💰 Financial Performance

Revenue Growth by Segment

Annuity receipts for the HAM road segment stood at INR 523 Cr in Q2 FY26, which was in line with management estimates. The trust targets a 60% growth in Asset Under Management (AUM) from INR 4,282 Cr to approximately INR 6,800 Cr by FY26.

Geographic Revenue Split

The portfolio is diversified across 7 states, with no single HAM asset contributing more than 25% to the total income of the InvIT, ensuring highly fungible and stable cash flows.

Profitability Margins

The trust maintains healthy debt protection metrics with an average Debt Service Coverage Ratio (DSCR) of 1.75x (ranging between 1.6x and 1.8x) for the existing portfolio over the debt tenor.

EBITDA Margin

Net Distributable Cash Flow (NDCF) for Q2 FY26 was INR 103.6 Cr. The trust declared a Distribution Per Unit (DPU) of INR 3.25 for the quarter, contributing to a cumulative DPU of INR 30.8 since inception.

Capital Expenditure

Planned acquisition of three additional HAM SPVs from GCL (Jodhpur Ring Road, Hasanpur-Bakhtiyarpur, and Champa-Korba) has an adjusted enterprise value of ~INR 2,590 Cr. These acquisitions are being executed at a 9% discount to enterprise value.

Credit Rating & Borrowing

Retained a credit rating of CRISIL AAA/Stable and CARE AAA/Stable. Borrowing costs are approximately 7.68% on a floating rate basis, with a total gross borrowing of INR 2,339 Cr as of November 2025.

⚙️ Operational Drivers

Raw Materials

Operations and Maintenance (O&M) and Major Maintenance (MM) services represent the primary operational costs, managed through fixed-price contracts to mitigate cost escalation risks.

Import Sources

Not applicable as the trust operates infrastructure assets; however, O&M services are sourced domestically within the 7 states of operation including Rajasthan, Bihar, and Chhattisgarh.

Key Suppliers

Gawar Construction Limited (GCL) serves as the primary Sponsor and Project Manager, providing O&M and MM services under a unique structure with no exit option for the first 5 years.

Capacity Expansion

Current operational capacity is ~683 kms across 9 HAM assets; planned acquisitions will add 164 kms of operational highways, increasing total capacity to 847 kms by FY26.

Raw Material Costs

O&M and MM costs are fixed-price, mitigating the risk of inflation. If annual DSCR falls below 1.2x due to cost increases, it triggers a key rating monitorable.

Manufacturing Efficiency

Operational stability was maintained across all 9 HAM assets in Q2 FY26 with consistent riding quality and no reported NHAI litigations or penalties.

Logistics & Distribution

Not applicable for road infrastructure assets.

📈 Strategic Growth

Expected Growth Rate

60%

Growth Strategy

Growth will be achieved by leveraging ROFO rights to acquire 17 pipeline assets from the sponsor and third-party developers, targeting an AUM of INR 10,000 Cr by FY27 and USD 5 Billion by 2030.

Products & Services

Operational Hybrid Annuity Model (HAM) road infrastructure assets providing long-term predictable annuity inflows.

Brand Portfolio

Capital Infra Trust (formerly National Infrastructure Trust).

New Products/Services

Acquisition of 3 new HAM assets adding 164 kms of operational highways expected to be highly accretive for unitholders by end-FY26.

Market Expansion

Expanding geographic presence into Bihar, Rajasthan, and Chhattisgarh through the acquisition of Jodhpur Ring Road, Hasanpur-Bakhtiyarpur, and Champa-Korba projects.

Strategic Alliances

Strategic partnership with Gawar Construction Limited (GCL) as the Sponsor and Project Manager, and Gawar Investment Manager Private Limited (GIMPL) as the Investment Manager.

🌍 External Factors

Industry Trends

The road sector shows strong momentum with HAM remaining the preferred model; government initiatives and sustained budgetary allocations create a solid pipeline for InvITs.

Competitive Landscape

Focuses on HAM assets from third-party developers and the sponsor's pipeline, avoiding the higher-risk toll asset segment.

Competitive Moat

Durable moat through 100% NHAI-backed contracts, eliminating traffic risk and ensuring sovereign-grade payment security for concession periods of 10-14 years.

Macro Economic Sensitivity

Highly sensitive to interest rate movements and government budgetary allocations for the road sector, which currently favor the HAM model for project awards.

Consumer Behavior

Not applicable as revenue is derived from government annuities rather than direct consumer tolls.

Geopolitical Risks

Minimal impact as assets are domestic road infrastructure projects backed by the Government of India through NHAI.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by NHAI concession agreements and fixed-price O&M standards; the trust maintains compliance with all maintenance standards to avoid annuity deductions.

Legal Contingencies

No outstanding litigations, penalties, or show-cause notices reported with NHAI as of Q2 FY26.

⚠️ Risk Analysis

Key Uncertainties

Refinancing risk due to put/call options in debt instruments; interest rate mismatch between bank-rate linked inflows and repo-linked debt outflows (impact ~5-10% on cash flow).

Geographic Concentration Risk

Diversified across 7 states, reducing regional regulatory or environmental risks; no single asset exceeds 25% of total income.

Third Party Dependencies

High dependency on GCL for project management (PMA structure), mitigated by a 5-year non-termination clause and GCL's strong execution track record.

Technology Obsolescence Risk

Low risk for road infrastructure; focus is on maintaining riding quality and maintenance standards.

Credit & Counterparty Risk

Superior credit quality with NHAI as the sole counterparty; average annuity payment delay is less than one month.