Cube Highways Trust has released its Annual Report for the financial year 2025–26, presenting a comprehensive account of its financial performance, portfolio growth, sustainability initiatives, and strategic milestones. The report covers the period from April 1, 2025, to March 31, 2026, and reflects the Trust's progress across operational, financial, and governance dimensions. The Third Annual Meeting of unitholders is scheduled for Friday, July 17, 2026, at 04:00 p.m. (IST) through Video Conferencing / Other Audio Visual Means, with the cut-off date for e-voting set at July 10, 2026, and remote e-voting open from July 13, 2026 to July 16, 2026.

Financial Performance: Strong Growth Across Key Metrics

The Trust delivered robust consolidated financial results for FY 2026, with income and profitability metrics showing meaningful year-on-year improvement. The following table summarises the key financial performance indicators:

Toll revenue grew 10.6% year-on-year, while portfolio traffic growth stood at 8.1% in PCU terms. Average daily toll collections reached INR 93.2 million during the year, with electronic toll collection (ETC/FASTag) at 96.93%. All 18 annuity payments due during the year were received in full and on schedule, contributing stable annuity receipts of INR 16,258 million. Consolidated income increased to INR 43,590 million compared to INR 34,532 million in FY 2025, reflecting growth of 26.23% year-on-year.

Portfolio Overview and Acquisitions

As of March 31, 2026, the Trust's portfolio comprised 27 road assets spanning 2,005 km (8,754 lane km) across 12 states and one union territory, with an average residual concession life of 18.0 years and an average operating history of 9.2 years. AUM stood at INR 368.42 billion, up from INR 322.66 billion as of March 31, 2025.

During FY 2026, the Trust completed the acquisition of two fully operational BOT annuity road assets — Quazigund Expressway Private Limited (QEPL) and Jammu Udhampur Highway Private Limited (JUHPL) — from the National Investment and Infrastructure Fund on June 12, 2025, for an enterprise value (including cash) of INR 41.85 billion, subject to all closing adjustments as specified in the Share Purchase Agreement. These assets are located in Jammu & Kashmir and include one of India's longest bi-directional tunnels.

Additionally, commitment letters were executed for four further highway assets — Baharampore-Farakka Highways Limited (BFHL), Devanahalli Tollway Private Limited (DTPL), Western MP Infrastructure & Toll Roads Private Limited (WMTPL), and Chenani Nashri Tunnelway Limited (CNTL) — with an aggregate enterprise value of INR 72.93 billion as of March 31, 2026. Upon completion, the portfolio is expected to expand to 31 assets across 13 states and one union territory. The Trust also maintains a Right of First Offer for three further sponsor assets, providing a visible pipeline for future growth.

Committed Assets Overview

The four committed assets span multiple states and concession models. Key details are summarised below:

Balance Sheet and Financing

The Trust maintained a disciplined capital structure through FY 2026. The weighted average cost of debt declined from 8.19% to 7.53% during the year, supported by active refinancing and Non-Convertible Debenture issuances. Fixed-rate borrowings accounted for 25.23% of total debt as of March 31, 2026, compared to 21.19% in the previous year.

The Trust's AAA/Stable credit ratings were reaffirmed by CRISIL, ICRA, and India Ratings during the year. The Trust also diversified its lender base across banks, insurance companies, mutual funds, development finance institutions, and capital market investors.

Transition to Public Listing

A significant milestone during FY 2026 was the filing of the Draft Offer Document with SEBI on March 17, 2026, for the proposed conversion of the Trust from a privately listed InvIT to a publicly listed InvIT structure. The proposed Offer for Sale of up to INR 50 billion is expected to broaden the investor base, enhance liquidity, and strengthen price discovery. Unitholder approval for the conversion was received through postal ballot on February 20, 2026.

Unitholder Returns and Distributions

The Trust declared a DPU of INR 13.77 for FY 2026, the highest annual distribution since listing. Cumulative distributions since listing stood at INR 34.86 per unit. The NAV increased from INR 100 per unit at listing to INR 145.77 per unit as of March 31, 2026, delivering a total return of INR 77.1 per unit over three years and an IRR of 23.63%.

ESG and Sustainability Highlights

Cube Highways Trust continued to advance its sustainability agenda during FY 2026. Scope 1 and Scope 2 GHG emissions intensity declined to 2.23 tCO2e per lane km in CY 2025, against a CY 2030 target of 1.62 tCO2e per lane km. Operational initiatives resulted in a total emissions reduction of 9,086 tCO2e during the year, driven by LED transition, solar energy generation, electric vehicle deployment, and the use of Reclaimed Asphalt Pavement (RAP) in major maintenance works. RAP utilisation reached approximately 79,772 MT across three assets. Solar installations of approximately 395.71 kWp were operationalised across DATRPL's toll plazas, and 6,000 MWh of International Renewable Energy Certificates (I-RECs) were procured.

On the social front, the portfolio recorded 15.8 million safe work hours with a Lost Time Injury Frequency Rate of 0.70. Women's participation across the corporate and SPV workforce stood at 8.47%, progressing toward the 10.5% FY 2030 target under the Sustainability Linked Bond framework. Total plantation across the portfolio crossed 4,12,595 saplings, including 1,02,000 under Miyawaki afforestation across five assets. The Trust also published voluntary BRSR disclosures with Limited Assurance of Core KPIs for the second consecutive year, with DNV Business Assurance India Private Limited as the assurance provider.

Valuation Summary

Ernst & Young Merchant Banking Services LLP (IBBI Registration No. IBBI/RV-E/05/2021/155) was appointed as the independent valuer. The total enterprise value of the 27 SPVs as at March 31, 2026, as determined by the independent valuer using the Discounted Cash Flow method, is summarised below:

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE0NR623014/eb329c8596c041ce.pdf

Cube Highways Trust announced the conclusion of the concession period for its project Special Purpose Vehicle (SPV), Western UP Tollway Private Limited (WUPTPL), which expired on June 23, 2026, at 23:59:59 Hrs. The termination follows the expiry of the concession agreement signed between the SPV and the National Highways Authority of India (NHAI). The Investment Manager is currently evaluating the future course of action for the SPV to ensure compliance with regulatory requirements and protect unitholder interests.

The development was intimated to the exchanges in reference to Regulation 23 of the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014. The Investment Manager, Cube Highways Fund Advisors Private Limited, stated that appropriate steps will be taken in accordance with applicable laws. Upon the successful handover of the project to NHAI and fulfillment of divestment obligations, a vesting certificate will be issued by the concessioning authority to evidence the transfer of the asset.

WUPTPL was incorporated on April 20, 2005, originally as a public limited company before converting to a private limited company. The entity was engaged on a Build-Operate-Transfer (BOT) basis for the four-laning of the Meerut to Muzaffarnagar section of NH 334 in Uttar Pradesh. The project spanned an overall length of 77.8 kilometers.

The table below outlines the key details of the project SPV:

The Investment Manager is guided by SEBI circular SEBI/HO/DDHS/DDHS-PoD-2/I/11698/2026 dated May 15, 2026, regarding the post-concession period management. The Trustee to the InvIT is Axis Trustee Services Limited, while Catalyst Trusteeship Limited acts as the Debt Security Trustee. The filing was signed by Richa Gupta Rohatgi, Compliance Officer and Company Secretary, on June 24, 2026.