ANANTAM - Anantam Highways

📊 NSE: ANANTAM 🏢 Road AssetsToll, Annuity, Hybrid-Annuity 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Revenue is derived from annuity payments from NHAI. The top three assets (NPHL, MBHL, and BMHL) are estimated to account for 50% of total inflows in FY2026P, while RHL contributes approximately 13% of total revenue.

Geographic Revenue Split

100% of revenue is generated within India, specifically from road projects located in states including Karnataka (DHHL, BMHL, MBHL), Telangana (RHL), Bihar (NPHL), Gujarat (DBHL), and Tamil Nadu (VHL).

Profitability Margins

The Trust maintains a robust cash flow cover with a projected average Debt Service Coverage Ratio (DSCR) of more than 1.7 times in base case assumptions. RHL witnessed a 17% deduction from its first annuity due to construction-related damages, though subsequent annuities (2nd and 3rd) had 0% deductions.

EBITDA Margin

While specific EBITDA % is not disclosed, the Trust maintains a cumulative DSCR of >1.7x. Cash flows are supported by fixed-price O&M contracts which protect against margin volatility in maintenance activities.

Capital Expenditure

The Trust finalized a term loan of INR 2,157.09 Cr for refinancing and deleveraging. Major maintenance (MM) is funded through a reserve equivalent to 25% (one quarter) of budgeted MM expenses.

Credit Rating & Borrowing

The Trust holds an [ICRA]AAA (Stable) rating. Borrowing costs are linked to floating interest rates, making cash flows sensitive to interest rate fluctuations on the INR 2,157.09 Cr term loan.

⚙️ Operational Drivers

Raw Materials

Road maintenance materials including bitumen, stone aggregates, and steel for repairs, representing the primary cost components within the O&M budget.

Import Sources

Sourced domestically within India, primarily from the states where the seven road projects are located (Gujarat, Karnataka, Tamil Nadu, Telangana, and Bihar).

Key Suppliers

Dilip Buildcon Limited (DBL) is the sole provider for operations and maintenance (O&M) and major maintenance (MM) under a fixed-price contract for the entire concession period.

Capacity Expansion

Current portfolio consists of 7 operational HAM assets (Tranche I) with a total debt of INR 2,315 Cr. The Trust initially planned for 9 assets with INR 3,300 Cr debt, indicating a potential future expansion of 2 additional assets.

Raw Material Costs

O&M and MM costs are fixed via contract with DBL, mitigating the risk of price escalation. The Trust maintains a liquidity cushion of INR 105 Cr to manage operational shortfalls.

Manufacturing Efficiency

Operational efficiency is measured by the track record of receiving annuities with an average delay of less than 30 days from NHAI.

Logistics & Distribution

Not applicable as the final product is road availability for NHAI.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The Trust intends to acquire additional road projects in the future. Growth will be funded through a mix of debt and equity, ensuring the consolidated leverage (LTV) remains below the 49% regulatory cap prescribed by SEBI.

Products & Services

Provision of operational road infrastructure under the Hybrid Annuity Model (HAM) to the National Highways Authority of India (NHAI).

Brand Portfolio

Anantam Highways Trust (AHT).

New Products/Services

Future acquisition of new HAM or BOT road assets to diversify the portfolio and improve cash flow granularity.

Market Expansion

Targeting additional NHAI-awarded road stretches across India to expand the current 7-asset portfolio.

Strategic Alliances

Strategic partnership with Alpha Alternatives Fund and Dilip Buildcon Limited (DBL) for asset sourcing and operational management.

🌍 External Factors

Industry Trends

The industry is shifting toward InvIT structures for capital recycling. Current trends show a preference for HAM projects due to lower traffic risk, with the sector evolving toward tighter regulatory oversight on leverage (49% LTV cap).

Competitive Landscape

Competes with other infrastructure investment trusts like IRB InvIT and IndInfravit for asset acquisitions.

Competitive Moat

The moat is built on long-term (15-year) concession agreements with NHAI, a [ICRA]AAA rated counterparty, and fixed-price O&M contracts that provide high cash flow visibility.

Macro Economic Sensitivity

Highly sensitive to interest rate cycles due to the floating nature of the project loans and inflation-linked O&M annuities.

Consumer Behavior

Not applicable as revenue is based on availability payments from NHAI rather than direct toll collection from consumers.

Geopolitical Risks

Low, as assets are domestic infrastructure projects with sovereign-linked counterparties.

⚖️ Regulatory & Governance

Industry Regulations

Operations must comply with NHAI's maintenance standards and punch-list requirements. Failure to meet these standards results in annuity deductions, such as the 17% deduction seen in the RHL project.

Taxation Policy Impact

Subject to InvIT tax pass-through status where distributions are generally tax-exempt in the hands of the trust, provided 90% of net cash flows are distributed.

Legal Contingencies

RHL has filed a claim with the authority for the recovery of a 17% deduction (approximately INR 15-20 Cr estimated) from its first annuity related to construction damages.

⚠️ Risk Analysis

Key Uncertainties

Potential for 10-15% deductions in annuity payments if O&M standards are not met or if there are delays in receiving final COD for the remaining 4 assets.