IRB InvIT Fund (BSE: 540526) Q3 2026 Earnings Call dated Feb. 12, 2026
Corporate Participants:
Rushabh Gandhi — Chief Financial Officer
Anil Yadav — Executive Director and Chief Executive Officer
Analysts:
Rushabh Sharedalal — Analyst
Nilesh Doshi — Analyst
Parikshit Kandpal — Analyst
Shubham Sonkar — Analyst
Presentation:
operator
Good morning ladies and gentlemen. Welcome to the IRB Invit call hosted by the company for discussing the financial results for the quarter ended December 2025. We have with us on the call today Mr. Anil Yadav, Mr. Rishabh Gandhi and Ms. Swapna Vengur Lekar from IRB Invit team. As a reminder, all participant lines will be in the listen only mode and after the opening remarks by the management there will be a question and answer session. Please note that the duration of the call would be 45 minutes and any queries left unanswered after the call can be subsequently mailed to the management for adequate response and resolution.
Please note that this conference is being recorded. I now request Mr. Rishabh to give you an overview of the significant development during the quarter. Over to you, sir.
Rushabh Gandhi — Chief Financial Officer
Thank you. Good morning to all. I would like to extend a warm welcome to all our investors and analysts joining us on the call today. I trust to have had the opportunity to review our financial results and the accompanying presentation. During the quarter we have successfully acquired three road assets with a combined enterprise value of approximately 8,400 crore and a weighted average concession life of 21 years. These acquisitions have strengthened our portfolio and enhanced long term visibility. As a result of this addition, the portfolio’s average residual life has increased from 14 years to approximately 17 years.
Geographic diversification has also improved with expansion in two high GDP states which is Uttar Pradesh and Haryana. We are pleased to inform that during the third quarter the acquired assets have delivered strong operating performance with average total revenue growth of around 14% on yoy basis. In February 2026 we have completed the acquisition of Vadodra Mumbai packet 7 ham asset from the sponsor for an enterprise value of around 1200 crores. The transaction is effective from 1st of December 2025. As the acquisition was completed in the fourth quarter. The asset is expected to contribute to the distributions from fourth quarter onwards.
This acquisition was funded through debt raised at an optimal interest rate of 7.5% per annum. With the addition of a VM7 HAM asset, the trust portfolio now comprises of 10 assets including 8 POT and 2 HAM assets. The cumulative operational lane length kilometer stands at 4,445 km. Lane kilometers with a total enterprise value of around 18,000 crores. Coming to toll revenue performance during the quarter, the existing portfolio has delivered yoy total revenue growth of around 12% on gross basis. The newly acquired projects which are Keithhal Rajasthan Project, Kishankar Gulabura Project and Hapur Muradabad project have been part of the portfolio with effect from 1st of November 2021.
These assets have performed strongly recording and YOY total revenue growth of around 11%, 16% and 14% respectively compared to the corresponding quarter of previous year. Coming to the distribution part with the expanded capital base, the Trust has declared a distribution of 192.24 crore translating to 1.5 per unit. The distribution comprises of 0.95 per unit as interest, 0.44 per unit as a return of capital and 0.11 per unit in the form of dividend which is exempt in nature. Since the VM7 equation was completed after the December quarter, this project will contribute to the NDCF from fourth quarter onwards.
The Trust continues to maintain a strong credit profile with its AAA rating reaffirmed by two of the leading credit rating agencies. Interest cost has reduced by a 19 basis point as compared to the corresponding quarter of previous year. Coming to the Financial performance I will now walk you through the financial performance for the quarter as compared to the corresponding quarter of last year. During the quarter we have added three BOT assets effective from 1st of November 2025 and one HEM asset effective from 1st of November 2025. Given this addition, the YOY numbers are not strictly comparable.
The total consolidated income for the current quarter stood at 451 crore as compared to 282 crore for the corresponding quarter of previous year. The consolidated toll revenue for the current quarter increased to 369 crore as against 240 crore in the corresponding quarters of previous year. EBITDA for the current quarter stood at 373 crore as against 231 crore for the corresponding quarter of previous year. Interest cost which include interest for the three acquired assets stood at 153 crore as against 69 crores for the corresponding quarter of previous year. Depreciation including the amortization on toll collection rise for the current quarter stood at 100 crore as against 61 crore for the corresponding quarter of previous year.
The profit after tax for the current quarter stood at 60 crore as against 90 crore in the corresponding quarter of previous year. Now I request a moderator to open the session for Q and A.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their Touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Rishabh Sherdalal with Praveen Rathilal Welt. Please go ahead.
Rushabh Sharedalal
Yeah, sir, thanks for the opportunity. And am I audible?
Anil Yadav
Yes, loud and clear. Please go ahead.
Rushabh Sharedalal
Yeah. So two questions particularly on. So the first question is on the VM7 asset that is going to come and I suppose that it is going to contribute to the NDCF from Q4 onwards. Right. So can you just let us know that what is the NDCF that this asset is going to generate? Because I think it’s a annuity asset. So we have a clear vision of what we are going to get. Apart from that in the same context, the three assets that we have already acquired for this quarter. So one is the Kathal, Rajasthan Ishangar Gulapura and Hapur Muradabad.
Each of these, how much do they contribute and what NDCF are we going to lose? Because I think Omar Salim Namakal is going to go out of the portfolio in January 27th. So can you give me these three numbers and based on that how would the total NDCF look somewhere in 2027?
Anil Yadav
Yes. So I think I will take one by one. First Kumalur Salem, that we were aware that this project go away in next financial year, middle of the next financial year and in terms of the payout, VM7 is expected to increase the payout by 5%. So it means if you are paying 6 rupees that 30 paisa will increase on account of VM7. And since now the portfolio has expanded and there is intrinsic growth in the asset. And as Rishabh has explained that whatever the gross numbers are there in terms of toll, those are in double digit.
Considering that the growth and we expect the growth to continue in future and on the basis that we are expecting to next financial year around 6.3 to 6.5 rupees payout for next financial year, that is FY27. And there on the considering the intrinsic growth in the asset around 4 to 5% increase in the payout in FY28 onwards as well. So I think next five years or so the growth in the payout will be minimum 4 to 5%. And the VM7 will be the additional payout which will be coming in and after five years I think by that time there will be some debt will also get repaid.
And on a larger base we should be able to increase the payout by 10%. So I think if you look at near term around four to five years from six rupees kind of payout minimum 5% kind of growth you can consider year on year basis.
Rushabh Sharedalal
Sir. So what I was trying to ask is that can you give me the 3ndcf. So one, the Omar Salim which is going out of the asset. The three assets that have already come in how much are they contributing to the net distributable cash flow and what is the VM7 asset going to contribute? Can you give me the NDCF numbers?
Anil Yadav
Yes. So basically if you talk about this quarter, this quarter the existing assets are contributing 100 plus crores kind of out of 192 crores kind of distribution. 100 plus crores is contributed by existing asset. Out of the MVR contribution is will share. The MVR MVR contribution is around 60 to 70 crore rupees. And in terms of. In terms of. In terms of the existing asset close to 85 to 90 crores is the contribution from the new assets. So this is the broad contribution. And if I will take a 30% kind of distribution around 40, 40.
40 to 45 crores kind of contribution will be coming from VM7.
Rushabh Sharedalal
Okay, so just let me know that if I’ve understood it correctly 85 to 90 crores is the current assets. The current, the original seven assets they are contributing around 85 to 90 crores. And from that I believe Omar Salim is closer to 8 to 9% of the portfolio. So from 85 we will come down to around 75 to 76 crores in that. And then we will have around 60 crores from. 60 crores from the VM7. Right. And 40 to 40. Can you please just correct me where I’m going wrong? Yeah.
Anil Yadav
Yes. I think the broad numbers based on the current quarter. I think next year you can expect expect. I think close to 100 crores kind of contribution will be. I am talking. These numbers are on quarterly basis. You have to analyze that. Around 100 crores kind of contribution will be coming from. From your new assets. And around 10 crores per quarter will be coming from VM7. 10 to 12 crores. And the balance with contribution will be coming from the existing asset. So I think around 90 to 100 crores kind of contribution for next year also will be coming from the existing asset.
Rushabh Sharedalal
So around 200 crores of total NDCF we can expect per quarter at least for the next four quarters. And after that around 10 crores would go out of the portfolio. Right from FY27 from January 2017.
Anil Yadav
For I think it will be remain through at least 2/4 of the FY27 it will go. It will not be there in FY28. But by that time the growth in these assets will be automatically take over. Whatever the shortfall will be coming on account of AMVI that will be taken care by the growth. If I can just explain you. If you look at the overall gross revenue for the current quarter.
Rushabh Sharedalal
During the quarter the gross revenue was around 500 crores.
Anil Yadav
So the revenue was 500. So if I annualize that 2000 crores will be the revenue number for annual basis. And if I will take even conservative growth of 9 to 10% which are talking about 200 crores kind of addition which will coming on account of existing even mvr. Today the total collection of MVR will be a MVR asset collection is around 180 odd crores. So even if I reduce the MVR, I think the growth itself will take care of the MVR going out of the portfolio.
Rushabh Sharedalal
Okay. Okay.
Anil Yadav
And just to share with you, very recently we have raised the capital and as the inward regulation provides that we have to provide the valuation for existing asset and the new asset as well. So there those numbers are also in public domain and based on those numbers also if you look at the there will not be a decrease in the NDCF in spite of the MBR going out of and the investor who has invested almost we have raised more than whatever the capital was there. I think investor has invested. Considering that MVR will be going out and there will not be any decrease in the dpo.
Rushabh Sharedalal
Right? Sir. Sir, my second question is on. So you know we have been listed for almost six years now and this is the first time that we have done a sizable acquisition. So what I’m trying to understand is that what is the other pipeline that is there for acquisition? Because I believe that we have a lot of headroom as far as the debt is concerned. We can raise a lot of debt. In fact the debt we raised currently has also been at a reasonably competitive rate. So can you just give us a. Give us a vision of how, which assets are you considering and when can we see newer assets coming into the.
Into the portfolio.
Anil Yadav
I think two things we have intent to reach. Take this invit to 40,000 crores kind of aum. It is earlier before beginning at the beginning of this year it was close to 8,000 crores crores kind of aum. Now it’s almost 17,000 crores kind of aum. We have intent to take it to 40,000 crores kind of Aum in next two years now there will be consistent addition of the asset and a couple of things which I can highlight you that definitely as you rightly pointed out, we are getting debt at competitive rate. And second, that any further addition if we are required to to dilute also the dilution will be in such a way that those addition and dilution should be even the it will not be decreasing the payout to the existing unit holder.
Our endeavor is to improve the payout of the existing unit holder even if we are not able to improve but we will try to maintain the payout to the unit hold. So that is the strategy and objective of the investment.
Rushabh Sharedalal
So sir, when you say that from current 17,000 crores we want to move to 40,000 crores in next two years, I think that is a big ask that you are actually putting in front of you. So I believe that we have a decent pipeline. So can you just share when. So we are standing in Q4, let’s say by the next Q4, how many assets can we see that would be getting added in the portfolio?
Anil Yadav
I think at the beginning of the year when we have talked about we will be doubling the size of the asset from 8,000 to 16,000 before end of the financial year 26 that time also there were some questions in some of my mind of some of the investor that how we will be doubling the size within a year. I think that we have delivered and we believe that we will be able to reach 40,000 in terms of the opportunity which is available. We have rope for on some of the assets where the size is almost 45 to 50,000 crores.
So I think out of that we will be acquiring some asset and we will be exploring the third party asset as well as and when those will be available. But as far as Roko is concerned that is also itself is close to 50,000 crores kind of stuff and that is already in the public.
Rushabh Sharedalal
Right sir. Right sir. So just again, you know, wishing you all the best and a request to the team to you know, be aggressive in acquiring more and more assets. I believe that this invitation grossly undervalued as compared to the other Invids and I think we have a lot of potential going on. Thank you very much sir. Thank you.
Anil Yadav
Thank you.
Rushabh Gandhi
Thank you.
Anil Yadav
Thank you.
operator
Thank you. The next question comes from the line of Nilesh Doshi with Prospero tree. Please go ahead.
Nilesh Doshi
Thanks for the opportunity sir. Am I audible?
Anil Yadav
Yes sir. Please go ahead.
Nilesh Doshi
Thank you. Thank you. Thank you. The first time I’m attending the IRB invit Concall. So my question may be known to you sir. I’ve gone through the quarter three result and I understand that the all assets are acquired by trust from either on funds plus borrowed fund and the trust has to repair the borrow funds with the interest at a regular interval at our predetermined interest rate. So if I go through the quarter three result there was operating profit of 372 crore and finance cost was around 190 crore. So the amount left for the unit holder is 182 crore or out of which 182 crore where the trust is required to make the certain principal repayment also.
And so at the rate of 1 rupees 50 paisa DPU the 192crore rupees is the total distribution amount. So that means it’s 182 crore is lap 192 crore rupees is the DPU. And so what amount the trust has repaired during the quarter or what amount can be repaired out of this. Because the out of 182 crore if the DPU is 192 crore that that number is minus 10. So I don’t understand the how the trust will repay the principal amount or is there no repayment? What? Please kindly explain sir.
Anil Yadav
Yes. So I think I will explain how the accounting of the road asset was. In a road asset typically after five or seven years there is major maintenance required. And as per Indian accounting standard we have to make a provision for those the measurement and which is a non cash item. So I think if you adjust that that will be basically that will be the increase your EBITDA. Secondly in this quarter I think around 25 crore or so there was some transaction cost. Typically when you take a debt that time there are some upfront is another thing and which is one time kind of cost which you pay to the bank.
I think that is the exceptional kind of thing which will not be there in the future quarter. And in terms of being required by the regulation also we provide what kind of repayment is expected in next two years or even what kind of repayment will be there in the future. So I think that we anyway provide those kind of broad repayment. But just to explain you, in next one to four years there will be 5% debt repayment and in next five to nine years there will be almost 40% of the debt will be getting repaid and 10th to 15th year 100% of the debt will be getting repaid.
You will appreciate that we have life of weighted every life of 17 years. And there are some asset which is even life is more than 22 to 23 years also. So our debt will get repaid in next 15 years and asset will have a life of around 23 years. So I think the as the typical road asset goes, your repayment is on a ballooning basis. Because your cash flow will be consistently improving across this kind of segment. If you look at any other invitation in the same sector, there will be this kind of ballooning repayment which will be happening.
Nilesh Doshi
But sir, if the repayment increase after the 5 year then the DPU will reduce because the NDA ndcf will reduce. Is it my understanding that is correct, sir.
Anil Yadav
No sir, if I. If I am collecting hundred rupees toll and if my toll is going to increase 10% per annum basis after five years my toll collection will be 150 rupees. So that’s why I explained that though the increase in the toll revenue is around 10%, my increase in increase in the payout is only 5% for next five years.
Nilesh Doshi
So extra repayment will be taken care by the extra growth, revenue growth and extra ndcr. That is the prediction of the trust. Is it correct?
Anil Yadav
Yes, absolutely correct. And secondly, you will appreciate that there is a O M cost also. O and M cost does not increase by 10%. O&M cost hardly increases by 4 to 5%. So automatically there is there EBITDA will be automatically expanding even beyond 10% considering the OM cost is fixed in nature and there is a 4 to 5% kind of inflation already built in there.
Nilesh Doshi
Sir, sorry, I summarized my point.
operator
I would request you to please come back in the queue for further questions.
Anil Yadav
Let him complete this and then he can.
operator
Okay, sure.
Nilesh Doshi
Thank you. Thank you, sir. Thank you. Thank you. So sir. Sir, I summarize that currently there is a lower amount of the repayment. So the trust is able to distribute the one rupees fifty paisa. If when the repayment amount will increase, there will be a growth in the revenue and ndcf. So that extra amount will take care about the repayment. Is it the correct summarized understanding?
Anil Yadav
Yes sir. But with minor modification the extra growth will be partially used to increase the payout and partially used to increase the repayment.
Nilesh Doshi
But sir, growth is the combination of the value plus volume and if there is a WPI 0 or negative then also we trust is able to raise the toll by 3% or it will be less than 3%.
Anil Yadav
Yes sir, it’s an intelligent question. There is 3% fixed plus 40% of the WPI and if you look at historically also we have seen WPI going at 1415% also and coming down to 1.2percent negative as well. Well, but if you look at long term 3 to 5 years typically even if you look at RBI prediction they are also projecting around 4% kind of inflation. So I think even inflation remains benign at around 2 or 3%. Then also we will get around 4% kind of tariff revision. I would like to highlight one particular thing. I think the lower WPI case will be very positive for for invit on two account today we are paying interest cost of around 7.5 to 8%.
And if the WPI remains lower on a lower side the saving in interest cost will be there. If I can explain you the how the logic will work, I think the WPI I will assume the WPI remains zero. So I will lose 3% fixed will be there and I will lose 2% of the revenue which will be a close to 40 crore kind of impact on my revenue side. And even if the WPI remains 0 then automatically there will be interest cost saving. 2% kind of interest cost saving will result 160 crores kind of saving.
So I will be earning 4. The net earning will be 4x. The net saving will be 4x as compared to what I will be losing. So I think the lower WPI scenario is better and that also helps. In terms of typically what we have seen when the WPI is on lower side we have seen an increase in the volume growth. And if you look at last three to four quarter there is consistent increase in the volume growth. Some assets are even delivering volume growth itself around 7 to 8%. And in terms of the typically if the WPI comes lower than even the expectation of the unit holder and fixed income kind of thing will also come down.
So I think the lower WPI will be beneficial for overall unit holder.
Nilesh Doshi
Okay, so only last thing sir, interest cost saving is possible only if we have a large portion of the floating rate debt. Otherwise in the fixed cost how the WPI negative or lower WPI will help the company, help the trust.
Anil Yadav
Yes sir, very intelligent question sir. Sir, last year we were paying a close to 8.9 and the in fact in the Rishabh has covered in his opening remarks you might have missed that we have saved almost 90 basis point on that particular cost. 90 basis point translates around 70 to 80 crore kind of saving. And if you look at the Invit today has 80 to 85% debt is floating. And I think whatever the benefits will be coming on account of lower WPI that will get passed on. And our rate is 80% rate is linked with the one month MCLR.
The moment there is change in the MCR we will be benefiting out of that.
Nilesh Doshi
Thank you. Thank you sir. All the best sir. And thanks for the opportunity.
Anil Yadav
Thank you. Thank you.
operator
Thank you. The next question comes from the line of Parikshit Kanpal with HDFC Securities. Please go ahead.
Parikshit Kandpal
Congratulations on a good quarter. My first question is that this is the fourth quarter, fourth month of consistent double digit growth for the assets. So right from October onwards we have been growing like 11%, 16, 10 and now 13%. Just wanted to understand. So does it mean that now if this trend continues so we will see upgrade in NAV and also potential upgrade in the dpu running ahead of your. Ahead of your assumptions. Your own assumptions. And how does it translate into NAV upgrade and the DT upgrade?
Anil Yadav
Yes, parachute. You are absolutely correct that if the growth is consistent then automatically it will improve the nav. And as per Sebi invitation regulation we have to distribute 90% of the cash flow. So as of now we are ahead of our own assumptions. And in terms of the traffic growth is very healthy. And if this performance continues news for the some more quarters then definitely there will be increase in the payout.
Parikshit Kandpal
So the faster than expected. So what you have highlighted 5, 5, 5% and 10, 10, 10. So that journey will get little affronted because of this.
Anil Yadav
Yes.
Parikshit Kandpal
Okay. And since on these asset addition journey towards 20,000 crore plus. I mean you need to add almost 20, 25,000 crores of as incrementally. So if you can help us understand break this down into financial year like 27, 2029. So out of these asset block incremental addition of 20,000 crore plus. How will this happen over the next two, three years annually.
Anil Yadav
So I think Parikshit, we have intent to add at least 8 to 10,000 post kind of asset every year. So probably we’ll be starting the exercise in next financial year. And by end of FY28 we should be able to do a three, two or three tranches of asset addition. And with that we should be reaching close to 40,000 crores kind of asset base.
Parikshit Kandpal
Okay. And my assumption is that whenever you add assets it should be deeply accretive to the shareholders and the unit holders. So have you factored any of that accretion in your deeply guidance which you said that next year is 6.3, 6.5 and then 5% growth. So any of that upside is factored in this?
Anil Yadav
No, Parikshit, we are factoring only existing asset. We have not factored any kind of interest saving or any kind of asset addition which will be improving the payout.
Parikshit Kandpal
Generally it should be right whenever you do it. So it should add incrementally.
Anil Yadav
Yes. So if the our endeavor is basically whenever we are adding the asset, there should be some addition in the payout that is our endeavor and we will not be adding any asset which will be basically which will be impacting my payout to the unit.
Parikshit Kandpal
So no diluted as an addition to the unit distribution and any slight or some positive something you leave on the table so that the investors would approve this transactions. That’s a broad assumption, right?
Anil Yadav
Yes.
Parikshit Kandpal
Okay. So the impact of this NAV RE rating, so how soon so next valuation update, when is it coming and seeing that redeem talks and discussions with the valuation agencies on this aspect. So there’s some scope of NAV seeing some upside.
Anil Yadav
So Parikshit, as per inventory regulation we have to submit submit a report valuation report within two months of the acquisition we have already provided and where NAV is close to 79.5. So I think as now if there will be a G sec there will be reduction in the G SEC automatically. Those benefit and rollover impact will be coming in the coming quarter as well.
Parikshit Kandpal
No, no sir, I was asking more on the growth being higher than expectations. So. So next set of valuation will only happen when you do new asset acquisition is what you want to say?
Anil Yadav
No, no. So I think March we will have to do the valuation again and if the growth continues in the same manner then definitely that will also improve the.NAV
Parikshit Kandpal
and in this year. So like even older assets have also shown in this month the growth of like 11 14% and the new ones are like growing 11, 15, 18. So why such a big departure in growth? Like even on these three new assets we are seeing substantial improvement in growth. And so what is driving this? And also if you can help us break this down into inflation and the volume impact and when is the next set of inflation kicking in? I think from April we’ll again have some reset on inflation. So
Anil Yadav
yeah, last year also we got a 3.3% kind of 3.2 to 3.3% kind of tariff this year also it is expected because it’s linked with the December WPI. That WPI is already free. So we are expecting around 3, 3.2% and similar kind of increase in the inflation. Now there is significant increase in the traffic not only on our Asset but overall across India that is on backdrop of the resilience in the Indian economy. We have seen, I think probably the government machinery has started acting and we have seen the increase in the traffic. If I will discuss the segment wise the car growth is around 12 to 15%.
And in terms of the commercial vehicle also we have seen a healthy growth around 6, 7%. It’s across segments. Some segments are outperforming but there is growth in across the segment in terms of the traffic is concerned.
Parikshit Kandpal
But this is like I’m talking about 18% Harpur and 15% Krishan Gar. So what is like these numbers are like totally much, much higher than the expectation. So what is more like 7, 8%. You’re talking about 7 to 10%. But these are 18% kind of growth.
Anil Yadav
7, 8% is on a portfolio basis. So therefore I can explain because there it’s a closer to Delhi where composition of car is much higher and there are certain tourism places since composition of car is much higher that is leading this kind of growth.
Parikshit Kandpal
In February are you seeing a similar trend like a double digit growth and we already have 11, 12 days. So if you’re monitoring it, so is.The trend still
Anil Yadav
growth continues as far as Jan is concerned. And in fact if you look at Jaipur Devili which was not in line with the performance but because the Jaipur Devali also has a mining traffic so that gets impacted during monsoon quarter and if the winter is severe, if you look at the Jaipur Devali also we have Wet witness around 18 growth in the month of January and that trend is continuing.
Parikshit Kandpal
So in Crab also this trend is continuing across assets.
Anil Yadav
Yes. Yes.
Parikshit Kandpal
Okay. So thank you and I wish you all the best.
Anil Yadav
Thank you.
operator
Thank you. The next question comes from the line of Shubham Sonkar with Kotak alternate assets. Please go ahead.
Shubham Sonkar
Yeah. Hello team. Am I audible?
Anil Yadav
Yes, you are audible loud and clear.
Shubham Sonkar
Yeah. Yeah. Hi. So my question is regarding the acquisition of new Ham asset which you mentioned post this acquisition. Where do you see the net debt to aum? Where is the LTV standing today? And. And from. And from. And the other point that I wanted to highlight is the valuation report assumed the cost of debt of somewhere closer to 7.3 odd percent upon the acquisition of this asset. I think you mentioned that the actual cost ended up being seven and a half odd percent which is a slightly bit higher. So what, what could be the impact of that in terms of overall IRR when you acquired this asset?
Rushabh Gandhi
Just on the first part. So in the result we have provided the NET debt to AUM. So in that we have considered the VM7 Hemasite as well. So net debt to AMS on the 31st of December is close to 44%.
Anil Yadav
And in terms of the debt cost earlier we got NCD at 7.3% and we were also contemplating whether to go for the NCD or bank debt. So this we have taken a bank debt and bank debt it’s a floating rate. So I think what as a management we have decided, we believe that there may be a certain reduction in the interest cost and being a HAM asset if we get a interest rate closer to seven or below seven at that time we will try to lock in interest rate for this asset. Since the rate of LCD and rate of bank debt was similar we have tried to close with the bank debt it and we don’t believe that there will be any impact on the on the IRR of the project.
Shubham Sonkar
Understood. And and one other question in terms of DP you mentioned 6.3 is what you are expecting somewhere from next quarter onwards because the acquisition is already complete for the HAM asset In terms of nav forces acquisition is there any upside that you see from this? From this because since we have acquired it using primarily using debt only. So is there an upside to that 79.5 number that you mentioned?
Anil Yadav
Yeah, there will be a uptake in the valuation considering that it’s required. So there will be some uptake but the considering the size it hardly contributes less than 10% or accordingly the impact will not be that significant. But definitely there will be an impact in the net.
Shubham Sonkar
Understood. Thanks. All the best.
Anil Yadav
Thank you.
Rushabh Gandhi
Thank you.
Anil Yadav
Thank you.
operator
Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to the management for closing comments.
Rushabh Gandhi
I would like to thank all the investors and analysts on the call. Hope you have a good weekend. Thank you.
operator
Thank you sir. Ladies and gentlemen, this concludes your conference for today. We thank you for your participation and for using Research Byte conferencing services. You may please disconnect your line. Thank you and have a great day ahead. Thank you.