26 distribution approved at INR 3.40 per unit, comprising INR 1.44 as interest and INR 1.96 as capital repayment.

    • Cumulative distribution for the 9-month period ended December 31, 2025, stands at INR 10 per unit.

    • Executed Share Purchase Agreement for acquisition of 4 HAM assets from KNR Constructions Limited, expected to increase InvIT life by 1.13 years.

    • Added one ROFO asset, GR Bahadurganj Araria Highway Private Limited, from GR Infraprojects Limited.

    • EBITDA (excluding impairment) for Q3 FY26 was INR 191.02 crores.

    Concerns

    3

    • Interest income on loans extended to SPVs decreased to INR 187.41 crores from INR 189.24 crores due to INR 56.31 crores in debt repayment by SPVs.

    • Impairment primarily due to difference between fair value and book value of investment, linked to repo rate cut.

    • Fall in 9-month FY26 revenue compared to FY25 due to lower dividend upstream by SPVs, as FY25 included release of encumbered cash.

    What Changed2

    vs Q4 FY26

    Guidance items7 → 6 (-1)Risks discussed3 → 4 (+1)

    Key financials

    Single quarter

    07 metrics
    1. 01Interest Income (Standalone)₹187.41 Cr-1.0%QoQ
    2. 02EBITDA (Standalone, ex-impairment)₹191.02 Cr
    3. 03Profit for the Quarter (Standalone)₹87.5 Cr
    4. 04Total External Borrowing (Trust Level)₹2,424.55 Cr
    5. 05Interest Cost on Borrowing₹39.87 Cr

    Capital allocation

    4
    high confidence
    CategoryHeadline
    Debt

    Gross ₹2,424.55 crores

    Dividend

    ₹3.4/share (interim)

    M&A

    4 HAM assets from KNR Constructions Limited

    acquisition · signed

    M&A

    GR Bahadurganj Araria Highway Private Limited

    acquisition · closed

    Guidance & targets

    6
    CategoryTargetPriority
    Profitability
    Equity IRR for GR assets
    around 12%
    		High
    Profitability
    Equity IRR for KNR assets
    a little higher than 12%
    		High
    Debt
    Cost of Borrowing Trajectory
    6.85% to 7.1%
    		High
    Debt
    LTV post acquisitions
    50%, 52%, 53%
    		Medium
    Dividend
    Dividend part of distribution
    not more than 10%, 15%
    		Medium
    Dividend
    Capital repayment part of distribution
    around 30%, 35%
    		Medium

    KNR Asset Acquisition Progress

    within this quarter (Q4 FY26)
    CurrentSPA signed for 4 assets; targeting 2 within this quarter
    TargetAcquisition of 2 KNR assets (Palani and Ramagiri) completed

    Why it matters

    Timely acquisition of these assets is crucial for portfolio expansion and yield accretion.

    So I think if that suppose done, then we should be acquiring those two KNR assets, which is KNR Palani and Ramagiri within this quarter.

    How to verify

    capital_allocation.m_and_a[target='4 HAM assets from KNR Constructions Limited'].status

    Risks & concerns

    4
    RiskSeverity

    Interest rate movements

    Management stated the need to remain mindful of interest rate movements. — Management acknowledged

    medium

    Execution timelines for acquisitions

    Management highlighted execution timelines as a factor to be mindful of for asset acquisitions. — Management acknowledged

    medium

    Quality of assets being acquired

    Management considers the quality of assets being acquired as an important factor. — Management acknowledged

    medium

    Capital market conditions

    Management noted capital market conditions as a factor to be mindful of, especially impacting cost of borrowing. — Management acknowledged

    medium

    Q&A highlights

    8

    “So the equity IRR for KNR as well as the GR assets, what we are looking, as we said, is basically yield accretive if you say it. And so like GR assets, what we acquired was in the range of around 12%, what we have been doing over the last, whatever, I think 7, 8, 9, now this is 10th asset what we acquired. This is in the same range and the KNR is a little higher than that.”

    Clarifies the expected returns from new acquisitions, indicating they are yield-accretive.

    asked by Sarvesh Gupta

    2 min read5 chapters

    Detailed Narrative

    01

    Q3 FY26 Financial Performance and Distribution

    Indus Infra Trust reported a standalone interest income of INR 187.41 crores from its SPVs for Q3 FY26, a slight decrease from INR 189.24 crores in the prior quarter, primarily due to INR 56.31 crores in debt repayment by SPVs. The Trust's EBITDA, excluding impairment, stood at INR 191.02 crores. For the quarter, the Board approved a distribution of INR 3.40 per unit, comprising INR 1.44 as interest and INR 1.96 as capital repayment, with a record date of February 6, 2026. This brings the cumulative distribution for the nine months ended December 31, 2025, to INR 10 per unit.

    02

    Strategic Acquisitions and Portfolio Growth

    The Trust is actively expanding its asset base, having executed a Share Purchase Agreement for the acquisition of 4 HAM assets from KNR Constructions Limited. These acquisitions are anticipated to be yield-accretive and are expected to extend the InvIT's life by 1.13 years. Additionally, Indus Infra Trust acquired one ROFO asset, GR Bahadurganj Araria Highway Private Limited, from GR Infraprojects Limited. Management is also evaluating a few more assets from GR Infra for potential acquisition before March 31, 2026, and exploring 2-3 other non-GR situations.

    03

    Borrowing Costs and Leverage Outlook

    As of December 31, 2025, the total external borrowing at the trust level was INR 2,424.55 crores, incurring an interest cost of INR 39.87 crores for the quarter. Management projects the cost of borrowing trajectory to be in the range of 6.85% to 7.1%, acknowledging market tightening. Post the announced acquisitions, the Loan-to-Value (LTV) ratio is expected to be around 50-53%, depending on the final number of assets acquired and any associated fundraising activities.

    04

    Macro and Sectoral Environment

    The operating environment for road infrastructure in India remains structurally strong, with significant expansion of the national highway network. Execution under Bharatmala Pariyojana has progressed steadily, with over 21,500 kilometers completed. The recently announced Union Budget for FY27 estimates a capex expenditure for FY26 at INR 12.2 lakh crores, with the roads and highway sector remaining a major component, underscoring continued policy commitment to infrastructure creation and regional economic development.

    05

    Future Distribution Composition

    Management provided insights into the future composition of distributions, indicating that for the year overall, the dividend portion is expected to be not more than 10-15%, while the capital repayment part is projected to be around 30-35%. This split is subject to the number of assets acquired and the freeing up of reserves, which could lead to higher dividend portions in particular quarters.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.