Vertis Infrastructure Trust (formerly known as Highways Infrastructure Trust) has filed its Fourth Annual Report for the financial year ended March 31, 2026, pursuant to Regulation 23(3) of the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014. The report was submitted on June 30, 2026, and covers the period April 1, 2025 to March 31, 2026.

Portfolio Expansion and AUM Growth

The Trust's assets under management increased to ₹272 Bn as of March 31, 2026, compared to ₹190 Bn as of March 31, 2025. This growth was driven by the completion of 100% acquisition of 12 Special Purpose Vehicles (SPVs) from PNC Infratech Limited and PNC Infra Holdings Limited, with the final tranche closing on March 27, 2026. The acquired portfolio comprises eleven National Highway Hybrid Annuity Model (HAM) projects and one State Highway Build-Operate-Transfer (BOT Toll) project, aggregating approximately 3,800 lane-km across Uttar Pradesh, Madhya Pradesh, Karnataka, and Rajasthan.

Following the transaction, the Trust's portfolio expanded to 8,428 lane-km across nine states, comprising 28 assets.

Acquisitions During the Year

The Trust acquired 100% equity stake and management control in the following twelve SPVs:

The aggregate consideration for these acquisitions was ₹90,057 million (subject to adjustments as set out in the relevant share purchase agreement).

Financial Performance

The Trust reported strong financial performance for FY26, with key consolidated metrics as follows:

Toll revenue grew by 13.1% on a like-for-like basis (excluding newly acquired NTEPL and BNHPL projects). Including these acquisitions, toll revenue grew by 48.1% during the year. The portfolio recorded traffic growth of 9.9% and a compounded annual traffic growth of 7.2% over the past seven years.

Operating expenses increased to ₹4,895 million from ₹3,005 million in FY25, largely in line with portfolio growth. Income tax paid increased from ₹1,126 million in FY25 to ₹2,457 million in FY26.

Debt Position and Treasury Management

During FY26, the Trust raised ₹87,812 million of debt to fund acquisitions and refinancing requirements. The borrowings comprised:

The debt raised included refinancing of existing borrowings of ₹13,918 million. Borrowings at the trust level increased from ₹48,110 million in FY25 to ₹1,11,647 million in FY26. The Trust reduced its cost of borrowing by 91 basis points during the year, half of which was achieved through active treasury management. The weighted average tenor of outstanding borrowings stands at approximately 11.6 years, with 83% of total debt classified as long-term (residual maturity exceeding three years).

The Trust maintained its AAA/Stable credit rating from both CRISIL Ratings and India Ratings & Research Private Limited throughout FY26.

Distributions and NAV

The Trust declared four distributions during FY26:

The Net Asset Value (NAV) as computed as on March 31, 2026 is ₹106.80 per unit, compared to ₹93.97 per unit as on March 31, 2025. The yearly yield for FY2025-26 stands at 11.24%.

Safety and Sustainability

The Trust strengthened its safety culture during FY26. HSE training hours increased from 27,766 man hours in FY25 to 63,398 man hours in FY26. Safety Walks conducted by Project Managers increased from 284 in FY25 to 468 in FY26. Hazard reporting increased 129% year-on-year, with 18,000+ hazards identified and addressed in FY26.

The Trust also issued the largest Sustainability-Linked Financing (SLF) by any InvIT in India's highway sector, amounting to ₹9,000 Mn with a 10-year tenor. Sustainability performance targets include a 27% reduction in GHG emission intensity by FY30 and 22% female representation by FY30.

Governance and Regulatory Compliance

The Board of Directors of the Investment Manager comprises ten directors, including five independent directors (one of whom is a woman director), two non-executive directors, two executive directors, and one unitholder nominee director. The Trust received a new certificate of registration dated June 18, 2025, following its name change from Highways Infrastructure Trust to Vertis Infrastructure Trust. The Investment Manager was also renamed from Highway Concessions One Private Limited to Vertis Fund Advisors Private Limited with effect from June 25, 2025.

The Fourth Annual Meeting of unitholders is scheduled for Monday, July 27, 2026, to be held through Video Conferencing/Other Audio-Visual Means.

Vertis Infrastructure Trust presented its corporate overview at the REITs & InvITs Conclave 2026 organized by Avendus on June 16, 2026. The management of Vertis Fund Advisors Private Limited, the Investment Manager to the Trust, outlined the entity's scaled portfolio of 28 operational assets across 9 states, comprising a balanced mix of toll and HAM/Annuity assets. As of March 31, 2026, the Trust reported an Assets Under Management (AUM) of INR 272 bn.

Portfolio and Asset Overview

The Trust's portfolio includes 12 toll assets, 15 HAM assets, and 1 annuity asset. The toll portfolio, with an operating history of over 16 years, is diversified across key traffic corridors including the North-South Corridor, East-West Connectors, and Golden Quadrilateral. The AUM is distributed across various states, with significant exposure in Gujarat (20%), Telangana (21%), and Madhya Pradesh (11%).

Financial Performance and Distributions

Vertis Infrastructure Trust has demonstrated a track record of NAV accretive growth, expanding its AUM from INR 57 bn at listing to INR 272 bn as of March 31, 2026. The Trust has maintained a consistent distribution record since its listing in August 2022. The cumulative distribution reached INR 57.09 per unit, totaling INR 49,171 mn, with the latest distribution of INR 3.6 per unit declared for the quarter ended May 23, 2026.

Operational Excellence and Growth Strategy

The Trust emphasized its operational efficiency, driven by in-house capabilities and disciplined underwriting. Initiatives such as the adoption of Stone Matrix Asphalt (SMA) and plastic waste utilization for road maintenance have resulted in cost savings and improved pavement life. The management highlighted a moderate leverage of 41.3%, which provides significant headroom for debt-funded growth supported by sector tailwinds like the National Monetisation Pipeline (NMP) 2.0.