IRB InvIT Fund reported a 66% year-on-year increase in revenue from operations to ₹4,746.3 million for the quarter ended June 30, 2026 (Q1FY27). The growth was primarily driven by the consolidation of newly acquired toll assets, including Kaithal Tollway Limited and VM7 Expressway Private Limited.

Despite the top-line expansion, net profit after tax declined 20% to ₹794.4 million, compared to ₹995.9 million in the corresponding period of the previous year. The reduction in profitability was attributed to a significant rise in finance costs and amortisation expenses associated with the expanded portfolio.

Financial Performance Overview

The Trust’s total income rose to ₹4,922.1 million from ₹2,922.9 million in Q1FY26. Interest income on bank deposits increased sharply to ₹54.9 million from ₹19.5 million, while other income grew to ₹120.8 million from ₹51.4 million, aided by fair value gains on investments.

Expense Breakdown and Margins

Total expenses surged by 117.6% to ₹4,118.4 million. Finance costs (interest) more than doubled to ₹1,818.0 million from ₹684.7 million, reflecting the debt load associated with recent acquisitions. Amortisation of intangible assets also rose significantly to ₹1,277.6 million from ₹706.1 million.

Project management fees increased to ₹461.8 million from ₹177.0 million, aligning with the larger asset base. Operational expenses stood at ₹378.5 million, up from ₹168.9 million in the prior period.

What the Numbers Show

The divergence between revenue growth and profit decline highlights the impact of leverage on the Trust’s earnings structure. Finance costs accounted for approximately 44% of total expenses in Q1FY27, compared to roughly 36% in Q1FY26. Additionally, amortisation of intangible assets represented 31% of total expenses, indicating that non-cash charges continue to exert significant pressure on reported net profits despite strong cash flow generation from operations.

Cash Flows and Distributions

Net cash flows generated from operating activities improved to ₹4,204.7 million from ₹3,089.5 million. However, cash used in financing activities rose to ₹3,852.0 million, driven by distributions to unitholders amounting to ₹1,896.7 million and repayment of borrowings of ₹127.2 million.

The Board approved a distribution of ₹1.625 per unit for the quarter, comprising ₹1.00 as interest and ₹0.625 as return on capital. This payout was declared after the reporting period.

Balance Sheet Highlights

As of June 30, 2026, total assets stood at ₹227,471.8 million. Non-current assets decreased slightly to ₹211,047.1 million from ₹213,212.4 million, largely due to amortisation of intangible assets. Cash and cash equivalents fell to ₹892.9 million from ₹2,490.9 million, reflecting distribution outflows and debt repayments.

Total liabilities amounted to ₹146,983.9 million. Borrowings remained stable at ₹93,638.0 million (including current maturities), with no new secured borrowings raised during the quarter. The gearing ratio, calculated as net debt divided by total equity, stood at 1.15 times, up from 1.11 times at the end of FY26.

The board of directors of IRB InvIT Fund has scheduled an Extraordinary Meeting (EGM) of unitholders for Monday, September 21, 2026, at 11:00 am. The meeting aims to secure approval for a preferential issue of up to ₹3,510 crore worth of units to the trust’s sponsor, IRB Infrastructure Developers Limited.

Preferential Issue Details

The Investment Manager, IRB Infrastructure Private Limited, authorized the issuance of 54 million units at ₹65 per unit during its board meeting held on August 26, 2026. This issuance replaces the broader consideration for unit and NCD issuance previously scheduled for the agenda. The transaction requires approval from the unitholders via special majority and receipt of necessary regulatory consents.

Use of Proceeds and Pricing Rationale

The trust intends to utilize the proceeds for the partial funding of the acquisition of CG Tollway Limited and Solapur Yedeshi Tollway Limited. Unitholders had previously approved this acquisition via a postal ballot resolution dated August 3, 2026.

The issue price of ₹65 per unit was determined based on the SEBI Master Circular dated July 11, 2025. With August 21, 2026, as the relevant date, the 90 trading days' volume-weighted average price was ₹61.65, while the 10 trading days' average was ₹64.14. The NAV of the trust stood at ₹81.26 per unit as of March 31, 2026.

Unitholder Approval Process

The EGM will be conducted through Video Conferencing or Other Audio Visual Means (OAVM). Remote e-voting is available from Wednesday, September 16, 2026, at 9:00 am until Sunday, September 20, 2026, at 5:00 pm. The cut-off date for voting eligibility is Monday, September 14, 2026. Results are expected by Wednesday, September 23, 2026.

Trading Window Update

The trading window for dealing in the trust’s units, which was closed on August 23, 2026, will reopen forty-eight hours after the conclusion of this disclosure, in compliance with the Code of Conduct for Regulating, Monitoring and Reporting of Trading by Designated Persons.

Regulatory Filings

The outcome was filed with the Corporate Relationship Department at BSE Limited and the Listing Department at National Stock Exchange of India Limited. IDBI Trusteeship Services Limited was copied on the communication.