💰 Financial Performance

Revenue Growth by Segment

The Trust operates in a single segment: Road Infrastructure. Consolidated total income for H1 FY26 was INR 3,441.47 million, representing a 5.07% decrease compared to INR 3,625.38 million in H1 FY25. Standalone total income for H1 FY26 dropped 54.26% to INR 3,948.54 million from INR 8,633.27 million, primarily due to a significant reduction in dividend income from subsidiaries which fell from INR 5,722.23 million to INR 117.54 million.

Geographic Revenue Split

100% of revenue is derived from road infrastructure assets located within India. The portfolio consists of 9 operational Hybrid Annuity Model (HAM) road assets.

Profitability Margins

Consolidated Net Profit Margin for H1 FY26 was 52.28%, down from 59.41% in H1 FY25. Standalone Net Profit Margin for H1 FY26 was 33.30%, a sharp decline from 33.48% in H1 FY25, impacted by lower dividend receipts and impairment charges.

EBITDA Margin

Consolidated EBITDA Margin for H1 FY26 was 77.00%, slightly improved from 76.92% in H1 FY25. Consolidated EBITDA stood at INR 2,650.07 million, a 4.97% decrease YoY from INR 2,788.61 million.

Capital Expenditure

Not disclosed in available documents. However, the Trust is in advanced stages of due diligence for the acquisition of new ROFO and non-ROFO assets to expand the portfolio.

Credit Rating & Borrowing

The Trust maintains a comfortable leverage ratio of 31.6% as of September 30, 2025. Consolidated finance costs increased by 42.05% YoY to INR 802.86 million in H1 FY26 from INR 565.21 million in H1 FY25, reflecting higher borrowing costs or increased debt levels to fund operations/acquisitions.

⚙️ Operational Drivers

Raw Materials

The primary operational costs are Operation and Maintenance (O&M) and Major Maintenance and Repairs Expenditure (MME), which are essential for maintaining the 9 HAM road assets. Specific material components like bitumen or steel are not broken down as percentages of total cost.

Import Sources

Not disclosed in available documents; materials for road maintenance are typically sourced locally within India.

Capacity Expansion

The current portfolio consists of 9 operational HAM road assets. Expansion is planned through the acquisition of ROFO (Right of First Offer) and non-ROFO assets, currently in the advanced due diligence stage.

Raw Material Costs

Total consolidated expenses for H1 FY26 were INR 791.40 million, a 5.42% decrease from INR 836.77 million in H1 FY25. These expenses primarily relate to the O&M and management of infrastructure assets.

Manufacturing Efficiency

Operational efficiency is reflected in the timely receipt of annuities and a healthy collection cycle for the 9 operational assets.

Logistics & Distribution

Not applicable for an Infrastructure Investment Trust (InvIT).

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The Trust aims to achieve growth through a disciplined acquisition strategy focusing on seasoned ROFO and non-ROFO road assets. It leverages its 31.6% headroom in gearing to fund these acquisitions, transitioning from a funding platform to a long-term value creation engine within the Indian road sector, which is projected to reach INR 8 lakh crores in AUM.

Products & Services

Annuity-based road infrastructure services provided through 9 operational Hybrid Annuity Model (HAM) road assets.

Brand Portfolio

Indus Infra Trust (formerly known as Bharat Highways InvIT).

New Products/Services

New asset acquisitions (ROFO/non-ROFO) are expected to contribute to future revenue, though specific percentage contributions are not yet disclosed.

Market Expansion

Targeting the acquisition of seasoned road assets in India to capitalize on the government's focus on asset monetization.

Market Share & Ranking

The Trust operates in a sector nearing INR 8 lakh crores of AUM; specific market share percentage is not disclosed.

Strategic Alliances

The Trust works with GR Highways Investment Manager Private Limited as its investment manager.

🌍 External Factors

Industry Trends

The Indian road sector is evolving into a mature market with AUM expected to reach INR 8 lakh crores. There is a shift toward seasoned investors leading the acquisition of operational assets, supported by steady cash flows and government monetization programs.

Competitive Landscape

Competes with other InvITs and infrastructure funds for the acquisition of seasoned road assets in a growing market.

Competitive Moat

The moat is built on a portfolio of 9 operational, revenue-generating HAM assets with a track record of timely annuity receipts. The low leverage of 31.6% provides a competitive advantage for future acquisitions compared to more highly geared peers.

Macro Economic Sensitivity

Highly sensitive to interest rate fluctuations, as evidenced by the 42.05% increase in finance costs. Also sensitive to government fiscal policy regarding asset monetization and road sector infrastructure spending.

Consumer Behavior

Not applicable; revenue is B2G (Business to Government) via annuity payments.

Geopolitical Risks

Minimal direct impact as assets are localized road infrastructure in India, though macro-economic stability affects investor confidence.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the SEBI (Infrastructure Investment Trusts) Regulations, 2014. Compliance includes maintaining specific distribution levels and leverage caps.

Taxation Policy Impact

The Trust is subject to InvIT regulations requiring the distribution of at least 90% of Net Distributable Cash Flows (NDCF). Tax expenses for H1 FY26 were INR 47.92 million (Consolidated).

Legal Contingencies

The Investment Manager reported no legal proceedings during the period that would have a material impact on the Trust's cash flows or operations.

⚠️ Risk Analysis

Key Uncertainties

Key risks include the impairment of investments (INR 1,718.15 million in H1 FY26), potential changes in tax legislation, and the lack of a long established operating history as a newly settled trust.

Geographic Concentration Risk

100% of revenue and assets are concentrated in the Indian road infrastructure sector.

Third Party Dependencies

Dependency on government authorities for timely annuity payments and on the Investment Manager for strategic acquisition execution.

Technology Obsolescence Risk

Low risk for physical road infrastructure, though digital monitoring of tolling or maintenance could be a factor.

Credit & Counterparty Risk

Counterparty risk is primarily with government-linked entities (NHAI/Ministry of Road Transport), which is generally considered low, supported by a 'healthy' collection cycle.