💰 Financial Performance

Revenue Growth by Segment

Consolidated operating income grew by 58.9% YoY, rising from INR 433.6 Cr in FY2023 to INR 689.0 Cr in FY2024. This growth was primarily driven by an 11.5% CAGR in toll collections between FY2018-2023 and the progressive integration of SPV assets.

Geographic Revenue Split

The portfolio is diversified across 6 Indian states, including Maharashtra (PSRDCL), Uttar Pradesh (MBEL), Rajasthan (SBHL), Jharkhand (HREL), Kerala (TRDCL), and West Bengal (BAEL). Specific percentage contribution per state is not disclosed, but toll assets contribute the majority of the 73.5% operating margin.

Profitability Margins

Operating profit margin (OPBDIT/OI) improved significantly from 61.0% in FY2023 to 73.5% in FY2024. Net profit margin (PAT/OI) also improved from -26.7% (INR -115.8 Cr) in FY2023 to -2.8% (INR -19.4 Cr) in FY2024, reflecting better cost control and asset stabilization.

EBITDA Margin

The EBITDA margin (represented by OPBDIT/OI) stood at 73.5% in FY2024, a YoY increase of 12.5 percentage points from 61.0% in FY2023, driven by healthy growth in toll collections and fixed-price O&M contracts.

Capital Expenditure

Major Maintenance Reserves (MMR) of INR 221 Cr were created as of March 31, 2025, to address catch-up maintenance requirements. The trust also maintains a three-month Debt Service Reserve Account (DSRA) to ensure liquidity for debt obligations.

Credit Rating & Borrowing

The issuer rating was upgraded to [ICRA]A (Stable) on May 29, 2025, from [ICRA]BBB+ (Stable). Borrowing costs are managed under a moderate leverage profile with a total debt/OPBDIT ratio that improved from 8.3x in FY2023 to 5.6x in FY2024.

⚙️ Operational Drivers

Raw Materials

As an infrastructure trust, primary 'raw material' equivalents are O&M services and bitumen/aggregates for maintenance, which are managed via fixed-price contracts representing the bulk of operational outflows.

Import Sources

Not applicable as services are sourced domestically within India across the 6 project states.

Key Suppliers

Elsamex Maintenance Services Limited (EMSL) is the sole provider for operations and maintenance (O&M) activities across all SPVs under a fixed-price contract for the entire concession period.

Capacity Expansion

Current capacity consists of 6 road assets (3 operational toll roads, 1 tolling-under-construction, and 2 annuity projects). Expansion includes the acquisition of Barwa Adda Expressway Limited (BAEL) following its resolution plan implementation.

Raw Material Costs

O&M costs are fixed-price, mitigating inflation risk; however, past inadequate maintenance led to INR 83 Cr in penalties, necessitating higher catch-up maintenance spending in the near term.

Manufacturing Efficiency

Operational efficiency is measured by toll collection growth, which saw a 4.1% CAGR in traffic volume and a ~10% CAGR in total collections between FY2019-2025.

Logistics & Distribution

Not applicable; revenue is generated at the point of service (toll plazas) or via government annuity payments.

📈 Strategic Growth

Expected Growth Rate

10%

Growth Strategy

Growth will be achieved through the acquisition of stressed assets post-resolution (like BAEL), leveraging an 11.5% historical toll CAGR, and utilizing arbitration inflows for deleveraging to improve the financial risk profile.

Products & Services

Toll road operations (PSRDCL, MBEL, SBHL, BAEL) and annuity road maintenance (HREL, TRDCL) providing connectivity across national and state highways.

Brand Portfolio

Roadstar Infra Investment Trust (RIIT).

New Products/Services

The trust is in the process of fully integrating the Barwa Adda Expressway Limited (BAEL) asset, which is expected to contribute significantly to future operating income post-construction completion.

Market Expansion

Targeting the acquisition of further stressed infrastructure assets from the IL&FS Group portfolio once resolution plans are approved by lenders and the NCLT.

Market Share & Ranking

RIIT is a specialized InvIT formed to manage the road asset portfolio of the IL&FS Group; specific industry ranking is not disclosed.

Strategic Alliances

The trust is sponsored by Roadstar Infra Private Limited (a subsidiary of ITNL) and is closely tied to the IL&FS Group resolution framework.

🌍 External Factors

Industry Trends

The industry is shifting toward InvIT structures to deleverage developer balance sheets. RIIT is positioned as a recovery vehicle for IL&FS creditors, benefiting from consolidated cash pooling and professional O&M management.

Competitive Landscape

Competition arises from alternative routes and modes of transport (rail/air). For example, a new alternative route is expected to impact the BAEL stretch by FY2031.

Competitive Moat

The moat consists of long-term concession agreements (average toll track record of 10.9 years) and the high capital intensity of building competing highways. However, this is challenged by the government's ability to build alternative routes.

Macro Economic Sensitivity

Toll revenues are highly sensitive to GDP growth (affecting commercial traffic) and WPI inflation (affecting annual toll rate revisions).

Consumer Behavior

Shift toward FASTag has reduced toll leakages and improved collection efficiency across the portfolio.

Geopolitical Risks

Minimal direct impact, though macro-economic slowdowns resulting from global tensions could reduce commercial vehicle traffic on key stretches like MBEL.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by NHAI concession frameworks and SEBI InvIT regulations, which mandate a cap on aggregate consolidated borrowings at 49% of asset value.

Environmental Compliance

Not disclosed; compliance is generally managed within the O&M scope of work for highway maintenance.

Taxation Policy Impact

The trust follows Ind AS; specific tax rate impacts are not disclosed, but InvITs generally benefit from specific tax pass-through structures for distributions.

Legal Contingencies

Outstanding contingent liabilities totaled INR 430.4 Cr as of March 31, 2024. Additionally, INR 47 Cr in penalties is currently under litigation following a reduction from the original INR 92 Cr levied by authorities.

⚠️ Risk Analysis

Key Uncertainties

Traffic diversion risks from new alternative routes and the potential for further penalties if O&M standards are not met could impact coverage metrics by over 10%.

Geographic Concentration Risk

The portfolio is concentrated in 6 Indian states, with significant cash flow dependency on the MBEL and BAEL projects.

Third Party Dependencies

100% dependency on Elsamex Maintenance Services Limited (EMSL) for O&M; any financial distress at EMSL would directly jeopardize RIIT's asset quality and annuity receipts.

Technology Obsolescence Risk

Low risk for physical road assets, though the shift to electric vehicles and changes in axle load norms may impact long-term wear and tear and toll categories.

Credit & Counterparty Risk

Exposure to NHAI and MORTH is considered low risk, but the Kerala Road Fund Board (KRFB) and specific annuity projects (TRDCL, HREL) have shown a history of delayed payments.