Indus Infra Trust reports higher Q2 FY2027 income after acquisitions - Markets and investing

Indus Infra Trust posted consolidated income of INR 472.09 crore and quarterly profit of INR 303.52 crore, with newly acquired road assets helping lift interest income. Management also outlined further acquisition plans and said it would keep leverage below 65%.

Indus Infra Trust reported higher income and profit for the second quarter of FY2027, supported by recent road-asset acquisitions, increased finance income and steady annuity collections. Consolidated total income was INR 472.09 crore and profit for the quarter reached INR 303.52 crore.

Interest income rose 25.7% from the previous quarter to INR 306.08 crore. The trust attributed the increase mainly to additional debt on-lent to KNR Palani, KNR Ramagiri and ULCCS Kasaragod Expressway, acquired in June 2026. Consolidated finance income increased to INR 323.13 crore from INR 220.78 crore in Q1 FY2027.

The trust’s portfolio comprised 17 operational hybrid annuity model (HAM) road assets at September 30, covering about 995 km. Management said the assets continued to perform steadily, with annuities received on time from the National Highways Authority of India. A total of 114 of 510 annuities had been received by the end of the quarter.

EBITDA was INR 414.77 crore, including an impairment charge of INR 34.89 crore. Total expenses rose 36.1% sequentially to INR 220.92 crore, while finance costs increased to INR 100.07 crore from INR 72.17 crore. Trust-level external borrowing stood at INR 6,181.80 crore, compared with INR 5,622 crore in the previous quarter.

The board approved a distribution of INR 3.55 per unit for the quarter ended September 30, comprising INR 2.50 in interest and INR 1.05 in dividends. The distribution is payable to unitholders on the November 6 record date, by November 16. Cumulative distributions, including the latest approval, reached INR 34.80 per unit.

Indus Infra Trust said it is targeting five to six right-of-first-offer asset acquisitions in the next quarter, with an estimated enterprise value of about INR 4,700 crore. For FY2028, it expects to pursue six to seven such assets, with a projected enterprise value of INR 4,500 crore to INR 5,000 crore. Its assets under management stood at INR 12,861.8 crore at September 30, and management said this could increase to around INR 22,000 crore to INR 23,000 crore by the end of FY2028 if planned acquisitions are completed.

With fewer HAM assets available, the trust is also evaluating build-operate-transfer and toll-operate-transfer opportunities. Chief Executive Amit Kumar Singh said acquisitions would be pursued with a focus on disciplined growth. Management said leverage was around 47%, it did not want it to exceed 65%, and it would consider raising capital as leverage approached 60% to 61%.

Sources: Investing.com News.