Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
IRB InvIT Fund (BSE: 540526) Q4 2026 Earnings Call dated May. 18, 2026
Corporate Participants:
Rushabh Gandhi — Chief Financial Officer
Analysts:
Nilesh Doshi — Analyst
Rushabh Sharedalal — Analyst
Presentation:
Operator
Good morning ladies and gentlemen. Welcome to the IRB Invit Fund Call hosted by the company for discussing the financial results for the quarter and year ended March 2026. We have with us on the call today Mr. Anil Yadav, Mr. Rishabh Gandhi and Ms. Swapna Vengur Lekar from IRB Invit Fund 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 Gandhi 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 everyone and thank you for joining us for the earnings call to discuss the performance of the Trust for the quarter and year end date 3-31-2026. We appreciate your continued interest in the Trust and hope you have had the opportunity to review the financial results and the investor presentation circulated earlier. Financial year 26 has been a landmark year for the Trust. Over the course of the year, we materially scaled up the platform through a set of strategic equations, further strengthened the quality and duration of our portfolio, improved geographic diversification and continued to deliver healthy operating performance across our assets.
These developments reinforced the Trust positioning as a resilient infrastructure platform with visible long term cash flows and a clear focus on delivering stable and growing distributions to the unitholders. During the year, we have completed the equation of four road assets comprising of three, three BOT and one HAM asset with a cumulative enterprise value of around 9,600 crore. These acquisitions have been consistent with our stated strategy of pursuing value accretive opportunities that enhance the portfolio scale, diversify revenue sources and extend the duration of cash flows.
With these additions, the average residual concession life of the portfolio has increased from around 14 years to 17 years, improving the long term visibility of earnings and distributions. In parallel, our geographic footprint has also become more diversified with expansion into two new states such as Uttar Pradesh and Haryana, both of which offer attractive economic and traffic growth potential. With the completion of Varodoram Mumbai Package 7 HAM acquisition in February 2026 which was effective from 1st of December 2025, the trust portfolio now comprises of 10 operational assets including 8 BOT and 2 HAM assets.
Our cumulative operational lane length stands at 4,445 km and the total enterprise value of the portfolio has increased to approximately 18,250 crores from 7,800 crores a year back. We believe this scale enhancement is important not only from a growth perspective but but also from the perspective of risk diversification, operating efficiency and long term cash flow resilience. Operationally, the portfolio continued to perform well during the quarter as well as for the full year. The newly acquired assets have also integrated well into the portfolio and have performed better than our expectations.
The total revenue growth for the recently acquired assets was around 14%. The performance of these assets has been exemplary and the recent addition of assets, especially the HAM projects, has led to 7% increase in the payout on a consolidated basis. The toll revenue grew by 11% during the quarter and year as well, driven by both organic growth and recent acquisitions. A key priority for the Trust remains the delivery of predictable and sustainable distribution. The enlarged portfolio has strengthened our cash flow profile and enhanced the medium term visibility of distributions.
As the newly acquired assets begin contributing for a full period, we expect the benefit of scale and portfolio maturity to support further stability in the distributable cash flow. We are also pleased to note that the Trust continues to maintain a strong credit rating profile. Our AAA ratings have been reaffirmed by leading credit rating agencies reflecting the stability of underlying asset base, the robustness of the trust structure and our prudent approach to leverage and financing. During the year we were able to raise acquisition financing at competitive rates which underlines the confidence of lenders in the quality of our platform.
Overall, the financial year 26 has been a year of disciplined growth and strategic execution. We have expanded the Trust meaningfully while preserving financial strength, maintaining operational momentum and remaining focused on long term value creation for our unitholders. Looking ahead, we believe the Trust is well positioned for the next phase of growth supported by our larger and more diversified portfolio, strong asset level fundamentals and a disciplined capital structure. We expect this to translate into sustainable growth in cash flows and distributions over the medium term.
At the same time, we remain focused on ensuring that any future acquisitions are executed in a manner that is non dilutive to our unitholders. Further, the Trust continues to have a strong future growth visibility through ROFO assets aggregating around 65,000 crore from IRB Infrastructure Trust along with additional HAM assets from the sponsor. This provides a robust pipeline of potential acquisitions that can further strengthen the Trust over the coming years and offer significant headroom for scalable growth.
In addition, the Trust has received a Preliminary and non binding offer from the private trust for a potential acquisition opportunity pursuant to the ROKO with respect to Solapur Yedishi and Chittkargarh Gulapura project aggregating to 1144 lane kilometers length with an enterprise value of 4663 crore. We are in the process of evaluating this opportunity. Coming to the financial analysis, we would like to highlight that the year on year comparison is strictly not like for like given the acquisition of multiple assets during the course of the year.
Accordingly, the current period financials reflect the impact of expanded portfolio along with associated financing, depreciation and transaction related effects. For the full year, the trust reported a Consolidated total income of 1582 crore as compared to 1110 crore for the previous year. Consolidated toll revenue increased to 1270 crore driven by healthy underlying traffic growth in the base portfolio and incremental contribution from the newly acquired assets. EBITDA for the year stood at 1270 crore reflecting both scale benefits and the inherent operating leverage of the portfolio.
Interest cost for the financial year was 519 crore whereas depreciation and amortization for the year stood at 380 crore. Profit after tax for the financial year 26 came in at 339 crore. In line with our stated objective of delivering stable and predictable returns to the unitholders, the board has declared a distribution for the fourth quarter of rupees 205 crore which translates into 1.6 per unit 7% growth as compared to trailing quarter. The distribution comprises 1.44 per unit in the form of interest, 0.12 per unit as a return of capital and 0.04 per unit as dividend which is exempt dividend for the full financial year the trust has declared a cumulative distribution of 6.6 per unit.
Operator, we can now open the floor for Q and A.
Operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star N1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star N2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Nilesh Doshi from Prospero Tree amc. Please go ahead.
Questions and Answers:
Nilesh Doshi
Thanks for the opportunity, sir and thank you for declaring the higher distribution. Son, my first question is related to the business because the there is a inflationary pressure is felt because the petrol and diesel price are hike and so there may be a chance number of vehicle pass through the over expressway will be less than the we expect. And on the another side there may be a chance of increment in the interest rate. So we most of the our debt is floating. So what will be the how the business will be in the FY27 in this respect the inflationary pressure as well as the toll revenue may reduce because of the lesser traffic on our highways.
Hello.
Rushabh Gandhi
Yes, thank you for. Are you audible?
Nilesh Doshi
Yes sir. Sir please.
Rushabh Gandhi
Yes sir. So basically there are two parts. One was regarding the traffic. So during the financial 27 we have received a tariff revision of around two and a half percent. And in the month of April also we have seen robust traffic. So our traffic revenue for the month of April was around 9%. So having a diversified portfolio gives that particular benefit to us. So geographically diversified assets are there. So we believe that during the current financial year that revenue growth should be in the range of 8 to 10% for the entire portfolio.
And coming to that part we have a mix of fixed and floating rate. So our current weighted average cost of Debt is around 7.75% which has a mix of NCD parts as well as the term loan and term loan is linked to MCLR rate. So we don’t foresee any significant increase in the MCLR rate per se.
Nilesh Doshi
But because the just now the fuel price has hiked by three rupees and there is a chance that the further hike may come and show there will be some impact on the traffic. So our total revenue will reduce and on the other side if the interest rate can our interest cost will high. So then our net distribution cash flow may reduce. That that is our concern. Sir,
Rushabh Gandhi
We don’t. We do not possibly that particular challenge. But the positive part is we have a fixed price O and M contract. So on the maintenance part we have fixed price contact wherein the outflow are fixed so that the fuel price major fluctuation would be on the O and M part. But then having a fixed price point gives us that particular benefit. And Overall for the Financial 27 we don’t see a significant challenge. But maybe as and when we go through the year we can look into this.
Nilesh Doshi
Okay sir. And sir, you just mentioned that you have received the non binding offer from the private trust and enterprise value of that two project is around 4,600 and something crore rupees. And you also mentioned that the further equity acquisition will be non diluted. It means the further acquisition will be through the debt and so will it be acquired in the current year. It is a proposal. And so what Will be the debt composition post the this acquisition. And what could be the interest rate on that debt?
Rushabh Gandhi
Basically sir, we received a non binding offer from the private trust for acquiring two assets. The enterprise value of these two assets is 4,660 crores. And what we the current leverage is around 43%. So we can go up to 49% as per the current date approval part. And the equation would be a optimum mix of debt and equity. So we won’t go entirely out of debt because the current leverage is 43%. But the live current portfolio life is around 16 to 17 years.
Nilesh Doshi
Yes. So. So there may be a chance of the further dilution. Also. Because the 49% if the we acquire only through the debt then we may reach the maximum limit also of the debt raiser. So is there a possibility that further dilution.
Operator
Ladies and gentlemen, the management line has been disconnected. Please stay connected while I get them reconnected. Thank you. Ladies and gentlemen, the management line has been reconnected. I would request you to repeat your question.
Nilesh Doshi
Okay. Okay. Okay. Fine. Sir, just you mentioned that the current debt level is the 43%. And the maximum limit allowed is 49% and 4,000. Suppose we acquired the proposed asset through debt. Then we may reach the 49%. Or we will do the some dilution and the part of part funding through the debt. Is it possible?
Rushabh Gandhi
So currently the weighted life of the portfolio is around 17 years. And the assets which we are acquiring also around 16 to 17 years. So then effectively if we go for this equation it won’t be dilutive for the unit holders. And we will go for an optimum mix of debt and equity. It would be an optimum mix.
Nilesh Doshi
And both projects are the hand project or board Projects are.
Rushabh Gandhi
Both are beautiful. One is situated in the state of Maharashtra. And another in the state of Rajasthan.
Nilesh Doshi
Okay. And sir, my last question. In the the April 2026 the toll collection press release there was a one project Tumkur. Where the. You mentioned that April 2025. I repeat April 2025 collection. You. You mentioned the 344 million. Whereas the in the May 2025. Three hundred and ninety three. Why there was a reduction in the from three hundred and ninety three to three hundred and forty four.
Rushabh Gandhi
Yes. So in case of project. So authority had provided other additional stretch for collection. Wherein we were only collecting the toll. And we were remitting 97% absorbed at toll collection to the authority. And 3% we were just retaining as a agent for them. So from April 26th this particular stage NHI themselves are collecting. So accordingly we are not collecting that particular collection. And so collection is net of that bypass. So if we consider the previous year also for the entire financial year the contribution net 3% contribution was around 1 and a half crore only.
Nilesh Doshi
So. So 3,344 millions is belongs to the IRP in me only. Or still there is some component is for the other party.
Rushabh Gandhi
So the revenue share part is not there. But no. Nevertheless there is a premium payment in tungur which we are paying on annual basis. That is that. But this collection is on cross basis which will approve to the trust.
Nilesh Doshi
Okay. Okay. Thank you sir. Thank you. That’s all from the my side. Thank you. Thank you sir. If possible sir, last question. Sir, our distribution is not taxes. Because a large portion of the distribution comes in the power. The interest out of the 1, 1 rupees 66 paisa, 1 rupees 44 paisa is in this component. And the impact the post tax return is reduced. Is there a chance that we that there will be a large portion of the dividend which is exempted in the hands of the recipient? Is there a chance of the capital repayment?
Anything is there.
Rushabh Gandhi
So typically for any portfolio, so when the underlying SPV generates cash flow so the first preference would be dividend. So if that SPV generates book profit then we go for dividend. Then thereafter for interest on the outstanding debt the interest is paid to the trust. So currently for the entire portfolio the debt is at trust level. So there is no external debt at the SPV level. So the second preference would be to distribute in the form of interest. And thereafter we have to comply with the 90% regulation requirement.
So that goes in the form of return of capital. So typically when any asset comes to the fag end of the concession at that time it starts generating book profit. And the distribution happens in the form of dividend which in case of MVR was there. So thereafter in case of ham asset if the generation is above the interest distribution then we go in the form of return of capital. So typically it would be in ratio of 80 to 20. 80% in the form of interest and 20% may be in the form of dividend and return of capital.
Nilesh Doshi
Okay. Okay. Thank you. Thank you. That was my last question. Thank you sir.
Rushabh Gandhi
Thank you.
Operator
Thank you. Participants, please restrict yourselves to two questions. In case if you have any more questions you may rejoin the queue. Our next question comes from the line of Rishabh Share Dayan from Praveen Ratilal Wealth. Please go ahead. Yes
Rushabh Sharedalal
Sir. Good Morning. Am I audible?
Rushabh Gandhi
Yeah. Good morning.
Rushabh Sharedalal
Yeah, thanks for the opportunity and congratulations. Finally we are seeing some traction coming back in irb. I have broadly two questions. The first is on the current net distributable cash flows. So if I see your slide 29, the FY25 NDCF was around 480 crores and FY26 NDCS is around 706 crores. Now what I want to understand is that assuming that we had not acquired the assets that we have already acquired this year, what would have been the comparable net distributable cash flow? And along with that you have said that you expect a revenue growth of around 8 to 10%.
That is what you said in your remarks to the previous participant. So what I want to also know is that how much of that would translate into the NDCF for FY27? Yeah, that’s question number one.
Rushabh Gandhi
Yes. So broadly please look at the NDCF for FY27. So what we believe it would be somewhere around six and a half percent. So three to five percent. So in the fourth quarter itself we have started improving the NDCA. So from next year the distribution for the entire year would be somewhere around 6.5 rupees per unit. And with regard to the current portfolio, the current portfolio have performed but the acquired asset will perform better than the current portfolio. So our distribution would be slightly on the lower side as compared to what we have distrusted in the earlier.
If you look at the overall total revenue growth perspective. So our existing portfolio has performed but it’s on a lower side as compared to the acquired fx.
Rushabh Sharedalal
So is it safe to say that the existing Portfolios NDCF for FY26 was more than 481 crores. Is it safe to say that
Rushabh Gandhi
It would be slightly on a lower side? Because if you look at the revenue growth, it was on lower end. Correspondingly the premium obligation, other obligation are still there, even the debt obligation.
Rushabh Sharedalal
Okay, right. Right. The next question that I have is on the two assets that you are planning to acquire in Maharashtra and Rajasthan, the enterprise value, which of which is around 4600 crores. So how much of this? First of all, when do you expect this assets to come into the portfolio and start contributing? That’s question number one. Also you have said that this will not be dilutive to the existing unit holders. Plus the asset life for them is also similar to what we have currently. You are confirming all both these things, right?
Rushabh Gandhi
That’s correct. So basically currently we are evaluating this opportunity. So we’ll take it to our board. And thereafter if the board found it suitable we can take it to the unit holders approval. And broadly if you look at the timelines. So somewhere in Q2 we should be able to acquire this asset. And the cash flow should start contributing from Q3 onwards.
Rushabh Sharedalal
Right. So what I want to understand is that how much more net distributable cash flow can these two assets start adding from Q3 onwards. Considering that the Omar Omalore Salem Namakal goes out of our portfolio from this year onwards. Right. So the addition that will be done by these two assets. And if you can, you know just give us some color on where are they situated and which national highways are they exactly situated. And will they be able to compensate more than what we are seeing the outflow for the Salem project.
Rushabh Gandhi
It will be premature to confirm any NDCF number for the proposed acquisition. But the both the assets are situated in a geographically positive state. And Solapur Yadeshi is part of the Maharashtra. And the other project, Chittargarh Gulapura is the convenient state of our KG project which we recently acquired. And they are part of the Golden Quadrilateral.
Rushabh Sharedalal
Both the projects are part of the Golden Quadrilateral.
Rushabh Gandhi
Only the Chittargarh project in the state of Maharashtra.
Rushabh Sharedalal
Right. Right. Right. Got it. So what you are trying to say is when you confirm that there’ll be no further equity dilution. Right. Hello.
Rushabh Gandhi
Yeah. It will be yield equity for the unit holder. There won’t be any yield dilution for the unit owners. That’s what we are saying.
Rushabh Sharedalal
Right? Right. So my only request again to the management is that we are grossly undervalued asset. And I request that you add add more and more assets to the portfolio. Considering the kind of better headroom that we have. That’s my only request. Thank you. And all the best.
Rushabh Gandhi
Thank you. Thank you, Rishabh.
Operator
Thank you. Ladies and gentlemen. That was the last question for today. I would now request Mr. Rushab Gandhi to give you an overview for the closing remarks.
Rushabh Gandhi
Thank you very much. Thank you for being on the call. 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 Bites conferencing services. You may please disconnect your lines now. Thank you and have a great day ahead.