NHIT - National High

📊 NSE: NHIT 🏢 Construction 📅 Last Updated: 12/14/2025 10:19

💰 Financial Performance

Revenue Growth by Segment

Total Revenue from Operations grew 76.72% YoY to INR 1,002 Cr in Q2 FY26 from INR 567 Cr in Q2 FY25. Segment growth: SPV 1 (NWPPL - R1 & R2) grew 8.61% to INR 265 Cr; SPV 2 (NEPPL - R3) grew 8.05% to INR 349 Cr; SPV 3 (NSPPL - R4) contributed INR 388 Cr following its commencement on April 1, 2025.

Geographic Revenue Split

Revenue is diversified across 12 states: Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Telangana, Uttar Pradesh, Uttarakhand, and West Bengal. Specific % split per state is not disclosed, but the portfolio covers 2,345 km of national highways.

Profitability Margins

EBITDA margin stood at 81.04% in Q2 FY26 (INR 812 Cr EBITDA on INR 1,002 Cr revenue) compared to 82.72% in Q2 FY25. PAT margin was 11.18% in Q2 FY26 (INR 112 Cr) compared to 13.05% in Q2 FY25 (INR 74 Cr).

EBITDA Margin

EBITDA Margin was 81.04% in Q2 FY26, a slight decrease of 1.68% YoY from 82.72% in Q2 FY25, primarily due to the integration of 11 new assets under Round 4 which increased operational scale.

Capital Expenditure

NHIT raised unit capital of INR 23,053 Cr since November 2021 to acquire concession rights. Total concession fees remitted for 26 assets amount to approximately INR 46,500 Cr. Future CAPEX includes phased debt raising for Major Maintenance (MM) expenses.

Credit Rating & Borrowing

NHIT maintains a 'AAA/Stable' rating from CARE and India Ratings. Total outstanding debt was INR 21,901 Cr as of September 30, 2025. Borrowing includes NCDs of INR 1,500 Cr and Zero Coupon Bonds (ZCB) of INR 1,000 Cr listed in January 2025.

⚙️ Operational Drivers

Raw Materials

As an infrastructure trust, the primary 'raw materials' are the 26 road assets totaling 2,345 km. Operational costs are driven by Major Maintenance (MM) and Routine Maintenance (O&M) which represent the bulk of cash outflows before debt servicing.

Import Sources

Not applicable as NHIT operates domestic road assets. All assets are located within 12 Indian states including Karnataka, Madhya Pradesh, Uttar Pradesh, and West Bengal.

Key Suppliers

NHIPMPL (National Highways InvIT Project Managers Private Limited), a 100% subsidiary of NHAI, acts as the Project Manager responsible for operations and maintenance.

Capacity Expansion

Current capacity is 2,345 km across 26 toll road assets. Expansion is planned through the acquisition of Bundle 5, which was offered by NHAI for monetization in June 2025.

Raw Material Costs

Concession fees for assets are the primary acquisition cost, totaling ~INR 46,500 Cr. O&M and MM expenses are managed through surplus cashflows and phased debt raising to ensure road quality over 20-30 year concession periods.

Manufacturing Efficiency

Operational efficiency is measured by toll collection health. Q2 FY26 saw a 76.7% increase in total revenue, driven by the addition of 11 assets in Round 4 (NSPPL).

Logistics & Distribution

Not applicable; NHIT provides the infrastructure for logistics and distribution for third-party commercial vehicles.

📈 Strategic Growth

Expected Growth Rate

15.20%

Growth Strategy

Growth is achieved through the 'National Asset Monetisation Pipeline' by acquiring road bundles from NHAI. NHIT has completed four rounds of acquisitions and is currently evaluating Bundle 5. The strategy relies on long-term 20-30 year concessions and periodic toll rate revisions.

Products & Services

Toll collection services and road infrastructure maintenance for 26 national highway stretches totaling 2,345 km.

Brand Portfolio

NHIT (National Highways Infra Trust), NHAI (Sponsor).

New Products/Services

Addition of Round 4 assets (11 roads) on April 1, 2025, contributed 38.7% of total revenue in Q2 FY26. Future growth will come from the proposed Bundle 5 acquisition.

Market Expansion

Expansion is focused on acquiring more national highway bundles from NHAI's monetization target of INR 1.6 lakh Cr, of which INR 1.1 lakh Cr has been achieved as of December 2024.

Market Share & Ranking

NHIT is a principal vehicle for NHAI's asset monetization. In March 2025, it completed the largest InvIT monetization of over INR 18,000 Cr.

Strategic Alliances

NHIT is sponsored by NHAI (National Highways Authority of India) and managed by NHIIMPL, which is 100% owned by the Government of India (MoRTH).

🌍 External Factors

Industry Trends

The industry is moving toward the 'Tolling-Operation-Transfer' (TOT) and InvIT models for asset recycling. NHAI has successfully monetized INR 1.1 lakh Cr of assets as of late 2024, with NHIT being a key beneficiary.

Competitive Landscape

Competition is limited by the geographic exclusivity of highway concessions, though alternate modes of transport (rail/air) and new expressways pose long-term competition.

Competitive Moat

Moat is derived from the 'contributory irrevocable Trust' structure and 20-30 year exclusive concession rights on critical national corridors. These are sustainable due to the high capital intensity and regulatory barriers to building competing highways.

Macro Economic Sensitivity

Highly sensitive to GDP growth as commercial traffic (trucking) is a primary revenue driver. Toll revenue is also sensitive to WPI inflation for annual rate revisions.

Consumer Behavior

Increased adoption of FASTag and digital payments has improved toll collection efficiency and transparency.

Geopolitical Risks

Low direct risk as assets are domestic; however, global supply chain disruptions can indirectly affect commercial traffic volumes on national highways.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the National Highways Act and specific Concession Agreements (CA) with NHAI, which dictate tolling standards and maintenance requirements.

Environmental Compliance

NHIT has been assigned the second-highest ESG rating category, reflecting strong management of environmental and social risks.

Taxation Policy Impact

NHIT operates under the SEBI InvIT Regulations, 2014, which requires distributing at least 90% of net cash flows to unitholders, providing tax efficiencies for the trust.

Legal Contingencies

Not disclosed in the available documents; however, the trust structure and NHAI sponsorship provide a stable legal framework.

⚠️ Risk Analysis

Key Uncertainties

Traffic volume volatility and potential changes in government tolling policies are key risks. A significant economic downturn could reduce commercial traffic by 10-15%, impacting debt coverage.