Indus Inf. Trust — Q4 FY26 earnings call

Call held 30 Apr 2026

Management summary

Indus Infra Trust reported strong Q4 FY26 results, with a DPU of INR 3.50 per unit, contributing to a full-year DPU of INR 13.50 per unit, surpassing guidance. The Trust expanded its asset portfolio by acquiring three HAM assets, bringing total AUM to over INR 9,400 crores, and provided an optimistic FY27 DPU guidance of INR 14. While facing increased finance costs and competition for acquisitions, the Trust remains committed to yield-accretive growth and disciplined capital allocation, including plans for significant AUM additions and an equity raise in FY27.

Highlights

  • Total DPU for FY26 amounted to INR 13.50 per unit, exceeding the initial guidance of INR 12.50 per unit.

  • Declared a DPU of INR 3.50 per unit for Q4 FY26, with a total distribution for the year aggregating to INR 597.97 crores.

  • Acquired 100% shareholding in three HAM assets from GR Infra projects, increasing total assets to 13 with AUM over INR 9,400 crores.

  • Provided a minimum DPU guidance of INR 14 per unit for FY27, indicating continued growth.

  • Successfully refinanced external debt in one SPV and availed additional borrowing of INR 1,326 crores.

Concerns

  • Standalone revenue for FY26 saw a fall due to lower dividend up-streamed by SPVs compared to the previous year.

  • Finance cost increased to INR 42.47 crores in Q4 FY26 due to additional borrowings.

  • Management acknowledged intense competition and challenges in finding good HAM assets in the market.

Key financials

3 periods

Headline

  • AUM
    ₹9,400 Cr
  • Trust Level External Borrowing (Mar 31, 2026)
    ₹3,688 Cr

Q4 FY26

  • DPU
    ₹3.5
  • Consolidated Total Income
    ₹208.12 Cr
  • Consolidated PAT
    ₹106.28 Cr

FY26

  • DPU
    ₹13.5

What they filed

Q1 FY27: revenue up 53.2%, net profit up 6.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue156 210 251 186 123 −21%179 −15%188 −25%285 +53%
EBITDA119 149 173 149 81 −32%117 −21%129 −25%214 +44%
Net profit104 119 147 121 59 −43%96 −19%106 −28%129 +7%
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.

Capital allocation

high confidence
  • Capex ₹2,639 Cr this quarter · ₹8,000 Cr (FY27) planned
    • Acquisition of three HAM assets from GR Infra projects ₹2,639 Cr
    • Targeted AUM addition for FY27 (including KNR and GR ROFO assets) ₹8,000 Cr
    In March '26, we acquired 100% shareholding in three HAM assets from GR Infra projects, namely GR Ena Kim Expressway Private Limited, GR Ujjain Badnawar Highway Private Limited, and GR Bilaspur Urga Highway Private Limited... So, I think we should be able to add on an incremental basis around INR8,000 crores to INR8,500 crores of AUM this year.
  • Debt Gross ₹3,688 Cr Cost 6.9%
    • New borrowing Additional borrowing availed during the last week of March 2026 to refinance external debt and unsecured debt in SPVs. ₹1,326 Cr
    • Refinance Refinancing of external debt in one SPV (GR Ena Kim).
    The total external borrowing at the Trust level as on 31st March 2026 stands at INR 3,688 crores as against INR 2,425 crores during the last quarter... The finance cost during the period was INR 158.18 crores, which is on account of increased borrowings from INR 1,750 crores in FY25 to INR 3,688 crores in FY26... Average cost has been basically in the range of 6.9% to 7%.
  • Dividend ₹3.5/share (interim)
    the Board of Directors of the Investment Manager in its meeting held yesterday declared a DPU of INR 3.50 per unit for Q4 FY26. This comprises interest of INR 1.01 per unit and return of capital of INR 2.49 per unit. The record date for the distribution is May 5th, '26.
  • M&A GR Ena Kim Expressway Private Limited, GR Ujjain Badnawar Highway Private Limited, and GR Bilaspur Urga Highway Private Limited Acquisition · Closed · Consideration ₹[object Object] (undisclosed)

    Aligned with core investment strategy of adding yield-accretive assets, extending asset life, and enhancing distribution visibility.

    In March '26, we acquired 100% shareholding in three HAM assets from GR Infra projects, namely GR Ena Kim Expressway Private Limited, GR Ujjain Badnawar Highway Private Limited, and GR Bilaspur Urga Highway Private Limited... During the quarter, as Amit mentioned earlier, we had completed the acquisition of three SPVS at an enterprise value of INR 2,639 crores.
  • M&A Four HAM assets from KNR Constructions Acquisition · Pending regulatory

    Aligned with core investment strategy of adding yield-accretive assets, extending asset life, and enhancing distribution visibility.

    As many of you are aware, we had signed an SPA in December '25 to acquire four HAM assets from KNR Constructions. We are targeting completion of these acquisitions at the earliest, preferably within this quarter itself, subject to fulfilment of all CPs.

Guidance & targets

Dividend

  • DPU Dividend · FY27 · High confidence INR 14
    Yes, Deep. So I think we can give guidance, and the guidance for FY27 is going to be almost INR 14 because tip this on the back of, new asset which we are going to acquire, which will happen of course during the maybe Q1 and Q2, and the annuities will start flowing from, second half onwards. So, I think the INR 14 is something which will be a minimum guidance for FY27.

    — Amit Kumar Singh

  • DPU Split Dividend · FY27 · Medium confidence 55-60% interest, ~40% capital repayment, 5-8% dividend
    So, ballpark it is going to be around say 55% to 60% will be interest and around 40% to maybe 40% odd percent will be say capital repayment and around maybe ballpark 5% to 8% is going to be dividend.

    — Amit Kumar Singh

AUM

  • AUM Addition AUM · FY27 · High confidence INR 8,000-8,500 crores
    I think we should be able to add on an incremental basis around INR8,000 crores to INR8,500 crores of AUM this year.

    — Amit Kumar Singh

  • Total AUM AUM · FY27 · Medium confidence INR 17,500-18,000 crores
    Yes, you can add maybe INR 8,000 on numbers what we have. So somewhere between INR17,500 to INR18,000.

    — Amit Kumar Singh

Capital Raise

  • Equity Raise Capital Raise · FY27 · High confidence INR 3,800-4,000 crores
    So to fund this around INR 8,000 crores to INR 8,500 crores or maybe INR 9,000 crores of the AUM, we'll have to raise, equity and that is going to be say around if you take around 40%, 45% of that, that should be somewhere around say INR 3,800 crores to INR 4,000 crores. That kind of equity raise we are looking to do in this fiscal itself.

    — Amit Kumar Singh

Acquisition

  • Equity IRR for Acquisitions Acquisition · Medium confidence 12-13.5%
    So, it's not same and it varies from maybe 12% to 13%, 13.5% depending on, how you're able to close it, crack it.

    — Amit Kumar Singh

  • Acquisition Impact on DPU Acquisition · High confidence DPU accretive
    Yes, I mean, this has been our investment philosophy that most of the acquisitions what we do would be DPU accretive for my existing unitholders. So, I think that is the philosophy we have, we started with and, we've been able to maintain that.

    — Amit Kumar Singh

What to watch in Q1 FY27

KNR HAM Assets Acquisition Completion

Q1 FY27
Current SPA signed in December '25, targeting completion in Q1 FY27
Target Completion of acquisition of four HAM assets from KNR Constructions

Why it matters

Completion of this acquisition will significantly expand the Trust's portfolio and contribute to the FY27 DPU guidance.

As many of you are aware, we had signed an SPA in December '25 to acquire four HAM assets from KNR Constructions. We are targeting completion of these acquisitions at the earliest, preferably within this quarter itself, subject to fulfilment of all CPs.

Risks & concerns

  • Supply of good HAM assets in the market

    medium

    Management noted a potential issue of having good HAM assets in the market, as large developers either have their own InvITs or have monetized cash.

    Management acknowledged

  • Intense competition for acquisitions

    medium

    Management stated there is intense competition for acquisitions due to many other InvITs and players evaluating assets.

    Management acknowledged

  • Lower dividend upstreaming from SPVs

    low

    Standalone revenue for FY26 was impacted by lower dividend upstreaming from SPVs compared to FY25, as SPVs had less profitability after initial operations.

    Management acknowledged

Q&A highlights

6 direct
FY27 DPU Guidance Direct
Yes, Deep. So I think we can give guidance, and the guidance for FY27 is going to be almost INR 14 because tip this on the back of, new asset which we are going to acquire, which will happen of course during the maybe Q1 and Q2, and the annuities will start flowing from, second half onwards. So, I think the INR 14 is something which will be a minimum guidance for FY27.

Analyst sought forward-looking DPU guidance, which management provided with rationale linked to new asset acquisitions.

Asked by Deep Vakil

DPU Split (Capital Repayment vs. Interest) Direct
So, ballpark it is going to be around say 55% to 60% will be interest and around 40% to maybe 40% odd percent will be say capital repayment and around maybe ballpark 5% to 8% is going to be dividend.

Analyst questioned the high capital repayment in Q4; management clarified the long-term expected split and explained the Q4 situation as using debt repayment for growth.

Asked by Deep Vakil

AUM Growth and Fundraising Plans Direct
I think we should be able to add on an incremental basis around INR8,000 crores to INR8,500 crores of AUM this year... that should be somewhere around say INR 3,800 crores to INR 4,000 crores. That kind of equity raise we are looking to do in this fiscal itself.

Analyst sought clarity on future AUM growth and funding, leading to specific targets for AUM addition and an equity raise.

Asked by Deep Vakil

Market for Road Assets and Competition Partial
So, in our case if you see, we have 13 assets now plus some third party, maybe acquiring five-six more assets, but even after that we would have a pipeline of almost you can say 10 to 15 more assets from GR and then of course, the third party also.

Analyst questioned the availability of good assets amidst competition; management acknowledged challenges but highlighted their internal pipeline and selective opportunities.

Asked by Sarvesh Gupta

Acquisition IRRs and DPU Accretion Direct
Yes, I mean, this has been our investment philosophy that most of the acquisitions what we do would be DPU accretive for my existing unitholders. So, I think that is the philosophy we have, we started with and, we've been able to maintain that.

Analyst confirmed management's commitment to DPU accretive acquisitions and sought clarity on target IRRs for new deals.

Asked by Sarvesh Gupta

NAV Increase Direct
I don't think NAV increased by INR 5 - INR 6, it would have increased by maybe around INR 1.5 to INR 2 and that's because, we added four more assets in last three months. So, December we acquired one asset and then we acquired three assets in March.

Analyst's perception of NAV increase was higher than actual; management clarified the actual increase and its drivers.

Asked by Sarvesh Gupta

Exploration of TOT Assets Direct
So, I think, once we grow to a size as we have already been maintaining, right, that once we grow to a size we'll have to start looking at or exploring TOT assets and we'll start doing that as well.

Analyst inquired about diversification into TOT assets; management confirmed future exploration as the Trust scales up.

Asked by Anand Mundra

Non-GR HAM Asset Pipeline and Competition Partial
See, that pipeline of course, it's not that we have a very very good pipeline, I want to be candid here because yes, there is an intense competition because of the other people are also evaluating, there's a and because of the lot of, other InvITs have also come up. But at the same time as I said that on the selective pockets you see opportunity.

Analyst probed the quality and competitiveness of the non-GR HAM asset pipeline; management acknowledged challenges but reiterated focus on yield-accretive opportunities.

Asked by Anand Mundra

2 min read 6 chapters

Detailed narrative

Q4 FY26 Performance and FY26 Overview

Indus Infra Trust reported a DPU of INR 3.50 per unit for Q4 FY26, comprising INR 1.01 interest and INR 2.49 return of capital. For the full FY26, the total DPU amounted to INR 13.50 per unit, exceeding the initial guidance of INR 12.50 per unit, with total distributions aggregating to INR 597.97 crores. Consolidated total income for Q4 FY26 was INR 208.12 crores, leading to a PAT of INR 106.28 crores. Standalone revenue for FY26 saw a fall due to lower dividend up-streamed by SPVs compared to the previous year.

Strategic Asset Portfolio Expansion

In March 2026, the Trust acquired 100% shareholding in three HAM assets from GR Infra projects for an enterprise value of INR 2,639 crores, increasing its total asset count to 13 with an AUM exceeding INR 9,400 crores. The Trust is also targeting the completion of four HAM asset acquisitions from KNR Constructions, for which an SPA was signed in December 2025, preferably within Q1 FY27. These acquisitions are aligned with the core strategy of adding yield-accretive assets and enhancing long-term distribution visibility.

Future Growth and AUM Targets

Management provided a minimum DPU guidance of INR 14 per unit for FY27, with annuities from new assets expected to flow from the second half. The Trust aims to add INR 8,000-8,500 crores to its AUM in FY27, which would bring the total AUM to INR 17,500-18,000 crores. This growth is expected to come from the KNR acquisitions, 5-6 GR ROFO assets, and potentially one more third-party asset.

Capital Allocation and Funding Strategy

To fund the planned AUM expansion, the Trust intends to raise INR 3,800-4,000 crores in equity this fiscal year. The total external borrowing at the Trust level stood at INR 3,688 crores as of March 31, 2026, an increase from INR 2,425 crores last quarter, with a consolidated figure of INR 4,602.88 crores. The average cost of debt is in the range of 6.9% to 7%, and the Trust aims to maintain its internal debt threshold at 63-65% of AUM, while keeping some headroom for immediate opportunities.

Industry Outlook and Acquisition Approach

The road infrastructure sector in India remains strong, with over 26,000 km awarded and 21,700 km completed under Bharatmala Pariyojana. Management noted that while there is intense competition for HAM assets, they focus on yield-accretive acquisitions with IRRs between 12% and 13.5%, ensuring DPU accretion for unitholders. The Trust also plans to explore TOT assets as it grows in size, potentially from FY27/FY28, to further diversify its portfolio.

Distribution Profile and Asset Management

The DPU split for FY27 is expected to be approximately 55-60% interest, 40% capital repayment, and 5-8% dividend. The Trust's assets have an average residual life of approximately 11.34 years, with outstanding annuities across project SPVs at INR 10,695 crores. Two assets, Phagwara-Rupnagar and Varanasi-Sangam, are scheduled for major maintenance this year, which has been factored into the DPU guidance to ensure stability.

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