IndiGrid Infrastructure Trust has executed a Securities Purchase Agreement to acquire Shongtong Power Transmission Limited (SPTL) from Enerica ReGrid Infra Private Limited. The transaction carries an enterprise value of up to INR 53,158 million, subject to closing adjustments.

The acquisition targets an inter-state transmission system designed to evacuate power from hydroelectric projects in Himachal Pradesh. IndiGrid plans to acquire the entire shareholding and management control of SPTL in one or more tranches after the project becomes revenue-generating.

Transaction Structure

The deal is structured as a cash consideration or other mutually agreed manner, compliant with SEBI InvIT Regulations. The purchase price is capped at INR 53,158 million and will be adjusted based on the Transmission Service Agreement (TSA) terms on the acquisition date.

Key structural details include:

• Target entity: Shongtong Power Transmission Limited (SPTL)
• Seller: Enerica ReGrid Infra Private Limited (EnerGrid)
• Consideration: Cash or mutually agreed mode
• Control: 100% shareholding and management control

Regulatory and Related Party Aspects

The transaction involves a related party element. Terralight Solar Energy Tinwari Private Limited (TSETPL), a group entity of EnerGrid, shares a common director with IndiGrid’s investment manager. This relationship falls under Regulation 2(1)(zv) of the InvIT Regulations.

IndiGrid states the transaction will be completed at an arm’s length price, supported by a valuation report as per InvIT Regulations. The acquisition remains subject to unitholder approval and requisite governmental or regulatory clearances.

Asset Profile

SPTL was incorporated on June 14, 2023, by REC Power Development and Consultancy Limited. The entity holds a paid-up capital of INR 5,00,000 and currently reports nil turnover as the project is under construction.

The transmission scheme facilitates power evacuation from the 450 MW Shongtong Karcham Hydro Electric Project and the 150 MW Tidong Hydro Electric Project. The expected commercial operation date is Q4 FY29.

IndiGrid Infrastructure Trust reported a 29% year-on-year increase in revenue to ₹1,087 crore for the quarter ended June 30, 2026. Operational EBITDA rose 23% to ₹860 crore, supported by new project additions and robust asset performance across its transmission and solar portfolio.

The infrastructure trust announced a quarterly distribution per unit (DPU) of ₹4.12, aligning with its annual guidance of ₹16.48 for FY27. The net asset value (NAV) per unit stood at ₹146.93 as on June 30, 2026.

Financial Performance

Total revenue for Q1FY27 reached ₹1,087 crore, up from ₹704 crore in the same period last fiscal. This growth was driven by both operational assets and service concession accounting contributions. Operational revenue specifically grew 18.9% year-on-year to ₹930 crore.

EBITDA metrics reflected similar strength. Total reported EBITDA was ₹906 crore, representing a 29% increase. Operational EBITDA stood at ₹860 crore, with margins holding steady at 89.1%.

Distribution and Cash Flow

The board approved a gross distribution of approximately ₹392 crore for the quarter. Net distributable cash flow (NDCF) generated during the quarter was ₹370 crore. To meet the distribution obligation, the trust utilized reserves to the extent of around ₹22 crore. Post-distribution, the NDCF reserve balance remains at ₹522 crore, covering more than 1.5 quarters of future distributions.

Collections remained robust, with solar assets achieving 100% collection efficiency and receivable days at 34. Transmission collections were at 95%, with receivable days at 38. Management noted that lower Q1 transmission collections are consistent with historical trends, with improvements typically seen in later quarters.

Balance Sheet and Capital Structure

IndiGrid maintains a AAA credit rating from all three major agencies. The average cost of debt as on June 30, 2026, was 7.4%, with 89% of gross borrowings fixed-rate. The net debt-to-assets under management (AUM) ratio stands at 58.5%, providing significant headroom for future acquisitions without additional capital raising.

The trust holds a cash balance of ₹1,511 crore. Gross borrowing totals approximately ₹21,100 crore, with an interest coverage ratio of 2.29x. Refinancing requirements for FY27 are estimated at around ₹1,900 crore, less than 10% of total gross borrowing.

Operational Highlights

Operational availability remained high across the portfolio. Weighted average transmission availability was 99.64%, while solar capacity utilization factor (CUF) was 26.5%. Battery energy storage system (BESS) projects achieved a round-trip efficiency of 88.4%, exceeding the contractual requirement of 85%.

Safety records showed zero medical treatment cases and zero first aid cases, though one lost-time incident occurred during emergency restoration work. Solar generation totaled 669 million units.

Pipeline and Growth Strategy

Through its development arm, EnerGrid, IndiGrid secured two letters of intent in Himachal Pradesh. These include the Shongtong transmission scheme and the evacuation system for Sunni Dam and Luhri Stage-1. Combined, these projects involve a capex of approximately ₹5,800 crore and will add over ₹6,000 crore to AUM upon commissioning.

Management expects to acquire ₹2,000 crore worth of projects from EnerGrid in FY27. Over the next 2-4 years, IndiGrid anticipates absorbing ₹10,000 crore to ₹13,000 crore of assets from EnerGrid’s construction pipeline.

What the Numbers Show

The divergence between total revenue growth (29%) and operational revenue growth (18.9%) highlights the significant contribution of service concession accounting to the top line. While operational cash flows remain strong, the reliance on reserves to fund the current quarter’s distribution underscores the seasonal nature of transmission collections, which typically lag in Q1 before improving in subsequent quarters.