NDRINVIT - NDR INVIT Trust

📊 NSE: NDRINVIT 🏢 Construction 📅 Last Updated: 12/14/2025 10:26

💰 Financial Performance

Revenue Growth by Segment

The Trust reported a total revenue of INR 3,241 mn for FY25, representing a significant YoY growth of 38.00%. For Q2 FY26, revenue reached INR 1,036 mn, a 1.97% increase from INR 1,016 mn in Q1 FY26, driven by high occupancy and rental escalations across its logistics portfolio.

Geographic Revenue Split

Revenue is primarily driven by area contribution from the South region at 59.20%, followed by the West at 24.09%, North at 9.38%, and East at 7.33%. This concentration makes the Trust highly dependent on the industrial and consumption cycles of Southern Indian states.

Profitability Margins

Net profit margins have shown variability, ranging from 35.33% to 44% across different reporting periods. For the quarter ended September 30, 2025, the net profit margin was reported at 35.33%, reflecting stable operational costs relative to rental income.

EBITDA Margin

EBITDA for FY25 stood at INR 2,959 mn with a YoY growth of 44.55%. In Q2 FY26, EBITDA was INR 950 mn (approximately 91.7% margin), up slightly from INR 946 mn in Q1 FY26, indicating high core profitability due to the triple-net nature of many warehouse leases.

Capital Expenditure

The Trust has a clear expansion pipeline including the planned acquisition of 6.86 million sq ft of operational assets under its Right of First Offer (ROFO) by FY27. Additionally, 0.33 million sq ft is currently under construction to further increase the leasable area from the current 16.9 million sq ft.

Credit Rating & Borrowing

The Trust maintains a comfortable financial profile with a net external debt to GAV of ~18.3%. Major borrowings include INR 7,450 mn from NaBFID at an 8.10% coupon (15-year tenure) and INR 6,300 mn from IFC via Sustainability Linked Bonds at an 8.05% coupon (8-year tenure). Interest coverage is robust at 4.58x.

⚙️ Operational Drivers

Raw Materials

As an InvIT, the primary 'raw materials' are land and construction materials (steel, cement, pre-engineered building components) for its 0.33 million sq ft under-construction pipeline, though specific % of total cost for these materials is not disclosed.

Import Sources

Not specifically disclosed, but construction materials are typically sourced from domestic suppliers within India to support local warehouse development.

Capacity Expansion

Current operational leasable area is 16.9 million sq ft as of June 30, 2024 (up 17% YoY). Planned expansion includes 6.86 million sq ft of ROFO assets and 0.33 million sq ft of active construction, targeting a total portfolio exceeding 24 million sq ft by FY27.

Raw Material Costs

Not applicable as a percentage of revenue for an operational InvIT; however, development costs for the 0.33 million sq ft pipeline are managed through the sponsor, NDR Warehousing Private Limited.

Manufacturing Efficiency

Portfolio occupancy is high at 97.6% as of June 30, 2025 (up from 96.5% YoY), with a committed occupancy of 89%, indicating high utilization of available leasable space.

Logistics & Distribution

Not applicable as the company provides the infrastructure for logistics rather than performing the distribution itself.

📈 Strategic Growth

Expected Growth Rate

17%

Growth Strategy

Growth will be achieved through the acquisition of 6.86 million sq ft of operational assets via ROFO by FY27, completion of the 0.33 million sq ft construction pipeline, and embedded rental escalations in existing long-term contracts (WALE 10-20 years).

Products & Services

Leasing of Grade A warehousing spaces, industrial parks, and logistics infrastructure to third-party tenants.

Brand Portfolio

NDR InvIT, NDR Warehousing.

New Products/Services

Expansion into 'Green' certified warehouses, such as the EDGE Advanced certified Pune facility, which may command premium rentals or attract ESG-conscious global tenants.

Market Expansion

Expansion is focused on primary markets (Chennai, Bengaluru, Kolkata, Mumbai, Delhi, Pune, Hyderabad) which currently account for 66% of the area, and secondary markets like Coimbatore and Sri City.

Market Share & Ranking

Not disclosed, but the 16.9 million sq ft portfolio positions it as a significant player in the Indian organized warehousing sector.

Strategic Alliances

Strategic backing from Investcorp (20.7% stake) provides global expertise and credibility, while the sponsor NDR Warehousing Private Limited provides the ROFO pipeline.

🌍 External Factors

Industry Trends

The warehousing industry is shifting toward Grade A, ESG-compliant spaces. The Trust is positioning itself by securing EDGE certifications and diversifying across 100+ occupiers to mitigate sector-specific downturns.

Competitive Landscape

Competes with other large-scale warehouse developers and InvITs; maintains an edge through a low leverage of 18.3% GAV and a strong ROFO pipeline.

Competitive Moat

The moat consists of long-term lease contracts (WALE 10-20 years), high-quality Grade A assets in strategic primary markets (66% of area), and institutional backing from Investcorp. These are sustainable due to high switching costs for tenants and limited availability of large-scale Grade A land parcels.

Macro Economic Sensitivity

Highly sensitive to GST-driven logistics consolidation and the 'China Plus One' strategy which drives demand for Indian industrial warehousing.

Consumer Behavior

Increased e-commerce penetration (10% of revenue) and FMCG demand (10% of revenue) are driving the need for modern fulfillment centers.

Geopolitical Risks

Trade barriers or global supply chain disruptions could impact the business of key tenants in the E-commerce (10%) and Auto (6%) sectors, indirectly affecting occupancy.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the SEBI (Infrastructure Investment Trusts) Regulations, 2014, and subsequent amendments regarding NDCF calculations (effective April 01, 2024).

Environmental Compliance

The Trust is investing in sustainable practices, evidenced by the EDGE Advanced Certification for the Pune asset and the issuance of Sustainability Linked Bonds (SLB) with IFC.

Taxation Policy Impact

As an InvIT, it is subject to specific SEBI and Income Tax regulations regarding the distribution of at least 90% of NDCF to unitholders.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the renewal of 27% of the leasable area in FY26-FY27, which could impact cash flow if market rents have softened or if vacancies persist.